Everyone in the crypto industry search for ways to earn money. Lending digital currency is one of the trending topics in the cryptocurrency industry these days. It is one of the efficient methods to earn passive income if you own cryptos. Here we have listed the best cryptocurrencies to consider for promising passive income while lending.
Table of Contents
What is crypto lending?
There are different types of cryptocurrencies to choose for having profits. Some of them are P2P, DEFI or crypto lending. Lending crypto is one of the investment strategies for investors that allows them to lend their digital assets to borrowers. They earn crypto dividends in the form of interest payments. It does not involve much of the active involvement of investors to make money.
Investors have the option to lend both crypto coins and stable coins. The interest rate is a bit higher for stablecoins.
Crypto lending enables asset holders to increase the value of their assets by lending them. By the end of the lending duration, they get back their cryptos back, plus interest payment. It means they earn while retaining ownership of their assets.
Best cryptocurrencies to consider for promising passive income by lending digital assets.
There are more than 6,000 different cryptocurrencies globally available. Each coin has a different potential to provide returns. The following are the best crypto with substantial profit margins for lending purposes.
The data is collected from mooloo.net.
Bitcoin (BTC)
Bitcoin is the king of the cryptocurrency industry with the highest price and market cap. It is one of the promising cryptocurrencies that can bring excellent returns if you lend it out. Different platforms offer different interest rates on Bitcoin lending.
The following are the interest rates offered by top crypto lending platforms, including both DeFi and CeFi lending platforms. CeFi provides higher interest rates than DeFi platforms.
| DeFi Platforms | Compound | AAVE | NOTIONAL | Cream |
| BTC (Wrapped) | 0.2% | 0.01% | 2.4% | 0.06% |
| CeFi Platforms | Nexo | BlockFi | YouHodler | CoinLoan | Celsius | Crypto.com | Hodlnaut |
| BTC | 6% | 4.5% | 4.8% | 5.2% | 6.2% | 4.5% | 7.46% |
Ethereum (ETH)
Ethereum is both a cryptocurrency and a blockchain platform. ETH is the second most popular cryptocurrency. It fuels the Ethereum network. Ethereum is very famous among developers because of its various applications.
The following are the interest rates offered by top crypto lending platforms, including both DeFi and CeFi lending platforms.
| DeFi Platforms | Compound | NOTIONAL | Cream |
| ETH | 0.08% | 2.04% | 3.68% |
| CeFi Platforms | Nexo | BlockFi | YouHodler | CoinLoan | Celsius | Crypto.com | Hodlnaut |
| ETH | 6% | 5% | 5.50% | 5.2% | 5.35% | 5.5% | 7.46% |
Dai (DAI)
Dai is the most popular DeFi lending stablecoin issued by the MakerDAO platform. Unlike other stablecoins, it is backed by cryptocurrencies such as Ether. It is pegged 1:1 to the U.S. dollar.
The following are the interest rates offered by top crypto lending platforms, including both DeFi and CeFi lending platforms.
| DeFi Platforms | Compound | NOTIONAL | AAVE |
| DAI | 3.04% | 10.9% | 2.82% |
| CeFi Platforms | Nexo | BlockFi | YouHodler | CoinLoan | Crypto.com | Hodlnaut |
| DAI | 10% | 9% | 12% | 10.30% | 10% | 8.32% |
USD Coin (USDC)
USDC is the second most popular stablecoin in the crypto industry for lending purposes. Coinbase issues it. USDC is backed 1:1 with the U.S. dollar. It has been integrated into many amazing DeFi products.
The following are the interest rates offered by top crypto lending platforms, including both DeFi and CeFi lending platforms.
| DeFi Platforms | Compound | NOTIONAL | Cream | AAVE |
| USDC | 3.10% | 11.06% | 3.39% | 3.18% |
| CeFi Platforms | Nexo | BlockFi | YouHodler | CoinLoan | Celsius | Crypto.com | Hodlnaut |
| USDC | 10% | 9% | 12% | 10.30% | 10.02% | 10% | 12.73% |
Tether (USDT)
Tether is also a stablecoin backed by fiat currencies such as U.S. dollars and Euro. It is a quality of stablecoins that their prices are supposed to be more consistent, unlike highly volatile cryptocurrencies.
The following are the interest rates offered by top crypto lending platforms, including both DeFi and CeFi lending platforms.
| DeFi Platforms | Compound | AAVE | Cream |
| USDT | 5.03% | 3.22% | 8.11% |
| CeFi Platforms | Nexo | BlockFi | YouHodler | CoinLoan | Celsius | Crypto.com | Hodlnaut |
| USDT | 10% | 9.5% | 12.3% | 10.30% | 10.02% | 10% | 12.73% |
Chainlink (LINK)
LINK is the native cryptocurrency of the Chainlink platform. Chainlink is one of the most widely used oracle networks that provides smart contracts. These smart contracts enable payment transactions from contracts to payment networks.
LINK also has a good return if lent through specific platforms.
The following are the interest rates offered by top crypto lending platforms, including both DeFi and CeFi lending platforms.
| DeFi Platforms | Compound | Cream |
| LINK | 0.71% | 2.02% |
| CeFi Platforms | Nexo | BlockFi | YouHodler | Celsius | Crypto.com |
| LINK | 6% | 3.5% | 6.2% | 3% | 2% |
Final words
Investment in cryptocurrencies is yielding so does in crypto lending. The cryptos mentioned in this article can help you increase your profit if you invest in crypto lending. There are many other cryptos, but these are considered the most promising if you want to earn by lending them. However, you must do your research before investing in anything in the crypto industry.
