Last Updated on June 13, 2023

Are you looking for the best crypto lending platforms in 2022 to earn passive income with your idle bitcoin and other cryptocurrencies? Aside from cryptocurrency trading, saving your cryptos on lending platforms is the next big way to make money from the crypto market. 

In this post, our experts will walk you through how crypto lending works, how to choose the best platforms, and share the best seven crypto lending platforms in 2022 so you can start making money right away. 

Introduction to crypto lending

Crypto lending works similarly to traditional lending, where a bank loans the idle fund in your savings account to borrowers. The bank charges borrowers interest on the loans and pays you lower interest on your savings. This way, both parties make money. 

Crypto lending platforms allow you to loan your digital assets to borrowers in return for interest. This lending software leverages blockchain technologies like smart contracts and stable coins to guarantee the loans are paid back by the borrower and secure lenders’ interests and ensure it isn’t exposed to the volatility of the crypto market. 

So instead of holding Bitcoin, Ethereum, and other cryptocurrencies until there is substantial growth in their prices, more people are turning to crypto lending platforms to earn interest from their idle coins. With this strategy, you are keeping your crypto assets safe while still making money from them.

Best crypto lending platforms

Below are our top seven picks for the best crypto lending platforms in 2022. All the sites on our list are secure, user-friendly, and offer the highest interest possible in the market. Further down this post, we’ll also share the factors we consider in choosing the best crypto loan platforms. 

Crypto.com

Our overall best crypto loan platform is crypto.com. This platform offers users attractive interest rates and supports hundreds of cryptocurrencies. The interest rate on crypto.com ranges from 6% to 14% APY, depending on whether you are locking stable coins or other types of digital assets on the platform. Our experts like crypto.com because it offers users a flexible loan period. You can choose to lock digital assets with them for one to three months. When you choose a longer tenure, you get a higher interest. However, the site may charge you a penalty fee if you decide to withdraw your crypto before the end of the loan period. 

Another good thing about crypto.com is its user-friendly interface. We only recommend sites that are straightforward to use for our readers. From our experience, we believe anyone that can operate a smartphone will not have any issue using crypto.com. Furthermore, our experts like the site because it is accessible from almost all devices, including Android and iOS-powered smartphones. 

Other excellent features of crypto.com include its mobile app, which makes the platform accessible on the go, and crypto credit cards to shop online using bitcoin and other coins. We also like the loan calculator on the site. You can use this calculator to calculate how much interest you will earn when you lock your crypto assets for a specific period.

Why we like crypto.com:

• High-interest rates
• Supports 100+ digital assets
• Secured and trusted platform
• Crypto credit cards for online shopping.

VISIT CRYPTO.COM

Nexo

There are several reasons Nexo is on our list of best crypto loan apps. First, the site supports almost all the major tokens and popular cryptocurrencies in the market. So unlike other lending platforms, you are not limited to Bitcoin when using Nexo. Second, you can get competitive interest rates on the platform, regardless of the crypto you want to stake. Third, Nexo is one of the best lending sites for low fees. 

Furthermore, Nexo offers users a lot of flexibility with its daily payouts feature. You can withdraw funds daily from your account. Also, the site keeps funds in cold storage, therefore making it safe from hackers. Furthermore, it is worth mentioning that Nexo supports several fiat currencies worldwide. Lastly, accounts on this lending platform are insured. So if the unexpected happens, your funds are safe. 

Why we like Nexo:

• Competitive interest rates
• Lowest fees in the market
• Daily payouts
• It supports all major tokens and popular cryptocurrencies.

BlockFi

BlockFi is one of the most popular lending sites among crypto beginners. It supports all major tokens and a wide range of stable coins. BlockFi also accepts several fiat currencies, so it is accessible by users from different parts of the world. Our experts like BlockFi because of its high-interest rate. You can earn over 8% interest on your digital assets using this crypto loan platform. 

What’s more, BlockFi is one of the few crypto apps with the lowest administrative fees. There are no penalties when you withdraw your fund before the end of the loan period. In addition, the site does not charge you when you trade digital assets on their platform. A drawback with BlockFi is the withdrawal fee, which is relatively high compared to other lending sites on our list. However, BlockFi charges this fee once per month, so it won’t really affect your purse. 

Another perk worth mentioning is the USD loan program on BlockFi. You can borrow USD loans on this site by putting up bitcoin or other digital assets as collateral. There is no maximum limit to the number of crypto loans you can borrow. The only factor that can limit you is the collateral. 

Why we like BlockFi:

• Attractive interest rates
• Low administrative fees
• Supports several tokens and stable coins
• Nexo accepts a wide range of fiat currencies.

Binance

No doubt, Binance is one of the most prominent crypto exchanges in the world. Its platform features a lending program where you can take crypto loans and earn interest on the crypto assets you lock on the site. Binance supports all major tokens and stable coins. Also, the site supports more cryptocurrencies and less-known altcoins than most of its competitors. 

Binance is popular among beginners because it is pretty easy to use. You can set up your account on the platform within minutes. Additionally, administration fees such as withdrawal, deposit, and spot trading fees are relatively low compared to some other exchanges in the market. Furthermore, Binance is accessible from several platforms, including desktop computers, laptops, iOs devices, and Android smartphones.  

