Cryptocurrency Lending: The coming age for crypto landscape

Dung Dinh
Dung Dinh
Dec 27, 2019 · 3 min read

Crypto Lending is a trade where you can lend out your Cryptocurrency and earn interest. The deal is facilitated by Crypto Lending Platforms that offer to lend different cryptocurrencies like Ether, Bitcoin, and Stable Coins. The same platform could also be used for borrowing or getting a loan if you have provided cryptos as collateral. The concept then is termed as Crypto-backed loans.

It’s just the two parties of a trade for one who is lending or investing it is crypto-lending and for others who are borrowing it is crypto-backed loans.

The lender can avail three different types of options to invest his funds and earn a passive income such as: investing in individual loans, investing in automated lending bots and invest/lend to firms that perform crypto lending

There are differences between those options. The details are as follow:

Lending to an individual would be similar to trade between two people in the same/different parts of the world. The lending platform would have borrowers and lenders with their requests, and matching happens.

Lending to Automated Bots is a service offered by exchanges to optimize your crypto lending in the best possible interest rates. So if you or an institution are the owners of multiple cryptos and although a simple rule is to sell an asset when it’s at a higher price and buy back when there is dip is applied, trading multiple coins could be a tough job. That’s where Automated bot or AI/ML-driven algorithm comes in the picture, that is fed with numerous parameters like history, news, market sentiments to make the best possible decision and execute it within seconds.

You can lend your multiple/single crypto to these Automated bots, and they make sure to make the best decision of providing you with a passive income

Lending to Crypto Lending Firms is one of the most widely used lending methods that involve trade between an individual/institution with a crypto lending platform. The Lending platform than does the matching and dispatch the loans. Here there are two categories one which holds the custody of the lender’s cryptos or borrowers collateral and others that offer 100% non-custodial lending offering decentralization in real sense.

We are developing our program and it will be released soon. In the meantime, why don’t you start with our Crypto Earn first? Tokenize Crypto Earn platform is helping you to maximize your benefit. Just hold your funds in the Tokenize Crypto Earn and grow your wealth with accruing interest.


Subscribe to Tokenize Newsletter!

Don’t miss any updates regarding our latest features, events, and community activities. Subscribe now to get them delivered to your inbox.

Tokenize Xchange

Tokenize, a team that aspire to build the next generation currency exchange that supports established and emerging digital currencies.

Dung Dinh

Written by

Dung Dinh

Tokenize Xchange

Tokenize, a team that aspire to build the next generation currency exchange that supports established and emerging digital currencies.

Welcome to a place where words matter. On Medium, smart voices and original ideas take center stage - with no ads in sight. Watch
Follow all the topics you care about, and we’ll deliver the best stories for you to your homepage and inbox. Explore
Get unlimited access to the best stories on Medium — and support writers while you’re at it. Just $5/month. Upgrade