(FINANCIAL)-Strategies to stay profitability on crypto lending and borrowing

in hive-110112 •  4 years ago 

Many people are failing when they are doing lending and borrowing actions, there have some strategies which if you will apply them you must be profitable always.

Lets start in lending, in lending you have to make sure that's you are lending cryptocurrencies which have high volatile in the market such as bitcoin, ethereum etc. Because when you lend the coin, this is the same to hold the coin, but the different is that in lending you receive an interest than holding you only waiting for the coin price to rise.
But when you have lending with cryptocurrencies you have two advantages of profit, one is from the coin price increasing and secondly is from the lending interest you receive, than lending with stable coins yoll only be receiving an lending interest which is very low. So that's in lending you have to make sure that you are lending with high market volatile cryptocurrencies in order to get more profits.

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About borrowing you just have to be borrowing the coin that doesn't have high volatile in the market such as stable coins which are USDT, TUSD, BUSD etc. Its better to be borrowing by using these coins because when you lend for example 1000 USDT, it will not increase its rate even if how long many days comes, different from borrowing using bitcoin for example you borrow 1 BTC which worth $40000 at the moment, but after a month it worth $60000, this will be very risk and you'll never see the benefits of borrowing. So that's its better to be using stable coins for the borrowing.

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