How to make money lending crypto?

After selecting a cryptocurrency, the next step is to deposit funds into the lending platform's wallet. This process usually involves transferring the desired amount of coins from your personal wallet to the platform's address.

On centralized crypto lending platforms, interest is often paid in kind, meaning that the borrower repays the loan in the same cryptocurrency that was lent. This allows lenders to maintain their exposure to the asset while earning a return.

Lending cryptocurrency is a growing practice among investors seeking to earn passive income. To engage in this activity, the first step is to identify a reputable crypto lending platform and create an account.

Additionally, some centralized lending platforms offer the option to receive interest payments in the platform's native token. This can be a beneficial arrangement for those who believe in the platform's long-term potential.

Once registered, users must select a cryptocurrency that is supported by the lending platform. It's essential to choose a coin that you are comfortable holding and has a proven track record of stability.