Understanding P2P Crypto Lending Software | Antier Solutions

What are P2P Crypto Lending Exchanges?

The main aim of the P2P crypto lending platform is to bring the lenders and borrowers together on a single platform to facilitate transactions between them. The platform should take care of multi-layer security, KYC, and AML verification for the lender and the borrower to promote safe and secure transactions.

How Do P2P Crypto Lending Exchanges Work?

The working of a P2P crypto lending exchange is quite simple and easy. It starts with the two main parties opening their accounts on the exchange and creating their profiles by submitting the required information.

  • The lender should also set the specifications about the type of borrowers they would like to deal with.
  • Once the account is created, the lender has to wait for a request from the borrower.
  • The borrower has to submit collateral (includes crypto coins, guarantor, or legal documents).
  • After the account is created, the borrower places a request for a crypto loan on the exchange.
  • The lender receives the request and set up an interview with the borrower to discuss terms, if necessary.
  • The lender has the right to approve or reject a loan request.
  • Once the request has been approved, the loan amount is credited to the borrower’s account.
  • The lender starts earning interest for the same. Once the duration ends, the borrower pays back the total amount.
  • If the borrower fails to repay, the collateral is sold in the open market to recover the loan amount.

Why is P2P Crypto Lending Famous?

The following factors have made P2P crypto lending software famous in the market:

  • The interest rates for crypto lending are lower than the interest rates for fiat loans.
  • The process of lending and borrowing is streamlined and automated.
  • The blockchain makes the entire process transparent and secure.
  • The P2P crypto lending exchange offers flexible interest calculations so that the borrower and the lender can calculate how much interest would be accumulated for the said amount per day, per week, per month, per quarter, or per year.
  • Traders find it easy to borrow cryptocurrency for a short while instead of selling their assets while the market is volatile.

Conclusion

Experts say that the popularity of P2P crypto lending exchanges will only increase as more and more people start looking at it as an affordable alternative option of getting a loan. With crypto markets gaining more traders, the lending platforms are here to stay. Companies that are planning to develop P2P lending exchanges should start working on the project immediately.

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