What is crypto lending?

Crypto lending is the process of depositing cryptocurrency that is lent out to borrowers in return for regular interest payments. Payments are made in the form of the cryptocurrency that is deposited typically and compounded on a daily, weekly, or monthly basis.

What is crypto lending & eToro?

Crypto lending has become one of the most successful and widely used DeFi services, and many crypto exchanges and other crypto platforms offer borrowing and lending services. Investors deposit cryptocurrency, which the platform lends out to borrowers in exchange for interest payments. Join eToro and get $10 of free Crypto! (US Only)

Should you lend your crypto?

There’s one obvious benefit to lending your crypto: you earn interest on what would otherwise be a stagnant asset. The interest rates you can earn by lending vary quite a bit, as mentioned earlier, and commonly fall between 1-20% for most cryptos.

What is a decentralized crypto lending platform?

Popular decentralized crypto lending platforms include Aave, Compound, dYdX, and Balancer. These platforms use smart contracts to automate loan payouts and yields, and users can deposit collateral to receive a loan if they meet the appropriate requirements automatically. Crypto lending has several advantages over traditional bank loans.