The Difference Between Crypto Lending and Crypto Staking

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Cryptocurrency is a virtual or digital currency. Until 2009, most of the world’s currency was what is referred to as ‘fiat money.’ At one time, currency was tied directly to physical assets, like gold.

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Cryptocurrency, or just Crypto, aims to avoid an institutional or governmental “middleman” by “decentralizing” money – giving the power back to the people. This decentralization can make the transfer of “value” between parties easier, reduce the costs of said transfers and also reduce potential corruption by the middlemen.

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Blockchain is the technology that allows Crypto to do all this. To put it simply, blockchain is the database that proves the value of Crypto by maintaining a record of transactions in the cloud, in a decentralized manner, accessible by all and alterable by none.

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Bitcoin is almost synonymous with Crypto. Technically, bitcoin is just one form of virtual currency but has become a ubiquitous term for cryptocurrency in general.

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Crypto lending entails leasing out your crypto to human borrowers in exchange for interest. In contrast, crypto staking leases out your crypto to the blockchain for token rewards.

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More About Crypto Lending

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Staking involves committing your tokens for use by the blockchain. Stakes are necessary for the network’s security infrastructure, and therefore participants are compensated with more of the coin they are staking.

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The Difference Between Crypto Lending and Crypto Staking

Cryptocurrency is a virtual or digital currency. Until 2009, most of the world’s currency was what is referred to as ‘fiat money.’ At one time, currency was tied directly to physical assets, like gold.

Blockchain is the technology that allows Crypto to do all this. To put it simply, blockchain is the database that proves the value of Crypto by maintaining a record of transactions in the cloud, in a decentralized manner, accessible by all and alterable by none.

Bitcoin is almost synonymous with Crypto. Technically, bitcoin is just one form of virtual currency but has become a ubiquitous term for cryptocurrency in general.

Crypto lending entails leasing out your crypto to human borrowers in exchange for interest. In contrast, crypto staking leases out your crypto to the blockchain for token rewards.

More About Crypto Lending

Crypto lending involves leasing your cryptocurrency out to borrowers via specific platforms. The platforms charge interest on the amount lent and pay a portion of their earnings to you. These loans are secured using the borrower’s crypto.

Staking involves committing your tokens for use by the blockchain. Stakes are necessary for the network’s security infrastructure, and therefore participants are compensated with more of the coin they are staking.

More About Crypto Staking

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