HomeCrypto UpdatesTop Crypto Lending Rates: Bitcoin Market Journal Insights

Top Crypto Lending Rates: Bitcoin Market Journal Insights

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If you’re looking to earn interest on your crypto – like earning interest in the bank – you’ll likely want to do it through a crypto lending platform. Here are the best rates as of September 2023:

  • BTC: Nexo (7.00% – 8.00%), WBTC (16.00%), Crypto.com (1.50% – 2.00%), Coinloan (5.00%), Binance Savings (0.33% – 3.04%), Youhodler (7.00% – 7.00%), Aave (0.08%), Compound (0.02%), Mango (No rates available)
  • ETH: WBTC (14.00%), Nexo (14.00%), Crypto.com (6.50%), Coinloan (6.00%), Binance Savings (2.76%), Youhodler (12.00%), Aave (2.30%), Compound (0.03%), Mango (No rates available)
  • USDT: Nexo (16.00%), Crypto.com (6.50%), Coinloan (6.00%), Binance Savings (0.69%), Youhodler (12.00%), Aave (2.16%), Compound (3.41%), Mango (No rates available)
  • DAI: Nexo (14.00%), Coinloan (6.00%), Binance Savings (2.80%), Youhodler (12.00%), Aave (3.68%), Compound (3.09%), Mango (No rates available)
  • USDC: Nexo (7.00% – 8.00%), Crypto.com (6.50%), Coinloan (6.00%), Binance Savings (2.76%), Youhodler (12.00%), Aave (2.84%), Compound (2.51%), Mango (No rates available)

What is Crypto Lending?
In the traditional banking system, you keep your money in a savings account, and the bank uses your money to make loans. As the loans are paid back (with interest), some of that interest is passed along to you. Crypto lending platforms work the same way, except you’re storing your crypto in a “lending platform” rather than a “savings account.” The difference is that banks pay an average of .06% interest, where crypto platforms can pay 6% or more. That’s a 100x improvement over banks. Finding the crypto lending platform, then, can help your wealth work for you – but in the rapidly changing world of crypto, it’s tricky to trust. That’s why we’ve pulled together the best crypto lending rates for you.

Types of Cryptocurrency Lending Platforms
There are two main types of crypto lending platforms: centralized finance (CeFi) platforms and decentralized finance (DeFi) platforms. Think of CeFi like a traditional bank: there’s a company behind the platform, so while they are not regulated like a bank, they are still responsible for your funds. DeFi platforms are more like the Internet itself: rather than one company being in charge, it’s a distributed network of lenders and borrowers, with blockchain-based smart contracts handling all the money.

CeFi Platforms
If you choose CeFi lending platforms like Coinbase or Binance, you entrust your crypto to a central entity or company. Most CeFi platforms implement KYC (Know Your Customer) and AML (Anti Money Laundering) practices, and thus require clients to share personal information. CeFi platforms operate similarly to online banks or traditional lending services. Despite the more rigorous rules compared with DeFi platforms, many choose CeFi services due to convenience and generally higher interest rates. CeFi services provide the security that “someone is in charge,” and are also easier to use. Also, some CeFi platforms enable users to borrow fiat against their cryptocurrency, with the fiat money being sent directly to their banking accounts.

DeFi Platforms
DeFi platforms are websites that handle the lending and borrowing automatically, using smart contract-based algorithms. Typically you install a Web3 wallet like MetaMask, then connect it directly into a  DeFi website like Uniswap. (Watch our DeFi Hands-On Workshop for step-by-step walkthroughs.) Lenders and borrowers go to DeFi platforms because they don’t require KYC verification, enabling users to maintain more privacy. However, DeFi users entrust their crypto funds to algorithms, which connect directly to their crypto wallets. There’s no “complaint line” if things go wrong.

