When it comes to cryptocurrencies, we’ve been seeing a lot of new exchanges over the last couple years. One of them is KuCoin, an exchange based in Hong Kong. The thing I love about KuCoin is that they offer a lot more than just Bitcoin and Ethereum trading pairs, their list includes NEO, BCH and many other popular altcoins.
The KuCoin exchange is a great platform that lets you trade Bitcoin, Ethereum, LUNC and many other cryptocurrencies. If you want to use it to buy new coins, you need to send them some Bitcoin or Ethereum first. This poses the problem of where to keep your crypto if you’re not planning to spend it right away.
What Sets KuCoin Apart?
One feature that sets KuCoin apart from other exchanges is the platform’s ability to lend crypto to other traders. This feature is great for traders who don’t want to miss out on potential profits but also don’t want to risk their own holdings.
When you lend your crypto on KuCoin, you can earn daily interest on your assets. Withdrawal or transfer of your assets is also completely free! All you have to do is deposit your assets into the platform and wait for another trader to borrow them. You can make money while you sleep!
KuCoin offers up to 50% of the daily interest rate as profit share to users who have a certain amount of KCS (KuCoin Shares) stored in their accounts. This makes it possible for users with small amounts of crypto stored on the exchange to get a nice passive income stream from lending their assets.
If you have crypto on KuCoin and want to lend it out, you can do so via the “Collateral” function in your account. You won’t get any interest on your crypto, but if someone takes out a loan with your collateral, they’ll pay you fees for the privilege of borrowing it.
What is Crypto Lending?
Digital assets are often associated with illicit activity and volatile price movements, not legitimate loan options. But thanks to the innovative tech behind it, crypto lending has become a viable option for investors looking to get involved in cryptocurrency markets, or those already invested or trading profitably.
To put it simply, crypto lending is when you lend your digital assets to other people for a certain period of time. You get paid in Bitcoin, Ethereum, LUNC USDT or another cryptocurrency for doing so. The borrower pays back what they borrow after the loan period ends and then you re-lend out your funds to someone else. Of course, it’s important to understand how this works because there are risks involved, but we’ll go into detail about that later on.
While this may sound like a great way to make money from the comfort of your home, there are actual companies out there offering these services. While most of them are based in Asia, platforms like SALT and ETHLend have made incredible strides towards making crypto lending a functional service in the United States.
How To Lend Crypto in Kucoin?
How does lending work? It’s simple: you deposit your cryptocurrency into an account on the KuCoin exchange, and then you specify how much time you’re willing to lend it (1-12 months) and at what interest rate.
You can manually choose any amount of interest—it doesn’t have to be the same as the others in your lending class. Every day, your deposits earn some interest—KuCoin pays you that amount every day as well. In order to withdraw your money after lending it out, however, you must pay back all of the interest plus a small fee for using the service.
Any time someone lends out their crypto on KuCoin, they’ll get a chunk of what are called KuCoin Shares (KCS). The amount of KCS you earn will vary based on how much money they’re lending and how long they’re lending it.
Like Binance Coin (BNB), KuCoin shares can be exchanged for other cryptocurrencies—but unlike BNB, KCS is still fairly new and doesn’t have a wide range of uses outside of the platform yet.
Other than letting people lend out their crypto on the platform, it’s also possible to borrow crypto from other people on the platform. This can be useful if you’re planning to make a large trade, or if you just want to complicate things by trading different coins than usual.
You can only borrow from people who’ve put their crypto up as collateral—and since you’ll need to pay them back with interest, this will probably only appeal to traders who already have some money lent out.
Step By Step Process of Crypto Lending in Kucoin
- First, select the coin(s) you want to lend from the left side of the page.Â
- Next, enter an amount that you would like to deposit into the Lending market, at what rate and press the “Lend” button. You will then see all of your open orders in the Lending market listed on the right side of the screen.Â
- Confirm your selection and transfer funds from your account wallet to start lending coins.
- Lastly, click on any open order and select “Close Order” to close it.
Also Read: How to Earn Passive Income with Crypto
