KuCoin is a cryptocurrency exchange that offers many popular crypto coins to its users. The platform has a native token, KuCoin Shares (KCS). As an incentive to hold KCS tokens in your account, you can earn dividends on the shares of the platform’s trading fees.
The KuCoin Lending Program allows you to earn interest by lending your KCS tokens to other users who want to trade. The rate changes every day depending on the market conditions, but if you hold USDC and want to speculate on crypto lending, it may be a good place to consider especially with the USDC price going stable. If you lend your tokens to someone who makes a trade on the KuCoin platform, you can earn a portion of the trading fees from that user’s trades.
Lending on KuCoin is a great way to increase your passive income. However, it would be tedious for you to take care of the loan all by yourself.
About KuCoin Exchange
KuCoin is a new and unique cryptocurrency exchange, one of the fastest growing in the world. KuCoin is available in multiple languages, including English, Chinese, Korean, Japanese, Russian and Vietnamese.
It’s clean, easy to navigate and feels relatively intuitive. The site has all of the most important information you need to know about any given coin or token (for example: price, volume, circulating supply and total supply), and it includes some unique UI elements that make it easy to get a quick overview of an asset at a glance.
KuCoin is a cryptocurrency exchange that allows users to trade. It is one of the largest exchanges for trading digital assets based on Bitcoin, Ethereum, NEO and USDT pairs including SWEAT USDT.
What is Crypto Lending?
Crypto lending is the act of borrowing cryptocurrencies. In crypto lending, borrowers pledge their crypto holdings as collateral for a loan. The borrower then receives fiat currency, which can be used for nearly any purpose. The borrower repays the loan plus interest using the fiat currency at some point in the future.
Crypto lending can be a useful tool for those who need access to additional funds. Crypto lending can also be an effective strategy for those who want to earn extra income from their crypto holdings.
How Does It Work?
KuCoin’s lending service is similar to that of most other exchanges. You deposit a certain amount of your cryptocurrency holdings into the lending wallet, then use those funds as collateral to receive interest payments on your KuCoin account.
In order to take part in the program, you first need to make a deposit into your lending wallet by heading to the “Assets” area of your account and clicking “Deposit Assets.” From there, you will be able to select from a list of cryptocurrencies to deposit into the wallet.
After that, you can head over to the “borrow” page in order to participate in the program. When it comes time for you to withdraw funds from your lending wallet, you will have to pay back all outstanding loans before withdrawing any additional funds from your KuCoin account.
So, how does lending on KuCoin work? Essentially, money is loaned out from users with large amounts of cryptocurrency and is used as collateral on various assets at a given exchange rate.
The maximum amount you can lend is 90% of the total value of your assets, but keep in mind that you must always have enough left over so that you can meet any sudden requests for withdrawal or repayments.
Advantages of KuCoin Lending
- The number one reason is that it is a safe, flexible and fast low-risk way to earn crypto.
- The interest rate you receive is between 2% and 10%, depending on the amount of KCS you hold.
- You can deposit your KCS at any time, so if the market takes a dip, you don’t have to worry about losing your investment if you need money quickly.
- When it comes time for repayment, KuCoin provides a mechanism for automatic repurchase at a set price. No more chasing people around for payments or setting up complicated systems for tracking loans and repayments.
- The interest rate is relatively high. With this platform, you can earn an average annual interest rate of up to 40%. The minimum amount required for lending is 1000 KCS tokens with a maximum of 50,000 KCS tokens. Users can lend their funds for either 24 hours or 7 days, depending on what they prefer.
- Lenders’ risk of loss is low compared with other trading platforms such as Poloniex or Bitfinex. This is because KuCoin has a policy of buying back coins if the price drops below a certain level. In the worst case scenario, you will only lose your initial investment in the loaned coin.
- You don’t need to be a professional trader in order to earn money on this platform. All you have to do is choose a currency that has a high interest rate and then lend it out for interest on KuCoin’s website.
- You can withdraw your loaned coins anytime you want without having to wait for an extended period of time for processing and confirmations (processing may take up to two days).
- The lending platform allows you to hold onto KuCoin Shares, their token, and earn daily interest on them. By doing so, you are holding KCS in your wallet and not selling them on the exchange. The KCS you own will not be sold or tradable while they are in this state. This makes it possible to earn interest on your holdings of KCS by lending them on the exchange.
- You do not need to deposit Bitcoin or Ethereum for trading alt coins which cuts down on fees by half.