Some Crypto Owners Are Earning 25% Interest by Lending Out Coins – The Motley Fool

Some Crypto Owners Are Earning 25% Interest by Lending Out Coins – The Motley Fool

Want to earn passive income while you hold coins? Crypto lending is an option.

If you’re a crypto investor, crypto lending can provide you with immediate returns — and you don’t even have to sell any coins. At the time of writing, cryptocurrency exchange KuCoin is offering Annual Percentage Yields (APYs) of over 25% if you’re willing to lend out your crypto.

Is it too good to be true? The best high-yield savings accounts pay significantly less interest, and crypto lending is certainly a riskier way to hold your savings. When it comes to crypto, returns are not guaranteed. Here’s what you need to know.

Find the right exchange

Not all cryptocurrency exchanges let you lend out your crypto. Each exchange is different, and interest rates can vary greatly depending on the type of loan or the coin you loan out.

Exchanges offer two main types of loans: fixed and flexible.

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