You must have heard and experienced money lending so many times in your life. But have you ever been familiar with the word crypto lending? You might have heard the word, but you likely need to learn more about this term. Well, you are not just one person, for sure. Many more people around you must have no idea about it.
So usually, when you need money, you head to the bank and lend money following a loan application procedure. After that, you sign a lending contract and agree on the repayment terms provided by the bank. After these procedures, the bank may allow you o lend money for you. And in this way, you get the money from the bank.
However, crypto lending involves investing and funding. Crypto lending is investing bitcoin for later lending to borrowers in exchange for recurring interest payments. Payments are made using cryptocurrency, often deposited and compounded daily, weekly, or monthly.
It has two components; deposits that earn interest and cryptocurrency loans. The deposit account functions identically to how your bank account works. Here you deposit the cryptocurrencies the lending platform accepts, and the user can pay interest of up to 8% APY (depending on the platform and the cryptocurrency). The platform may use deposited funds to make loans to borrowers or for other investments.
To borrow cryptocurrency, borrowers typically need to deposit at least 100% (sometimes up to 150%, depending on the lender) as collateral.
You have to pay interest on the loan, which differs for different banks; similarly, the interest rate here also varies depending on the different platforms. You need to pay the interest every month.
Crypto Lending Platforms
What is the role of the bank in leading physical money? The same is the role of the crypto lending platform. These platforms allow you to access cash without even withdrawing your bitcoin. Not only this, but these platforms also give you loans with attractive interest rates. The following are the most reliable platform for you to lend cryptocurrency:
● Nexo
● Bakera
● SALT
● Lendroid
● ETHlend
● Celcius Network
● BockFi
● Unchained Capital
● YouHodler
● CoinLoan
Components Involved in Crypto Lending
In most cases, there are three components involved which are:
Borrowers who need money for various reasons should put up crypto or fiat assets as collateral.
The crypto lending platform is a third-party platform that handles these transactions and links borrowers and lenders.
The lender is willing to lend the crypto loan in the form of stablecoins or cash and earn passive income from their crypto investments.....Read More
The P2P crypto lending platform has made the practice of borrowing and loaning money easy.
With just a click of the mouse, individuals can easily find loans online without going to banks in person or waiting for approval.
Low interest rates, simplified applications, and accelerated decisions have made the peer-to-peer lending model a huge success in the digitized world.
Antier Solutions’ team creates robust alternative finance solutions that track investments in real-time.
Our turnkey solution can help crypto startups like you to fulfill your vision of laying the foundation of your P2P crypto lending platform.
If you also want to invest in building a p2p lending platform, feel free to contact us.
Right from the barter system, humans have evolved in asset transfers to popular e-banking of this era.
Since the invention of cryptocurrencies, they took up the global market with its high standard asset transfer process.
Avoiding intermediary charges and fastest transactions, it came up with flying colors in this decade.
Obvious flaws of the banking sector!
Intermediaries, banks involved in global transactions take a handsome of money as a commission fee and also take 5-15 business days to complete the transaction.
Starting from $1 to millions of dollar investors can split their assets and lend them across the community.
Peer to Peer Lending SoftwarePeer to peer lending software, also known as P2P lending software, is the solution for the entire ruckus created by the current loan payment system.
The system offers crypto-backed loans and the concept is gaining rapid momentum and acceptance.
A P2P lending platform eliminates the paperwork involved in the lending process and allows the borrowers to acquire loans at a lower interest rate.
Peer to peer lending software directly connects the buyers and lenders while eliminating any third party involvement, thereby leading to cheaper, quick and transparent lending process.
Future of P2P lendingP2P lending software is multifarious.
This platform enables transparency and openness of transactions.
P2P Lending Software platform earns revenue by matchmaking between the borrowers and investors by charging a commission fee.
The lending software is highly customizable and dominant in the trade market.
In recent years that benefitted millions of users to avail loans in critical situations.
