Trust Wallet is a noncustodial multi-crypto wallet app that gives users full control over their digital assets, from cryptocurrencies to non-fungible tokens (NFTs).

As more people start using and investing in crypto, having a safe 

 to safeguard your assets is paramount. There are many crypto wallets in the market, but not all are made equal. The most frequently used is 

, but it only supports Ethereum-based tokens. 

Trust Wallet supports millions of cryptocurrencies and offers features like staking and purchasing crypto. But is it truly secure? Read on to find out all about the Trust Wallet — what it is, how it works and most importantly whether it’s safe to use.

 multi-crypto wallet app that gives users full control over their digital assets, from cryptocurrencies to 

It’s Binance's official crypto wallet, and currently supports 65 blockchains such as Bitcoin, Ethereum, Tron and Ripple, along with over 4.5 million crypto assets, including NFTs. Moreover, it even includes access to 

The Trust Wallet app is free to download on Android and IOS, and can be downloaded via PlayStore or AppStore, respectively. It has a simple, straightforward and interactive user interface, which has helped the platform accrue over 10 million active users.

Trust Wallet operates on mobile devices, and every blockchain is immediately accessible upon downloading the app. All contact information is shared only between the transacting parties, and Trust Wallet doesn’t disclose users' personal information to any third party. Trust Wallet does not hold users’ funds, and the users hold sole access to their private keys or seed phrases

Trust Wallet acts as a mediator that helps connect various blockchains through the use of its nodes. It has a robust mechanism for sending, receiving and storing multiple cryptocurrencies, and currently supports over thousands crypto coins. 

Trust Wallet provides seamless access to various DApps built on the 

 blockchain and on Binance Smart Chain. This means that you can directly use the DApps on the Trust Wallet mobile app without having to sign in to them. The DApps are all vetted by the Trust Wallet team to ensure that only the most trusted DApps are used. DApps supported by Trust Wallet include 

. The DApps are also optimized for mobile devices so that users can conveniently access them anytime, anywhere.

Trust Wallet makes it easy for you to manage your crypto NFTs and game assets. Currently, the Trust Wallet app fully supports Ethereum and Binance Smart Chain NFTs. You can move your current NFTs to store in Trust Wallet, or even trade an NFT from a supported NFT marketplace DApp such as OpenSea. 

Trust Wallet is more than just a cryptocurrency wallet for storing cryptocurrencies. Here are four ways to use it: 

Trust Wallet allows users to purchase crypto with fiat currencies. Using credit or debit card, you can purchase more than 40 cryptocurrencies on Trust Wallet. 

The fees incurred with debit or credit cards can be costly, however, so it may be better to purchase crypto directly from 

Trust Wallet even allows you to earn interest on the cryptocurrency that you hold if you’re staking from their wallet. There are numerous staking options available in the Trust Wallet app, including 

 (DEX) whereby users can perform cross-chain swapping. For example, you can swap BEP-2 tokens with BEP-20 tokens. Note that trading on the Trust Wallet DEX will incur a 

 are cryptocurrencies whose value is fixed by pegging them to other assets. This allows a coin’s value to remain stable, regardless of the volatile crypto market’s fluctuations. For example, 

(USDC) are tokens backed on a 1:1 basis by U.S. dollars held in reserve.

Trust Wallet allows you to store stablecoins securely and conveniently. Using its app, you can spend your stablecoins anywhere on anything you want, and 

Unlike most crypto wallets, Trust Wallet doesn’t charge any fees for swapping or other transactions. However, the blockchain on which the token resides will charge a transaction fee, known as a network fee, on Trust Wallet. For instance, if you choose to transact ETH or an ERC-20 token on the Ethereum blockchain, you’ll have to pay the associated gas fees.

Trust Wallet allows you to set your own network fees so that you can manage your transactions more effectively. For an urgent transaction, you can set your network fees higher so that it gets processed faster, and for less urgent ones you can just set it at a lower fee to save cost.

