The crypto lending industry is a new application of decentralized finance that is taking the cryptocurrency world by storm. You can lend out your cryptocurrency to other investors, developers, and platforms with cryptocurrency lending platforms and be rewarded with interest. That means that regardless of what is happening to the crypto prices from day to day, it is still possible to earn money from your crypto holdings.

This guide will review the five best crypto lending platforms in South Africa for 2023. Also, we will explain how crypto lending works and how you can get started right now.

Best Crypto Lending Platforms in South Africa List 2023

1. AQRU – The best crypto lending platform in South Africa with up to 12% APY
2. Crypto.com – Up to 14% APY on over 50 tokens in South Africa
3. BlockFi –  The Best Stablecoin Lending Platform in South Africa
4. Nexo – Earn up to 36% APY daily in South Africa
5. YouHodler – Lending across 50 crypto coins simplified in South Africa

Best Crypto Lending Platforms in South Africa Reviewed

Would you like to learn more about the best crypto lending platforms? Listed below is a short description of each of the top 5 sites, so you can see what each offers and choose the platform that will work best for you.

1. AQRU – Best Crypto Lending Platform in South Africa with Up to 12% APY

As of 2023, AQRU is the leading bitcoin lending platform in South Africa. You will be able to lend out Bitcoin, Ethereum, Tether, USD Coin, and DAI on this platform at rates up to 12.0% APY. Since each coin has its risk profile and interest rate, it is easy to mix and match coins to create a portfolio that can draw on different rates. In addition, AQRU never locks in your money, so you are free to withdraw crypto at any time or re-allocate your portfolio as you see fit.

AQRU has one of the most exciting features in that it allows you to go from fiat lending to crypto lending in just one step with a single platform. If you deposit by credit card, debit card, or bank transfer, the platform will use MoonPay to automatically convert the funds into cryptocurrency when you make a deposit. As a result, there are no additional fees for making deposits with fiat or withdrawing money in fiat. It is also worth noting that AQRU also accepts cryptocurrency deposits in any of the 5 cryptos it supports.

It is very simple to use AQRU, and there is a mobile app available to manage your crypto lending from wherever you are easy. In addition, interest is paid out daily, which means you can start compounding your savings as soon as possible. As a result, you can monitor the amount of interest you are earning on an hourly basis, helping make your money feel all the more tangible.

Cryptoassets are highly volatile unregulated investment products. No EU or UK Protection.

2. Crypto.com – Earn Up to 14% APY on More Than 50 Tokens in South Africa

Crypto.com is regarded as one of the best crypto lending companies to earn interest on altcoins. The reason for this is that this lending platform can accept more than 50 tokens and can offer up to 14.0% APY for USD Coin. In addition, Crypto.com will offer an 8.5% APY on both cryptocurrencies.

Crypto.com is one site that we particularly like because it allows you to choose a flexible loan period or lock in your cryptocurrency for 1 or 3 months. If you decide to lock in your crypto, you will earn higher rates, but you will be penalized if you decide to withdraw sooner.

The most important thing to note is that Crypto.com only offers its best Bitcoin lending rates to users who have staked at least $4,000 in Crypto.com's native cryptocurrency coin, the CRO token. Using a simple calculator, you can easily figure out how much you can earn by lending out different coins with different lock-in periods and CRO stakes on Crypto.com. AQRU, on the other hand, is relatively simple to build a diversified crypto portfolio with a variety of different coins and interest rates.

With Crypto.com, you will receive interest payments every week, and you will be able to monitor your earnings either online or via the Crypto.com mobile app. In addition, the app integrates with Crypto.com's exchange and other offerings, such as a crypto-backed rewards credit card, so it is a one-stop platform for everything crypto.

Cryptoassets are highly volatile unregulated investment products. No EU or UK Protection.

3. BlockFi – Top Crypto Lending Platform for Stablecoins in South Africa

There are currently a number of top Bitcoin lending platforms available in South Africa at the moment, including BlockFi. BlockFi specializes in stablecoin lending, providing interest on coins such as USDC, GUSD, PAX, USDT, and BUSD. BlockFi, of course, also supports lending for ultra-popular cryptocurrencies such as Bitcoin and Ethereum.

Considering that BlockFi's interest rates top out at 8.75%, it doesn't have the best Bitcoin lending interest rate that we've seen so far. Note that the interest rates are tiered so that the majority of your interest comes from the first 1-2 Bitcoins or Ethereum. As your balance grows beyond that point, the interest rate diminishes.

BlockFi is suited to invest in crypto with relatively small holdings; however, it can be a deterrent if you have a lot of cryptos that you would like to lend. However, there is good news for crypto investors. BlockFi does not charge any fees for its crypto savings accounts.

