Curated News
By: NewsRamp Editorial Staff
April 03, 2024
Crypto Lending 101: Making the Most of Your Idle Digital Assets
TLDR
- Earn attractive yields on your crypto assets, or get access to liquidity without selling your crypto.
- Crypto lending platforms allow you to earn returns by lending out your crypto or using it as collateral for loans.
- Crypto lending offers opportunities to earn passive income and access funds without selling assets.
- Crypto lending platforms like Ledn.io offer up to 11% APY on BTC, ETH, USDC, or USDT holdings.
Impact - Why it Matters
Cryptocurrency owners now have the opportunity to generate passive income and secure loans using their cryptocurrency assets as collateral. This news is important for anyone involved in the cryptocurrency market, as it highlights the evolving financial services available and the importance of carefully navigating the complexities inherent to such services to safeguard assets. Whether you are considering earning interest through lending or using your crypto as collateral for loans, choosing the right platforms and familiarizing yourself with the financial products is crucial for making informed decisions.
Summary
As the cryptocurrency market evolves, so, too, do the financial services built around it. Cryptocurrency owners can now even generate passive income through lending and securing loans using their cryptocurrency assets as collateral. However, in an industry notorious for bankruptcies and fraud, carefully navigating the complexities inherent to such financial services is extremely important. Picking the right services or platforms is a major step in the right direction, but it’s also useful to familiarize yourself with the financial products you’re considering so you can make the most informed decision that doesn’t jeopardize the safety of your assets.
Crypto lending falls into two main categories: earning interest by lending out your crypto and using your crypto as collateral for loans. The former allows crypto holders to earn attractive yields on their assets, ranging from a few basis points to double-digit annual returns in many cases. The latter allows crypto holders access to liquidity via loans at competitive rates without selling their cryptocurrency assets and creating a taxable event. Essentially, crypto lending platforms allow you to deposit your crypto assets to earn additional returns over time from those borrowing your funds, or you can be on the other side of the transaction, getting access to dollars or another currency without selling your crypto, which can provide a lot of flexibility.
As one example, crypto lending platforms like Ledn.io offer Growth Accounts that enable cryptocurrency holders to earn up to 11% annual percentage yield (APY) on their BTC, ETH, USDC or USDT holdings. Ledn.io also provides crypto-backed loans that give you access to funds without selling your Bitcoin or Ethereum. You can use BTC or ETH as collateral to receive 50% loan-to-value loans, typically within 24 hours, with the freedom to repay anytime penalty-free. The company emphasizes customer control, security, and an open approach to risk management, potentially making it a valuable partner in the crypto lending space.
Source Statement
This curated news summary relied on this press release disributed by News Direct. Read the source press release here, Crypto Lending 101: Making the Most of Your Idle Digital Assets
![blockchain registration record for the source press release.](https://cdn.newsramp.net/qrcode/681dd77dd3e2cd9a8ba97b1fe121ff14.webp)