The cryptocurrency landscape is fast evolving and many new platforms have sprung up in recent years. From a range of wallets, trading platforms and mixer platforms, now there are even lending platforms! With more developers looking to improve cryptocurrency and the blockchain technology, we’re truly stepping into a new financial age.
Why do we need lending platforms?
Lending and borrowing can be a hassle. There are lots of requirements and regulations you’ll have to keep to if you want to get a bank loan. However, with crypto lending platforms, lending and borrowing can be done on a peer-to-peer basis which cuts out the bank. Borrowing becomes quicker and interests are lower. Not to mention, you can also skip the paperwork which adds to the cost of getting loans.
Want to know more about crypto lending platforms? Here are a few you should check out:
BeeLend allows borrowers and lenders to connect, even if they’re from different countries. Borrowers can go on BeeLend to indicate an amount they’d like to borrow and then be matched with investors and/or guarantors on the platform. Once they’re connected, borrowers and lenders can negotiate interest rates and agreements directly. Borrowers will then receive funds directly to their bank account and they can fund loans using virtual currencies like Bitcoin, Ethereum and other cryptocurrencies.
CoinLoan is the go-to platform for crypto-assets backed loans. This peer-to-peer lending platform lets borrowers deposit your crypto collateral in a safe storage and receive fiat currencies in return. Basically, you relinquish your hold on your coins onto the platform and get a loan at once. You can receive funds up to 70% of your cryptocurrency’s market value.
Lenders, on the other hand, deposit fiat currency into the platform and get to earn interest on those funds. These fiat funds are used by the borrower and the lender will get back his or her funds at the end of the loan with the interest earned.
Forget about credit cards. Credible Friends allows anyone from anywhere to give lines of credit to people they trust through a mobile app. The app is pretty easy to use. First, users download their digital wallet and add bitcoins to them. Once you’re set up, you can start adding friends to get them to use the app and send your friends credit through this platform. Borrowers can benefit by getting quick credit, while lenders can earn interest when borrowers pay their minimum payment.
The great thing about this app is that individuals can extend lines of credit to anyone they trust, based on their own risk assessment. Additionally, you can also extend Bitcoin credit to your friends on the app!
Bitbond is an internet-based lending service that is available globally and independent of banks. Bitbond works on the bitcoin blockchain and allows borrowers to borrow up to US$ 25 000, with interests rates starting as low as 1% per month! The platform also provides loans to Ecommerce businesses on eBay and Amazon for as long as 12 months.
Lenders, on the other hand, also get to earn high-interest rates on Bitbond. When you lend Bitcoin, you’ll get to earn an interest rate of 13%!
Ethland assists in the transfer of Ethereum to borrowers, who are required to pay back lenders the Ethereum with interest regularly. This lending platform runs on Ethereum smart contracts and no funds are being held by Ethland. Since the platform runs on the Ethereum network, borrowers and lenders can only use Eta-Based assets when engaging in contracts.
This decentralised lending network is great for those who wish to borrow Ethereum tokens and for lenders to find an additional source of income through earning interest rates.
As more developers work on improving the cryptocurrency ecosystem, we’ll start to see the potential in digital currencies becoming part of our everyday lives. New ideas and services are making use of the blockchain technology and new coins are created to meet different needs. Crypto lending platforms may not be in the mainstream now, but seeing that it connects lenders to borrowers so efficiently, it might be the mainstream of tomorrow.
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