Bitcoin lending you to earn money through lending your bitcoin to margin traders. These margin traders are looking to amplify their investment potential and will pay you an interest rate to borrow your Bitcoin. Let’s take a look at the top 3 reasons this makes a great passive income stream:
#1: Bitcoin lending is great passive income
For those of us looking for fairly low risk and high return passive income streams, Bitcoin lending is a great one. We wrote about the risks in The FAQs of Cryptocurrency Lending, but they’re fairly tolerable. It’s fairly easy to get started by:
- Purchasing some Bitcoin on sites like Coinbase.com
- Setup a Poloniex lending account and transfer Bitcoin to it
- Setup a CoinFlow account to automate your lending and ensure you’re getting the best rates possible
#2: The lending rates are great
Daily interest rates are typically vary around 0.07 – 0.15%, which equates to roughly 30% – 50% annually. If you compare this to the roughly 7% on average yearly stock market return, Bitcoin lending is clear winner.
#3: Bitcoin adoption is still young
On top of the lending rates, remember that Bitcoin is still in its early years and has a lot of growth potential. The market cap of Bitcoin is currently around $41 Billion. That’s roughly 1/20th of the size of Apple’s Market cap by itself. As adoption across the globe continues we’ll continue to see more growth in the value of Bitcoin.
In summary, Bitcoin lending is easy to setup, provides great returns on loans, and will likely continue to grow in value by itself. Be sure to signup here to get started today.