What exactly does crypto lending entail? How risky is it? What are the returns like? I prefer to use Nexo and Blockfi for my crypto lending and in this video, I’ll share exactly why that is.
After checking out the various platforms and getting many suggestions and recommendations, I ended up with Nexo and Blockfi as they were the only platforms that had good UIs, had a mobile application and a website for me to use on PC, and they very clearly show your gains and track them.
One thing I noticed a lot in this space was people focusing on the individual lending platforms tokens and the benefits around that. I want to be clear in that I’m only interested in a good platform with good rates and I’m not using a lending platform just for the platform-specific cryptocurrency it pays out.
The best way to lend is to do so with stablecoins so that you ensure they won’t lose value. While you can lend Ethereum, Bitcoin, and other more popular coins, you will get significantly fewer gains doing so. The argument could be made that Bitcoin and Ethereum have a lot more growth potential too but my investing is always about passive income. Fortunately for my strategy, Nexo and Blockfi pay between 8-10% interest on stablecoins per year paid out every day and compounded. The great part about all of this is that you don’t have to ever claim rewards like you may have to with staking, you will consistently earn every 24 hours and that will compound to make you more money without you having to involve yourself beyond the original investment.
So far I have made $1.44 USD from Nexo with a little over $300 USD split into USDT, TUSD, and DAI. Nexo pays out interest in the coin you have invested. I’ve made $1.02 on Blockfi from about $300 USD split into PAX, USDC, and GUSD. On Bockfi, I’ve chosen to be paid out in Bitcoin because I believe it will appreciate the most so I’m not compounding interest on Blockfi, but instead, I am now testing two methods of passive income to see which works better: compounding in stablecoins, and passive income and appreciation from Bitcoin. Keep in mind I also started investing a little later in Blockfi and the profits would have otherwise been about the same. This is also a way for me to test out the stability of these stablecoins by tracking their value and how these assets perform over time too which I will give updates on in my dividend portfolio reports going forward.
What is also really cool, is that you can then take loans once you have coins in your account as collateral. What this also means is you will never worry about getting your money back from lending because the people taking out loans always have more collateral on the platform than they do in loans they are taking out. They do this because they earn interest on their collateral drastically bringing down their loan interest.
How do you earn passive crypto? Will you try out lending after seeing this? Are there any platforms that you use to lend crypto and why do you prefer them? Let me know your thoughts in the comments below and don’t forget to like, share, and subscribe!
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Wow is it legit?