Recently, decentralized finance (DeFi) has become an important component within the cryptocurrency ecosystem. To put it in more detail, a decentralized financial system, which is based on a public blockchain, is able to provide anyone and everyone with access to financial services, regardless of their status and location. In addition, with decentralized finance platforms increasing their borrowing and lending capacities as well as other services, it is becoming easier for digital asset holders to find somewhere to earn interest on their cryptocurrencies. 

Earning Interest on Cryptocurrencies

Here are some of the best places you could consider using if you would like to make money off your digital assets. 

  1. Celsius

When you partner with Celsius, you will receive 4.1% interest on Bitcoin deposits and 3.15% interest for Ether deposits. In addition, Tether is supported with 12% interest. The platform also allows its users to borrow directly against their holdings. The Celsius platform is also well-known to pay interest on several other cryptocurrencies, including Litecoin, XRP, and Bitcoin Cash. It is a platform that has originated over $4 billion worth in loans and many consider it to be the biggest player in the DeFi industry.

  1. BlockFi

BlockFi is also a well trusted platform in the market. This is because they are operate in a similar way to that of a traditional bank that is centralized. As a result, they are able to create more trust between their lenders and borrowing parties.

BlockFi pays 6.2% interest for Bitcoin deposits and 4.1% interest for Ether. However, they have a limit of 1,000 coins for Ether and 10 coins for Bitcoin, after which the interest rates will drop. 

  1. Crypto.com

Crypto.com is not just a DeFi company. They are doing so much more that is aimed at accelerating the performance and reception of cryptocurrencies in the world. As a result, they are offering a wide range of services including access to a wallet, to credit cards, exchange services as well as quant trading services.

As an ambitious firm, they are offering some of the best rates for digital asset lending. That is, the company offers attractive interest rates, especially on their native CRO token. Crypto.com is offering 12% interest for the stablecoins, and as high as 18% interest for their native CRO token.

  1. Nuo

Nuo is a firm based in Singapore and they operate purely on the peer-to-peer facilitation of deposits and loans between crypto traders. As a result of this service, it makes them different from all other regulated and more centralized players, such as BlockFi. With Nuo, you will get limited suite of tokens and they offer borrowing and lending services. In addition to this, SNX tokens attract a 27.6% interest, which is double the borrowing rate.

  1. Nexo

Nexo is yet another leading DeFi platform to work with. It offers much of the standard overcollateralized borrowing and lending services. As a result, interest is compounded and paid out daily to lenders. The firm is currently only supporting fiat currencies and stablecoins. Nexo is offering up to 8% interest on the euro, U.S dollar, and the British pound. It also pays interest on a variety of stablecoins including SAI, TUSD, PAX, Tether, and USDC. 

Nexo also works differently from other platforms as it allows its users to deposit stablecoins and fiat, and then borrow non-pegged cryptos. It also gives crypto HODLers the opportunity to deposit digital currencies and then to borrow more. With non-pegged depositors, you will not earn any interest, but you have an opportunity to borrow crypto by using your deposits as collateral. 

Final Word

It is evident that DeFi is giving cryptocurrency holders the opportunity to use their digital currencies in the same way they would with traditional, centralized banking institutions and it is evident that the available services will expand and become more attractive over time.

LEAVE A REPLY

Please enter your comment!
Please enter your name here