The crypto world has created an alternative for the financial world, giving users an alternative digital option to pay for goods and services. Although the industry is still shuffling, new technologies prove to be actual threats to the current financial world. For instance, to replace the contemporary financial world, the crypto ecosystem instituted lending and borrowing platforms for crypto assets just as done in the banking sector. These platforms have some of the best features that make them tower over the fiat banks, and with more pace, they will soon replace the banking world. But what are some of the best lending platforms in the crypto world, and what do they offer? Here is a list of the five best crypto lending platforms to watch in the year 2021.

BlockFi
Primarily, BlockFi is a crypto exchange platform guaranteeing users an average interest rate of about 8.6% annually on every crypto asset they deposit therein. This platform currently offers loans for collateralizing crypto assets in Bitcoin, Ethereum, Litecoin, GUSD, and USDC. Instead of selling these assets when having emergencies, the users can lock their value in the BlockFi ecosystem and get a loan in the name of those crypto assets.

The platform doesn’t require the user to have some minimum assets stored in the account. Additionally, it offers its interest account that holds all interests earned by the user.

Although the compounding rate is 8.6%, different rates are depending on the assets. For instance, PAX, GUSD, USD all earn 8.6%, USDT earns 7%, PAXG earns 4%, LTC earns 5% and ethereum 4.50%. However, BTC has different rates depending on the value of holding; for instance, more than 2.5 BTC earns 3.2%, while for assets worth less than 2.5, the investor earns 6%. The minimum loan duration is 12 months.

If an investor does not have the coins mentioned earlier, they can deposit USD into the BlockFi Interest Account and earn monthly interest. Since there is a wide choice of assets, the investor can diversify between the assets.

Nexo
Nexo is a crypto lending platform working with almost similar attributes to the BlockFi network. It allows investors to collateralize their crypto assets and, in turn, receive fiat loans in the process. This platform offers loans in over 40 fiat currencies and several ways of sending the fiat to the borrowed account.

When repaying, the borrower can use either cryptocurrencies or fiat currencies and pay the full loaned amount plus the interest.

The interest rates in the Nexo platform are constant at 8% compounding rates, and that helps strengthen the attractiveness and viability of the Nexo platform. Users can withdraw at any time, with withdrawals being highly timely.

Nexo’s platform is highly user friendly; thus, the platform is highly efficient for both beginner and experienced crypto users when getting loans. It also offers several crypto assets and operates everywhere globally for better global access.

This platform is free from long processes of checking creditworthiness and approving loans. Nexo’s crypto assets include BTC, ETH, LTC, XRP, XLM, EOS, BCH, LINK, TRX, and stablecoins like PAXG, BNB, NEXO, etc.

Compound Finance
Compound finance, launched in September 2018, is probably the Defi ecosystem’s largest Defi lending platform. Compound leverages smart contract capabilities in its functioning. This platform allows users to borrow some of ethereum based assets, including BAT, ZRX, and Wrapped BTC.

For lending BAT, lenders can earn a supernormal interest of up to 25%. Similarly, Compound finance does not institute KYC, AML, or even in-depth credit record checks like the two others mentioned above.

Rewards and interests in the compound platform come in the form of COMP tokens. Investors can enjoy storing their crypto funds in one pool and enjoy the benefits that come from lending out the assets.

YouHolder
The YouHolder platform allows users to borrow fiat funds by collateralizing their crypto assets at desirable interest rates for the lenders. Foremost, the loans given out depends on the value of crypto assets the borrower has. Youholder supports around 18 crypto assets, including the crypto giant BTC and ETH, as loan collateral.

For savings, it supports approximately 22 crypto assets, and it promises to add more over time. The interest rate is compounded at 12 percent per annum for the Youholder savings account’s crypto assets.

However, the interest rates may vary between a minimum of 2.5% and 13%, depending on the terms and assets held. For instance, every BTC loan has an average interest rate of 4.8%, while other stablecoins charge an average interest of around 12%.

Read more: The Daily Chain