Crypto vs Traditional Lending Platform: Is Crypto the new frontier in Lending Services?

How does Crypto Lending Work?

Lending has become a staple of our life so much so that it is really hard to find a family that has not utilized some sort of lending services. Whether it is mortgage, student loans or credit cards, lending gives us the freedom to inherently delay payments for the future while receiving the benefits today. This service obviously can be used in a good way in which to buy income producing assets that will pay itself for the loan or in a spendthrift way by using the credit card to purchase unnecessary luxuries. At the end of day, lending services provide an alternative to the financial constraints faced by people or institutions so it depends on how people utilize that alternative.

Source: https://www.blog.omertex.com/defi-lending-how-it-works/

Is Crypto better?

The debate will forever continue on why Cryptocurrency will replace the traditional system and whether DeFI is really the way to go. With the recent dip in the crypto space and the case with Anchor Protocol in the Terra Ecosystem, we really don’t know where the future will head toward lending services. On one side, we have traditional lending services which are safe but are heavily centralized and DeFI Lending which provide great yields but hampered with unclear regulations so far.

Source: https://www.brokerxplorer.com/article/traditional-lending-vs-crypto-lending-explained-2229

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Nagaya Technologies

Nagaya Technologies

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NAGAYA (NGY) is a Gold-Backed Cryptocurrency with Subsidiary Projects. We aim to build Trust and Value through LEGALITY and TRANSPARENCY. https://nagaya.co/