{"id":479,"date":"2022-11-17T16:44:31","date_gmt":"2022-11-17T16:44:31","guid":{"rendered":"http:\/\/78.47.81.216\/?p=479"},"modified":"2022-12-19T09:38:39","modified_gmt":"2022-12-19T09:38:39","slug":"what-is-crypto-lending-and-how-does-it-work","status":"publish","type":"post","link":"https:\/\/blog.ag.qubiq.cc\/?p=479","title":{"rendered":"What is Crypto Lending and How Does it Work?"},"content":{"rendered":"\n

Crypto lending is one of the ways to help grow your digital currency. This tool lets users borrow and lend cryptocurrencies for a fee or interest. Let\u2019s have a detailed look at this method of earning passive income.<\/p>\n\n\n\n

How it works<\/strong><\/p>\n\n\n\n

To lend crypto means to deposit cryptocurrency on a lending platform, so it is given to borrowers in return for regular interest payments. Here, crypto lending platforms serve as important intermediaries that connect both sides and make the process safe.<\/p>\n\n\n\n

It resembles loans in traditional banks: lenders deposit their crypto into high-interest accounts, and borrowers secure loans through the intermediary. The platform then funds the loan using the crypto that lenders have deposited.<\/p>\n\n\n\n

Crypto loans and terms<\/strong><\/p>\n\n\n\n

So, a crypto loan, or a crypto borrowing, is a type of secured loan in which one\u2019s crypto holdings are used for getting interest payments. Loan terms can vary from seven days to a year or more \u2014 it is agreed by lenders and borrowers, and limited only by platform\u2019s possibilities.<\/p>\n\n\n\n

What crypto can be lended?<\/strong><\/p>\n\n\n\n

Bitcoin and Ethereum and the two most popular cryptocurrencies for loans, as well as stablecoins. Some platforms accept as many as 40 different cryptocurrencies as collateral. Typically, users can borrow up to 50% of their crypto\u2019s value on a lender like Binance. A few platforms also allow you to borrow up to 90% of the value of your assets.<\/p>\n\n\n\n

Interest rates<\/strong><\/p>\n\n\n\n

Crypto landing interest rates are usually lower compared to P2P loans and credit cards. On some platforms like Nexo, interest rates start from 0% and up to 14%. However, the rates for stablecoins are higher and are often in the range from 10% to 18%. Keep in mind that each lending platform has different rates for different coins.<\/p>\n\n\n\n

Making money by loaning crypto<\/strong><\/p>\n\n\n\n

Usually, when lenders deposit their crypto for borrowings, no other fees are taken from them. After the loan\u2019s term finishes, lenders get their full deposit back with interest. Lenders receive payments in the same cryptocurrency as deposited, on a daily, weekly, or monthly basis.<\/p>\n\n\n\n

The risks<\/strong><\/p>\n\n\n\n

Everything mentioned above may make an impression that crypto loans are a totally safe and lossless type of earning. However, there is an inherent risk connected with inflation and crypto prices drops.<\/p>\n\n\n\n

To sum it up<\/strong><\/p>\n\n\n\n

Crypto lending is another way to make your digital assets \u2018work\u2019 and bring passive income. If you want to try this tool, take your time to choose a lending platform that offers reasonable interest rates and supports the currencies you want to lend.<\/p>\n","protected":false},"excerpt":{"rendered":"

Crypto lending is one of the ways to help grow your digital currency. This tool lets users borrow and lend cryptocurrencies for a fee or interest. Let\u2019s have a detailed look at this method of earning passive income. How it works To lend crypto means to deposit cryptocurrency on a lending platform, so it is […]<\/p>\n","protected":false},"author":7,"featured_media":489,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[38],"authors":[37],"class_list":["post-479","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-education","authors-alphaguilty"],"acf":{"reading_time":3},"author-name":"AG Content Manager","suggested-articles":[{"ID":872,"post_author":"7","post_date":"2023-01-26 15:51:47","post_date_gmt":"2023-01-26 15:51:47","post_content":"\n

\"\"<\/figure>\n\n\n\n

Each new startup or venture needs investments for its launch and further developments. Today, cryptocurrencies and NFTs are making the startup fundraising<\/strong> process easier and more accessible to people. <\/p>\n\n\n\n

Of course, such fundraising is more suitable for blockchain-related projects. But no matter if you work in a Web2 or Web3 startup, crypto can help you to raise funds<\/strong> in a smart and engaging way, and even form a community of supporters. Let\u2019s learn more about it.<\/p>\n\n\n\n

Types of Fundraise in Crypto<\/strong><\/h2>\n\n\n\n

Private Placement<\/em><\/p>\n\n\n\n

Also known as \u201ctoken presale,\u201d private placement is a type of fundraising in which tokens are offered only to a selected group of investors. The goal is to raise funds for the project\u2019s early development, or for business growth. Early investors should get allocation, or a place in your whitelist in order to participate in the token presale. <\/p>\n\n\n\n

Public offerings<\/em><\/p>\n\n\n\n

There are different types of public placements, in which tokens are offered for sale to the wide audience. All interested persons can invest in your project (if there are enough tokens for everyone).<\/p>\n\n\n\n

Initial Coin Offering (ICO)<\/em><\/p>\n\n\n\n

Previously, ICO referred to a stage of fundraising when a project was selling tokens to public investors for the first time. But today we typically call ICO any token offering<\/a> where the project has organized the sale of its tokens by itself.\u00a0<\/p>\n\n\n\n