Trust Wallet also doesn’t charge any additional fees for the use of DApps. If you choose to purchase cryptocurrency with Trust Wallet, you must pay fees to third-party providers, but Trust Wallet doesn’t charge additional fees on top of these charges.

In case you misplace or lose your device Trust Wallet provides safe storage of 

 or recovery seed phrases for backup purposes. A recovery phrase, often referred to as a 

, is a string of random words produced by your crypto wallet and used to access the funds across decentralized wallets.

, and is accordingly subject to phishing scams. Through phishing websites, phishers can easily steal seed phrases and gain access to a user's wallet. Due to the decentralized nature of crypto, lost funds can never be recovered. So it’s crucial to never share your seed phrase with anyone, or even make a digital copy of it, in order to avoid a permanent loss of funds. Unfortunately, there are also phony websites designed to resemble official wallet sites to steal your crypto, so always make sure you’re on your wallet’s official site before signing in. 

In addition, Trust Wallet is a mobile wallet, so if you lose your mobile phone and someone hacks into it, your funds will likely also disappear forever.

To avoid seeing your crypto wallet balance suddenly drop to zero without any warning, you may want to invest in a 

 to keep your crypto funds fully safe and secure. 

Few crypto wallets can beat Trust Wallet in terms of its multi-coin support. Trust Wallet offers a range of services beyond storing your crypto, such as purchasing, staking and swapping. While it may be a versatile wallet app, it doesn’t have the most secure system. Therefore, it’s best used for transactions, rather than storage.

Beginner

what-is-trust-wallet.jpg

What Is Trust Wallet — And Is It Safe?

The straddle is a terrific options trading strategy for traders of all levels. In this article, we take a look at the types of straddles, their key characteristics, tips to help you profit and more.

A straddle is a price-neutral options strategy used to take advantage of changes to an underlying asset's implied volatility (IV).

 with the same strike price and expiration date. For the strategy to make money at expiration, the price of the underlying asset must deviate from the strikes (in either direction) by an amount greater than the total premium paid.

For a short straddle, the opposite applies. Here, you sell a put and call with the same strike price and expiration date. To profit at expiration with this approach, the underlying asset mustn’t deviate from the strikes by more than the total amount of premium collected.

Whether it's a long or short position, three things apply when setting up a straddle.

Let's see how long straddles can be used to profit from growing volatility in various assets.

Here’s a hypothetical scenario: In two weeks' time, Apple Inc. (NASDAQ: AAPL) will report their quarterly earnings for Q1. The stock has been trading in a tight range for weeks (low volatility) and you predict this could change post-announcement … but you’re just unsure in which direction. With this in mind, you decide to enter into a long straddle.

This example uses at-the-money (ATM) strikes (equal to the underlying security's price). Alternatively, out-of-the-money (OTM) strikes can be implemented to give the trade a bullish or bearish bias.The combined cost of the strategy is a net debit of $6.00 per share ($600), which is also the maximum potential loss.

For this trade to make money, AAPL’s price must be above $156.00 (call strike + total premium paid) or below $144.00 (put strike − total premium) at expiration.

The payoff diagram below illustrates the long straddle's risk profile at expiration. You'll notice the maximum loss occurs when the stock expires equal to the long strikes.

The strategy has unlimited profit potential on the upside and significant profit potential on the downside (underlying security cannot trade below $0.00).

Let’s say in five days' time, the Federal Open Market Committee (FOMC) will announce whether they’ll adjust U.S. interest rates. Previous interest rate decisions have resulted in a significant increase in BTC volatility, so you decide to establish a long straddle using weekly options, in order to benefit if a large move occurs.

Here, the cost is a net debit of $1,000 (before transaction fees).

For this trade to make money at expiration, BTC must be above $21,000 (call strike + total premium) or below $19,000 (put strike − total premium).

