- ABOUT US
- STARTER KIT
There are different ways to earn passive income in today’s world. However, some new methods and options are available for users, especially in the cryptocurrency market. The cryptocurrency market, along with a decentralized finance industry, helps people generate better passive income. Two of the most known ways to do so include crypto lending and staking. This article will let you know how these methods are different from each other.
Crypto lending is almost similar to crypto staking when generating passive income, but crypto lending works differently. In crypto lending, the users can lend their digital assets to the borrowers, in return for which the borrowers pay interest to their lenders. The platforms offering crypto lending generally accept cryptos and stable coins. Further, for lending your crypto, you can use centralized finance platforms or decentralized finance platforms.
Staking cryptocurrencies refers to the process of locking up your crypto assets to earn rewards and contribute towards a blockchain network. This is a valuable concept for the network as well as the crypto holders. It allows the crypto holders to generate some value from their cryptos in their possession but simply lie idle. Moreover, staking cryptocurrencies can efficiently generate passive income because some cryptos offer high-interest rates.
The lenders and borrowers involved in crypto lending are connected through a third-party online crypto lending platform. Therefore, three parties are involved in this process – The lender, the borrower, and the lending platform.The lenders are the people who wish to lend their cryptos and stable coins to earn passive income from them. Cryptocurrency lending platforms are third party online platforms that connect the lenders and automate their transactions. The borrowers are the people who wish to borrow funds for various purposes and use crypto or fiat assets as collateral to receive funding.
In cryptocurrency staking, the users lock up their coins to the cryptocurrency protocol. Then, from those users, the protocol chooses validators to confirm blocks of transactions. The more coins the user locks up, the more passive income they can generate. Before staking the crypto assets, it is necessary to know how crypto staking works.To stake a cryptocurrency, the user must hold a cryptocurrency that makes use of the proof-of-stake model. Then, the user can choose the amount that he wishes to stake. Staking can be done through any crypto staking platform. While staking, the coins remain in possession of the user. It’s just that the coins are being put to work and can be withdrawn anytime if the user wishes to trade them.
There are several crypto lending platforms, but some of them are mentioned in the below table.
With the help of some best crypto staking platforms, you can simply put your assets to work and generate an excellent passive income. A few of the best crypto staking platforms available are:
– The platform offers the users world-class staking crypto services.
– A user-friendly platform pays off high rewards for staking crypto provides support for multiple asset classes, i.e., it supports the investments made up of a combination of assets like cash, equity, and bonds.
– The users can stake up to 100 different digital assets on the Binance platform.
– Offers a large pool for staking crypto.
– It is a secure crypto staking site.
– The platform also offers insurance coverage for user funds.
– The platform enables the users to earn extra income by just holding their cryptocurrency via staking.
– However, only a few cryptocurrencies are eligible for staking for now.
– The platform offers custodial services for large institutions.
– It is a public company that reflects it is well regulated.
– Kucoin introduced a new concept of soft staking that allows users to earn rewards without even locking up their crypto assets.
– It pays rewards regularly.
– Thus, eliminating the long waiting periods for receiving rewards.
– Provides multiple staking offerings.
– The users can earn up to double daily rewards.
– The platform has a large staking pool
– The platform offers feeless staking, and the user can get up to 100% of the staking rewards without paying any fees.
– Provides an easy way to earn rewards by holding and depositing crypto assets.
– No lock-up period.
– The user is free to trade, deposit and withdraw anytime.
While talking about crypto lending and crypto staking, it is essential to understand all the necessary things about their safety. The users always have a question about whether crypto staking is safe or not? Crypto staking can come up as a safe choice because the users participate in making the network secure, but it also involves some risks. For instance, staking cryptocurrencies requires the user to lock up their assets for a certain period which means they cannot use their funds for investments in other opportunities if some arise.
On the other hand, Crypto lending can be considered safe, but it also comes up with some risks. For instance, there is no surety that the borrower will repay the loan. This is the only reason crypto platforms secure 80% of the collateral in case of a loss.
Share On social Media 👇