Crypto Basics

Crypto Lending Explained - Benefits, Risks and Top Lending Platforms in 2023

Learn everything about crypto lending and get an overview of the top lending platforms of 2023, in this descriptive guide.
Sumit Meghani
8 Minutes
MIN

Are you looking for a new way to invest your cryptocurrency? Or perhaps you're in need of a loan, but tired of dealing with traditional financial institutions. If so, you may want to consider crypto lending.

Crypto lending is a relatively new phenomenon that's gaining popularity among investors and borrowers alike. It's a form of peer-to-peer lending where individuals or institutions can lend or borrow cryptocurrency, such as Bitcoin or Ethereum, using a decentralized platform.

In this article, we will cover a comprehensive overview of crypto lending, including its functionality, benefits, risks, and the leading platforms for crypto lending in 2023.

What is Crypto Lending?

Crypto lending is a service within the decentralized finance (DeFi) ecosystem that enables investors to lend out their cryptocurrency holdings to borrowers. As a lender, you earn regular interest payments on your crypto deposits, similar to how you would earn interest in a traditional savings account.

Image Resource: www.rocketmortgage.com/learn/what-is-crypto-lending

Crypto lending platforms can either be centralized or decentralized, and they offer varying interest rates depending on the platform and other factors.

On the other hand, borrowers can use cryptocurrency lending platforms to obtain cash loans by collateralizing their crypto holdings. By posting collateral, borrowers can access funds without having to sell their crypto holdings, which can be beneficial during market downturns. 

How Does Crypto Lending Work?

To participate in crypto lending, you'll need to find a reputable platform that offers this service. There are several platforms out there, such as Nexo, BlockFi, and Celsius Network, to name a few.

Once you've found a platform you trust, the process is fairly straightforward. Here's a step-by-step guide to how crypto lending works:

Step 1: Create an Account - The first step in crypto lending is to create an account on the platform of your choice. This usually involves providing some personal information (KYC), such as your name and email address, and creating a password.

Step 2: Deposit Cryptocurrency - Next, you'll need to deposit cryptocurrency into your account. This will be the cryptocurrency that you use to lend or borrow funds.

Step 3: Choose a Lending or Borrowing Option - Once your account is set up and your cryptocurrency is deposited, you can choose whether you want to lend or borrow funds. If you're looking to lend, you can select a lending option that meets your needs. This may involve choosing the cryptocurrency you want to lend, the interest rate you want to charge, and the length of the loan term.

If you're looking to borrow, you can select a borrowing option that meets your needs. This may involve choosing the cryptocurrency you want to borrow, the interest rate you're willing to pay, and the length of the loan term.

Step 4: Wait for Approval - Once you've selected your lending or borrowing option, you'll need to wait for approval. This may involve a credit check or other verification process, depending on the platform you're using.

Step 5: Receive Funds - If you're approved, you'll receive the funds in your account. If you're lending, the borrower will receive the cryptocurrency they've borrowed. If you're borrowing, you'll receive the cryptocurrency you've borrowed.

Step 6: Make Payments - If you're borrowing, you'll need to make regular payments to repay the loan. This will usually involve paying interest on a monthly basis. If you're lending, you'll receive regular payments from the borrower, which will include the interest you've charged.

Step 7: Close the Loan - Once the loan term is over, you'll need to repay the full amount of the loan, plus any outstanding interest. If you're lending, you'll receive your cryptocurrency back, along with the interest you've earned. If you're borrowing, you'll need to repay the cryptocurrency you've borrowed. 

How to Make Money with Crypto Lending?

Crypto lending can be an effective way to earn passive income with your cryptocurrency holdings. Here are some important things to know, to make money with crypto lending:

  • Choose a reputable crypto lending platform: Selecting a reliable platform is crucial for successful crypto lending. Look for platforms with a proven track record, solid security measures, and transparent lending terms.
  • Determine your lending strategy: Decide on the amount of crypto you want to lend out and for how long. Longer lending periods often yield higher returns, but also carry more risk.
  • Set competitive interest rates: Set an interest rate that's competitive with other lending platforms. A higher rate may attract more borrowers, but also increases the risk of defaults.
  • Manage your risk: Conduct thorough due diligence on potential borrowers and keep a diversified portfolio to mitigate risk. Additionally, consider collateral requirements and loan-to-value ratios when selecting borrowers.
  • Reinvest your earnings: Reinvesting your earned interest can compound your returns over time, increasing your overall profits.

