In truth, crypto lending is a technical term, although it may not seem so at the beginning. It, in essence, refers to a form of Decentralised Finance (DeFi) that enables investors to lend cryptocurrency to borrowers. This way, they can get paid in interest, otherwise known as “crypto dividends.” Of course, there are loads of platforms to choose from too. So, you don’t have to run here and there to find them.
Now, here’s a question? How do you borrow cryptocurrency from someone else?
Well, take another one.
How the heck do you even lend whatever crypto you have left in your bank account?
In this article, I have explained both of them elaborately. And, to make it easier for you, I have also thrown in some other important information.
So, let’s get to reading!
How Do You Borrow Cryptocurrency?
If you’re thinking about borrowing cryptocurrency, you must ensure that you’re choosing the right platform for your purpose. I mean, there are many of them available out there.
But which one do you consider to be the most suitable one? How does the pricing strategy of the same look to you? How many lenders can you access from there? These are the questions that you need to find answers to before selecting a platform.
If you are looking for a suggestion, I’ll throw BlockLender out there for you. It’s a transparent platform, easy to use, and can be accessed by almost anyone, as long as you’re of legal age to do trading. They provide collateralized crypto loans, such as bitcoin loans, which you can learn more about on their site.
Anyway, once you’ve found the best possible platform out there, you’ll need to look at if it is possible to borrow the type of cryptocurrency or not.
Only some platforms are going to have everything available for you. Also, you must find the yearly returns you can get from here. Or else, there’s no point in borrowing.
Now, let’s get to the easy part. Once you have found a platform, you’ll want to –
- Create an account on it. You will have to offer your address and bank account number for it. So, only provide this if you are absolutely sure about the platform.
- Log into your account and start finding crypto lenders.
- Once you have found someone, talk to them and ask how much they agree to offer you. If there’s something else you’re confused about, don’t forget to enquire about it.
That’s all, really.
How To Lend Your Cryptocurrency?
Now, let’s look at the other side of the islet.
As a lender, you don’t really have to do a lot of groundwork or anything. However, you should definitely do proper research and find a decent platform. Once you have found out what you are looking for, please think about the type of exchange you’re looking for.
You’ll feel torn up between two options – flexible and fixed. The latter, although ideal for those who want to earn a lot of money, can be quite risky. So, I’ll suggest going for the former one.
Finally, you’ll need to determine the cryptocurrency you want to lend to people. As you are an investor, it’s best to diversify as much as you can.
Also, the type of currency you are dealing with will depend on the market condition, the returns you’re desiring, and the expected crypto collateral.
So, think as hard as you can and then make your decision!
Should You Borrow, Then?
Well, that’d depend on your needs, no?
If you are interested in the crypto market and want to invest there, go ahead and borrow. There is no one stopping you, you know. However, no matter what you do, don’t forget to plan ahead.
Even if you are not a professional, you probably already know what you can expect to get from a certain market or currency. So, build up on that, strategize properly, and you are good to go!