The craze of Bitcoins is at its peak at the moment. The reason is the return people expect from the investments they make by using cryptocurrencies. Currently, there are many ways of earning returns through Bitcoins which includes earning interests as well. However, earning interest is an easy but a little risky task.
To earn interest through Bitcoins, you are supposed to deposit your bitcoins on the portal. Some websites have a lock-in period for the same while a few do not have any hassle like that. In this article, we will discuss ways of earning interests through multiple third-party clients.
You can invest your Bitcoins on risk-free DeFi Loan platforms and earn interests in return. However, some DeFi portals have started providing their tokens or cards of the same value as your currency. You can use these cards to make purchases and earn cashback over them.
Even though we are trying our best to shortlist a few DeFi Loan portals you can use, you are advised to do your research on the background as well. Bitcoin lending is a risky task, therefore, you need to be careful with your investments.
What is the meaning of “DeFi Loans”?
Before we proceed further and discuss some of the best DeFi (Decentralized Finance) loan portals, let’s understand what DeFi loans and portals stand for. You can use these DeFi portals and plan a digital transformation strategy for your financial growth.
DeFi loans usually make use of your ideally lying Bitcoins or other cryptocurrencies by lending them to needy businesses for you. In other words, DeFi loans work as a bridge between your cryptocurrency and the borrower client. In return, they pay you an interest amount on your Bitcoins or other crypto assets.
Some Best Bitcoin Lending Sites
- BlockFi
BlockFi provides you interest of up to 8.6% APY on cryptocurrencies. The portal lets deposit your Bitcoins so that borrowers can use them and pay the interest amount in return. Moreover, for the security of your cryptocurrencies, BlockFi keeps a contract worth more than the amount getting borrowed.
| Currency | Amount | APY |
| BTC (Tier 1) | 0- 2.5 | 6% |
| BTC (Tier 2) | >2.5 | 3.0% |
Highlights of BlockFi
- BlockFi has its mobile application for iOs and Android. You can manage your finances on the go;
- Apart from Bitcoins, you can trade other cryptocurrencies like Ethereum, Litecoin, USDC, etc;
- It calculates compound interest on your currencies;
- You can withdraw up to 100 Bitcoins per day with a fee of 0.0025 BTC. However, BlockFi provides one free crypto withdrawal.
- Nexo
Nexo has been functioning as one of the dealing crypto trading platforms for almost 13 years. The platform provides you 100% control over your investments with a risk-free investment system.
Nexo has a unique loyalty based interest rate program. You can earn more interest on your investments by upgrading your loyalty tier stage. Also, by choosing Nexo tokens as your preferred earning currency, you can earn a +2% bonus on interests on your holding.
Highlights of Nexo
- The interest rate on Nexo begins from up to 5% APR;
- You can add or withdraw funds from your Nexo account anytime you want;
- You can use Nexo Card and use it to spend the same amount as your crypto without selling it;
- Moreover, purchases made by Nexo Card provides cashback;
- With the Nexo app, you can open a high-yield ‘Earn interest’ account anytime you want.
- Celsius Network
Celsius Network was founded in 2017 by Alex Mashinsky and S. Daniel Leon. This DeFi platform offers two types of interest; CEL tokens and BTC. The platform does not charge any hidden fees or asks for a minimum limit of investments.
Highlights of Celsius Network
- Celsius network allows multiple cryptocurrencies for investments including Bitcoins, Ethereum, Litecoin, etc;
- The platform has 368k+ users using Celsius Network;
- You can manage your finances via mobile apps for iOs and Android;
- With CEL Tokens, you can earn up to 30% more rewards on all deposits;
- By upgrading to tiers like Bronze, Silver, Gold, Platinum, you can increase your bonus rewards;
- There is no minimum deposit or lock-in period on the Celsius Network.
- Binance
Binance lets you invest your cryptocurrencies and lend them to margin traders. In return, margin traders can provide you an interest amount over your investment. The portal lets you invest your funds anytime with an easy process.
There are two types of savings you can make with Binance. With Flexible savings, you have 100% access to your cryptocurrencies, though your earnings will vary as well. However, Fixed savings let you earn better returns but you will have limited access to your finances.
Highlights of Binance
- Binance staking offers 7.49% estimated APY on flexible terms at the moment;
- You can use the portal to buy cryptocurrencies as well;
- You can use Binance services by simply installing an iOs or Android app;
- Binance supports deposits of more than 150 cryptocurrencies;
- With the Binance app, you can sell your Bitcoins anytime from anywhere.
Tips to invest Bitcoins in DeFi Platforms
While investing in DeFi platforms, it is advised for you to take proper precautions. Here, I am listing a few points I would consider before investing.
- Do a background check and history check of the platform you are investing in;
- Compare the rate of interests between different portals to maximize your earnings;
- Check the value of collateral borrowers are supposed to submit against the value of the loan;
- Make sure that the blockchain business model followed by the DeFi platform offers a top-notch security system to your finances;
- Check the authority of the platform you have shortlisted to invest in;
- Review the APY history of the portal to calculate expected variations in return you might receive.
Final Thoughts
The cryptocurrency industry is blooming rapidly. It is always a good idea to become a part of the same. However, now when there are thousands of cryptocurrencies launched in the market, definitely some of them will not offer you high returns as others will. When Bitcoin was launched, it had a monopoly for quite some time. But now, cryptocurrencies like Ethereum are also gaining popularity in the market.So, it is advised for you to keep an eye on cryptocurrency market trends for better returns.
In the end, We hope that the information we have provided to you will be useful for you in making the right investment decisions.