Crypto Lending & Borrowing: Get Cash Without Selling — But Liquidation Is the Catch

Crypto lending lets you borrow stablecoins/cash against your coins (without selling or triggering a taxable event), or lend out coins to earn interest. The core risk is liquidation: if your collateral drops to a threshold, it gets force-sold. Here is how borrowing and lending work, where yield comes from, and how liquidation triggers.

Crypto lending lets you borrow stablecoins/cash against your coins (without selling or triggering a taxable event), or lend out coins to earn interest. The core risk is liquidation: if your collateral drops to a threshold, it gets force-sold. Here is how borrowing and lending work, where yield comes from, and how liquidation triggers.