What Happens When You Invest in Lending CryptocurrencyPosted by Finnegan Cooley on June 30th, 2021 What is crypto lending? Crypto-lending is decentralized finance (Defi), where investors lend the cryptocurrency to borrowers in exchange for interest payments (crypto dividends). Usually, cryptographic lending platforms accept cryptos and stable coins. Investor Crypto Lending: Let us pick an example to clarify: You are the joyful owner of 10 bitcoins and want to generate your bitcoins with constant, passive income. By placing these ten bitcoins on a crypto-lending wallet, you gain weekly (or monthly) interest. For bitcoin loans, these interest rates are usually 3-7%, although, for example, on many stable assets such as stable coins, they may be much higher (up to 17%). (e.g., USD Coin, True USD, Binance USD). Illustration of cryptocurrency lending And even better than others, such as peer-to-peer loans, with crypto-backed loans, borrowers have to spend their own crypto-monetary money as security and loan payback guarantees. If the borrower decides not to return the loan, investors may only sell the assets to reimburse the loss. Borrowers do not repay their loans at times, of course. Of course. However, given the requirement for investor platforms to hold 25 to 50% of the crypt loan, platforms can often recover most damage and prevent investors from losing money. Crypto lending has many advantages for borrowers and investors compared to other types of loans. Anyone can access crypto credit because you do not need to register a bank account, know the credit score or consider your revenues. The lending dividends on automated lending platforms are automated and do not involve effort Crypto credit is safer than conventional credit ventures like p2p loans, as highly liquid crypto-assets support the lending. Compared to other credit card and uninsured lending rates, borrowers have higher cryptocurrency loan rates (in a single digit). No credit check is available to borrowers. MFT is quick (usually, it's a few hours to a day to receive your borrowed amount). Firstly you need to choose between the automatic and the manual lending platforms; it's predicated forward. I suggest using an automated system to ensure that your assets expand continuously and are not forgotten without profit generation. Then select the investing platform you want to use in a second. And make sure that you receive essential details such as: Is the platform natural and safe? Is the crypto I would like to lend on this site available? (Each platform does not always have all cryptographs) What are the yearly revenues I wish to lend to cryptography? And remember one last thing! One final thing! Crypto-currency collateral might change the value at any time due to their volatility and may lead to investments being lost on the lender side.Like it? Share it! |