Home Markets Traders lend out cryptocurrencies in quest for huge returns

Traders lend out cryptocurrencies in quest for huge returns

0

Traders are garnering juicy returns by lending out cryptocurrencies as the fast-growing field of decentralised finance throws up new but highly risky opportunities to make money.

The number of consumer-oriented platforms offering yields on crypto balances have grown rapidly, with annual interest rates ranging about 7 to 12 per cent for various coins such as bitcoin and “stablecoins” like tether.

Traders can chase even higher rates through “yield farming”, the practice of scouring the world of decentralised finance — or DeFi — for the best yields available from more obscure projects and coins. These shortlived opportunities can advertise interest rates as high as several thousand per cent to pull in digital cash.

The popularity of complex yield-generating strategies highlights concerns over whether crypto customers fully understand the risks they are assuming, experts say. Recent research by the UK’s Financial Conduct…

Click here for full article…www.ft.com