- Lenders on CoinDCX’s platform can get a maximum annual interest rate of 16.25%.
- No waiting for the borrowers. Lend it to us in no time and earn passive income.
- Lenders can terminate their contract whenever they want. You control your funds.
With the falling interest rates and rising inflation, depositing fiat currencies at banks to earn interest rates might sound depressing to many people. Lending cryptocurrencies to crypto exchanges is an alternative that every investor and trader must consider.
The lending and borrowing market for cryptocurrencies is an important sub-sector in crypto finance. At the time of writing, lenders on CoinDCX’s platform can get a maximum annual interest rate of 16.25% if they lend USDT to CoinDCX.
Crypto lending and borrowing are fairly simple concepts where crypto HODLers earn passive income on their idle lying cryptos and traders on margin borrow cryptos for a specified interest rate with an expectation of getting more profits from the margin trade.
One of the reasons why CoinDCX can provide such high-interest rates as compared to its competitors is because of the efficient models we use to lend the cryptos to margin traders. Another advantage is that lenders do not have to wait for borrowers. You can simply go on Lend and start earning.
Lending cryptos on CoinDCX’s platform has got many other advantages. This blog has been written to explain to our readers why they must lend cryptos (if they are not trading with it), what features CoinDCX provides to its users and therefore, why must they lend to CoinDCX?
Why should I Lend?
One of the main reasons why the crypto market is so volatile is because of its market capitalization. The market capitalization of the entire crypto market is very less as compared to that of the fiat currencies of major economies.
If you are a crypto trader or an investor who HODLs cryptocurrencies then lending on cryptocurrency exchanges is one of the safest ways to earn passive income. Lending your cryptos is essentially you lending the assets to margin traders who pay you the interest for borrowing your funds.
Investors who HODL must lend their cryptocurrencies to get passive income on their idle lying cryptos. Lending your cryptos while HODLing them will help you get greater returns in terms of additional interest rate which would not have been possible on idle lying cryptos. Traders on the other hand must lend when the market is not doing great. When the market has crashed and you are unable to sell your cryptos or trade-in a bearish market, why not lend to other margin traders and earn some interest on it?!
Lending them on the exchanges could at least help you earn an interest that is at par or more than what the banks offer. Another advantage of lending cryptocurrencies is that not only do you earn interest payments for the duration of the lending period, you could also benefit from additional gains when the price of the cryptocurrency spikes.
Features available on CoinDCX
Lending on CoinDCX is available for 10 cryptocurrencies that belong to a diverse group of sectors such as currencies such as Bitcoin (BTC), Litecoin (LTC) and Ripple (XRP), stable coins such as Tether (USDT) and TrueUSD (TUSD), centralized exchanges such as Binance Coin (BNB) and smart contract platforms like Ethereum (ETH), Neo (NEO) and Tron (TRX). This talks a lot about the diversity of options we have when it comes to lending cryptocurrencies.
- Traders and investors can choose to lend at any point in time.
- Your duration of days starts from the time you confirm your lending and your funds get locked on CoinDCX.
- Once your lending period is over, your interest along with your principal quantity of crypto gets credited into your account.
While the minimum number of days to lend the funds is 7 days, lenders on our platform can terminate their lending contract before maturity. In case you wish to terminate your lending contract before maturity, you can simply go on the same page and terminate it. You are not fined for doing so but you do not receive the interest on your cryptocurrency either. It is therefore advised to lend for the number of days you wish to lend the crypto and not for a very long period.
CoinDCX keeps its users in mind and keeps changing the interest rate from time to time. This interest rate is based on the market sentiments, demand and supply of the token and many other factors. An increase in demand for USDT tokens on margin, for example, might lead to an increase in the annual interest rate for USDT on our platform.
For those who are still wondering, Why CoinDCX? Continue reading!
The answer to that is very simple. Not only are we among the leading crypto exchanges in India, but we also offer the highest liquidity across the world’s best exchanges. The funds you lend are provided to margin traders on Margin, enabling us to provide you with the highest possible rates. You don’t need to worry about your funds when you lend them to CoinDCX. We rely on MultiSig Cold wallets for the safety of the funds that are protected by BitGo’s $100 million insurance policy. No single person has access to the crypto assets that we hold. We even let investors and traders who have not done their KYC to lend their cryptocurrencies on Lend for as long as you do not withdraw fiat or cryptos worth 4 BTC in a day. Completing your KYC only helps you with a seamless, safe and secure crypto experience. Lastly, we have a no transaction fee policy when it comes to lending on CoinDCX.
So come enjoy another amazing product that allows people to earn passive income on their idle lying cryptos. Interest rates are subject to change, but will most likely be at par or better than what the banks offer us on fiat currency. To stay updated with all the latest news about cryptocurrencies and blockchain technology, read our blogs on DCX Learn and follow us on Twitter, Telegram and Instagram.