Are you someone who is looking to buy cryptocurrency in India and invest for a long period of time but is hesitant to do so because of cryptocurrencies frequent price fluctuations?
As an investor, have you sold your cryptocurrency just because you did not see any returns for months, only to see your coin’s price shoot up as soon as you sold?
No need to not worry! In this article, we will talk about cryptocurrency lending as an option and how one can use that feature and stay invested for months or years. India’s best cryptocurrency exchange – ZebPay has introduced a cryptocurrency lending option. To understand the benefits of cryptocurrency lending, let us imagine a world where one could play safe and limit their risk yet be able to experience great upsides. Great! isn’t it? Think of it as putting your money in a fixed deposit as well as getting extra returns when the price of your favourite cryptocurrency coin goes up.
Now that we have discussed what it feels like to be in this favourable world, let us learn how we can arrive there. In the following paragraph we will talk about the lending features, but before that let us understand what cryptocurrency lending is.
Whether you are a day-trader or a long-term investment person, you can now generate an additional source of revenue by buying crypto through ZebPay cryptocurrency exchange. You can turn yourself from a ZebPay user to a ZebPay lender by lending your cryptocurrency coins to ZebPay and earning interest as high as 12% depending on the days invested. This feature is applicable for select coins. Currently, there are two schemes at hand – open term and fixed term.
Under the open term scheme, you will be paid a return as applicable for the day. The returns will be deposited into your trading wallet daily. One can take back all its lent cryptocurrency at any time of the day. The deposit is returned immediately. As a day trader, one can take advantage and not only buy cryptocurrency but also get additional fixed returns. Now let us understand the terms and conditions of fixed deposit lending.
In the fixed deposit lending scheme you can lend your crypto for 7, 30, 60 or 90-day periods. The rate of return depends on the time frame you choose for lending. One can withdraw their coins before maturity; however, one has to pay a penalty to exit its lending before maturity. The interest earned along with the principal will be returned once the lending tenure gets over.
You can avail of cryptocurrency lending benefit only on five select coins such as Bitcoin, Ether, Binance Coin, Polygon, DAI, and Tether. Interest rate charts for both schemes are attached below.
| Coins | Open Term (Estimated Yield Up to) | Fixed Term (Annualised Yield Up to) |
| Bitcoin/BTC | 1% | 1.5% |
| Ether/ETH | 1.5% | 2% |
| Binance Coin/BNB | 2% | 4.5% |
| Polygon/MATIC | 4.5% | 7% |
| DAI/DAI | 3% | 6% |
| Tether/USDT | 9% | 12% |
Now that we have discussed the benefits of crypto lending, let us understand points that need to be considered before lending. The single most important point to note is whether your cryptocurrency exchange is secured or not. In the past, investors have experienced situations where their wallets have been hijacked.
To counter such problems one has to invest in the best cryptocurrency exchange in India that secures its customer’s deposits and holdings by securing coins in an offline cold wallet. This completely removes the risk of a hijack making it a safe and secure exchange for one to avail cryptocurrency lending benefits.
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