Cryptocurrency investor and trader
Ever since its tumultuous stint in 2018, the crypto market has been on the rise. Experts believe that this is due to the emergence of new and formidable financial applications that promise to change the way we access financial services. At the heart of this turnaround is the budding crypto lending sector currently pushing new paradigms in the DeFI and CeFI terrains.
Without any doubt, this sector’s success hinges on a flexible approach to lending and borrowing. Thanks to this system, the concept of creditworthiness is no more a core requirement in loaning processes. Likewise, the era of cumbersome loan applications has ended. With crypto collateralized loans, it is possible to access funds almost instantly. More importantly, the borrowing rates are unbelievably low, especially when compared to bank rates. These factors have propelled the crypto lending sector as a viable alternative to banks and traditional loan services.
However, as noted by Christine Kim of Coindesk, the market currently has a high-interest rate variance for crypto deposits. The same applies to the wild varying borrowing rates offered on crypto loan platforms. Although this indicates market immaturity, it, nonetheless, provides users with competitive loan offers. As a result, the interest rate could drop to as low as