The good news with the Binance crypto-backed loans program is that you can choose between flexible or fixed deposits. With flexible deposits, the interest you will earn is lower, and you can withdraw your funds anytime. On the flip side, the interest on fixed deposits is higher, and you can only withdraw your funds after the loan tenor. However, you will pay a penalty fee if you withdraw before the specified date. 

Why we like Binance:

• Binance supports all major tokens and cryptocurrencies
• The platform accepts several fiat currencies
• Fixed and flexible deposit options
• Competitive interest rates.

Celsius

Celsius is popular for its borrower-friendly services. This crypto lending platform claims to offer the lowest interest rate in the market. You can borrow with interest as low as 1% on the site. Celsius supports all major tokens and a good number of popular cryptos and altcoins. This crypto loan platform is not only good for borrowers; you will also earn an attractive interest when you lock your digital assets on the site. 

Other great features of Celsius worth mentioning are flexible withdrawals, zero fees, no deposit limits, and more. You can withdraw the funds you deposit on the site anytime you desire. Additionally, there is no limit to the amount you can deposit on the platform. We also recommend Celsius because users’ wallets are insured. You won’t have to worry about the safety of your funds when you use this crypto lending app. 

Why we like Celsius:

• Low-interest rates for borrowers
• Celsius supports a good number of tokens and popular cryptos
• Flexible withdrawals
• No deposit limits and zero fees.

AAVE

Unlike other cryptocurrency loan sites, AAVE is a decentralized platform that supports peer-to-peer lending. AAVE does not act as an intermediary between lenders and borrowers, so you give loans directly to borrowers on the platform. It uses blockchain technology to verify transactions, offer users security and transparency, and ensure they are not exposed to risk. Some of the great features of AAVE include its open-source software, community governance, and few limits. 

Let’s take a deeper look at these features and how you can benefit from them. First, the open-source software allows users to build their own app on the platform. Second, there is no lock-in period or deposit limits on AAVE. Thirds, the lending platform is completely user-driven. Users vote on governance issues, so you have more control when you use AAVE. 

CoinLoan

Our list of best crypto loan platforms in 2022 won’t be complete without a mention of CoinLoan. You don’t have to lock-in in your crypto assets for a fixed period to earn interest on the site. You get daily interest by just placing your cryptos on CoinLoan. We added this crypto loan app to our list because it supports all major tokens and offers users high interest on their deposits. 

In addition, CoinLoan does not charge fees on withdrawals and deposits. There is no limit on the amount you can withdraw, and deposits are accessible anytime you want. Another great feature of CoinLoan is its cutting-edge security. For example, the site stores users’ funds in a cold wallet and have insurance in place to secure your cryptocurrency assets.

Why we like Binance:

• CoinLoan supports all popular tokens and cryptos.
• Zero withdrawal and deposit fees
• High-interest rates on deposits
• Cutting-edge security

How we chose the best crypto lending platforms

Our experts evaluated hundreds of crypto loan sites using several criteria. Some of the key factors to consider when deciding which platform to use are: 

• Interest rate – Choose the platform that offers the best interest rate for the specific crypto asset you want to deposit. 
• Fees – We recommend sites that offer zero or low fees on deposits and withdrawals. Most of the platforms we listed charge zero administration fees. 
• Security – This is one of the most critical factors to consider before choosing a bitcoin lending platform. First, you should confirm that the platform is licensed and regulated by the appropriate body. Second, ensure the site you choose has security features to protect your fund and personal information. 
• Deposit duration – We recommend platforms that allow you to withdraw your fund anytime. If you have to fix your deposit for a specific period, you should ensure the interest rate is worth it.
• Collateral – If you are interested in taking a crypto loan, you should compare the collateral you need to put down across several platforms before making a decision.
• Deposit limit – It is also vital to check the minimum amount you can deposit on the lending platform. Some sites have deposit limits, while others don’t. 

VISIT CRYPTO.COM

Frequently asked questions about crypto lending platforms

How do crypto lending platforms work?

Crypto lending platforms allow you to earn interest on the digital assets sitting idle in your crypto wallet. The site loans out your deposits and pays you interest in return. You can also borrow instant loans on these platforms by using digital assets as collateral.

Is crypto lending safe?

Crypto lending comes with some risks. However, your risk is minimal when you use a trusted crypto lending platform. These sites have security features like smart contracts, insurance, stable coins, and more to reduce your exposure to loan default and crypto volatility.

Which platform is best for crypto lending in 2022?

The best crypto loan platforms in 2022 are Crypto.com, Nexo, BlockFi, Binance, Celsius, AAVE, and CoinLoan. These sites offer users the best interest rates on their deposits. In addition, they offer flexible deposit duration and have very low deposit and withdrawal fees. What’s more, the platforms are licensed and regulated by the relevant authorities.

Can I make passive income through crypto lending?

Yes, crypto lending is profitable. You can earn steady passive income through crypto lending. So rather than hold your digital assets till the price goes up, you can start earning interest on them by depositing the funds on crypto lending platforms.