What Are The Major Crypto Lending Platforms Operating In India?
As stock market returns began to dwindle, owing mostly to the disruption created by the COVID-19 epidemic, cryptocurrency gained widespread acceptance among investors. Individual and amateur investors flocked to the industry, which promised good profits despite the economic downturn that worried many.
Cryptocurrency supporters argue that it provides a wonderful way to quickly build wealth, while sceptics point to its high volatility. Even while the argument rages on, the sector has expanded dramatically in the last two years. And it's still introducing new features and innovating. Crypto lending is one of them.
What is crypto lending?
Crypto financing is a relatively new industry. It allows traders to receive cash without having to liquidate their crypto assets by using them as collateral. Individuals can take out loans against their crypto assets, with the expectation that the value of the assets will rise over time.
The goal of this sort of investment is to allow those who own bitcoin to earn some money by lending out a portion of their holdings. Lending is often done through crypto lending platforms.
What is a crypto lending platform?
It's an online platform that lets you lend your cryptocoins for a fee in exchange for interest. Two parties make use of these platforms. One of them takes on the role of a lender, while the other takes on the role of a borrower. Borrowers who require actual (or fiat) money from lenders must deposit an equal quantity of cryptocurrency as collateral.
The interest rate is determined by the coin. You may be charged a fee by the crypto lending platforms for using their services.
What are the cryptocurrency lending platforms operating in India?
1) BlockFi (BlockFi)
BlockFi, which calculates interest daily and pays monthly, can earn you up to 7.5 percent annual percentage yield (APY) on your Bitcoin. BlockFi allows a borrower to take out a loan against their crypto assets while still maintaining them.
Crypto.com is another such platform. It offers the option to borrowers to repaying the loan in full or in part at any time during the 12-month fixed loan period.
ZebPay stated in May that it was adding a crypto loan feature to its app. Initially, it will only allow loans to be made against a small number of crypto coins, such as Bitcoin, Ethereum, and Ether.
CoinDCX, one of India's largest crypto trading platforms, also provides this service to its subscribers. ConDCX determines its interest rate in real time, based on market demand and supply for the cryptocurrency being lent.
It is a financial services platform that allows private investors to earn income by lending their cryptocurrency to institutions. Users can earn interest on their crypto assets by depositing them into a Hodlnaut Interest Account.