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4 Key Rules for Safer Crypto Lending

4 Key Rules for Safer Crypto Lending

According to the FDIC, the national average interest rate on savings accounts currently stands at a pitiful 0.04% APY -- a pittance compared to the money your bank's earning by lending out your deposits. Crypto lending works similarly to a hard money loan: A borrower must first put up some at-risk collateral -- in this case, a portion of their crypto -- that you as the lender can seize if the borrower defaults on their payments. Usually, the collateral has to be over 100% of the amount they are borrowing.