There are many ways to earn using your cryptocurrency, but they are all lacking two things: stability and predictability. Coins’ prices fluctuate wildly, so even if a lending service or yield farming platform offers you a high APY (annual percentage yield), you can never be sure this is exactly how much you will earn. If the price of an asset goes down, you may even lose.
If you lend Tether, you will never face such an issue — you know exactly what yields you will have in USD and when. In this article, you will learn what Tether lending is and how you can profit from it.
What is Tether?
Tether (USDT) is a stablecoin — a cryptocurrency whose value is pegged to the US Dollar, so Tether always costs $1. Basically, USDT is an alternative to the Dollar in the crypto world. Traders and investors use it when they seek stability: for instance, they move an asset into Tether when this asset’s price is decreasing, or, vice versa, fix their profits when an asset is at the local high.
Tether: Pros and Cons
Pros:
- A really popular stablecoin with a lot of exposure
- Large capital and a big community
- Secure, stable, and way less volatile than other cryptocurrencies
- Fast transactions on the ethereum blockchain
- Fiat reserves
Cons:
- High fees (if you’re using erc20)
- Centralized, which is against the principles of crypto
- Controversial management
What is Tether Lending?
Think of a Tether lending platform as a bank deposit: you put some “digital dollars” and get yields. In contrast to banks, you can lend Tether with better returns: for instance, CoinRabbit offers 10% APY.
Moreover, you can get USDT loan without registration, KYC (identity verification), and any paperwork. CoinRabbit stores your funds in secure cold wallets, and interest accumulates daily:
You can withdraw or increase your deposit at any time.
Why is Tether the best for lending?
When you lend any cryptocurrency except stablecoin, you never know how much you will earn. Say, if you lend 1 Ether at 5% APY, you will have 1,05 ETH in a year — but if Ether’s price drops by 4.76% or more, you will lose money. If you lend out Tether, you always know how much you will raise: for instance, yearly $100 for a $1000 deposit with a 10% APY.
How to find the best platform to lend Tether?
- Evaluate their APY. Usually, it’s about 2-3%. On CoinRabbit, we offer 10%: if you stake $10,000, you will earn $1000 in a year.
- See if you have to freeze your tokens. On CoinRabbit, you don’t — withdraw your deposit at any time you want.
- Look at the limits — minimum and maximum amounts that you can deposit. On CoinRabbit, these are $100 and $1,000,000.
- See if KYC and other verification are needed. On CoinRabbit, you don’t have to verify anything to start earning. We only assess the legitimacy of the funds you want to deposit, but this is done automatically.
How to lend Tether? A short guide
The whole process will only take you about 10 minutes:
- Go to CoinRabbit.
- Use the calculator to estimate how much you want to deposit:
- After you’ve clicked “Start Earning”, verify your phone number to be able to track your deposit, and confirm:
- Send the deposit to the address provided:
- You’re all set! The yields will start accumulating in 24 hours. To track your deposit, click “My Earnings” in the upper right corner of the page and log in with your mobile phone:
There, you can see how much interest you’ve earned, increase your deposit, create a new one, or withdraw.
Learn more about crypto lending and borrowing
This was a guide on how to lend your Tether. To learn about how we store your deposit and more, visit our main page and scroll down the FAQ part.
CoinRabbit is more than a lending platform for Tether: with cryptocurrency loans, we let users profit from their funds without selling them. To see how this works, follow here.
Additionally, we made a video on how to make the most out of your crypto. Check it down below.
Not financial advice. Do your own research and take everything moderately.
Crypto-backed loans have their own risks that should be taken respectively.