By following these tips, you can effectively make money with crypto lending while managing your risk and ensuring a stable return on your investment.

Also Read: How to Make Money with Cryptocurrency in 2023

Best Crypto Lending Platforms in 2023

Identifying the ideal lending platform that caters to your requirements can be a daunting task, given the vast number of options available in the market. To help you make an informed decision, we have curated a list of the best crypto lending platforms that you can consider in 2023.

Celsius Network: With over $20 billion in crypto assets under management, Celsius Network is a trusted and well-established platform for crypto lending. It offers competitive interest rates, ranging from 2.5% to 13.99%, depending on the cryptocurrency you lend and the loan duration.

BlockFi: BlockFi is another leading crypto lending platform that offers interest rates ranging from 0.5% to 8.6%, depending on the cryptocurrency and loan terms. It also provides additional services such as crypto-backed loans and a Bitcoin rewards credit card.

Nexo: Nexo is a popular platform for instant crypto loans, and it allows users to earn up to 12% interest on their crypto assets. It also provides a range of other features, such as crypto-backed loans and a credit card.

Crypto.com: Crypto.com is a leading cryptocurrency platform that offers interest rates of up to 8.5% on a range of cryptocurrencies, including Bitcoin, Ethereum, and stablecoins. It also provides other features such as a crypto debit card and an exchange platform.

When choosing a crypto lending platform, it's essential to consider factors such as the interest rates offered, the loan terms, and the platform's overall reputation and security measures. By selecting a reliable and trustworthy platform, you can ensure that your crypto lending investments are safe and profitable.

Benefits and Risks of Crypto Lending

Crypto lending has been gaining significant traction lately due to the potential benefits it offers to both lenders and borrowers. However, like any financial activity, there are also some inherent risks involved. 

Lets understand the benefits and risks associated with crypto lending in detail.

Crypto Lending Benefits

Here are some benefits of crypto lending:

High returns: One of the most significant advantages of crypto lending is the potential for high returns. Many lending platforms offer APYs upwards of 10%, which is significantly higher than traditional savings accounts.

Diversification: Crypto lending provides an opportunity for diversification in your investment portfolio, which can help mitigate risks.

Flexibility: Crypto lending platforms offer more flexibility than traditional financial institutions, with features such as short-term lending, early withdrawal options, and customized loan terms.

Risks Associated with Crypto Lending

Here are some risks associated with crypto lending:

Volatility: The crypto market is known for its volatility, which can impact the value of your investments and potentially lead to losses.

Counterparty risk: When lending your crypto assets to borrowers, there is always a risk that they may default on their loan, leading to a loss of your funds.

Security risks: Crypto lending platforms are not immune to hacking attempts, which can result in the loss of your funds.

The Bottom Line

Overall, crypto lending provides a win-win solution for both lenders and borrowers in the DeFi ecosystem. Lenders earn passive income on their crypto deposits, while borrowers can access much-needed funds without liquidating their cryptocurrency investments.

In conclusion, the crypto lending industry is rapidly expanding, and there are plenty of great options available for investors looking to earn passive income on their crypto holdings. Whether you choose Celsius Network, BlockFi, Nexo, YouHodler, or Crypto.com, it's crucial to conduct your due diligence and select a platform that meets your specific needs and goals.

Disclaimer

The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website's content as such.

Token Metrics does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.

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Token Metrics API

How to Build Crypto Trading Dashboard Using the Token Metrics Crypto Data API on Dune

Token Metrics Team
8 min
MIN

In today’s fast-paced crypto world, real-time data isn’t a luxury—it’s a necessity. For traders, analysts, and developers, being able to access live, actionable insights can mean the difference between profit and loss. That’s why the integration of the Token Metrics Crypto Data API with Dune is a game-changer for anyone seeking to create live dashboards backed by intelligent trading data.

