Crypto Interest Accounts and Crypto-backed loans.

Crypto Interest Accounts and Crypto-backed loans.

1,409 Views

Blockchain Technology

Blockchain Technology is probably the safest and most secure way to store data electronically. Once the data in the blockchainisentered, it cannot be deleted but the new information can be added by adding a new block. This is also carried on in a secure way as in order to make changes an agreement is required from all the parties that are involved in the process. It can be used in every industry, for instance, cryptocurrencies, healthcare automotive and banking.

Cryptocurrencies like bitcoin and Ethereum also operate on blockchainto store records of transactions. This reduces the risk of any data being exposed to a third party as well as eliminates many of the processing and transaction fees. To learn more about blockchain and crypto technologies, you can reach out to experts in Los Angeles such as, SunlightMedia.org

Crypto Interest Accounts

Crypto interest accounts are similar to bank saving accounts for instance, when you deposit money in your bank account, in return you receive interest from the bank. Similarly, for crypto interest accounts you can earn interest on the digital assets that you own like bitcoin. When you lend out your bitcoins, in exchange you are paid interest.

The Best Crypto Interest Accounts for 2022

BlockFi

BlockFi was founded in 2017 and it is apopular platform to earn interest on cryptocurrencies like Bitcoin, Ethereum and stablecoins. BlockFi offers up to 8.6% compound interest per year on your savings. Additionally, you can borrow cash against crypto and exchange a variety of coins at competitive prices.

YouHodler

To store your assets with YouHodler, you can receive up to 11.8% interest per year. They support over 50 crypto assets and all major stablecoins. Once you deposit your crypto, you are paid interest on a weekly basis. They also have a mobile-friendly app which you can use to convert between different currencies, stablecoins and fiat currency.

Nexo

Nexo offers 16% annual interest and is supported by 33 digital assets including BTC, ETH, NEXO, stablecoins and more. The interest rate that you receive is determined by loyalty tier. They have four tiers starting from base, silver, gold, and platinum. In order to get Nexo’shighest interest rate you will have to become a platinum tier which requires you to have 10% or more of your portfolio balance compromises Nexo tokens.

Crypto-Backed loans

This allows you to take a loan in exchange for your digital assets. The digital assets are used as  collateral for loans. The amount of loan you will be approved depends on the amount of collateral you are able to use. The provider will also charge a fee which can range from around 1% APR to over 12% APR.

The Best Crypto-Backed Loan platforms in 2022

CoinLoan

One reputable tool for managing your digital assets is CoinLoan. It is a mobile-friendly platform for both android and iOS. There is a range of borrowing options available such as crypto-to-crypto, crypto-to-fiat and fiat-to-crypto loans.Additionally,You can set your own term, including the loan length and repayment options. However, CoinLoan charges loan currency and liquidation fees.

Nexo

Nexo  is one of the well-known platforms for CeFi loans. You can borrow both stablecoins and other cryptocurrencies. This platform offers the cheapest way to borrow, for instance, you can borrow with a rate from 0% up to 13.9%. The funds will be available within 24 hours in most cases, and you can borrow from $50 up to $2M. Additionally, you can pay your balance partially or fully according to your requirements with no fixed payment schedule.

BlockFi

Another option for borrowing crypto is BlockFi. When you borrow USD from BlockFi, for the security of the repayment they take your Bitcoins, Ethereum or Litecoin. It is a fast and secure way to borrow cash by using crypto as collateral, you can also receive your funds at the same day you send your collateral. Interest rates on BlockFi start from 4.5%. the amount of USD you are eligible to borrow is determined by the quantity of collateral you are able to put as security for the loan and the origination LTV (loan to value ratio) you choose.

Conclusion

Crypto Interest Accounts are probably the best method to store your digital assets while you earn interest, and many platforms offers good interest rates. Similarly, receiving a loan through Crypto-Backed Loans is fast and secure as there are less formalities than a bank plus there is no need for credit check.

Finance