Earn Impressive Returns through Cryptocurrency Lending

If you are a crypto investor, lending can be an excellent way to enjoy high returns on investment. The lovely thing about it is that you do not even have to sell your coins. Again, crypto coins owners can also get fiat cash using their coins by depositing them with an appropriate decentralized finance platform and receive them back after repaying the loan. In this post, we demonstrate how you can earn high-interest rates from your coins.

Pick a Good DeFi Platform

Not all DeFi platforms out there offer lending services. Even for those that do, the terms and conditions, such as interest rates and borrowing conditions, differ. The crypto lending platforms offer different types of loans, and you should focus on the one that provides higher returns on investment.

• Fixed loans: These loans work like bank loans but deal with crypto coins instead of fiat money.  The loans lock your coins for a specific period, and then they are refunded with interest.
• Flexible loans: Unlike the fixed loans, you lock your coins for a specific period but can be allowed to withdraw at any time. However, the returns on flexible loans are lower compared to those from fixed rates.

In addition to having multiple loan options, the DeFi platform should be pretty easy to use. So, take some moment to compare it with others and also check for positive feedback from past users.

Select the Coins of Interest Wisely 

Although there are over 9,000 cryptocurrencies, most DeFi platforms only allow a few of them. This brings us to the main question, “Which coins should you select?” Well, it depends on the market condition, desired returns, and personal risk tolerance.

You can opt to deal with coon crypto coins, such as Bitcoin and Ethereum or stablecoins like USD coins and Tether (USDT) that peg their value to the actual price of the US dollar. Irrespective of the crypto market volatility, stablecoins tend to remain relatively stable. This means they are a low-risk option. On the other hand, cryptocurrencies such as Ethereum and Bitcoin are highly volatile, and the returns you can get can be unpredictable. But an increase in value is likely to result in the fast growth of your returns.

Understand the Risks Involved 

One of the risks you might face in crypto lending or any other related transaction is the danger of hackers gaining access and making away with your assets. So, how do you ensure the coins are safe? First, you need to ensure that the wallets you are using are secure. If you use online-based wallets, ensure all security protocols are adhered to.

Another method of protecting your coins is working with a DeFi platform that uses smart contracts. This means that the agreement between the borrower and lender is binding and will execute automatically once the set time lapses.

As you can see, the most important thing in crypto lending is the platform you select. This is why you should put more focus on selecting the one to work with. To help you with this, reach out to Mantra Dao on this website because of their impressive reputation. Check closely to see the services they offer and even talk with their support to learn more about crypto tending.