Hi guys, as many of you as I also would like to "do" something with my crypto funds that I held in my crypto wallet. For a few months, I still think if crypto loans really work and there is a very very low risk of losing my funds. I would like to borrow lend my cryptocurrencies with an interest. Blockfi offers up to 8.5% interest p.a. and there are more competitors, but would you 100% trust them? Earning few percent per year vs. losing the big amount of cryptocurrencies fund?
lending and borrowing crypto I heard some people make enough money from this business, but requires a large capital to be able to make big profits. if I have a lot of crypto assets then I will definitely put my assets on a lending platform, in addition to my long-term investment, it will also definitely make my assets grow.
Huge capital means more risk of losing because the value of the token you are holding might decrease a substantial amount. While choosing stable coin to lend will only give you low interest since its less risky. It's not advisable to invest huge capital in crypto since its very hard to assess risk factor on borrowers. Staking is much better than lendin sector of crypto because DeFi apps usually us it only on liquidity of exchange and get profit in fee.