Lending ...

By Nasır A. | Journey To The Cryptocurrency Ocean | 12 Nov 2020

Lending ...

Is it possible to make a profit from cryptocurrencies without trading or swap transactions? Possible… You can profit by lending your crypto coins. As an alternative to trading or saving in a wallet, a lending method has been established.

You can lend your cryptocurrencies at different terms. First one; The position that you will determine the maturity of, the second is the position opened with certain maturities. It is completely up to you. At the same time, the system you lend to needs to be secure and flexible. Many systems are available.

There are popular systems for Lending such as Nexo, Salt, Aave, Celsius Network, Blockfi, YouHodler, Coinloan, Binance, Bitfinex, Poloniex, Crypto.com, Compound, Gate.io.

You can see the rates of the systems that lend from Defirate and CoinMarketCap collectively.

There are two issues to be aware of. First one; If the borrower closes his position early or becomes liquidated, your money may return to you early. In this case, the cryptocurrency will be transferred to your account early. If you do not notice this situation, your cryptocurrency will be idle. In order to prevent this situation, there are options such as "auto repeat lend" in the systems.

Every platform on the market has a different lending process. Usually to borrow cryptocurrency;

It registers to the system that wants to borrow and states the amount it wants. The system calculates the collateral amount. The debtor deposits the collateral into the system. The borrower waits for approval. The system deposits cryptocurrency in the debtor's account after it is approved.

The most important detail you need to pay attention to in lending transactions is the interest rate you will determine. Because the rates that are in high demand are those with low interest rates. Margin traders prefer the lowest interest rate of the loaned cryptocurrency first.

Lending rates can jump up suddenly due to the supply-demand balance, as rental demands increase in the upward or downward movements that may occur in cryptocurrencies. Or if there is no demand, a very low lending rate can be realized.

Result:

You do not like stress, you have cryptocurreny but you don't want to follow it all the time… Do lend cryptocurrency is for you… You get a guaranteed income. If you can follow the lending rates, you have the chance to lend your cryptocurrencies at very high numbers when the time comes. Especially as you have already bought it and your cryptocurrency is gaining value and you want to earn a positive income… Think a little… As I always say, listen to everyone, decide for yourself…