Discover What are Crypto Lending and Staking Crypto

With market capitalization reaching a record $3-trillion last year, crypto investing rocketed closer to mass adoption. Now, more conservative investors are rushing to get involved with Crypto staking and lending, as it rides a multi-billion dollar wave.

A Quick Primer

Cryptocurrency is a virtual or digital currency. Until 2009, most of the world’s currency was what is referred to as ‘fiat money.’ At one time, currency was tied directly to physical assets, like gold.

What Are Crypto Lending and Staking Crypto?

In short, crypto lending entails leasing out your crypto to human borrowers in exchange for interest. In contrast, crypto staking leases out your crypto to the blockchain for token rewards.

More About Crypto Lending

Crypto lending involves leasing your cryptocurrency out to borrowers via specific platforms. The platforms charge interest on the amount lent and pay a portion of their earnings to you.

More About Staking Crypto

Staking involves committing your tokens for use by the blockchain. Stakes are necessary for the network’s security infrastructure, and therefore participants are compensated with more of the coin they are staking.

Is It Safe To Lend or Stake Your Coins?

The dangers of crypto lending include loan default, coin volatility, exchange security, and changing crypto regulations. In addition, state regulators have been pressuring many crypto lending platforms over concerns that specific lending methods constitute “offering of unlicensed securities.”

Platforms To Lend and Stake On

If you’re interested in crypto lending or staking, you’ll likely want to know some platforms where you can lend and stake. Here are some of them: Coinbase Gemini Binance KuCoin Crypto.com Celsius Kraken

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