Published 3 वर्ष पहले • 2 minute read

How You Can Make Money by Lending Cryptocurrency

The popularity of cryptocurrency as an investment tool continues to grow. It’s not surprising, either; the 2021 Forbes Billionaires List featured no fewer than 12 tycoons who have made their fortunes from cryptocurrency.

But while established methods of profiting from cryptocurrencies include trading in different currencies to try and leverage value – or simply buying up stocks and waiting for their worth to appreciate – there is a new method by which savvy investors can increase their income. Crypto lending is a fairly new phenomenon, but one’s that becoming increasingly widespread. Here’s why.

Making your money work for you

The problem with the two previous methods of earning from crypto investments outlined above is that they’re either too active or too passive. Trading involves constant movement and high levels of risk, while simply leaving your currency in its wallet doesn’t encourage enough independent activity.

Crypo lending, however, is the best of both worlds, since it allows you to earn interest on crypto assets without becoming too involved in the process. All that’s required is to sign up to a crypto lending platform and put up the assets you wish to invest, then adjust the preferences of any transaction you’d be happy to participate in. Then the platform will automatically manage your portfolio for you, assigning your funds to borrowers who need them.

The borrowers will pay back the loan over the agreed time period, plus interest, netting you a tidy profit in the process. If the borrower finds they are not able to repay the loan, the collateral they staked will become liquidated to ensure you aren’t left out of pocket. It’s as simple as that!

How You Can Make Money by Lending Cryptocurrency

Cutting out the middleman

As such, the entire arrangement is fairly similar in design to a standard lending set-up – except without the middleman. With no bank dictating the terms and siphoning off the lion’s share of the profits, you’re able to access far greater interest rates and pocket a larger percentage of them yourself.

That extends to the fees and penalties involved in conventional loans, as well. In fact, the deck is so heavily stacked in the favor of banks that they invariably come off better in every financial transaction you’re ever likely to conduct with them. Cryptocurrency loans have the solution to that by omitting them from the equation altogether.

That means that you can gain access to a source of passive income that maximizes the potential of your savings with minimal input at your end – and with minimal disruption to your profit margins. As such, it’s not hard to understand why many people believe crypto lending is the way of the future for both borrowers and lenders.

Rather than just letting your cryptocurrency assets sit in a digital wallet gathering dust, why not put them to work? By signing up to a crypto lending platform and earning interest on your investments, you can benefit from more productive savings and help out other crypto users in need, all at the same time.

***

DISCLAIMER

The views, the opinions and the positions expressed in this article are those of the author alone and do not necessarily represent those of https://www.cryptowisser.com/ or any company or individual affiliated with https://www.cryptowisser.com/. We do not guarantee the accuracy, completeness or validity of any statements madewithin this article. We accept no liability for any errors, omissions or representations. The copyright of this content belongs to the author. Any liability with regards to infringement of intellectual property rights also remains with them.

टिप्पणियाँ

अभी तक कोई टिप्पणी नहीं... बातचीत शुरू करें!