What Might You Want To Know About Lending XRP?

Most crypto investors have always known about the primary way to make money from their investment, and that was by waiting for prices to rise so they can sell at a profit. However, investors holding coins such as Ripple (XRP) can also get great returns by lending XRP to borrowers and earning XRP interest. This is a great way to build your crypto balance as you earn XRP coins at no cost when you loan the digital currency to someone else.

A look at XRP and reasons to participate in Ripple lending

Ripple is a multi-faceted crypto platform, which also has its native coin of the same name and is known as XRP. The exchange has some of the lowest-cost and fastest transactions in the market. Ripple’s goal is not only to be a payment method like Bitcoin but to disrupt the system of making international transactions. This includes methods such as MoneyGram, Western Union, and other methods.

The Ripple currency (XRP) is a representation of value through the Ripple network, and is a kind of intermediary. For example, those seeking to convert USD to EUR can go through Ripple at an affordable rate of $0.00001 for the transaction.

If you believe in the XRP coin, you can participate in XRP lending through platforms like YouHodler, which offers an impressive XRP yield. By loaning your Ripple, you enjoy earning XRP passively without having to keep your coins idle, waiting for the price to rise.

How does lending XRP through P2P platforms work?

Typically, Ripple investors use P2P crypto lending sites that utilize blockchain-powered smart contracts to offer a secure and safe way for lending XRP to borrowers. The loan services are safe and convenient and are almost risk-free since the borrowers have to pledge collateral (usually in the form of other crypto coins) to get the XRP loan.

In the event the borrower does not pay back the loan, the smart contract automatically liquidates the assets offered as collateral to recover the value of the funds to repay the Ripple investors who lent out their XRP.

The system makes money because the borrower is expected to pay back the XRP lent out to them at a higher interest rate than the platform agreed to pay to the XRP lenders; thus the exchange makes a profit. It has to fulfill its promise to lenders to uphold their assets’ security and help them earn interest on XRP.

Using Ripple fixed deposits and savings accounts to lend XRP

it may be time-consuming at times for investors lending XRP on P2P platforms, and sometimes they may not have large amounts of XRP to lend. Luckily, there is an easier way to loan out your Ripple coins, and this is by putting them in a fixed deposit account or a savings account operated by a reputable platform such as YouHodler.

You could enjoy XRP yields of up to 4.5% per annum when you deposit your Ripple with YouHodler. Thus, you can have your XRP working for you and gain impressive returns without any hassle by saving them with exchanges such as YouHodler.


XRP lending is a passive method of getting returns from your Ripple coins by loaning them through P2P platforms or crypto exchanges like YouHodler that operate interest-earning XRP savings accounts. The yields are far better than what you can get from a conventional savings account. However, be cautious and only use reputable and secure platforms to avoid losing your coins.