In this post, we’ll walk through how to use this top crypto API to build dynamic dashboards on Dune. Whether you’re tracking bullish signals, backtesting trading strategies, or identifying top-performing tokens, this integration makes it possible—without any paid license.

Let’s dive into how you can use the best free crypto API available today to transform your trading.

What Is the Token Metrics Crypto Data API?

The Token Metrics Crypto Data API is a developer-focused gateway to powerful, AI-driven crypto data. It’s one of the top crypto APIs in 2025, giving you access to:

  • Real-time and historical trading signals
  • Proprietary trader and investor grades
  • Alpha metrics comparing trading vs. holding performance
  • Bullish and bearish token flags

This API is used by both professional quant traders and beginners seeking to automate insights. And the best part? Token Metrics provides free crypto API access to selected datasets, allowing you to create powerful dashboards without spending a dime.

Why Dune + Token Metrics API = Power Tools for Traders

Dune is a blockchain analytics platform that allows you to write SQL queries and create dashboards using on-chain and off-chain data. Now that Token Metrics datasets are available on Dune, you can combine the best of both worlds:

  • Free access to high-signal proprietary metrics
  • Real-time data visualizations via Dune’s drag-and-drop dashboard builder
  • Actionable insights based on AI-driven trading intelligence

This integration unlocks a whole new level of transparency and utility for crypto analysts, portfolio managers, and DeFi enthusiasts.

Getting Started: Accessing Token Metrics Data on Dune

To begin, create a free Dune account. Once logged in, navigate to the Token Metrics datasets. These are publicly accessible and updated regularly. You’ll find tables for:

  • trading_signals
  • trader_grades
  • investors_grades
  • tokens

Start a new SQL query and choose the dataset you want to explore. Here’s what you’ll find in the trading signals table:

‍

‍

Step-by-Step: Creating an Actionable Dashboard with Token Metrics Data

1. Query the Trading Signal Returns

Write a SQL query to calculate the average return of trading vs. holding strategies. For example:

This gives you the alpha—how much better the Token Metrics strategy performs compared to just HODLing.

In one real example, the average signal return across all tokens was 1630%, while holding returned just 400%. That’s a 12X improvement powered by this top crypto API.

2. Identify Top-Performing Tokens

Now let’s list tokens with the highest average alpha:

Tokens like BTC, ETH, BNB, and even newer ones like Virtuals stand out due to exceptional alpha performance.

3. Visualize Trader Grades vs. Alpha

The trader grade is a proprietary score from Token Metrics that predicts how favorable a token is for short-term traders.

Use a scatter plot to correlate trader grades with average alpha:

  • X-axis: Trader Grade
  • Y-axis: Average Alpha
  • Group by: Token Symbol

This helps you visually determine which tokens score high and offer exceptional returns—an essential tool for making actionable trading decisions.

4. Track the Latest Bullish Signals

Want to know which tokens are bullish right now? Here’s a query to find the most recent tokens flagged as bullish:

For example, on July 4th, tokens like BNB, XRP, and BTC were among the most recent bullish signals—perfect for immediate trade setups.

5. Build and Share Your Dashboard

Once you’ve run your queries:

  • Click “Add Visualization” in Dune
  • Choose from chart types (bar, scatter, progress bar, etc.)
  • Customize colors and filters
  • Combine multiple charts into a single dashboard

Your final product will be a real-time dashboard powered by the best crypto API, delivering insights that you—and your team—can act on instantly.

Why Token Metrics Is the Best Free Crypto API for Traders

Here’s why Token Metrics stands out among other APIs:

✅ AI-Driven Signals

Most APIs deliver raw data. Token Metrics provides curated signals, generated from machine learning models trained on market cycles, indicators, and price action.

✅ Proprietary Metrics

Access unique indicators like trader grade and investor grade, unavailable anywhere else.

✅ Real Historical Alpha

Use the API to backtest strategies. In the example shown, the AI strategy outperformed the market by over 1000X for some tokens.

