Get to Know the concept of crypto Lending!

In the crypto world, just like there is the concept of staking, there is also the concept of lending cryptocurrencies. Lending is a Decentralized Finance type which allows lenders or investors to lend cryptocurrencies to borrowers. These crypto loans generate passive interests and incomes for the investors, also known as “crypto dividends”. For example, some of the largest lending companies are Tidex, Nexo and Celsius! 

Through Staking & Lending, we HOLD! 

Staking, if you recall, is the process of holding cryptocurrency assets and locking them. During the process, you also generate income whenever the coin’s value held increases! Similarly, the lending process allows users to hold the coins and plan ways not to sell them! This is considered to be a great investment opportunity! 

The process is also secure for both ! 

Both, lenders and borrowers are safe. Borrowers have the opportunity, as said, to stake crypto assets in order to guarantee loan repayment and security through crypto lending. Hence, investors will have the chance to sell these crypto assets and this is in case the borrowers stop repaying the loan. Hence, the recovery of the losses is possible! In addition, the platform also has the chance to reclaim losses since they request that their borrowers stake 25% to 50% of the loan in cryptocurrencies. 

Staking and lending tokens are viral steps, and are quite new to the industry as well. Through these processes, you can help boost your holding size! However, there is always a negative side to it, as the value of the assets can decrease if a drop in the network’s value held or lent takes place! Again, you’ve got to “risk it to get the biscuit”!