The world of crypto lending <br><br><br>

what is crypto lending

The world of crypto lending


The Concept of Crypto lending boomed in the last 2 years as the whole Crypto industry got increased attention. More so because the Defi sector saw an increase in adoption and the number of Defi Platforms also increased. Crypto lending is nothing but banking for the crypto world. It allows crypto investors to borrow loans in cash or cryptos by offering cryptocurrencies owned by them as collateral.

At present, Crypto lending has become one of the most popular and successful Defi services. Many crypto exchanges and crypto platforms are offering borrowing and lending services.

Decentralization is a core part of the crypto world. In the crypto world, Defi defines the growing market of all the financial products and services that are built on the blockchain network.

The process of depositing cryptocurrency, which is then lent out to borrowers in return for some interest payments is known as Crypto Lending. Payments are made in the form of cryptocurrency that can be deposited and compounded on a daily, weekly, or monthly basis.

Two main types of crypto lending platforms are Decentralized crypto lenders and Centralized crypto lenders. Both types offer high-interest rates and both require borrowers to deposit some collateral to access a crypto loan. Borrowers can utilize these crypto lending platforms to get cash loans using their crypto holdings as collateral.

Table of contents

  • Concept of Crypto Lending
  • Role of collateral Tokens
  • The NFT Angle
  • Risks of Crypto Lending
  • Defi Lending
  • Lending Matrix
  • Comparative Analysis
  • Difference between Crypto and Bank Lending
  • Conclusion