Best CeFi Lending Rates
Nexo
Nexo is one of the largest crypto lending platforms in the market. Founded in 2017, it boasts over $12 billion in assets under management, and over 3 million users worldwide. If you have never used a crypto lending platform, Nexo may be the best place to start, due to its easy-to-use interface. The APY on Nexo can reach up to 18% on various digital assets. Today, the platform supports 29 cryptocurrencies, including BTC, ETH, BNB, ADA, LINK, DAI, DOGE, LTC, USDT, and USDC. The interest rate on stablecoins is sometimes above 10%, far higher than traditional savings accounts. U.S. customers are no longer accepted. Users can also earn interest on fiat currencies – like a traditional bank – and borrow fiat against crypto. Nexo supports USD, EUR, GBP, and several other currencies. Many investors choose Nexo because it offers compound daily payouts, flexible earnings, and $375 million insurance on all custodial assets. Users who choose to use NEXO – the platform’s native token – have additional privileges, such as better interest rates and more free crypto withdrawals.

Crypto.com
Crypto.com was founded in 2016 and has become one of the largest cryptocurrency services. It provides exchange, non-fungible tokens (NFTs), payment, and lending services to over 10 million users worldwide. In addition, its assets are backed by $750 million in insurance. The fact that it was picked by Visa to settle transactions on the fintech giant’s payment network tells a lot about Crypto.com’s potential. The platform’s Crypto Earn product has offered an APY of over 10%. In total, about 40 digital assets are supported, including the native token Crypto.com Coin, which makes users eligible for additional rewards. If you stake more of the Crypto.com coin, you can receive a higher interest rate.

CoinLoan
CoinLoan is a specialized crypto lending platform launched in 2017. The platform enables users to earn daily interest with their funds never being locked. At the time of writing, CoinLoan supports over 20 assets, including stablecoins like USDC, USDT, TUSD, BUSD, cryptocurrencies like bitcoin, Ethereum, Ripple, Stellar, and Monero, and fiat currencies, including the pound and the euro. The annual interest rate for popular coins like bitcoin and Ethereum is 7.2%, and it goes as high as 12.3% for stablecoins. CoinLoan relies on a series of security measures to keep the funds safe, including insured custody, vulnerability scans, 2FA (two-factor authentication), security alerts, and cold crypto storage, among others.

Binance Savings
Binance Savings is the crypto lending offering from the largest crypto exchange in the world by trading volume. Binance offers two options for its users: flexible savings and locked savings. The former allows investors to simply deposit their crypto assets and redeem the funds at any time. Locked savings are suitable for those who are ready to deposit their crypto funds for longer periods. The great thing about locked savings is that they come with higher interest rates on most occasions. It’s worth noting that Binance provides high interest rates on its proprietary stablecoin – BUSD, which is pegged to the US dollar. Depositors should expect an APY of 10% on BUSD with flexible savings. The interest rate on USDC is only 0.5%, as Binance regards Circle’s dollar-pegged stablecoin as a competitor.

Youhodler
Youhodler is a Swiss-based fintech platform focused on crypto lending and exchange services. Users can earn interest on deposits in BTC, USDC, TUSD, PAX, and more. The interest is paid weekly, and the APY figure has rated from 5% for BTC and ETH, to over 12% for stablecoins. The minimum deposit amount is $100 worth of crypto. The Crypto Loans service enables users to borrow BTC, stablecoins, or fiat currencies against 50 supported cryptocurrencies. Youhodler offers loans with 90% LTV for 30 days, 70% LTV for 61 days, and 50% LTV for 180 days.

Best DeFi Lending Rates
Aave
Aave is one of the major players in the world of DeFi. It allows users to borrow and lend money without intermediaries. As mentioned, no KYC or AML verification is required, which is true for all DeFi platforms listed here: just connect your Web3 wallet and go. Aave enables users to lend and borrow in about 30 cryptocurrencies, including ETH, USDC, DAI, and USDT. The protocol is fueled by the native token called AAVE. Here are the interest rates for lenders and borrowers:

Compound
Like Aave, Compound is one of the most popular and influential DeFi lending platforms; it sparked the initial DeFi craze back in 2020. Compound is extremely user-friendly, and easier for new users to navigate. The platform supports over 20 cryptocurrencies for lending and borrowing. Additionally, Compound allows its users to earn its native token, COMP, which gives holders the right to participate in the governance process (like shareholder voting in a traditional company).

Alchemix
Alchemix is an interesting DeFi lending protocol, as it offers self-paying loans. For example, a borrower deposits DAI to take a loan with up to 50% LTV, which is disbursed

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