|

What is Lending in Wrypto Currency

| |-| ![IMG-20230319-WA0044.jpg](https://cdn.steemitimages.com/DQmfRdtv5Q2966hur8KJrizwdzrE7eygnkKL8WhcbV9Do3F/IMG-20230319-WA0044.jpg) [Freepik](https://www.freepik.com/free-vector/fintech-business-related_5604933.htm#query=Lending%20in%20Wrypto%20Currency&position=5&from_view=search&track=ais) Cryptocurrency lending provides an alternative way to invest your crypto assets, where you can lend cryptocurrency or digital currencies to borrowers. You can earn interest on the cryptocurrency that you lend to the borrower without any intermediaries. You can find many solutions that can help you to lend and earn interest directly from your crypto assets. |

Making Crypto-Backed Loans Work

| |-| ![IMG-20230319-WA0045.jpg](https://cdn.steemitimages.com/DQmbcvRfdQEoMEVzVmoKyFHSAW4ELNjxzEsnZs9HT1d66Mp/IMG-20230319-WA0045.jpg) [Freepik](https://www.freepik.com/free-vector/hand-drawn-cryptocurrency-concept_20285433.htm#query=Making%20Crypto-Backed%20Loans%20Work&position=1&from_view=search&track=ais) The next important aspect of offering cryptocurrency lending will obviously draw attention to its functionality.In crypto currency the loans are variously dig at some assets in the ways of leverage as the loans of securities . The basic principles in crypto-backed lending are almost identical to auto loans or mortgage loans. You can mortgage crypto assets for a loan at certain crypto lending rates and repay the loan within a specified period. The most common places to get such loans include cryptocurrency exchanges or cryptocurrency lending platforms. Borrowers can keep ownership of the cryptocurrency they used as collateral, although some rights are lost. For example, borrowers cannot use crypto assets to transact or trade. In addition, a significant decline in the value of assets held as collateral means that borrowers will have to pay more than the amount borrowed in the event of a loan default. You can clearly see that there are two distinct parties to a cryptocurrency lending transaction, the borrower and the lender. The borrower undertakes to deposit the crypto assets as collateral to secure the investment of the lender. The lender will charge the borrowers interest for the loan and will take collateral. If the borrower fails to repay the loan, the guarantor can compensate the lender. |

Cryptocurrency Lending Initiatives

| |-| ![IMG-20230319-WA0046.jpg](https://cdn.steemitimages.com/DQmd9cPHPe3o434ewimjFYNMoAP4y4JiNLRQ4DxWuRHybJU/IMG-20230319-WA0046.jpg) [Freepik](https://www.freepik.com/free-vector/virtual-currency-isometric-background_6206142.htm#query=Cryptocurrency%20Lending%20Initiatives&position=1&from_view=search&track=ais) A deeper dive into the steps involved in cryptocurrency lending from the perspective of lenders and borrowers can give a better impression of DeFi solutions. Regardless of the platform used for cryptocurrency-backed lending, the steps taken by borrowers and lenders are almost identical. |

Borrowers must Follow The Following Steps

| |-| ![IMG-20230319-WA0047.jpg](https://cdn.steemitimages.com/DQmUEsZkdS5UuyskRTcnYqzs3yCrcSLLUWGTWi2mJKFtMsm/IMG-20230319-WA0047.jpg) [Freepik](https://www.freepik.com/free-photo/businessman-walking-along-green-path_954774.htm#query=Borrowers%20must%20Follow%20The%20Following%20Steps&position=3&from_view=search&track=ais) * Register on a platform that offers loans backed in cryptocurrencies and select the required amount. * The cryptocurrency lending platform will use cryptocurrency lending rates to calculate the amount of cryptocurrency required as collateral. * Borrowers have to submit a discretionary collateral on the lending platform and apply for the loan. * The platform verifies the borrower's guarantor and deposits the funds into the borrower's account after the loan is approved. * On the other hand, the process of cryptocurrency lending is different from the point of view of lenders. If you are a cryptocurrency lender, then these are the steps for you. * Borrowers have to choose a specific interest rate. * Lenders offer crypto assets to borrowers and receive bonds in return. The bond proves the fact that you lent the cryptocurrency to the borrower. * The lenders will receive the excess bond as interest. * You can get your money back by returning all bonds after the agreed time. Lenders can use smart contracts to send bonds and receive cryptocurrency in exchange for bonds.

![vM1pGHgNcyCXUWJECrZbvn1NMPj1oFGUo3gYfF3NNPRD9VBJqARvPr7nQp8yjNPx2ukEMSeeXYUFMMcBzyifipzWZQRmf7C5UC9CQ2QA8PNa6nz9tW8zZg1fVmACmtDi2V4LEYe.png](https://cdn.steemitimages.com/DQmX4N5wvH3FcaqPNsty6wjSVtX3TXwZQbnGJhGHhKfJDE8/vM1pGHgNcyCXUWJECrZbvn1NMPj1oFGUo3gYfF3NNPRD9VBJqARvPr7nQp8yjNPx2ukEMSeeXYUFMMcBzyifipzWZQRmf7C5UC9CQ2QA8PNa6nz9tW8zZg1fVmACmtDi2V4LEYe.png) # Special Thanks To @hungry-griffin @blacks @rme # Best Regards By @mumar ![vM1pGHgNcyCXUWJECrZbvn1NMPj1oFGUo3gYfF3NNPRD9VBJqARvPr7nQp8yjNPx2ukEMSeeXYUFMMcBzyifipzWZQRmf7C5UC9CQ2QA8PNa6nz9tW8zZg1fVmACmtDi2V4LEYe.png](https://cdn.steemitimages.com/DQmX4N5wvH3FcaqPNsty6wjSVtX3TXwZQbnGJhGHhKfJDE8/vM1pGHgNcyCXUWJECrZbvn1NMPj1oFGUo3gYfF3NNPRD9VBJqARvPr7nQp8yjNPx2ukEMSeeXYUFMMcBzyifipzWZQRmf7C5UC9CQ2QA8PNa6nz9tW8zZg1fVmACmtDi2V4LEYe.png)