Cryptocurrency is digital money. During initial days, it was considered as an easy opportunity for anyone to multiply one’s capital. But when the hype started to dwindle, many investors to avoid the consequences started selling their bitcoin while some continued to HODL.
Crypto lending and loan platform emerged during this time. Crypto loan platforms allow users to put his/her crypto down as collateral and borrow fiat at a ratio. Interest rates for cryptocurrencies incentivize users to loan out their crypto assets because users can earn a higher return lending their assets than they can by storing them. While the passive income advantage of crypto lending is quite obvious, crypto loans can also let an investor add liquidity to their bank account without triggering a taxable event.
The interest offered on crypto fluctuates frequently, but in general, DeFi platforms offer a higher APR across the board. The current pandemic has also drawn