Also, there is a great deal to like about the BlockFi crypto ecosystem, of which the lending service is just one component. Furthermore, BlockFi also offers a rewards credit card, a cryptocurrency exchange, investment-grade products, and a cryptocurrency wallet integrated into the platform.

Cryptoassets are highly volatile unregulated investment products. No EU or UK Protection.

4. Nexo – Earn Up to 36% APY Paid Out Daily in South Africa

Nexo crypto lending is designed for investors seeking the highest interest rates on their crypto. For example, the promotion rate for Axie Infinity with Nexo is up to 36% APY, and the promo rate for terra is up to 20% APY. For Polygon, the interest rate reaches an APY of 16% APY, and for Polkadot, it reaches an APY of 15% APY.

On Nexo, there is a total of 32 cryptocurrencies that are offered for lending, and it pays interest daily on each of them. As a result, you get the opportunity to take advantage of these high Bitcoin lending rates while also getting daily compounding growth.

Nexo pays in NEXO tokens, not in the cryptocurrencies you lend out. That is because all the interest is paid out in NEXO tokens. So it can be a good thing if you like the NEXO token, but it also means you will have to pay a swap fee if you want to switch back to another cryptocurrency down the road.

Nexo crypto lending accounts are fee-free, and the platform uses a multi-layered security system to protect its clients' funds. Nexo has paid out more than £170 million in interest to date.

Cryptoassets are highly volatile unregulated investment products. No EU or UK Protection.

5. YouHodler – Simplified Crypto Lending Across 50 Coins in South Africa

Another of the best Bitcoin lending sites available in South Africa today is YouHodlr. In terms of versatility, it is comparable with Crypto.com as it allows you to lend across 50 different coins. In the case of Tether, the top interest rate is 12.3% APY, which is followed by USD Coin earning 12.0% APY and Bitcoin earning 4.8% APY.

YouHodlr has some unique features that set it apart from other platforms. Firstly, you can use the crypto in your savings account as collateral for crypto loans. A big advantage of this is that you can effectively use your crypto twice - once to earn interest and again as collateral for a loan - all on the same account.

As well as this, YouHodlr offers complete flexibility in terms of loan periods, so you can re-allocate your portfolio at any time or withdraw your funds at any time. In addition, the cryptocurrency interest is paid out every week, so generating compound interest does not take long.

We like the other thing about YouHodlr is that it has an insurance policy of $150 million. So in the event of a hack of the platform, you have confidence that your funds are protected, which gives you a lot of peace of mind when lending through the platform.

Cryptoassets are highly volatile unregulated investment products. No EU or UK Protection.

Best Crypto Lending Platforms in South Africa - Rates Comparison

Are you looking for a comparison of the top crypto lending platforms? You can check out the table below to find out which best lending sites offer crypto loans, as well as how much interest each of them charges.

Types of Cryptocurrency Lends

Lending out cryptocurrency can be done in several different ways. This article explains the main differences between the most popular methods and looks at what makes them unique.

Lending Crypto From a Site

It is clear that all of the crypto lending platforms that we reviewed fall under the category of sites that lend crypto. A platform like this holds your crypto on a custodial account and lends it out for you on your behalf. Finding borrowers and coordinating payments is no hard work because they cut the interest that borrowers pay, but you don't have to.

The process of lending crypto from a site can be somewhat beginner-friendly, and the interest rates can be quite competitive.

Lending Crypto to a Platform

Staking is what is generally referred to as lending crypto to platforms. By taking out a crypto loan of this type, you commit your cryptocurrency as the stake required to verify new transactions on a crypto blockchain. When the blockchain validates transactions, newly minted coins are released as rewards. A portion of this blockchain reward is returned to you as interest as a reward for your staking.

Generally, when you stake your cryptocurrency, you will need to lock it for several days or weeks at a time. If you decide to withdraw your crypto before the end of the lock-in period, you will not be eligible to receive interest payments. In general, staking is the most effective way to earn more of a specific cryptocurrency, which is why it makes sense to stake a coin that you believe will gain value in the future.

Peer-to-Peer Crypto Lending

Using peer-to-peer bitcoin lending, you will be able to lend your crypto directly to another individual. It is important to note that this is one of the riskiest types of crypto lending because, if the borrower defaults, there are few recourses for you to get your money back. However, peer-to-peer crypto lending has the advantage of offering some of the most competitive crypto lending rates on the market. As such, it is among the best investments in the crypto industry.

You can find several decentralized lending exchanges online where you can find potential borrowers and set up repayment schedules for your loans.

Bitcoin Lending Interest Rates Explained

When comparing Bitcoin lending platforms and which coins to lend, the most important factor to consider is what rate you will get. It has been reported that crypto lending rates can vary greatly between lending platforms and that the rates may change over time due to fluctuations in demand for borrowing cryptocurrency.

