So, I have small amount of cryptocurrency I bought and mined over the years and will HODL, but I am seeing news articles and advertisements about earning interest on my coins. And the returns are not bad--5 to 7% per year.
It seems BlockFi is the front runner. They seem to have partnerships with the major US crypto exchanges, e.g. Gemini and Coinbase (I am in the USA). I am also googling and trying to educate myself.
But, I have serious concerns about learning my crypto to 3rd parties. What happens if the institution that I loan to, for example BlockFi, goes brankrupt? I assume I will lose my crypto. Would it be safer to loan to an exchange and I don't run that risk?
What are your experiences so far with loaning your crypto?
What place do you loan to, or recommend loaning your crypto to?
Lending cryptos is more riskier than lending your fiat money because there will be no compensation from the company if they got hacked or goes bankrupt before you take out your money. If you want to make money from lending cryptos then you can become a p2p lender which gives high interest rate in very small time frame but you need to collect the valid collateral from the one who is getting money from you to make sure no loss on your side if he ran away.