Most projects launch ICOs to sell utility tokens - those that can be used for obtaining services, staking or forming a DAO. Governance tokens are also often sold through an ICO.<\/p>\n\n\n\n

Initial Exchange Offering (IEO)<\/em><\/p>\n\n\n\n

IEO is an improved version of ICO where tokens are offered through a cryptocurrency exchange. Sometimes, companies that invest in startups<\/strong> prefer IEOs, because projects are thoroughly screened and analyzed before the token sale. A trusted exchange, like Binance, is responsible for evaluating the credibility of the project, which can prevent scams and suspicious firms from raising funds through IEOs. <\/p>\n\n\n\n

Initial Decentralized Exchange Offering (IDO)<\/em><\/p>\n\n\n\n

IDOs are a decentralized version of IEOs which originated in 2019 when Decentralized Exchanges (DEXs) gained popularity. Supporters of IDOs insist that decentralization could remove human fraud and error, speed up the process, and lower fundraising fees. The most popular decentralized exchanges for holding IDOs are BSC Pad, Polkastarter, DAO Maker, and Solanium.<\/p>\n\n\n\n

Initial Game Offering (IGO)<\/em><\/p>\n\n\n\n

IGO is a specific type of startup fundraising<\/strong> popular among blockchain gaming projects. It\u2019s similar to an ICO, but apart from cryptocurrency tokens, IGO participants can get early access to the in-game assets while supporting the game\u2019s early development. IGO typically offer NFT cards, loot boxes, skins, weapons and other items that are required to play the game or give additional benefits.<\/p>\n\n\n\n

What Type Is Preferable For Investors?<\/strong><\/h2>\n\n\n\n

Companies and self-starters that want to raise money for startup<\/strong> should properly select a method depending on the type of investors they want to have. <\/p>\n\n\n\n

If a project aims to attract crypto investors and just regular crypto users, all methods \u2014 ICOs, IEOs, IDOs \u2014 would be suitable. However, it's important to remember that ICOs are sometimes associated with a negative event that took place in 2017-2018, when the crypto market was flooded with ICOs and a vast majority of them failed.<\/p>\n\n\n\n

IEOs and IDOs will perfectly suit Venture Capital Funds (VCs) and traditional investors who don\u2019t like to take much risk investing in crypto. Along with these methods, regular non-crypto fundraising methods are also welcomed.<\/p>\n\n\n\n

P2E, gaming metaverses and other blockchain gaming projects usually focus on creating a community of their future gamers. IGOs can allow gamers not only to enjoy the project, but also obtain certain benefits and power to make decisions and improvements in a game\u2019s ecosystem.<\/p>\n\n\n\n

So, Why Do Startups Need Crypto Fundraising?<\/strong><\/h2>\n\n\n\n

Token fundraising grants both Web3 and traditional startups a new source of capital in addition to regular methods such as pitching, crowdfunding and seed investments. It also introduces the startup to a community of crypto enthusiasts who are in constant search of great projects to invest in. <\/p>\n\n\n\n

With the development of Web3 and wider adoption of blockchain and crypto, new methods of cryptocurrency fundraising may continue to emerge, including the use of NFTs for fundraising and the tokenization of real-world assets.<\/p>\n","post_title":"Cryptocurrency Fundraising for Dummies, and Why It Matters to Startups and Investors","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"cryptocurrency-fundraising-for-dummies-and-why-it-matters-to-startups-and-investors","to_ping":"","pinged":"","post_modified":"2023-02-28 13:57:09","post_modified_gmt":"2023-02-28 13:57:09","post_content_filtered":"","post_parent":0,"guid":"http:\/\/78.47.81.216\/?p=872","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":1174,"post_author":"7","post_date":"2023-03-20 16:00:53","post_date_gmt":"2023-03-20 16:00:53","post_content":"\n

\"\"<\/figure>\n\n\n\n

The field of decentralized finance is one of the most attractive to investors and a fast-growing part of the cryptocurrency market. It attracts many people with the prospect of potentially high returns at relatively low risk. A few years ago, skeptics predicted that the decentralized finance bubble would burst due to its rapid growth, but on the contrary, this sector has seen even more growth.<\/p>\n\n\n\n

The rise of decentralized finance is also due to the popularity of cryptocurrencies, and their gradual acceptance by society and the state. New DeFi platforms are emerging almost daily, and leading international venture capital funds are actively investing in them. If the momentum continues and the cryptocurrency market continues to grow in 2023, we can expect the decentralized finance sphere to become even more developed and offer more opportunities.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

So if you don't know how to invest in DeFi, be sure to read this material. We will tell you what opportunities this field offers to investors and how to avoid risks.<\/p>\n\n\n\n

How to invest in DeFi projects?<\/h2>\n\n\n\n

So, decentralized finance consists of an ecosystem of DEX, DeFi applications, stablecoins, DeFi tokens, and other financial tools based on blockchain (most DeFi platforms use the ETH network). These networks operate autonomously and cannot be controlled by any governing body. The financial services offered by the DeFi platforms are almost identical to the ones provided by traditional financial authorities.<\/p>\n\n\n\n

But the most important advantage of DeFi applications is that anyone can make money with them. Of course, the industry is categorized as technically complex, so people encountering it for the first time may be intimidated. But, despite the newness of the infrastructure, the decentralized finance area is open to people who want to learn how to make a profit from it. Now, investing in DeFi projects can be done in a few different ways:<\/p>\n\n\n\n