Lending money in terms of bitcoin and profiting with the varying rate of interest for the amount gives a stable earning. The same is highly risk involved as there is requirement of collateral for the same amount that's been provided. Here users provide valueless collateral causing us loss. So rather than lending better is to start trading.
Totally agree with you. This is not the best way to use bitcoins. There is a big risk of losing all assets. It is better to choose not such a risky way to earn bitcoins
There are many other less risky ways to make money from your BTC. Holding them for a long term will be a better option if you dont have time to do much work. Lending is a process based on trust and sometimes people get out of line to scam a little money. So think a thousand times before risking your BTC.