Whether you’re a total newbie or a pro, it is no secret that the cryptocurrency space is known for its extreme price swings. While Bitcoin and Ethereum may be seeing bullish sentiments lately, the prices of both digital currencies had hit a low earlier in the year. With market volatility being prevalent in the digital currency space, it is important – if not essential – to find ways to earn greater yield no matter which direction the market is heading towards.
As such, this has led to the rise of crypto lending platforms. The premise of such platforms is simple: They help you earn interest on your crypto assets. This means that anyone who lends out their coins on such platforms will be able to earn interest consistently without having to actively do anything.
If you’re living in the UK and are keen on kickstarting your journey to earning passively with your cryptocurrencies, we’re here to help.
Ahead, find our edit of the top 5 crypto lending platforms in the UK to consider setting up an account with.
1st Crypto Lending Platforms in the UK: Hodlnaut
Though the start-up is based in Singapore, the platform is available for all UK users too! The great thing about Hodlnaut is that it offers users some of the highest interest rates of up to 12.73% APY on six of its supported assets: BTC, ETH, USDC, USDT, WBTC, and DAI. Plus, users have the option to choose the asset they wish to earn interest in via the Preferred Interest Payout feature.
This means that even if a user deposits BTC, he can choose to earn in other currencies such as ETH or USDC. The platform is easy to use even for beginners and is designed for convenience. The best part: Hodlnaut takes a security-first approach and has partnered with Fireblocks to provide robust security for its digital assets and even offers an optional Nexus Mutual Custody Cover that acts as an additional safeguard.
2nd Crypto Lending Platforms in the UK: Luno
In 2018, Luno was made available to users in the UK to allow them to access the platform’s range of services. Not only does it enable users to earn interest of up to 7.6% per annum, but the platform also allows users to buy crypto with fiat currency easily. Its lending feature, known as Luno Savings, does not come with fixed terms or hidden fees and allows for unlimited deposits and withdrawals. The feature supports three assets, namely BTC, ETH, and USDC.
Users can also choose to store their crypto in a Luno Wallet, which stores 95% of crypto in “deep freeze” by using multi-signature wallets protected by many layers of encryption. Do note that for UK users, there are certain trade fees as well as verification levels and limits to be aware of. More information on that can be found here.
3rd Crypto Lending Platforms in the UK: Nexo
based in London, Nexo offers a multitude of products. This includes interest accounts where users can earn interest on their crypto or fiat assets, crypto loans, and even the Nexo Card, a debit card that grants users access to the Crypto Credit Line where they can spend without selling their crypto.
Its primary aim is to replace the traditional banking system and maximize the value of digital assets by offering tax-efficient, high-yield, and sophisticated crypto products for its users. At present, Nexo supports 18 crypto assets and a slew of fiat currencies such as the Pound Sterling. It also offers users up to 12% APY for those who choose to earn in Nexo tokens.
4th Crypto Lending Platforms in the UK: Crypto.com
Though the firm is headquartered in Hong Kong, the features have been made available for UK users as well. The platform is equipped with a variety of services, allowing users to buy, sell, trade, and spend cryptocurrencies. Users can purchase over 50 different cryptocurrencies, manage their Crypto.com Visa Card where they can top up with fiat or crypto, and make crypto payments quickly.
Apart from that, crypto.com users can lend out their crypto assets to earn up to 14.5% APY. Bonus: It has just expanded its free crypto tax reporting to users in the UK as well.
5th Crypto Lending Platforms in the UK: CoinLoan
Coinloan is based in Estonia and its services have been made available to users in the UK. Its aim is to present a simple and easy-to-use platform for all crypto users where they can earn more on their digital assets.
Moreover, the platform offers a fiat-on-ramp service so users can easily transfer their crypto holdings from an exchange to a lending service all on one platform. The platform’s Interest Account enables users to earn up to 12.3% APY and supports 25 assets including BTC, ETH, and USDC To learn more,