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Intro to Cryptocurrency Lending: What is it and How does it work?

Cryptocurrencies have now been around for many years and have gained a lot of mainstream attention. The adoption rate of cryptos is so large that this industry is expected to reach $2.2 billion by 2026. There are many investment options in the crypto space for you to look into if you so desire.

Cryptocurrency lending, also known as “crypto lending”, is quickly becoming a go-to alternative for investors frustrated with minuscule yields from banks savings accounts.

Crypto lending may be a new concept for you but fear not! In this article, you will learn all you need to know about cryptocurrency lending.

So, let’s dive in!

What is Crypto lending?

Crypto lending allows investors to earn interest on their assets without actually selling them. An investor lends his cryptos to a borrower and earns dividends in return. The lender remains the sole owner of his assets. The interest rate ranges between 4% to 17% yearly.

On the other hand, a borrower has to offer collateral to get a crypto loan. He retains the ownership of his collateral but cannot use it until he pays back the entire loan amount by the end of the lending period.

How does Crypto Lending work?

Crypto lending involves lenders, borrowers, and a third-party i-e lending platform. Crypto lending consists of the following steps.

  • A borrower goes to a crypto lending platform and requests a crypto loan.
  • Upon approval of the loan by the platform, the borrower has to attach collateral.
  • A lender transfers the loan amount to the borrower through the lending platform.
  • A borrower has to pay back the entire loan amount within the loan period to get back his collateral.
  • If the borrower could not pay the loan amount, the lender can liquidate the borrower’s collateral to cover the losses.

Pros and Cons of Crypto Lending

Crypto lending has some pros and cons, which are mentioned below.

Pros

  • Crypto loans are easily accessible. Anyone can get a crypto loan with or without a credit score.
  • Crypto loans are faster. It takes only a few hours to receive funds after approval.

Cons

  • Some lending platforms have minimum borrowing requirements that you must have to get a loan. The requirements can be sometimes very high, causing barriers for some.
  • If you fail to pay the loan amount within the specified period, the platform will liquidate your collateral, and you will end up losing whatever you put up.

Top Crypto Lending Platforms

The following are few leading crypto lending platforms.

  • Celsius
  • Binance
  • CoinLoan
  • BlockFi

Conclusion

Crypto lending is different from traditional bank lending in many ways. It has many benefits but comes along with risks as well. Therefore, you need to be very careful when you start crypto lending.

Always choose a well-reputed lending platform and make sure how much interest rate you will earn, or you will have to pay and how much collateral is required to secure a crypto loan.

Crypto lending is rewarding but risky at the same time. Therefore, always do your own research and keep educating yourself.


Presented by CryptoShare, a lending platform that allows people to lend and borrow money without banks or credit checks.

On October 16th join CryptoShare for a Cryptocurrency MasterClass for Beginners and Investors!

Cryptocurrency lending

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Intro to Blockchain: How it can be used in Everyday Life

Blockchain technology is one of the exciting developments of this century, having great potential to revolutionize many industrial sectors. But the question arises: What is blockchain technology, and how can it be used in our everyday lives?

Keep reading, and let’s find out!

What is blockchain technology?

In simple words, blockchain is a combination of two words; “block” and “chain.” It is a system of storing information such as digital transactions in a way that cannot be changed. The Block stores the information and the Chain is the record of the Blocks. It is Blocks of information that sit on a chain also known as a Digital Ledger.

Think of Blockchain as a type of advanced database that captures, records, and replicates data to make sure it is accurate.

Decentralization, transparency, immutability, and no third-party involvement are the main pillars of blockchain technology, and most of the blockchain projects are built around these core properties.

Applications of blockchain technology in everyday life

Blockchain technology is widely used in our daily life. Some of the examples are given below.

Digital Identity

The internet has become a part of our everyday lives, and today digital security is the primary concern because hacking is common.

Blockchain technology can help in this situation because of its potential to track and manage digital identities. It can not only store information securely but manages everything in one place, reducing the overall expenses.

Healthcare

The Healthcare sector has tons of information such as patient records. It is not easy to manually handle this considerable amount of data. Although the existing digital system is efficient, blockchain technology can make it more secure and easily accessible by combining different databases, comparatively saving a lot of time.

Digital voting

Transparent voting is essential for a successful democracy. Blockchain technology can help organize a transparent, reduced-cost, online voting system while ensuring voters’ privacy.

In 2014, Liberal Alliance in Denmark was the first organization that used Blockchain technology for voting.

Construction Industry

Blockchain-based smart contracts can be used in the construction industry. Using these contracts, involving parties in the project set their rules and regulations and work accordingly. Each milestone is appropriately recorded, and payments are released accordingly.

If any of the conditions are not met, the system will act according to predetermined terms. In this way, the entire system works in a manageable manner, where everyone involved in the project has access to the information and is accountable.

Blockchain can significantly improve the efficiency of the entire construction industry, reducing the chances of disputes.

Government Sector

Government databases store the information of the entire country and can be a perfect target for hackers. It is challenging for the current system to manage this large amount of data.

Blockchain technology can significantly mitigate the risks by ensuring more transparency, immutability, and accessibility. Governments can trace back any transaction to ensure there is no corruption in the system.

Conclusion

There are many other examples of blockchain technology implementation in various sectors such as the food industry, retail industry, financial services, real estate, etc.

Record keeping is the biggest concern in most sectors, and blockchain technology is the best solution that ensures speed, low cost, streamlines, and easy access within the network.

Many industries are warmly embracing blockchain technology, while some are still reluctant. But the truth is, blockchain technology is here to stay!

Presented by CryptoShare, a peer-to-peer lending platform that allows you to lend and borrow money without banks or credit checks.

On October 16th join CryptoShare for a Cryptocurrency MasterClass for Beginners and Investors!

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