Unless BTC settles at exactly $20,000 (ATM) at the time of expiration, one strike will be in-the-money (ITM) and the other OTM, guaranteeing you won't lose all of your invested capital.

Using AAPL as an example again, let’s see how we can benefit from a short strangle.

As predicted, Apple’s stock was extremely volatile after the release of its earnings report, which showed a sharp slowdown in sales in the last quarter (Q1.) Because of the negative news, AAPL’s price has been fluctuating widely between $130.00 and $145.00. Subsequently, its 

 jumped from 30% to 50%, causing its option prices to rise.

However, you expect the underlying security's price movement to slow in the coming weeks, so you decide to open a short straddle (short vol) to take advantage of the high volatility.

You'll notice that although both strikes are ATM, with the same number of days to expiration as the earlier example, the premiums involved are much higher. 

This is because option premiums increase when volatility does, and decrease with a drop in volatility.

Another difference is that here, the put option is more valuable than the call. This reflects a greater demand for puts following AAPL’s unfavorable earnings.

The combined premiums add up to a net credit of $9.00 per share ($900), which is also the maximum profit you can earn.

For this trade to be profitable at expiration, the share’s price must settle between $131.00 (put strike − premium received) and $149.00 (call strike + premium received).

Unlike the long straddle, which has limited risk (premium paid), the short straddle has limited profit potential (premium received) and significant risk.

The payoff diagram below depicts a short straddle achieving maximum profit when both strikes expire ATM. There’s unlimited loss potential on the upside, and significant loss potential on the downside (underlying security cannot trade below $0.00).

The straddle and strangle share many similarities. 

They are both price-neutral and structured to benefit from changes in IV. 

However, while a straddle uses ATM strikes, a strangle combines two OTM options.

For a long strangle, you purchase an OTM put option and an OTM call option on the same underlying asset, with the same expiration date.

Like the long straddle, a long strangle benefits when volatility increases. The key difference between the two is that by using OTM strikes, you need a larger move in the underlying asset for the strangle to turn a profit. The payoff is that, all things equal, two OTM options should cost less than two ATM options.

Like the long straddle, a long strangle is low-risk (total premium), with unlimited profit potential on the upside and considerable potential gains on the downside.

The payoff diagram below shows the trade is unprofitable in a wider range than the straddle, becoming profitable when the underlying asset price moves beyond either strike by more than the total premium cost.

A short strangle, pictured below, is a mirror image of the long strangle strategy. While you collect a lower amount of premium by selling OTM options, the range where the trade is in profit is wider than when selling a straddle.

Because the long straddle is a low-risk strategy, it's appropriate for investors of all levels of experience. In contrast, the short straddle is better suited to experienced traders with a high tolerance for risk.

The best time to employ a straddle is when you expect volatility to rise and the underlying asset to record a “sufficiently large” movement (by more than the amount of premium received).

Options traders often use the straddle to coincide with potential market-moving events, such as economic data releases and regulatory hearings, or simply when their technical analysis forecasts an impending breakout.

Both long and short straddles have two possible breakeven points at expiration — when the market settles in either direction, equal to the amount of premium either paid or received.

A long BTC straddle centered at the $20,000 strike price, with a combined premium cost of $1,000, will break even at either $19,000 or $21,000 on the expiration date. At both levels, the trade neither makes nor loses money (strike price − settlement price +/− premium paid).

A short straddle centered at the $20,000 strike price generating $1,000 in premium also breaks even at $19,000 or $21,000 (strike price − settlement price +/− premium received).

The sweet spot for a short straddle is when the options expire with the underlying price equal to the strikes. Using the above example, the sweet spot is $20,000 at expiration. Because both options are ATM, they expire worthless and you get to keep the entire premium.

As mentioned earlier, the straddle is designed to profit from both bullish and bearish markets. However, you can modify the strategy if your market view changes during the trading process. Here, we look at two ways you can switch the strategy from price-neutral (horizontal) to directional (diagonal).

