Bitcoin lending is a popular way to earn interest in your cryptocurrency. With Bitcoin lending, you have to put in minimal effort but can theoretically get great rewards. However, there are some very important things you should know about how to lend Bitcoin before you get started, including what other options are available.
Basics of P2P Lending
The concept of Bitcoin P2P lending is the same as lending any other asset for a profit. The idea is that the person who borrows your Bitcoin will pay interest on the loan. This means that when you get your BTC back, it will be more than you originally lent.
Compared to lending traditional assets, choosing to lend BTC gives you the added benefit of getting to take advantage of the potential price increase in the cryptocurrency. You could theoretically end up with more BTC and have each Bitcoin worth more than it originally was.
How Does Bitcoin Lending Work?
While the idea behind Bitcoin lending is straightforward, how do you go about actually lending it out?
There are a few options. If you know someone who wants Bitcoin temporarily and you have Bitcoin to loan, you can create an agreement between the two of you. You can use smart contracts to set up the loan and lock-in conditions.
However, there is always a risk that lending to an individual will not help you make money lending Bitcoin. Specifically, there’s a risk that they won’t return the Bitcoin. If that happens, you can’t simply reverse the transaction as that’s not possible with Bitcoin. You can overcome this somewhat by asking for collateral.
You can also reduce the risk by using a Bitcoin P2P lending platform. These platforms frequently use an escrow service to keep both parties safe. They also typically let you review and rate others on the platform. Looking at those reviews can reduce the risk that you get scammed out of your crypto.
Another convenient thing about these BTC lend platforms is that you can choose how much you want to lend and your ideal interest rate. Borrowers can do the same. The platform simply makes it easier to find someone who wants to borrow at the conditions you want to lend.
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While this process of P2P lending is a common answer to how does Bitcoin lending work, it is not the only solution.
How Managed BTC Lending Accounts Work
Managed BTC lending accounts are another option. They tend to lower your risk while also reducing the amount of effort you have to put in so that you can earn interest on Bitcoin.
Managed lending accounts will take care of finding loans and gaining interest for you. They have the resources and expertise needed to find the best loan opportunities. They also rely on more than just one strategy to make money lending Bitcoin.
They may also invest a portion of the funds and use their expertise to determine which investments balance risk and rewards. Some will look for price fluctuations between exchanges and take advantage of that. The strategies vary, but these managed accounts typically use more than just Bitcoin lending to earn interest on Bitcoin.
The best managed BTC lending accounts will give you better interest rates than you would get with just lending, do so more consistently, minimize your risk while doing so, and eliminate the need to put in any effort on your end.
Latest Performance Numbers of Haru Invest
If you want to take the easier route instead of practicing how to lend Bitcoin yourself and use a managed account, consider Haru Invest. The Earn Like the Best account lets you invest in BTC and uses Bitcoin lending along with a range of other strategies for profit.
(If you are set on the idea of Bitcoin lending, you can think of this as lending your BTC to Haru. Haru then invests it and uses a range of strategies to make a profit. When they return the BTC to you, they pay your interest based on their success.)
To give you an idea of what to expect, consider the latest performance numbers from this Haru Invest account. The biweekly return was 0.6261% from March 1-15, 2021. This is the equivalent of an annualized return of 15.23%.
Although there is never any guarantee about the future returns, Haru Invest has a strong history of delivering similar figures. The company is also highly transparent, publishing all of its returns on its Medium page. This lets you easily confirm for yourself that the Earn Like the Best account consistently delivers better returns than you would get with just Bitcoin lending.
Earn More BTC With Your Bitcoin
Bitcoin lending is just one of many ways to earn more BTC with your Bitcoin. Haru Invest accounts let you do this while also taking advantage of other investment opportunities and methods to grow your Bitcoin.
You don’t have to worry about anything when you open an account with Haru Invest, as the experts take care of everything. You can rest easy thanks to the transparent and consistent returns along with the track record and expertise of the Haru team. Team Haru relies on diverse investment strategies and has been in the industry for years, starting with Block Crafters Capital.
Team Haru only features professional traders who use their experience to take advantage of market inefficiency to generate a stable profit. The Earn Like the Best account uses a strategy of algorithmic hybrid high-frequency trading.
Even better, Haru does not charge any fees unless you get at least 15% APR as your return. Even then, it is only 15% APR on your profit, which is less than similar accounts from other platforms.
How to Lend Bitcoin With Haru
To start Bitcoin lending with Haru, visit this page. If you do not already have an account, create one by entering your email address and choosing a password. You will then need to deposit the amount of Bitcoin you want to lend or invest. The minimum is accessible at just 0.001 BTC. You will be set at that point. Your investment will mature in three months, or you can choose to extend it if you want to.