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What is crypto lending and how does it work?


  • Learn about crypto lending
  • Find out why you need crypto lending
  • Learn how to use crypto lending
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What is crypto lending?

Crypto lending works as follows: one user's cryptocurrency is loaned to another for a fee. The lending mechanism may differ significantly between platforms, but the fundamental concepts are the same. This service is available on controlled as well as decentralized platforms.

How does it work?

In crypto lending, three parties are involved: the lender, the borrower, and the DeFi (decentralized finance) platform or crypto exchange. The loan recipient usually provides a commitment (collateral) before receiving the bitcoin. There is also the possibility of an unsecured quick loan (more on that below).

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