Cryptocurrency Lending: an overview, the best lending programs of exchanges and lending platforms with examples
Cryptocurrency landing page (from English Lending – lending) is an opportunity to lend your funds at interest to an exchange or lending platform, which use them at their discretion: increasing liquidity, subsequent issuance of loans, lending margin trading, etc. Today there are several services that provide such services, and they are in demand.
Cryptocurrencies such as Bitcoin have emerged as a peer-to-peer means of payment and have become more investment vehicles over time. The next logical step in their development is working with lending. In this article, we will consider the principle of functioning of the landing page and the main sites where you can use this opportunity and their programs.
- 1 What is cryptocurrency landing page
- 2 Binance exchange landing page
- 3 Platforms and cryptocurrency exchanges with landing programs
- 4 General operating principles
- 5 Advantages and Disadvantages of Cryptocurrency Landing Pages
What is cryptocurrency landing page
Cryptocurrency landing page is a lending process that involves digital money. Individuals (lenders) can give their crypto-savings to other persons (crypto-exchanges, other companies) who need them at the moment. The loan is carried out at a certain interest rate, there is also the nature of debt amortization (mainly depending on how long the money will be returned and how the interest payments are structured).
For the lender, such an activity has only advantages – his cryptocurrency does not just lie in the wallet, but it works and brings passive income. Cryptocurrency landing pages are usually associated with lending margin trading and investing in landing programs. In the first type of lending, the lender lends funds to the borrower for margin trading and receives a certain percentage for their use. The borrower provides his funds as collateral at the moment when he believes that the price of the coin will accurately move in a certain direction; this will allow him to increase his trading efficiency. He borrows additional funds through an exchange that supports margin trading, and undertakes to return them with interest after a certain amount of time. In the second case, the lender subscribes to an available landing program and receives a deposit for this. The annual percentage rate depends on the cryptocurrency used.
Binance exchange landing page
On August 28, 2019, the Binance cryptocurrency exchange launched a landing site as an additional service for users that has unused crypto assets available. With the help of a landing page, they will be able to increase their capital, earning interest income for lending their savings for a while.
How Binance Lending works, terms and plans
At the first stage of the lending launch, a fixed period of 14 days is set for the following loan products: BTC, ETC, XRP, BNB, ETH, USDT, ZEC, USDC, LTC, XMR, DASH, ADA. The annual interest rates for them differ – BNB 15%, USDT 10%, the rest 7%. In the future, based on the market assessment of the initial phase, the rates can be adjusted.
It should also be noted that loaned BNB tokens will also count towards the daily BNB balance calculation for Binance Launchpad and other daily calculations.
How to subscribe
Before you start buying a subscription to the Binance exchange landing product, you need to wait for the lead time. As soon as the sale opens, the user selects any of the available items. Each product page has a detailed description:
✅ lot size.
✅ The maximum number of lots that can be purchased.
✅ The interest that will be paid for the lot after maturity.
✅ The day the interest calculation starts.
✅ The maturity date is the day on which the interest and funds will be distributed.
It is important to make sure that there are enough free funds on the exchange account to make a purchase – money borrowed in pending orders or on a margin account is not taken into account. The system automatically calculates future interest depending on the amount that the user is going to invest.
After a successful purchase, the system will remove the corresponding amount from the balance. You can always check the details on the “Assets” page. At the end of the lending subscription period, there will be automatic redemption and accrual of interest + funds to the main exchange account.
Platforms and cryptocurrency exchanges with landing programs
In this section, we will talk about the conditions offered by other platforms for cryptocurrency landing pages.
Nexo has been on the market for over 10 years and is trusted by 250,000 users. During its existence, it has processed applications for $ 700 million. Works with cryptocurrency, fiat, stablecoins.
The standard interest rate is 8% per annum. The funds are 100% secured and the collateral is covered by custodian insurance from BitGo and Lloyd’s of London. Interest is paid daily without commissions.
Nexo is compliant with regulatory requirements, works with KYC / AML through Onfido software.
Cryptocurrency exchange Livecoin pays fees for keeping certain assets in its account. To participate, the user simply needs to make a deposit in one of the coins listed below. The larger the deposit, the greater the monthly profit will be. The program also takes into account the funds pledged in open orders.
The calculation of the amount of time spent on the account during the billing period and calculates the average. The reward will be received even if the funds were in the account for only one day per month. The payment is made once a month in the form of a transfer to the balance.
The Yobit exchange allows you to give free coins to the landing page. Mostly new and little-known coins are used – this is a way for developers to promote them. The method is not a hype or a feast
amide. All payments come from a special fund. Sometimes in InvestBox the status of the plan changes from active to “No Coins”, but the user can still close his investments 100% safely at any time.
According to the experience of the participants, this way you can earn from 0.1 to 10% per day.
Gate HODL & Earn
The Gate exchange gives you the opportunity to use the landing page of cryptocurrencies of both urgent and perpetual types. You can buy a lot for a period of 30-180 days at an annual interest rate of 30% on average.
Purchases of lots are made, as on Binance, on a first come, first served basis. In the first 10 minutes, only users with VIP status can make a purchase. The limit is calculated based on their stock of GT tokens. After 10 minutes, there is no limit. But it happens that the entire product is sold out in 10 minutes.
Freebitcoin Earn BTC
The Freebitcoin faucet website provides an opportunity for passive earnings on Bitcoin. You need to register and go to the EARN BTC section in the top menu, and then top up the balance by at least 0.0003 BTC (or simply accumulate them by earning money on the tap). Starting from this amount in the account, the crane calculates interest daily. At the moment, the profit is 4.08% per annum.
