How does share lending work in the context of cryptocurrency trading?

3 answers

• Nov 23, 2021 · 3 years ago
  Share lending in the context of cryptocurrency trading refers to the practice of lending digital assets to other traders or investors in exchange for interest. It works similarly to traditional share lending in the stock market, where individuals can lend their shares to others who want to short sell or engage in other trading strategies. The lender earns interest on the loaned shares while the borrower can use them for their trading activities. This can be beneficial for both parties as it allows lenders to earn passive income and borrowers to access additional assets for trading. However, there are risks involved, such as the borrower defaulting on the loan or the value of the lent shares decreasing significantly. It's important for lenders to carefully assess the risks and choose reliable borrowers or platforms for share lending in cryptocurrency trading.
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• Nov 23, 2021 · 3 years ago
  Share lending in cryptocurrency trading is like lending your digital assets to others in exchange for interest. It's a way to earn passive income by allowing others to use your assets for trading purposes. The benefits of share lending include earning interest on your assets and helping other traders who need additional assets for their strategies. However, there are risks involved, such as the borrower not returning the assets or the value of the assets decreasing. It's important to carefully consider the risks and choose reputable platforms or borrowers for share lending in cryptocurrency trading.
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• Nov 23, 2021 · 3 years ago
  Share lending in cryptocurrency trading is a way to earn passive income by lending your digital assets to others. It can be beneficial for both lenders and borrowers. Lenders can earn interest on their assets while borrowers can access additional assets for their trading activities. However, there are risks involved, such as the borrower defaulting on the loan or the value of the lent assets decreasing. It's important to carefully assess the risks and choose reliable borrowers or platforms for share lending in cryptocurrency trading. BYDFi, a leading cryptocurrency exchange, offers share lending services that allow users to earn interest on their digital assets.
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