✅ Seamless Integration

Whether you're using Dune, Zapier, OpenAI, or Eliza OS, Token Metrics is easy to integrate and query—making it the top crypto API for developers and analysts alike.

Final Thoughts

The combination of Token Metrics’ intelligent data and Dune’s visualization tools puts immense power in your hands. Whether you’re tracking market trends, building bots, or guiding portfolio decisions, this integration gives you everything you need to trade smarter.

With free access to real-time trading signals, alpha comparisons, and powerful visualizations, Token Metrics proves why it's the best crypto API for today’s data-driven investor.

Ready to try it out?
👉 Explore the Free Crypto API
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Crypto Basics

What Is an ETF Stock? A Beginner’s Guide to Exchange-Traded Funds in 2025

Token Metrics Team
8 min
MIN

In today’s fast-moving financial markets, Exchange-Traded Funds, or ETF stocks, have emerged as one of the most popular investment vehicles for beginners and professionals alike. But what exactly is an ETF stock, how does it work, and why is it considered a smart way to invest?

This guide will walk you through everything you need to know about ETF stocks in 2025—including how they work, their benefits and risks, and how AI platforms like Token Metrics are changing the way people research and trade ETFs in both traditional and crypto markets.

📌 What Is an ETF Stock?

An ETF stock refers to a share of an Exchange-Traded Fund—a type of investment fund that trades on stock exchanges, much like individual company stocks. Each ETF holds a basket of underlying assets such as:

  • Stocks (e.g., S&P 500 companies)
  • Bonds
  • Commodities (like gold or oil)
  • Currencies
  • Cryptocurrencies (Bitcoin, Ethereum, etc.)

When you buy an ETF stock, you’re buying a fractional share of the entire portfolio of assets held by that ETF.

🔍 How Does an ETF Stock Work?

ETF stocks work like this:

  1. Creation: An asset management company (like BlackRock, Vanguard, or Fidelity) creates an ETF that tracks a specific index, sector, or asset type.
  2. Listing: The ETF is listed on a stock exchange such as the NYSE or Nasdaq.
  3. Trading: Investors can buy and sell ETF shares throughout the trading day, just like they would a stock like Apple or Tesla.
  4. Price Movement: The price of an ETF stock fluctuates during the day based on the Net Asset Value (NAV) of its holdings and supply-demand dynamics in the market.

This model provides a liquid, transparent, and low-cost way for investors to gain diversified exposure to entire markets or sectors.

📊 Example of an ETF Stock

A good example is the SPDR S&P 500 ETF Trust (SPY), which tracks the performance of the S&P 500 index. When you buy a share of SPY, you gain exposure to 500 of the largest U.S. companies—without needing to buy each stock individually.

✅ Benefits of ETF Stocks

ETF stocks offer numerous advantages for investors in 2025:

1. Diversification

Instead of buying individual assets, ETF stocks offer instant diversification by holding dozens or hundreds of securities in a single share.

2. Liquidity

ETFs are traded on exchanges, making them highly liquid. You can buy or sell them at market prices during normal trading hours.

3. Lower Costs

ETFs typically have low expense ratios (as low as 0.03%), especially compared to mutual funds or actively managed portfolios.

4. Transparency

Most ETFs disclose their holdings daily, giving investors a clear view into what they’re buying.

5. Flexibility

You can use ETFs for long-term investing, short-term trading, hedging, or generating income through dividends.

⚠ Risks of ETF Stocks

Despite their many benefits, ETF stocks do come with some risks:

1. Market Risk

ETF stocks are still subject to market volatility. If the underlying assets decline in value, so will the ETF.

2. Tracking Error

Some ETFs may not perfectly replicate the performance of their index due to fees, slippage, or illiquid assets.

3. Overexposure

Because ETFs make it easy to invest, some investors may unknowingly become overexposed to a particular sector or strategy.

4. Liquidity Risk

Not all ETFs are created equal. Low-volume ETFs may have wider bid-ask spreads, increasing trading costs.