Removing the long call converts the straddle into a bearish 

 Although the risk remains limited (put premium +/− the cost of closing the call), the trade now has a bearish bias and doesn't profit if the underlying asset moves above the long call's breakeven price.

Selling the long put flips the straddle to a bullish 

. Similar to removing the put option, the trade's risk is limited (call premium +/− the cost of closing the put), but no longer profits if the market moves below the closed long put's breakeven point.

In theory, the strangle has unlimited profit potential. While that sounds appealing, however, it's extremely unlikely to happen in reality.

For that reason, it's good practice to set some predetermined take-profit levels. 

One tactic you can use to lock in profits from a long straddle is to close the position incrementally (sell a set % of both calls and puts) if IV increases.

 This ensures that you cover some or all of the cost of the transaction, remaining open to more profits on the balance of the open position.

We know the maximum you can lose when trading the long straddle is the upfront cost of the trade. However, that doesn't mean you have to lose all of your investment if the trade isn't going your way. Sometimes, closing the position ahead of expiration could be a good choice.

The price you pay for the fixed risk of any long option is the negative effects of time-decay (theta) and decreasing IV.

All options lose value over time, eventually reaching zero time value at the time of expiration. For this reason, the long straddle requires the IV element of its value to increase by more than it loses each day to time decay.

Consequently, long straddle holders often decide to close their position (sell both the put and call) before theta is at highest (approaching expiration).

, let’s see how a straddle can be applied in the real world.

 has been trending broadly sideways for around two months. Notably, the price is encountering resistance around the $24,000 level. In light of this, you expect a large move on the horizon and decide to open a long straddle centered at the $24,000 strike prices.

Here are the steps needed to open the trade:

At the BTC option chain page, select your desired expiration date (or view all the expiration dates together). This example shows the available BTC options that have 2-09-22 (Sept. 2, 2022) as their expiration date.

Select the strike prices you wish to trade. Call options are displayed on the left-hand side of the option chain, and put options on the right.

Once you’ve selected a strike, an order placement ticket will appear, displaying information on the option price, 

, and the most recent trades made by other traders.

By scrolling down, you’ll be able to view the payoff diagram for your strategy, which shows the P&L (profit & loss) potential at expiration.

Intermediate

straddle-everything-you-need-to-know.jpg

Straddle: Everything You Need To Know

The Graph is a decentralized protocol used to index and query data from the Ethereum blockchain, EVM-compatible chains and Layer 2 chains.

Just as web2 needs Google to index data, which makes the data more organized and accessible, 

 also needs a protocol to help weave all the data in the blockchains together, so end users can easily query for data. This is where The Graph with its indexing abilities comes in. The search engine of tomorrow, The Graph has the potential to impact the future of all decentralized networks and cryptocurrencies. 

The Graph is a decentralized protocol used to index and query data from the 

, EVM-compatible chains and Layer 2 chains.

 Currently, The Graph supports 31 blockchain networks including 

. The data is extracted, processed and stored by open-source application programming interfaces (APIs) called subgraphs. 

Subgraphs are indexes for a specific query that form part of a global graph of blockchain data. They can be transferred to enable all the developers to query data with a few clicks using 

Because of its powerful indexing capabilities, The Graph has been dubbed “the Google for blockchain.” Most information in 

, cannot be read directly by simply interacting with the contract. One of the biggest challenges facing blockchain developers is the length of time it takes to retrieve data. 

Developers end up having to create centralized indexing servers to accommodate the queries, which is contradictory to what web3 is trying to achieve. The Graph tackles both issues with its indexing protocol, enabling blockchain data to be queried in a decentralized, fast and efficient manner. 

Co-founded by Yaniv Tal, Jannis Pohlman and Brandon Ramirez in 2018, the Graph has raised $19.5 million since 2019, including $10 million in token sales during its launch in October 2020. 

