The cryptocurrency lending sector is booming, currently valued at over $4.7 billion, the lenders have earned back nearly $860 million (or 18.3%) in interest, according to a new report. There are significant differences in countries interest rates, particularly between emerging and developed markets. For instance, the central bank interest rate in Brazil is 15% (Selic interest rate at 31/12/18) compared to 22.5% in the US (Fed rate).
A P2P global lending model using crypto as collateral could provide a far more equal lending market & much more competitive rates, particularly for participants from emerging markets all over the world.
Lender - Exchange - Borrower
Lend Btc to Exchange and get Interest from Exchange.
Establish a secure connection between Lender & Borrower.
Take BTC from Exchange and give Interest to Exchange.
Lenders make more than any trader in market with 0% chance to lose . They make profit every-time when someone across the world opens or closes his trade .
How is this possible ?
A lender lends Bitcoin to an exchange or a lending firm.This bitcoin taken by the firms and hold for a certain period of time and gives interest to the lender for his bitcoin.
Why an exchange do that and why they give money to lender for that bitcoin ?
That exchange may think bitcoin price will go up or down and he can use your bitcoin to trade and make profit. If we dig little more we see these exchanges are actually giving credit to traders as leverage and these credits are generated from the people only by lending . Now a trader wins or lose , every time he opens a trade with leverage exchanges are making money and a small percentage is actually given back to lenders.
What a lending firm do and why it is more reliable ?
Lending firms generate revenue from people and gives to chosen exchanges or trading firms or end traders and generate more profit for lenders. Coindaxcorp is the best lending firm which helps lenders earn up to 300% ROI in a year. Now lets go back to our previous question , what is a constant source for everyday money in this market.
You can simply lend money and earn daily ROI while others trade and lose money.
You can lend for a short period of time like 90days or you make hold a better position by lending for a longer period like 180 days and 360days, the 1 thing is guarenteed that is risk free profit .
Institutional Investors borrow 42% of Total Lending.
Investing Firms borrow 26% of Total Lending.
Traders Firms borrow 22% of Total Lending.
End Traders borrow 10% of Total Lending.