Blockchain platforms have revolutionized industries including the banking sector. Similarly, crypto lending platforms are also changing how people acquire a loan. Although not well known to many users, they have been around for a while. There are some top crypto lending platforms you can count on in 2022.
Top 5 Crypto Loan Platforms In 2022
One of the benefits of crypto investments is that you can use your holdings as collateral for a loan. This is also possible even if you have relatively small holdings. Despite the ease with which you can get crypto loans, you must take caution when choosing a platform. Here are 5 of the top crypto loan platform you can look forward to in 2022:
BlockFi is a huge Centralized Finance (CeFi) player which is based and regulated in the US. It is one of the fastest-growing crypto lending platforms in terms of interest rates. It deals in Bitcoin and other cryptocurrencies. The major advantage of using this platform is that there is no limit to how much that you can deposit.
However, blockchain expects that the varying interests and withdrawal fees can be better. BlockFi is backed by large financial institutions like Fidelity, Akuna Capital, Susquehanna, and Valar Ventures.
Lendabit is among the safest lending platforms in the crypto industry. Its website is reputable for learning crypto trading. It is a trusted and secure platform. The safety and seamlessness of using this lending platform depend on their deployment of setting-edge technology and their partnerships.
Furthermore, not only is Lendabit in partnership with BitGo, but they also offer peer-to-peer loans. Although the interest rate is commonly between 5 to 5%, there is no interest rate for 45 straight days after joining for new users.
3. Oasis Borrow (MakerDAO)
The Oasis Borrow from the Maker ecosystem is a hub for crypto loans. The Maker ecosystem supports the DAI stablecoin. They are appealing and with just a MetaMask wallet and crypto, anyone can create a Maker Vault and start minting DAI.
When you transact with Oasis Borrow, you can put up an asset as collateral and agree to either pay back your loan or mint a certain amount of DAI before unlocking your asset. In other words, the crypto you are borrowing will be generated using your collateral asset.
4. Unchained Capital
Unchained Capital is another CeFi platform. It stands out for its multisig collaborative custody model. This increases borrowers' security and gives them more transparency into their assets. Additionally, this system requires three private keys before accessing collateralized assets. The borrower controls one, another by Unchained Capital, and the third by a third party key agent.
However, you should know that this platform only lends and offers Bitcoin loans in the United States. For borrowers to use the platform, they must have a hardware wallet from Coldcard, Ledger, or Trezor.
Aave is considered to be the highest valued DeFi crypto lending project. This is thanks to its innovation and dynamism. Aave is a protocol that has a wider range of crypto loan options than other large protocols.
However, Aave is beyond regular DeFi loans as it offers fixed interest rate loans and flash loans. It pioneered flash loans. Additionally, its LTV rate is higher than other large competitors. Its borrowing rates are also very low.
If you are considering taking crypto loans, you must ensure that the platform you choose has security measures and stringent tools to secure your loans. However, you should do extensive research and case studies of other loan platforms if you want a conviction on the security factor.
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