The Graph ecosystem consists of six main actors who interact with each other to retrieve and organize data via subgraphs. 

This is a place for developers to create subgraphs and add metadata, then deploy the subgraphs for testing before publishing them to the decentralized Graph Explorer or the Hosted Service.

All the subgraphs deployed to The Graph Network, on which the details of each subgraph — from metadata to participant statistics — can be easily viewed. From there, Curators can choose a subgraph they wish to signal to the Indexers, and deposit GRT tokens into it. 

All network participants can view their user profiles on the Graph Explorer, which also includes tabs for Subgraphs, Indexing, Delegating and Curating. They show the historical and active performances of each activity alongside details of accumulated rewards and fees.

The Graph Network supports only the Ethereum blockchain. All other blockchains, such as 

, are currently supported by the Hosted Service, which will be shut down by the end of Q1 2023 with the DApps migrating to the decentralized Graph Explorer.

Either a relevant subgraph to store query data exists or it doesn’t.  If one doesn’t already exist, a developer will need to create it in the subgraph data studio. 

Once a subgraph is created and published, a Curator will analyze it, and if they are bullish on its potential, they’ll signal it for indexing on the Graph Explorer.

With the signal established, the subgraph will be indexed via the 

, which scans the Ethereum blockchain continuously for new blocks, and serves the data query via a GraphQL endpoint.

Once this process is complete, users can view the query’s result in their applications. They can also leverage Graph Explorer to browse existing subgraphs and perform queries using GraphQL.

 on the Ethereum blockchain, used to allocate resources across The Graph ecosystem. GRT tokens serve as a medium of exchange and reward for community participants, while Indexers, Curators and Delegators deposit GRT to engage in the marketplace.

Apart from streamlining the data service process on The Graph network, GRT also plays a key role in helping govern the network. Anyone holding GRT has the right to vote for and validate changes occurring in The Graph. A GRT coin holder can also accept or decline any changes proposed by The Graph Council that guide future development.

Like any blockchain network, The Graph has its own set of advantages and disadvantages. Understanding these pros and cons is crucial for you to make an informed decision. Here’s what you should know:

The Graph allows all blockchain data to be queried seamlessly with its use of subgraphs.

Before The Graph, developers had to either build private query services or rely on third-party data, which are all costly. 

The Graph has the potential to grow exponentially as it keeps incorporating more platforms, DApps, 

 and smart contracts to expand its index. 

As a relatively new network, The Graph doesn’t support many blockchains, though many major blockchains such as 

 are already supported. It has even expanded to include a non-EVM blockchain, 

, which underlines its efforts in expanding its network. 

 As most of the subgraphs are supported by the Hosted Service, The Graph is not completely decentralized. However, The Graph team is working hard to make the data indexing process fully decentralized with its decentralized Graph Explorer, which was launched in July 2021. 

The Graph Crypto Price Prediction — Is GRT a Good Investment?

The Graph (GRT) is unique and solves some major problems for blockchain developers and users, but is it worth the investment? Let’s look at the numbers to get an answer. 

As of this writing (August 16, 2022), the GRT token is priced at $0.13 with a live market cap of around $1 billion and a 24-hour trading volume of over $232 million. The GRT price hit an all-time high of $2.84 in February 2021, but it’s currently valued below $1. 

Indeed, it has witnessed a long bear run. However, the demand for GRT crypto has seen steady growth over the past month. The relatively positive momentum of GRT, despite the ongoing bearish conditions, has led some experts to be particularly bullish on the token. CryptoNewsZ has predicted that GRT crypto will be worth 

. While Price Prediction has a less bullish outlook, it still foresees an increase to an average of 

Despite a long bear run, however, GRT crypto has a promising future. First, it solves a huge problem and has become a core part of web3. Second, The Graph constantly expands its support circle to accommodate new platforms and blockchains. 

, The Graph depicts a healthy growth with over 3 million GRT signaled on more than 200 subgraphs and 2.6 billion GRT staked by Indexers.

