Passive income is a great way to generate cash especially for Individuals with low capital who see passive income as a crucial aspect of their finances. If you are someone looking to generate a steady source of passive income is via cryptocurrency. However, with the constant market fluctuations and immense volatility, investing, at all times is not a viable option. A more reliable and sustainable way is what KuCoin Exchange presents through crypto lending and KuCoin Earn.
What is Crypto lending?
To put it simply, crypto lending is an innovative investment strategy in which investors loan cryptocurrency to borrowers in return for interest. It should be noted that this is not a loan with no collateral. In exchange for the loan, the lender receives interest from the borrower, while borrowers deposit crypto assets as collateral to secure investors’ investment. This acts as a guarantee for the lender; if something goes wrong, this collateral is the compensation.
Passive Income With KuCoin Exchange Crypto Lending
Since its inception in September 2017, KuCoin crypto exchange has evolved to become one of the most popular cryptocurrency exchanges. Several KuCoin Exchange Review in 2022, rank the platform to be the number 1 altcoin exchange in the world. It boasts over 8 million registered users from 207 countries. KuCoin Exchange has the most versatile lending feature called “Crypto Lending”. With this feature, you can earn passive income by lending your KuCoin Shares (KCS) to users who want to trade but don’t have enough KuCoin Shares (KCS) to do so themselves.
● Attractive Perks
KuCoin Exchange provides some attractive perks to cryptocurrency holders, including crypto lending and a KCS bonus, among other things. With a term period of 7 days, 14 days, or 28 days, KuCoin exchange offers the highest return on lending stable coins. At times return could be as high as 730% APR on a 14-day term. It also provides relatively greater yields on coins such as ATOM and DAO, with APRs ranging from 73 percent to 73 percent for a 14-day lock-in period.
KuCoin Exchange currently supports around 90 digital assets for lending, even those not common on other crypto lending platforms. USDT loans are the most popular among traders until now. These tokens include more established coins like ETH and SOL as well as popular meme-coins like SHIB.
Leveraging the issues of traditional financial institutions like credit check requirements, regulations, and outdated technology, the crypto lending market makes it easier to lend and borrow swiftly and easily. Borrowers must put up collateral to qualify for a loan, so your assets are safe. On KuCoin Exchange, lenders have two options: Manual Lend or Auto-Lend. One concern with lending is the speed with which loans are repaid. In such cases, the Manual Lend option is not optimal because the earning time is short.
Earning Passive Income with KuCoin Earn
KuCoin Exchange provides diverse passive income options on its platform. KuCoin Earn with high yields, high flexibility, and multiple staking options, is another great passive revenue-generating stream. It is a cutting-edge staking platform that allows you to increase your earnings by staking profits and POL revenues. The POL mining power evaluation system calculates POL income.
KuCoin Earn offerings are highly adaptive and flexible—enabling users to choose the ideal product and trade freely on the market. Products, including ATOM, TRX, ZRX, IOST, and many more are supported.
Best Practices For Crypto Lending
Now you know how crypto lending can be a steady source of passive income. However, before making any form of investment, it’s ideal to be well-versed with the best practices:
● Research Is Your Savior
This cannot be overstated for many things in crypto. Your research can help you tremendously and lending is no different. You don’t want to accidentally trust a poorly secured platform or worse, a scam. Your best bet is to go with lending platforms or smart contracts that have been well audited for security and have a good track record.
● Don’t Take Decisions In A Hurry
Don’t borrow cryptocurrency that you intend to cash out of soon. It’s probably pretty obvious, but you can’t sell what you lend to someone else. Also, don’t forget that even with the best security check, hacks can still happen in the crypto world. Just in case the worst would happen to the platform you are using, it is good to keep in mind that crypto can sometimes get lost.
● Set Your Parameters
You should make sure you know in advance when you will get your crypto back and how much interest you will earn from it. Most importantly, there is a good backup plan in place for you in case the borrower fails to repay you. You should ensure that the platform or smart contract you are using will continue to return your crypto, either through insurance or collateral that the borrower had to lock away.
Kucoin Exchange – Building Trust On Top Of Passive Income
When it comes to crypto lending, KuCoin Exchange has established itself as the most trustworthy platform. It has gone beyond ordinary measures to provide users with a secure, sustainable platform for earning passive income. KuCoin Exchange maintains an insurance fund, ensuring full payment to investors during extreme market volatility and also if borrowers are likely to default.
Passive income is a risk-free, consistent earning mechanism for individuals who don’t want to spend 24 hours a day watching their portfolio going up and down. Before diving into the world of passive income, conduct your research as “practice makes perfect.” With more hands-on experience, you are likely to make a sustainable stream of income in the long run.
The products and strategies described in this article are the current features of the KuCoin exchange. The team is focused on other game changers that will help investors generate a sustainable stream of income. So, don’t forget to check out their social media handles to stay updated with the latest developments!