đŸȘ™ Crypto ETFs: The New Frontier

In 2025, crypto ETF stocks have become a hot trend. These funds allow investors to gain exposure to digital assets without managing private keys, wallets, or blockchain protocols.

Types of crypto ETFs include:

  • Spot ETFs: Hold actual crypto assets (e.g., Bitcoin, Ethereum).
  • Futures ETFs: Track the price of crypto futures contracts.

Popular examples in 2025 include:

  • IBIT (BlackRock Bitcoin ETF)
  • FBTC (Fidelity Bitcoin ETF)
  • ETHX (Ethereum Spot ETF)

Crypto ETFs have opened the door for institutional and traditional investors to gain exposure to the crypto market in a regulated and simplified manner.

đŸ€– How Token Metrics Helps You Trade ETF Stocks Smarter

Whether you're interested in traditional ETF stocks or crypto ETFs, Token Metrics provides the AI-powered insights you need to make better investment decisions.

🔎 1. AI-Powered Ratings

Token Metrics assigns each token or ETF a Trader Grade and Investor Grade based on price trends, volume, volatility, and technical strength—making it easy to spot outperformers.

📈 2. Bullish and Bearish Signals

AI-driven signals show when it’s time to buy or sell based on real-time metrics like ETF inflows, exchange balances, and market sentiment.

📊 3. Price Forecasts

Get access to predictive models that estimate where Bitcoin, Ethereum, and major crypto ETFs are headed—based on 80+ factors.

🔔 4. Smart Alerts

Set custom alerts for ETF stock signals, price movements, or grade changes so you never miss an opportunity.

By combining ETF investing with Token Metrics’ AI analytics, you gain an informational edge in markets that move faster than ever.

📈 Popular ETF Stocks in 2025

Here’s a list of top-performing ETF stocks across traditional and crypto sectors:

🧠 Final Thoughts

ETF stocks are a powerful investment tool in 2025, offering instant diversification, low fees, and easy access to traditional and crypto markets. Whether you're looking to build a retirement portfolio or ride the next Bitcoin rally, ETF stocks make it easier than ever to invest with confidence.

And with platforms like Token Metrics, you don’t need to guess your way through ETF trading. Use AI-driven insights, price predictions, and real-time data to get ahead of the curve—no matter what markets you trade.

Crypto Basics

What Is an ETF in Crypto? A Complete Guide for Crypto Investors in 2025

Token Metrics Team
8 min
MIN

The world of crypto investing is expanding at lightning speed. With growing institutional adoption and mainstream interest, new financial instruments are emerging to make crypto more accessible to everyday investors. One of the most impactful of these tools is the Exchange-Traded Fund (ETF) — and in 2025, crypto ETFs are playing a crucial role in shaping the future of digital asset investing.

📊 What Is an ETF?

An ETF (Exchange-Traded Fund) is a type of investment fund traded on traditional stock exchanges, just like individual stocks. ETFs hold a basket of assets such as stocks, bonds, commodities—or, in this case, cryptocurrencies.

When you buy shares of an ETF, you’re investing in a diversified portfolio managed by an institution. Instead of buying each asset individually, ETFs let you gain exposure to a group of assets through a single security.

đŸȘ™ What Is a Crypto ETF?

A crypto ETF is a special type of ETF that tracks the price of one or more cryptocurrencies, such as Bitcoin, Ethereum, or a basket of altcoins. These ETFs allow investors to gain exposure to crypto markets without needing to buy, store, or manage digital assets directly.

Crypto ETFs are listed on traditional financial exchanges (like Nasdaq or NYSE) and can be purchased via brokerage accounts—making them ideal for both institutional investors and crypto-curious retail traders.

🔍 Types of Crypto ETFs

There are two main categories of crypto ETFs:

1. Spot Crypto ETFs

  • Directly hold the underlying cryptocurrency (e.g., Bitcoin, Ethereum).
  • Track the real-time price of the asset.
  • Considered the most accurate and direct method of gaining crypto exposure.
  • Example: BlackRock’s iShares Bitcoin Trust.

