What are the best places to lend USDT coins and earn high interest with the lowest risk? This guide will show you the way!
Since the start of 2021, the entire cryptocurrency market is in a fierce bull run. For instance, there is an increasing demand from bigger investors like Microstrategy and Tesla combined with a growing interest from mainstream retail investors.
Also, the cryptocurrency market has evolved into a new asset class where DeFi has taken a big part. In addition, investing in crypto doesn’t mean that you have to invest in the bigger ones like BTC, ETH, or LTC anymore and wait when your portfolio goes ‘to the moon’.
Nowadays, the market shows numerous other opportunities for earning a passive income or make a good profit out of your crypto portfolio.
A good example of earning a passive income without any risk is peer-to-peer lending by earning interest over it. In this article, I’ll explain to you the best places to lend USDT stablecoin. Also, a deeper explanation of how USDT lending actually works.
What is USDT Lending and How does it Work?
To get to know how USDT lending actually works it is important to realize that USDT is a stablecoin. In crypto stablecoins can be used as collateral to earn high interest or as a store of value when the total market is showing high volatility. Why are stablecoins safe?
The main reason for this is that a stablecoin like USDT is pegged to $1 and always will stay at this level. Also, because of low-risk in terms of valueation USDT can be used to earn high interest (6 – 10%).
In particular, USDT lending can be used on a peer-to-peer lending platform where users can lend their idle USDT Thether assets to obtain stable income. Conversely, you can also borrow assets on the platform to amplify investment returns by Margin trading.
What are the main benefits of USDT Lending?
As explained above, USDT is a stablecoin and will always be pegged to 1$. Additionally, this excludes high volatility risk of the daily markets which is a property many ‘whale-investors’ can appreciate.
Another main benefit of lending USDT is that you can earn high interest on it. Moreover, without the need for trading or re-investing into the crypto markets. In general, the interest to earn on USDT fluctuates but it can give you a decent passive income starting from 6% or higher.
Best Places to Lend USDT: Overview
To make it easier for you, I have created a short list about where to lend USDT coins without putting your portfolio at risk:
- Ledger Nano – The most secure cryptocurrency hardware wallet to store your crypto like USDT offline
- Binance – Worlds most popular cryptocurrency exchange with almost zero fees
- Kucoin – Cryptocurrency exchange with the most crypto holders on the platform
- Poloniex – US-based cryptocurrency exchange that offers crypto trading from anywhere in the world.
- Nexo – One of the most secure crypto asset-backed credit providers in the EU and US.
- Celsius – Cryptoasset-backed credit provider over more than 30 cryptocurrencies including USDT
|Avg interest: 7%
|Avg interest: 8%
|Avg interest: 12%
|Avg interest: 6%
|Avg interest: 10%
|Avg interest: 10%
The Safest Place to Lend USDT
What is the safest place to lend USDT and don’t fall victim to wallet hacks or platform losses? In general, the way it works in crypto is that you are responsible for your private keys, and in return, you will get privacy and freedom to use them from anywhere in the world.
Additionally, to be as safe as possible you have to go offline and store your keys on a cold wallet.
What is a cold wallet exactly? First I’ll rewind a little, and will explain to you software wallets which are also cryptocurrency wallets and can be used to store your private keys on your device.
However, they remain connected to the internet 24/7 hours a day. One of the main benefits of most software wallets is that you can hold hundreds of different cryptocurrencies in the same wallet and they can be downloaded for free.
Hardware or Cold wallet
On the other hand, there is the cold wallet which refers to a wallet which is IS NOT connected to the internet all the time. Therefore, hardware or cold wallet is much more secure and gives you peace of mind at night when going to sleep for example ☺️.
Also, this high security comes at a price(where a Ledger Nano S costs about $80).
So it’s good to know that you can store your funds safely offline. Additionally, is it possible to lend USDT coins from a hardware wallet and be as safe as possible?
The answer is yes. In short, lending USDT on a Ledger can be done by using the Compound smart contract which you have to install on your device first(more on this later on).
Best Places to Lend USDT coins(and earn high interest)
Below I’ll go into more detail about what the platforms listed above have to offer in terms of interest, security, and usability when lending your USDT crypto assets.
As mentioned earlier, Ledger is one of the most popular hardware wallets in the market. This is the preferred wallet for investors that hold their coins offline. Thus, USDT holders would certainly find Ledger one of the best places to store this stablecoin.
There are different Ledger models. The most purchased Ledger wallets are the Ledger Nano S and the Ledger Nano X. Both of them are very useful and portable but the Ledger Nano X works with Bluetooth, has a better screen and it supports a larger number of apps.
In particular, one of the main benefits of using a Ledger device is that the wallet uses a built-in exchange feature. Additionally, you can purchase new USDT coins and send these to your Ledger wallet instantly. This feature uses a third party(Coinify) so buying comes at a cost: 4.5% credit card fees or 1.7% for bank transfers.
How to Lend USDT on Compound with Ledger
Below are the steps needed to use Compound in combination with a Ledger Nano X. Additionally, this is the best way to use USDT lending completely offline.
- Download and install Ledger Live on your computer or smartphone
- Connect your hardware wallet (Ledger) with Ledger Live
- If this was your first time setting up your Ledger device, you should properly store your private keys (seed phrase)
- Download to your Ledger Live and Ledger Device the Compound application
- Create a Compound Account on Ledger Live
- Verify and confirm the Compound smart contract
- Deposit USDT to your Ledger device(For instance, use Binance for this)
- Select the amount of USDT you want to lend
- Confirm this transaction on the Compound smart contract
- You are now set for lending USDT and you can take the Ledger offline
What happens next? With Compound you have put your USDT coins in a smart contract for lending and for a certain period of time. During this period you will receive cUSDT tokens as interest in your smart contract/wallet. In addition, these cUSDT coins can be claimed and used for profit.
