Direct bitcoin lending
Lending BTC directly to others you are familiar with is an easy way to earn free bitcoins if you already have some bitcoins. The two of you only have to focus on the terms such as duration and interest rate.
However, the trust factor must be considered when you lend out bitcoins although you regard the borrower as trustworthy. Moreover, you may not have too many acquaintances who are in need of bitcoins or match your requirements on interest rates.
P2P bitcoin lending
Peer to Peer lending websites typically offer diverse listings from borrowers, insuring that users earn interest with safety from bitcoins they already have.
The process that lenders meet the funding requests from borrowers by BTC is called bitcoin loans, which produce the same effect of fiat currency loans. Then, borrowers get these bitcoins within a specified time and repay the loan with interest.
Necessarily, you had better choose those websites which assesses the creditworthiness of their applicants, so that you can earn free bitcoins in a more reliable way.
Bitcoin lending from Bitcoin banks
Compared with P2P bitcoin lending, it is more convenient to deposit your BTC in bitcoin banks that pays you a steady stream of interest income instead of diversifying your bitcoins over many borrowers. Bitcoin banks take advantage of your deposits as investment funds. Inevitably, risks also exist because of the volatile bitcoin price and uncertained network security.
Bitcoin lending is a practical method to earn free bitcoins online based on what you already have.