Crypto LENDING is the new META – Passive income with Crypto

Crypto LENDING is the new META – Passive income with Crypto

we’ve all noticed it recently Fiat money
is losing its value faster than ever
before this can be mitigated by saving
your money on a highin savings account
but even then you can’t keep up with
inflation what if I tell you that there
is a better way to do this and it can be
found on the blockchain in this video I
want to introduce you to crypto Landing
from the best platforms to land on to
the risk and rewards attached to Landing
this video has got you
covered so what exactly is defi Landing
defi is an abbreviation of decentralized
finance a blockchain based Financial
system without the need for centralized
parties like banks by Landing out your
crypto on a defi platform you can earn
significant interests on your crypto
this works similar to a traditional
savings account but without the need for
a bank and with way higher interest
rates but where does this Interest come
from in traditional banking the interest
comes from the bank lending out your
money at a higher interest rate than
what they give you the cut that the bank
takes here is often two to three times
larg larger than the interest you get in
decentralized lending there’s not a
central bank you delegate your funds
using a smart contract this smart
contract then takes care of lending out
your crypto against a certain interest
rate these smart contracts are fully
transparent meaning you can see exactly
what cut of the final interest you get
with traditional Banks there is
intricate systems that either approve or
reject people from getting a loan in
defi lending this is not the case defi
lending works with collateral a user
that wants to borrow crypto often has to
put in more collateral than the actual
loan mitigating the risks for the lender
if the borrower fails to pay back the
loan or the value of this collateral
Falls below a certain threshold the loan
is automatically liquidated and the
recovered funds go to the lender now
that we know a bit about how lending
Works let’s take a look at which
platforms we can use there’s multiple
things to look for when choosing a
lending platform there’s the terms and
conditions safety and of course the
interest rates you’re getting the three
most popular platforms are a compound
and maker Dow when choosing your
platform it is important to first know
exactly what you want some platforms
offer different time frames to lock up
your crypto on other platforms your
crypto is withdrawable at any moment
therefore it’s important that you do
your own research on the platform before
making a final decision I’ll leave the
links for these three mentioned
Platforms in the description but there’s
plenty more platforms out there and now
for the most interesting part how much
can we make lending out our crypto well
that’s hard to say the interest rates
depend on the type of crypto you’re
Lending the current market conditions
and the specific platform you’re using
let’s take a look at some rates on a
sorting by APR or annual percentage rate
we see some varying rates in general the
more volatile and risky an asset is the
higher its APR is if we sort by
liquidity we see that the most popular
assets to lent out are usdt and usdc
these both have an APR of around 7%
which is almost double the average of
3.7% you’re getting at central banks but
as we learn again and again in the world
of crypto the higher the reward the
higher the risks so let’s quickly go
over some of the risks that a company
crypto lending first of all there’s the
risk of impermanent loss crypto can
strongly vary in price even stable coins
can see some price fluctuations this
could lead to your payout being of less
value compared to when you put in the
assets most of the time that’s not a big
deal it’s something that also happens
when holding crypto but if you need the
money fast it could be an unwelcome
surprise another risk comes with the
platform you choose we’ve already seen
multiple crypto Landing platforms being
the victim of Hecks this could lead to
funds being stolen which in the crypto
world are often uninsured overall I
think defi lending is a great way to
make your crypto work for you generating
a truly passive source of income however
it’s crucial to be cautious and stay
well informed about the risks and latest
news surrounding this Niche part of the
crypto world so once again before taking
action make sure to do your own research
let me know in the comments if crypto
lending is something you currently do or
if it’s something you plan on doing in
the future for now that’s all I have to
say see you in the next video

Passive Income is the goal of many investors. In crypto, a passive income can be generated in multiple ways. The best way in my opinion is with Crypto Stakin or Crypto Lending.Today we will be going over everything related to Crypto Lending and Crypto Staking.

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