Cryptocurrency Exchanges: Binance
Another option you have when lending USDT to earn profits is going to a centralized exchange and use their service for lending USDT coins. One of these exchanges you can use is Binance.
Binance is a very famous crypto trading platform that is is founded by Changpeng Zhao, a well-known blockchain industry expert, and expert in setting up trading systems.
In my opinion, it’s the best cryptocurrency trading platform for beginners as well as the best altcoin trading platform if you consider the trading volume and the number of coins listed on the exchange(300+).
Additionally, based on daily(24h) trading volumes, Binance is the biggest cryptocurrency exchange in the world. Also, it has millions of cryptocurrency traders using its platform on a daily basis.
Lending USDT on Binance is very flexible where you have two options. The first one is ‘Flexible savings’ where you can transfer USDT and also redeem any time you need the coins(about 5.77% interest).
Besides this you have ‘Locked savings’ where you can transfer USDT coins and lock for 7, 14, 30, or 90 days. In addition, you will get rewarded with an average interest form 6 – 7% depending on the period.
Finally, trading a Binance can be done with almost zero fees(0.075%) and you can use this link when signing up. It will give you an additional 10% discount on fees for life 🙂
How to Lend USDT on Binance
With the two options(Flexible and Locked savings) you have on Binance this is one of the best platforms to lend USDT. This is how it works:
- Create a free account at Binance
- Navigate at ‘Finance’ at the top menu and choose ‘Binance Earn’
- Choose Locked savings or Flexible savings here for USDT
- Give the period(Locked savings)
- Click ‘Transfer’ button
- (For Locked savings) select activity duration
- Enter the amount of USDT to lend
- Enter ‘Transfer confirmed’ button
Kucoin is another famous cryptocurrency exchange that also offers crypto lending as a service.
Compared with Binance described above, Kucoin is probably a modern platform for trading any cryptocurrency. In addition, this platform was founded by a group of cryptocurrency enthusiasts from Asia aiming to offer comfort and security to your mighty assets.
As of writing the platform ranks at position 12 on the list of exchanges which is based on trading volume for the past 24 hours. In addition, the platform is specialized in offering trading cryptocurrencies, margin trading, trading futures, and also staking cryptos.
Spot trading cryptos can be done at a fee of 0.1% and it is also important to note that withdrawals from the platform can be done at zero fees.
How to Lend USDT on Kucoin
To lend your USDT on Kucoin can be very profitable(up to 20%). However, it’s also very risky because you have to enable ‘Margin trading’ and your position can be liquidated anytime. Here is how it works:
- Create a free account at Kucoin
- In the upper menu choose ‘Finance’ and ‘Crypto lending’
- Click ‘Enable margin trading’
- For USDT lending select USDT on the left
- Give amount of USDT and the days(7, 14, or 28) under ‘Terms’
- Press ‘LendUSDT’
Last but not least in the list of exchanges, there is Poloniex, a crypto trading platform from the early days that is founded back in 2014. Furthermore, it’s a US-based exchange that became famous for offering crypto trading over the years.
In the past, crypto investors could use the Poloniex platform as a crypto-to-crypto trading platform. As of today this platform has extended its services and can be considered as a one-stop-shop for crypto trading.
Additionally, based on daily(24h) trading volumes, Poloniex is still a very large cryptocurrency exchange that offers its services to hundreds of thousands of crypto enthusiasts.
Besides trading, Poloniex offers several other feature-rich products, including custodian wallets, crypto margin trading, lending service, and earning rewards with staking.
In general, Poloniex has been around since the beginning of crypto and is, therefore, one of the most trusted platforms to lend USDT.
How to Lend USDT on Poloniex
If you want to have all options available in terms of the lending period, amount, and interest rate then Poloniex would be the best place to lend USDT. This is how it works:
- Create a free account a Poloniex
- In the upper menu choose ‘Lending’
- Select with mouse the USDT balance on the right
- Now enter the daily rate, amount, and duration(days)
- Click ‘Offer loan’
Crypto Backed Asset Providers: Nexo
Nexo is one of the most recognized and used crypto loans platforms. They are now accepting over 40 fiat currencies and they are operating in more than 200 jurisdictions. That means that they have a large part of the countries of the world covered with their services.
Some benefits of Nexo:
- 12% interest on stablecoins like USDT
- 18 different cryptos can be used as collateral
- 8% interest over BTC deposits
- 30% dividend on Nexo tokens
Celsius Network is a platform that is providing financial services to crypto users from all over the world. The company claims that they are providing curated services that “have been abandoned by big banks.” These services include fair interest rates for your loans, zero fees for the services provided, and quick transactions.
The following crypto profits can be earned:
- 10% on USDT stablecoin
- 6.35% on ETH
- 6.2% on Bitcoin
Nowadays crypto offers investors various opportunities in ways to let money work for them. Besides trading or staking cryptocurrencies, lending USDT is probably the easiest way if you favor low-risk. In particular, lending USDT or any other stablecoin is the way to go if you want to be sure your money in terms of USD value will grow over time.
I hope with this guide in the best places to lend USDT that you will have a clear view of the available options in cryptocurrency. Stay safe and moreover stay profitable out there 👍
The following articles might also be a good read for you:
- Crypto Lending vs Staking: Which concept generates the most Passive Income?
- What is the Best Way to Invest 1k in Crypto?
- Running Masternodes Are They Profitable(2021)
- What are the Benefits of Binance Trading Platform?
- Confidential: Best Places to Keep my Crypto Safe
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