With this in mind, let’s venture that investing in GRT crypto might not be a good idea for short-term returns. However, investing in it for the long term could yield great returns.

GRT can be bought at crypto exchanges, with each one having its own set of advantages and disadvantages and requiring different levels of 

 and verify it to complete the registration process.

Step 2: To transact GRT on Bybit, you’ll first need to own USDT. To purchase USDT, visit the 

 page. There, you’ll see several options to buy USDT: Express, Fiat Deposit, Crypto Deposit and P2P Trading. Choose the option that’s most convenient for you.

Step 3: Once you’ve purchased your USDT, click the 

 from the drop-down menu. You’ll be directed to the Spot trading terminal.

 trading pair on the left side of the trading platform, which usually displays BTC/USDT by default.

Step 5: Enter the amount of GRT tokens you wish to buy by filling in the values on the right side of the trading terminal.

That’s how easy it is to buy GRT coins. Since the user interface is easy to navigate, the Bybit trading platform is a go-to option for new and experienced crypto traders alike.

The Graph indexes blockchain data in a decentralized, seamless manner, making querying data and retrieving results an effortless service that can be easily adopted by all. With its unique approach and effectiveness in the global DeFi infrastructure, witnessing how The Graph performs in the future will be a thrill.

Advanced

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The Graph (GRT): Search Engine of the Future

Learn to navigate the crypto bear market with the 10 best crypto passive income strategies relevant in 2022 and beyond.

As the cryptocurrency market is grappling with one of the most profound 

 in its history, earning passive crypto income has never been higher on the agenda of many traders and investors.

Crypto passive income opportunities can help you offset losses during market downturns and crashes. They also represent a more proactive way to grow your crypto capital than using the increasingly outdated 

While holding promising coins for a long-term perspective worked great in the earlier years of the crypto market, it’s no longer the optimal way to earn passive crypto income in the current market. Read on to find out all about the 10 best crypto passive income strategies relevant in 2022 and beyond.

 is a term that usually refers to locking your funds on a 

 (PoS) blockchain platform to help validate transaction blocks. In exchange for staking your funds, PoS blockchains pay you rewards in their native cryptocurrency.

Staking is one of the most basic and popular ways to earn passive crypto income. By staking your funds, you not only earn passive income but also help secure the network against spam and malicious threats.

On many PoS chains, you don’t have to run a full validator node to participate in staking. On chains which use the 

 (DPoS) consensus mechanism, any node may use their crypto coins to delegate their staking rights to a full validator of their choice through transparent voting and stake allocation.

Your delegated full validator node will process transaction blocks and share the staking rewards with you based on the proportion of your contribution. The delegated mode is a very affordable way for just about any crypto user to derive passive income from staking. Some chains that use DPoS are 

On some blockchains, delegated staking isn’t supported. Direct staking on these platforms is only possible by setting up a full validator node, with the minimum amount you have to stake often substantial. For example, 

, the new PoS version of the Ethereum (ETH) blockchain, requires a minimum commitment of 32 ETH (over $50,000 as of August 12, 2022) to set up a full validator node. You also have to keep the staked amount locked on the platform until the merger of Ethereum’s two versions currently running in parallel — Ethereum 2.0 and the 

However, depending on the specific chain, there might be service providers who can help you participate in staking even on platforms without the delegation option. Decentralized apps (DApps) like 

 (LDO) and StakeWise (SWISE) offer Ethereum 2.0 staking services without the onerous requirements of running a full validator node on the chain. These providers let you participate in Ethereum 2.0 staking starting with minimal amounts.

 is the practice of depositing your crypto funds into yield-generating pools on decentralized finance (DeFi) platforms to earn interest. These pools are usually of two main types: Pools on lending and borrowing protocols, and pools on a variety of yield management apps.

