How are you all?Today I will share with you about crypto lending!I am sharing with you at the beginning because if I share at the beginning then you can realised it.I am young and have very little experience so please excuse any mistakes.

[Source](https://pixabay.com/vectors/bitcoin-money-cryptocurrency-4851377/)
Crypto lending is a form of financing that allows a cryptocurrency holder to lend their cryptocurrency to other people in exchange for interest payments. The basics of crypto lending are the same as traditional lending.  A key factor where they differ is how the funds are accounted for. This concept is similar to traditional banking.  In the traditional case, you lend money to your bank by opening a savings account.  Banks use your money.  In return, he pays regular interest on your savings and guarantees the safety of your funds.

When it comes to crypto loans, traders can borrow from one week to six months on platforms like Binance Loans.
The reason crypto loans work on such a short time scale is that cryptocurrencies are much more volatile than traditional currencies, making them risky for lenders and borrowers.  If the value of a cryptocurrency falls drastically, the collateral a lender takes may be worth much less than what was borrowed.  Thus, hourly rates and small loan terms apply.

[Source](https://pixabay.com/vectors/bitcoin-money-cryptocurrency-4851384/)
According to a source, "(In the past few decades, banks have offered interest rates on savings accounts of approximately 2-3% and even significantly higher. In 2022, interest rates on savings accounts will be negligible, in some cases 0,01%).
Similarly, in a DeFi environment, a crypto holder lends crypto to a borrower in exchange for a guaranteed annual interest rate, which in most cases can range from 4% to 12%.
Today's discussion ends here.  I hope you find it interesting and able to understand.  Share your thoughts on today's topic.  Wishes and blessings to all.