The introduction of cryptocurrencies to the financial sector has led to several adjustments in the crypto space. A typical financial system provides avenues for investors and savers to earn on their principle. This lending and borrowing system ensures that lenders are rewarded for their contribution and borrowers are taxed for taking out loans.
Ideally, it is a win-win situation for everyone since borrowers also benefit by accessing instant financial assistance at a small fee. With the growing popularity of cryptocurrencies, there has been a need to create systems that mimic the conventional borrowing and lending systems that we are used to.
As a result, CoinRabbit, one of the pioneers of crypto lending and borrowing, has identified the need to offer Ripple lending. Today, you can lend out Ripple as loan collateral in order to receive loans as stablecoins that can later be used to make higher-return investments. Here’s a little more detail on how to lend Ripple.
What is Ripple?
Ripple is a project that targets the financial service industry. It facilitates money transfer through its network and uses XRP as a native cryptocurrency on the Ripple Network. The project aims to solve the problems faced by the global payment settlement and offer a secure platform for currency exchange.
XRP-the native cryptocurrency that runs on the XRP Ledger is a crypto token that can be bought as an investment, as an exchange coin, and as a means to perform transactions within the Ripple Network.
What is Ripple Lending?
As a cryptocurrency HODLer, you have likely experienced the highly volatile market prices of cryptocurrency tokens. This isn’t usually all rosy for the investor. CoinRabbit is a ripple lending platform that allows users to commit their XRP investments as loan collaterals in exchange for Loan Amounts in the form of stablecoins.
Unlike staking, ripple lending on CoinRabbit does not require you to lock up your crypto investment for a specific period without access. Crypto lending on CoinRabbit, allows users to access their investment anytime, as long as the loan terms are met.
Why is Ripple the best for lending?
Lending out your Ripple on CoinRabbit is a profitable venture by all means. Imagine having to sit through the never-ending turmoil in the crypto space as your XRP tokens price incessantly fluctuates.
Instead, CoinRabbit allows you to deposit your XRP investment through its Ripple lending platform.
Currently, XRP lend on CoinRabbit offers loans in the form of Tether USDT, USDC and Tether TRC20 on your investment.
How to find the best platform to lend Ripple?
It would be best if you made several considerations to come up with the most suitable Ripple lending platform. Below is an exhaustive list of things you need to consider before choosing your ripple lending platform.
- The APR, this value varies depending on the platform. CoinRabbit provides an APR of 10%, one of the lowest APR in the industry today.
- Security of your funds collateral deposits
- Platform fees
- The flexibility of your funds – some platforms lock your funds for a specific period.
How to earn by lending Ripple?
Using your Ripple investment as loan collateral on CoinRabbit allows you to make money while your investment value appreciates. Since we already know where to lend Ripple, let’s look at how to lend Ripple on CoinRabbit.
- Navigate to CoinRabbit Ripple Lending page
- Select Ripple as your preferred Collateral and Enter the amount of Ripple you want to use as Collateral
- On the next page, you’ll Enter your wallet address and phone number. You’ll have to verify your phone number before receiving the loan.
- Click Confirm
- Wait for your loan to be disbursed.
Ripple borrowing and lending platforms have different conditions attached to their products. Without enough research, you may find yourself stuck in a lending platform that offers nothing more than staking platforms. CoinRabbit ensures that you experience the best Ripple lending by providing favorable rates and secure storage of your deposits.