There are some coins that enable you to earn interest and dividends, but for the coins that don’t, what can you do? Well, there are different services and opportunities made for crypto investing and lending that allow you to take advantage of the coins that you would otherwise be holding and invest with them. The issue is how do you know where to start and what resources to rely on.
The creator of https://earncryptointerest.com/ wanted to compare different platforms that offered these services and figure out which platforms are the best to invest with for different coins and what their interest rates are annual. It’s updated every 15 minutes so it’s accurate and gives some great insight into current interest opportunities. The founder had trouble finding all the providers and comparing them which is how they came up with the idea for this website. They collect in-depth data and store it in a database which is what you see on the front page.
They describe their need for their niche as “In the fiat finance world earning interest exists for a long time. In the crypto world, it's a new concept. More and more different offers of different flavors are coming to the market which makes it hard to keep track of them and even more to compare them.”
The key takeaway here is that they are the only site of their kind right now and really help to solve this lack of transparency and help you to extract insights from the comparison of various providers. That’s why they are my go-to resource when deciding who to lend with and what coins to focus on lending.
The data is all compiled from 12 sources which are:
Cryptolend - https://earncryptointerest.com/cryptolend-7.html
Dharma Lever - https://earncryptointerest.com/dharma-lever-9.html
Celsius Network - https://earncryptointerest.com/celsius-network-1.html
Whalelend - https://earncryptointerest.com/whalelend-3.html
Each write-up details the type of platform, the way their interest is acquired, the lock-up period and how long you must lock in your investment for, the procedure, the token utilized, and the company operating.
The various coins on here give you an idea of how they’re doing, and it will show you the platforms they are on as well. They have all major coins plus some stable coins and popular altcoins listed. You’re better off sticking with one coin mainly for lending unless you are just lending out all your HODLs regardless of what they are.
Many people are looking for ways to passively earn more and I am one of those people and this is awesome, but I’m sure you might have some questions. I had the same ones and the main ones are in their FAQ.
You might wonder what a lock-up period is for your interest. Well, it’s the amount of time that you cannot withdraw it for so your crypto can be lent within that period to earn interest on. So ideally you have the option to then make more with longer lock-up periods. You can keep this in mind when deciding if you want more interest with less liquidity or if you are looking for a more short-term option allowing you to pull out more quickly to sell.
Another common question is: “Is the interest rate fixed?” No, as explained earlier they are updated every 15 minutes. They are whatever the current rates of the providers are showing at the time.
Before really diving into this I was wondering how is the interest earned? There are two sources of interest. Lending to traders to trade on your behalf with or lending to someone who takes a loan. Either way, it is interest based off lending which is how a lot of fiats are earned today too. Providers will pay out in different coins, but the default is typically the coin you lent.
Lending is a great way to make more money while still being able to HODL your coins and is even more relevant in bearish markets where trading is less feasible. If you just HODL and never check your coins, this is an easy way to make some passive income. Take away from the great principles in coins like Steem and how we can earn more with it via staking etc. and apply that to stable coins and other cryptos for lending and we have a modern-day financing strategy where people get crypto loans and lenders get to build their portfolio with ease.
If you’re like me, then you are just as thrilled to see more ways that we can earn more passive income with otherwise dormant crypto and make money work for us. It’s especially relevant when there are APRs as high as 36.50% too!
Let me know your thoughts on investing your coins into lending and if you’ve tried it and what you think of this free website that tracks everything you need for you.
For more information check out their website: https://earncryptointerest.com/
Or follow them on Twitter: https://twitter.com/cryptoearncom