Yield farming is a popular way to earn passive crypto income. However, given the wild variety of DeFi protocols and pools around, it might require more research and active management of funds as 

The most common type of pool used for yield farming is the 

liquidity pool found on lending and borrowing protocols

. You can deposit your funds into these pools, as a lender to the protocol, and earn interest from your investment. The leading protocols in this niche include 

 (AAVE), JustLend (JST) and Compound (COMP).

Top 10 lending and borrowing platforms by total value locked (TVL) as of August 9, 2022:

 liquidity pools run by various yield protocols

. Some of these platforms use your funds to optimally invest them across a variety of income-generating DeFi sources. Their goal is to automatically optimize your investment, without you having to sift through all the different varieties of pools and protocols on the market. Other protocols in this area simply pay you interest for allocating your funds to one or a few DeFi platforms for yield.

The leading protocols in this category of yield farming include 

 (YFI), Convex Finance (CVX) and Arrakis Finance.

 is another term frequently used when discussing crypto passive income. It’s quite similar to yield farming, but focuses more on providing liquidity to coin swap pools on decentralized exchanges (DEXs). Also, instead of being paid interest on your investment, you’re usually issued liquidity pool tokens for providing your funds. These tokens are a type of synthetic asset that, in many instances, may be reinvested on the same or other platforms.

The coin swap pools which are the main target of liquidity mining are run by DEXs to maintain adequate levels of liquidity for 

Each pool represents a pair of cryptocurrencies (e.g., ETH/DAI), that are available for swapping on the platform. In most cases, you have to deposit an equal value of both coins to qualify as a liquidity provider (LP). As an LP, you normally earn crypto rewards from your deposit based on the trading activity within the pool. A proportion of the swap fees from the pool is distributed to LPs proportional to their share of funds in the pool.

The largest (as well as being one of the oldest) DEX that has helped to popularize the liquidity pool model is 

 (UNI). Other prominent platforms where you can earn passive income from swap pools include Curve (CRV), PancakeSwap (CAKE), Balancer (BAL) and SushiSwap (SUSHI).

The top 10 DEXs by total value locked (TVL) as of August 9, 2022:

Crypto lending is an umbrella term that includes passive income opportunities generated by lending your funds to protocols, trading platforms, exchanges or other crypto users. By lending your crypto funds to these parties, you can earn passive income in the form of interest.

Common forms of crypto lending include decentralized lending, centralized lending, peer-to-peer (P2P) lending and margin lending.

In the section on yield farming above, we covered the practice of lending your crypto funds to pools on lending and borrowing protocols. These protocols are the primary way in which you may benefit from lending your funds to a decentralized platform.

Most of the well-known decentralized lending platforms algorithmically maintain enough liquidity on their platforms, based on the amounts lent and borrowed and collateral provided for the borrowed funds. This should, hopefully, ensure that the funds you’ve lent to the protocol are safe, and that your decentralized lender always has enough liquidity to meet its loan obligations.

Centralized lending covers private companies with whom you can lend your crypto funds to earn interest. It’s a useful alternative to decentralized lending for people who may not feel comfortable or proficient enough to use decentralized lending protocols.

Centralized lenders come in two primary varieties: Large 

 (CEXs) that offer the lending option among their suite of products, and other private companies offering crypto lending. Examples of companies specializing in crypto lending are 

. The latter is a dominant player within the niche, with more than 4 million users worldwide.

Nexo is one of the largest centralized crypto lenders in the world

P2P crypto lending platforms allow you to directly lend funds to other individuals, rather than to a decentralized protocol or private company. These platforms often maintain some form of creditworthiness score for their users, based on their borrowing history, to help you reduce the risk of lending to an insolvent party.

Similar to centralized lenders, P2P crypto lending providers come in two main varieties: Exchanges which offer P2P lending as one of their products, such as 

 and other platforms specializing in this form of lending, such as 

Margin lending involves making your crypto funds available to margin traders in exchange for interest. 

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