INSUBCONTINENT EXCLUSIVE:
The crypto lending platforms may charge you a fee for availing their servicesAs the returns from investing in stocks depleted, primarily due
to the disruption caused by the COVID-19 pandemic, cryptocurrency gained wide acceptability among investors
Both individual and amateur investors flocked to the industry that promised decent returns even amid the economic slump that made many
While cryptocurrency supporters say it offers a great opportunity to grow wealth rapidly, critics cite its extreme volatility
Even as the debate continues, this industry has grown multi-fold over the past two years
And it is still innovating and adding new features
One of them is crypto lending.What is crypto lending?Crypto lending is a pretty new segment
It allows traders to obtain cash by utilising their crypto holdings as security, without having to sell their coins
Individuals may secure loans against their crypto assets, expecting the value of the assets to increase during the period of the loan
The aim of this type of investment is to allow those with cryptocurrency assets to generate some dividends by lending out part of their
Lending is usually available via crypto lending platforms.What is a crypto lending platform?It is an online platform that allows you to lend
your cryptocoins in exchange for an interest
These platforms are used by two parties
One of them acts as a lender and the other as a borrower
Borrowers need physical (or fiat) money from lenders by depositing an equivalent amount of cryptocurrency with them as collateral.The rate
of interest depends on the coin
The crypto lending platforms may charge you a fee for availing their services.What are the crypto lending platforms operating in India?1)
BlockFiYour Bitcoin can earn up to 7.5 per cent annual percentage yield (APY) with BlockFi, which calculates interest on a daily basis and
BlockFi allows a borrower to take a loan against their crypto assets while keeping them.2) Crypto.comAnother such platform is Crypto.com
It offers the option to borrowers to pay the loan in full or in part at any moment during the 12-month fixed loan period.3) ZebPayIn May
this year, ZebPay announced it was adding the crypto lending feature in its app
Initially, it is facilitating loan against only a limited number of crypto coins such as Bitcoin, Ethereum and Ether.4) CoinDCXOne of the
biggest crypto trading platforms in India, CoinDCX also offers this feature to its users
ConDCX calculates its interest rate dynamically, based on market demand and supply for the cryptocurrency that is to be lent.5) HoldnautA
financial services platform, it allows private investors to earn interest on their cryptocurrencies by lending them to institutions
Its users can earn interest rates by depositing their crypto assets into a Hodlnaut Interest Account.