As a rule of thumb, crypto lending rates are measured in APY or annual percentage yield. If you were to lend your crypto for a full year, this number represents the profit you would receive from it in terms of interest if you did. You will receive a fraction of the APY if you lend out your crypto for a shorter period.

What Cryptocurrencies Can Lend?

It is important to understand that not all cryptos, especially the new crypto coins, can be lent out. This is because lending platforms typically work with popular cryptocurrencies with a high demand level. Demand for a coin means more investors and developers will want to borrow it, which will drive up interest rates - a win-win situation for both the lending platform and the people lending out their coins.

In addition, top crypto lending platforms want to cater to a wide range of altcoins at the same time. That is because cryptocurrencies have tremendous growth potential, and investors often want to earn interest in them to realize a profit without selling them. Because of this, sites such as Crypto.com and YouHodlr now offer lending on 50 different cryptocurrencies.

Popular cryptocurrencies include:

• Bitcoin
• Ethereum
• Tether
• USD Coin
• PAX USD
• Maker
• Uniswap
• Chainlink
• Avalanche
• Tezos
• Cosmos
• Terra

You can find a complete list of coins available at each lending site in the table above.

How to Lend Cryptocurrency in South Africa

Are you interested in lending your cryptocurrency for interest? AQRU is our top-rated site for lending Bitcoin and more in 2023.

Step 1: Open an Account

For creating a new lending account, visit AQRU.io and click the Sign-Up button. Next, enter your email address, choose a password, and click Create Account.

Cryptoassets are highly volatile unregulated investment products.

Step 2: Deposit Funds

Deposits made with credit/debit cards, bank transfers, or cryptos can be made without any fees charged by AQRU. Select the method you would like to deposit and enter the amount. You will need to initiate a transfer from your cryptocurrency wallet if you wish to deposit crypto.

Step 3: Lend Cryptos

You now have the opportunity to lend out your crypto with AQRU. You can choose which coin you would like to lend based on the displayed interest rates and how much you would like. It is important to keep in mind that AQRU enables you to lend more than one coin to create a portfolio of crypto loans with different interest rates and risk profiles.

Is it Safe to Lend crypto?

Although crypto lending is relatively safe, it should not be considered as safe as traditional fiat lending through a bank. Unlike savings accounts, crypto lending accounts are not covered by the Financial Services Compensation Scheme (FSCS).

The best crypto lending platforms go to great lengths to protect your funds. For example, most lenders use a secure crypto wallet to store the clients' funds throughout the lending process. It is also worth noting that platforms like AQRU offer insurance policies that will replace the money you lose if you are hacked or suffer any other loss.

Additionally, it's important to remember that you can lose money if you lend out crypto. In peer-to-peer Bitcoin lending, where repayments are dependent on a single borrower, repayments are not guaranteed, and you may lose some or all of your principal if lenders default. Furthermore, even if you are earning interest on your crypto loan, the price of the coins you hold can drop, causing you to lose money.

Conclusion

With cryptocurrency lending companies, your crypto holdings can earn interest daily. With the help of our 5 best crypto lending platforms in South Africa, you can start putting your crypto money to work for you right away.

AQRU is a financial company that accepts deposits in fiat currency and offers rates that reach 12.0% APY. You can get started at AQRU today.

AQRU – Best Platform to Lend Cryptocurrencies in South Africa

Cryptoassets are highly volatile unregulated investment products.

FAQs

What is crypto lending?

Users can borrow and lend cryptocurrencies for a fee or interest by using cryptocurrency lending. If you provide collateral, you will be able to get a loan and start investing instantly. It could be done through a DeFi lending DApp or a cryptocurrency exchange. In order to avoid liquidation, you need to top up your collateral when it drops below a certain value. Your capital is unlocked when you return your loan plus a fee.

How does crypto lending work?

Typically, three parties are involved in crypto lending: the borrower, the lender, and a DeFi (Decentralized Finance) platform or crypto exchange. The borrower must usually provide some collateral before borrowing any crypto. Flash loans can also be used without collateral (more on this below). Alternatively, you may have a smart contract that mints stablecoins, or you may have a platform that lends funds out to another user. Lenders deposit their crypto into a pool, which manages the whole process and forwards them a cut of the interest.

Is crypto lending safe?

There are risks associated with crypto lending. However, despite these challenges, most crypto platforms provide a financial buffer against individual defaults, as well as insurance policies to replace your funds if you are hacked.

Which is the best platform for lending crypto?

We believe AQRU is the best platform for lending crypto in 2022. The AQRU offers interest rates up to 12.0% APY and no additional fees for depositing fiat currency.

Is lending Bitcoin profitable?

Investing in Bitcoin can be profitable since you earn interest on your crypto without selling your Bitcoin positions. However, crypto lending is risky, and there is a possibility of losing money.