The cryptocurrency industry is one of the few fast-growing industries across the world today. As of January 2022, cryptocurrency surpassed 2.1 trillion USD in market capitalization. A recent study reveals that over 106 million people (out of 7.96 billion people) globally now use cryptocurrency. Today, many people only use it for short-term investments. However, some people are mostly concerned about the long-term volatility of crypto assets. It’s this set of people that often end up utilizing their digital assets as loan collateral. That said, here’s a quick question; what exactly are the best crypto lending platforms out there?

To answer the question above, you need to put a few factors into consideration. Read on to understand exactly how to choose the right crypto lending platform, such as BlockFi.

Consider these factors when choosing the best crypto lending platform

Before you can conclude that a platform is one of the best crypto lending platforms out there, you need to put a few factors into consideration. These are:

1.   Security

Security first! Before considering other factors, you need to be sure the platform you’re choosing is secured. There are a couple of methods you can use to measure a platform’s security level.

  • First, you need to look at the number of years the lending platform has been in business.
  • Does the platform allow Two-Factor Authentication (TFA) before the lending process?

The answers to these questions will provide you with better insights into how secure the lending platform is.

2.   Reputation

Apart from security, you need to also consider the risks attached to choosing a particular crypto lending platform. To carry out a risk assessment of the platform, you can start by checking online for reviews. The best lending firms, especially those that have been in business for a while, have worked with many customers over the years. With online reviews, you’d better understand the experience of existing customers. These reviews will let you understand whether or not choosing the platform is worth it.

3.   License

Does the lending platform have a license? A licensed lending platform should be properly registered with the relevant securities organizations, such as the Securities and Exchange Commission (SEC).

4.   Asset options

Another thing that makes a platform the best is the types of assets that it supports. So, here’s a quick question; does the platform you’re looking to choose offer support for the asset you want to lend? It’s a total waste of time to choose a platform that only supports Ethereum when all you want to lend is Dogecoin. The fact is that the best crypto lending platforms should be able to offer support for all major cryptocurrencies.

5.   Customer support

Good customer support is vital for all digital businesses. Surely, you’ll agree that issues can always occur at any time. But how exactly do you get the problems resolved quickly? Here’s where the need to check the platform’s customer support before opting for the right one comes into play.

One effective way to confirm if customer support is responsive is by sending them an email. How long does it take for you to get a response back from them?

6.   Interest rates

Does the platform offer the best interest rates? This is another way to understand whether or not a crypto lending platform is good for you or not. If you’re looking to borrow on the platform, the interest rate shouldn’t be too much. On the other hand, when lending, the interest rate should be high enough to give you better returns on investment.