In BTCManager’s series titled “Earn Crypto,” readers are being introduced to a wide range of platforms, applications, and ways that they can earn bitcoin and other digital currencies as a member of the cryptocurrency community.
In the ninth and final part of the “Earn Crypto” series, readers will be introduced to cryptocurrency lending as a method of earning cryptocurrency by leveraging existing holdings.
What is Crypto Lending?
Cryptocurrency lending refers to lending digital assets to individuals who require a loan in exchange for interest payments in cryptocurrency. Crypto lending can be done on exchanges where users can lend crypto to margin traders or through dedicated cryptocurrency lending platforms.
The three most user-friendly cryptocurrency peer-to-peer lending platforms anyone can use to earn interesting on their cryptocurrency holdings are Bitbond, BTCPOP, and ETHLend.
Bitbond
Bitbond is probably the most popular bitcoin lending platform. The Berlin-based company was launched in 2013 as a bitcoin peer-to-peer lender for online vendors and has since morphed into a marketplace lending platform for small business loans.
As an investor, you can sign onto the Bitbond platform, choose which loans you want to fund, and place your investments. Loans are ranked according to riskiness and a diversified investment approach is advised.
Depending on the amount one wishes to invest, earning on Bitbond can be substantial. However, peer-to-peer lending is far from a risk-free approach to earning cryptocurrency.
BTCPop
BTCPop is another popular bitcoin lender that enables cryptocurrency users to earn interest on their bitcoin holdings by investing them into peer-to-peer loans.
In a similar fashion as on Bitbond, investors can choose which peer-to-peer loans to invest in to create a portfolio of loans that pay varying interest and come with varying levels of risks.
ETHLend
The Ethereum community also has its own peer-to-peer lender. ETHLend “offers digital asset-backed loans that allows anyone to spend funds without selling crypto holdings.”
As an ETHLend user, you can browse the “View All Requests” section of the platform to choose which loans you want to fund to create your peer-to-peer loan portfolio.
Unlike on Bitbond and BTCPop, ETHLend users can invest ETH, LEND, or other digital tokens, enabling a wider range of cryptocurrency users to engage in crypto lending. Aside from that, the platform functions effectively in the same way as its peers.
Is Lending Cryptocurrency a Viable Means to Earn a Living?
Investing in peer-to-peer loans can be a very profitable affair. However, these are investments, which means there is risk involved. The more one risks, the more once can make but the higher the chance that an investor may lose some or all of their investment.
Therefore, if a reader is looking to earn cryptocurrency with fewer risks involved, they should look at some of other the options in our Earn Crypto series.
Sourced from crypto.news.
Written by Alex Lielacher on 2022-08-11 08:28:28.