You can earn money from the first day (there is no blocking period). Withdrawals are available at any time. In addition, the system pays 25% of referral commissions from interest earned by invited users.
Investing on Bitbond takes three steps:
- Enable automatic lending, having previously configured it for the necessary criteria.
- The system automatically borrows BTC upon requests from all over the world – this method reduces the impact on one country or region.
- Your Bitbond account receives profits that can be reinvested or withdrawn.
The interest is set independently, as a result of which working with the service is more profitable than with traditional banks.
Bibox treasure box
This is a financial product for cryptocurrency landing pages from the Bibox exchange. Each position has its own blocking period and interest rate, among which the user can freely choose. After the purchase, the funds are blocked, and interest will be charged depending on the appointed time. Upon completion of the project, the amount and interest are unlocked and credited to the account.
A similar system operates on the BitMax exchange.
Whitebit digital asset trading platform also offers a cryptocurrency landing page service.
The user selects an investment plan and purchases it for the funds located on his main balance. Plans vary in duration and interest rate. You can withdraw money before the expiration of the agreed period, but then interest will not be charged.
Coinsbit Invest Box
The CoinsBit platform works according to a scheme similar to Yobit InvestBox. Mainly there is the use of coins in need of promotion. To invest in cryptocurrency landing programs, you need to go through KYC verification and own coins in your main account. The commission for the withdrawal of investments is 0.2%.
Coincheck Lending is a service for lending in a cryptocurrency form, with the help of which a user can provide a cryptocurrency for a certain period of time to the Coincheck platform by drawing up a loan agreement. Upon expiration or upon termination of the agreement, Coincheck returns the cryptocurrency with a certain annual interest rate (up to 5%). In the process, you can use all the cryptocurrencies available on the exchange, but only after the account has been verified.
The site allows you to take a loan for one of three cryptocurrencies or invest your funds at 8.6% per annum. For the second option, you need to create a BlockFi Interest account and invest any amount of funds (there is no minimum). Until the end of September 2019, each deposit is complemented by a $ 10 bonus, which can be withdrawn with the first interest payment.
Another feature of Blockfi deposits is that funds can be withdrawn at any time. Gemini Trust Company LLC is responsible for their safety. The service is available in different countries.
The service began testing at the beginning of 2019 and in a few months attracted funds from private and institutional investors for about $ 10 million. The downside is that so far it works only in India and is going to expand in Latin America (Costa Rica, Argentina).
Landing platform Salt offers interest rates from 5.95% per annum. The minimum deposit is $ 5000, and the terms can be chosen from 3 to 12 months. There are no commissions. The site is easy to use, there is a mobile application. Unfortunately, while working with her from the CIS countries is impossible.
General operating principles
Five main types of cryptocurrency lending are now available on the market:
✅ Clients issue loans to an exchange or lending platform through a landing page or other investment proposals.
✅ Margin lending on stock exchanges. The most common type. This is secured lending, in which traders borrow money on the exchange from other traders in the hope that the price of the cryptocurrency will rise or fall in the near future. This option is not suitable for novice traders, as it also increases the level of risk. But experienced people actively use it. Cryptocurrency is usually provided as collateral; percentages and limits vary on different platforms. Margin lending is available on many major exchanges.
✅ Secured Bitcoin loans. It is a type of lending where a person can obtain direct peer-to-peer loans in Bitcoin using other assets as collateral. This type of service differs from margin lending in details; in particular, it has fixed interest rates. Individuals establish their own loan offers with the desired interest rates and collaterals at their discretion. Borrowers research the market, find a suitable offer and respond to it. An example of such a service is BTCPOP, which has been operating since 2014.
✅ Fiat money and Bitcoin hybrid loans. These are loans that you borrow in fiat and return in BTC. The borrower gives, for example, US dollars, receives Bitcoins; if the price of Bitcoin rises during the lending period, then it will need to return less, since the debt is calculated in fiat. This type of landing page is used to minimize risks and for those who hold cryptocurrency, but temporarily want to transfer part of it to fiat money. One of the well-known platforms offering such services is Germany’s Bitbond, a regulated microfinance market operating in USD and EUR supported zones. Requires mandatory confirmation of identity.
✅ Reputation based cryptocurrency loans. These loans work on the principle that lenders issue loans based on the personal reputation of the borrowers. There are many ways to build a reputation – with a large amount of collateral, or with a positive repayment history (both on the platform used and on some other platform, for example, eBay. A similar method is used on the already mentioned BTCPOP).
✅ Fiat loans with cryptocurrency as collateral. Allows individuals to give away their BTC as collateral for a fiat loan. Perhaps the most popular service of this kind is SALT. It uses its own cryptocurrency, SALT tokens. They are purchased for one of five cryptocurrencies or two stablecoins, and then you can get fiat in return. Transactions are easy and funds are withdrawn directly to your bank account.
Advantages and Disadvantages of Cryptocurrency Landing Pages
✅ The possibility of cryptocurrency earnings on free funds that are held as an investment.
✅ Many platforms allow you to independently choose an investment plan or set up investment criteria in order to get the most out of your financial capabilities.
✅ For developers, a landing page can be a good way to promote little-known tokens.
✅ In most cases, the method is more profitable than using traditional bank deposits.
❌ Not a very large selection of offers.
❌ There are limits on deposits.
❌ There are many fraudulent sites that simply close without returning funds to users.
Thus, the landing page of cryptocurrencies seems to be a simple and attractive way to passively earn money, but it is important to carefully approach the choice of a reliable site with suitable conditions.