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    Crypto Platforms Lending Ethereum

    Image Source – Unspalsh

    The success of crypto coins such as Ethereum and Bitcoin has opened various investment opportunities for crypto enthusiasts.

    Nowadays, some crypto exchange platforms have started offering crypto-backed loans to their users. Users can also earn interest in the form of free coins from their crypto savings accounts.

    Crypto exchange platforms loan ethereum and other crypto coins including fiat currencies. The crypto platforms gain profits through the interest charged on the loan. Even though they may look lucrative, crypto savings accounts have their fair share of risks.

    If you’re looking for more ways to build your crypto portfolio, then you should consider putting your crypto assets in a savings account. In this guide, we will delve deeper into how crypto lending platforms work. The article will also share factors you should consider when taking crypto-backed loans.

    Buying Your First Ethereum Coins

    Purchasing ethereum coins is very easy. You can buy your ethereum coins from a crypto exchange platform or P2P trading site. However, we would recommend purchasing your coins from crypto exchange sites or apps.

    You will first need to sign up for an account on your preferred crypto exchange platform. After successful signup, you will need to add your preferred mode of payment. Most crypto exchange platforms allow users to buy crypto directly from their bank accounts using either a debit or credit card.

    Whenever you’re looking for a crypto exchange platform to sign up with, there are a couple of factors you should consider. First, are the payment options the platform supports. You also need to preview any other extra services offered by the platform such as pro-savings accounts.

    Crypto Lending

    lending etherium
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    Most crypto lending platforms allow users to deposit and earn interest from crypto coins or stablecoins. In exchange, the users earn interest from their crypto savings. On some platforms, the interest earned is deposited to your account or wallet at the end of the week.

    The interest rates may vary from 3-16% depending on the platform. There are also varying rules when it comes to the amount of deposit that can earn interest. The withdrawal rates and fees may vary. Some crypto lending ethereum have restrictions on the number of months you have to wait before making your first withdrawal.

    Crypto savings are typically used to secure loans. The amount of savings determines your loan amount. If the user fails to pay back the loan in time, their savings are traded to help recoup the loan amount.

    Crypto Coins vs. Stablecoins

    Stablecoins are a special type of cryptocurrency whose value is pegged to that of fiat currencies such as the Euro or USD. As such, the value of stablecoins is rarely affected by volatility. Most investors who want to take advantage of the blockchain without the effects of volatility often choose stablecoins.

    In addition, most crypto lending platforms offer high APRs for stablecoins over crypto coins. Stablecoins are a good long-term investment option as their value does not fluctuate as much compared to that of crypto coins.

    Crypto Savings Accounts

    Crypto savings accounts help users hold their crypto assets for longer periods. Most investors tend to sell or trade their crypto to make a profit. However, in some cases, they end up making massive losses if they invest in coins that don’t perform well in the markets.

    With crypto savings accounts, users can earn passive income without any struggle. The interest earned is deposited into their wallets or accounts on a monthly or weekly basis. Some crypto platforms offer compounded APY, which can be quite beneficial if you hold your assets for long periods.

    Crypto savings accounts allow users to expand their crypto portfolios by holding their assets. Users can swap the free coins for other types of crypto coins. Besides that, they can also trade the free coins for fiat currency.

    YouHodler: Crypto Lending Platform

    There are plenty of crypto lending platforms available. Most platforms often work as the link between lenders and investors. YouHodler offers additional services such as crypto-exchange services.

    YouHodler is known for its crypto-backed loans and high-yield savings accounts. Users can also apply for fiat loans, which are deposited directly to their bank accounts. YouHodler allows users to deposit either crypto or stablecoins into their accounts.

    The interest earned is usually deposited into the investor’s account at the end of the week. Users can also swap their coins for other more profitable coins supported by YouHodler. You can borrow eth, BTC, or stablecoins.

    Benefits of Crypto Platforms Lending Ethereum

    Image Source – Unsplash

    Most crypto platforms that provide lending services process the loans quickly. Loan approvals can take less than 24 hours as long as you meet all the prerequisites set by the platform. For fiat loans, the money is always deposited directly into your bank account.

    Loan fees are also quite low compared to what most banks charge. If you’re planning to build your crypto portfolio, taking out a crypto-backed loan can be worth it due to the low interest fees. In addition, there are no geographical limitations on where you can access the loan from.

    Crypto-backed fiat loans can be used to do a variety of things. You can purchase crypto coins, a house, car, or even use them to pay your mortgage. Ideally, there is no limit on what you can do with the loan you receive.

    Factors to Consider When Choosing a Crypto Lending Service

    Whenever you’re signing up for a crypto lending service, there are a couple of factors you need to consider. First, you need to be aware that you will have to share the secret keys so that the crypto platform can access your crypto coins.

    You need to check the terms and conditions regarding withdrawal fees and rates. Some platforms have restrictions on the number of withdrawals you can make in a year. There could also be restrictions on how long you have to wait before you can start withdrawing the earned interest.

    Also, consider reviewing the APY rates. Most crypto platforms offer APYs of between 3-8%. You also need to check if the APY is in the form of compounding interest. Compounding interest means that even the earned interest is added to your initial deposit.

    Bottom Line

    Crypto lending platforms offer plenty of promise to the future of crypto and blockchain technology. Decentralized finance systems are now competing with centralized financial systems by offering better and more streamlined services. However, crypto loans and savings accounts have their drawbacks.

    Crypto coin prices are very volatile. The prices or value of crypto coins can drop significantly at any given period of the year. Usually, this means that even the coins in your savings account get affected. However, to avoid this, you can invest in stablecoins.

    Security has often been an issue with most crypto platforms. Even most crypto investors choose to keep their coins in private wallets rather than use the wallets provided by the exchange platform. You need to ensure that you do plenty of background research before choosing which crypto lending platform to use.

    Make sure you do plenty of research before investing in crypto lending accounts. There are plenty of resources online where you can find information about the best crypto lending platforms. Review the platform’s security and lending rates.

    Geekers Magazine
    Geekers Magazinehttps://www.geekersmagazine.com/
    GEEKERS Magazine is dedicated to Geeks who want to write and share great articles about the latest technology products, software and services or anything that they are passionate about.

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