2. Futures-Based Crypto ETFs

  • Do not hold actual cryptocurrency.
  • Invest in futures contracts that speculate on the asset’s future price.
  • Prone to “tracking errors” and additional management fees.
  • Example: ProShares Bitcoin Strategy ETF (BITO).

In 2025, spot ETFs have become more popular, especially after multiple approvals in major markets like the U.S., Canada, and Hong Kong.

✅ Benefits of Crypto ETFs

Crypto ETFs offer a range of advantages for investors seeking exposure to digital assets without managing crypto wallets or private keys.

1. Accessibility

  • Trade crypto exposure from a traditional brokerage account.
  • No need for crypto exchanges, wallets, or DeFi protocols.

2. Regulation and Security

  • Managed by licensed institutions and regulated by bodies like the SEC.
  • Custody solutions are handled by professionals (e.g., Coinbase Custody, Fidelity Digital).

3. Diversification

  • Some ETFs offer exposure to a basket of cryptocurrencies, reducing risk.
  • Others may focus on specific sectors like DeFi or metaverse tokens.

4. Tax and Retirement Account Eligibility

  • Can be included in IRAs, 401(k)s, and tax-advantaged portfolios in some jurisdictions.

⚠ Risks of Crypto ETFs

While crypto ETFs simplify access, they are not risk-free.

1. Management Fees

  • ETFs charge annual fees (0.20%–1.00%), which can affect long-term gains.

2. Lack of Full Ownership

  • You don’t hold the actual coins, so you can’t use them for staking, yield farming, or DeFi.

3. Volatility

  • Crypto markets are still highly volatile. ETF prices can fluctuate rapidly.

4. Tracking Errors (Futures ETFs)

  • Futures-based ETFs often lag behind the spot price of the cryptocurrency.

💡 Why Crypto ETFs Matter in 2025

The launch and adoption of crypto ETFs signal mainstream validation of the crypto market.

  • Over $60 billion has poured into Bitcoin and Ethereum ETFs since early 2024.
  • Institutional players like BlackRock, Fidelity, and ARK Invest are leading issuers.
  • Spot Bitcoin ETFs helped propel BTC above $118,000 in July 2025.
  • Regulatory green lights from the SEC, MAS, and other regulators mark a shift in global crypto policy.

Crypto ETFs reduce barriers to entry and give traditional investors a safe, regulated way to participate in the digital economy.

đŸ€– How Token Metrics Helps You Analyze Crypto ETF Trends

As ETFs drive price action, tools like Token Metrics give you an edge by turning market noise into actionable intelligence.

đŸ”č Real-Time Bullish/Bearish Signals

Token Metrics' AI algorithm scans exchange inflows, ETF data, and sentiment to issue buy/sell signals for major cryptocurrencies like Bitcoin, Ethereum, XRP, and more.

đŸ”č Institutional Flow Tracking

Track ETF fund flows to understand where institutions are allocating capital—key for timing your own entries and exits.

đŸ”č Price Predictions and Trend Grades

AI-generated price predictions, trader grades, and investor scores help you assess risk before investing in ETF-driven rallies.

đŸ”č Portfolio Tracking

Token Metrics syncs with your wallet or brokerage to track crypto ETF exposure alongside your on-chain tokens.

By using Token Metrics, you’re not just following ETF trends—you’re staying ahead of them.

🔄 Popular Crypto ETFs in 2025

Here are some of the top-performing crypto ETFs currently available:

These ETFs are helping investors tap into the gains of crypto markets—without the complexity.

🧠 Final Thoughts

Crypto ETFs represent a pivotal shift in how digital assets are being embraced in traditional finance. They offer accessibility, regulatory clarity, and simplified crypto exposure for everyone from hedge funds to retail investors.

But smart investing goes beyond headlines. Platforms like Token Metrics help you:

  • Time entries and exits with AI-powered signals

  • Track ETF fund flows to gauge institutional momentum

  • Build conviction using on-chain data and predictive analytics

In 2025 and beyond, the winning strategy is clear: combine the safety of ETFs with the intelligence of Token Metrics.

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