Explained: What Are Crypto Lending and Loans in DeFi?

Cryptocurrency lending is a feature of Decentralized Finance (DeFi), in which investors lend cryptocurrencies to borrowers in return for interest payments. If you’re holding on to cryptocurrency with the expectation of future price appreciation, you might also receive steady passive income from your assets through lending. You could receive weekly or monthly interest when you deposit cryptocurrency in the wallet of a crypto lending platform.

On the borrowing side, crypto lending or crypto loan allows you to borrow fiat money (using your crypto as collateral) so that you won’t have to sell your cryptocurrency assets in an emergency. 

What Exactly Is DeFi?