🌐Cryptocurrency and Exchanges
Last updated
Last updated
CEX Acted as a great payment and trading platform for holders to trade and speculate on cryptocurrency.
Such crypto loans provide the opportunity for more speculation within the crypto economy, the steps are as follows:-
Obtain assets on crypto exchanges.
Move assets to an exchange that provides a loan (Binance)
Obtain a quotation for a crypto loan
Crypto loans are often overcollateralized typically ≤90% of the total value of the assets.
The crypto loans asset were then moved onto the platform’s exchange, which allows the holder to continue speculating on the crypto economy.
This involves trading and flipping for a certain cryptocurrency in the market, where HODLer would earn the difference between buying and selling of the assets.
Staking - Locking assets for a period of time to help support a blockchain
For each of the blocks being added via PoS activity HODLer able to earn more cryptocurrency
Playing a play-to-earn game while earning crypto at the same time
Earning crypto by borrowing own crypto asset as a loan asset
However, such loans are not controlled by the lender
These are operated by the CEX directly.
Poor checks and balances within CEX are one of the major reasons causing the collapse of CEXs such as FTX.
Strong overleverage speculation of the cryptocurrency market.
The high volume of liquid assets in the cryptocurrency industry is not being placed into good economic output.
Insufficient use cases that push for general acceptance of cryptocurrency.
