The cryptocurrency market is continuing to grow, the Bitcoin price is going up and the niche products are expanding while sparking more and more interest. The year 2020 has shown how far the cryptocurrency can go by opening up a wider range of opportunities. The most intriguing for us are DeFi (decentralized finance) and crypto lending. Why is it suddenly so relevant?
Hybrid Solutions, Best of Both Worlds for Digital Finance
Crypto banking is a firmly established niche replacing both the traditional online banking and online lending. The market just substitutes specialized fiat lending services for crypto banking. It has been relatively recently that the new representative appeared in the niche - DeFi.
Not so long ago, the "hybrid" financial systems entered the market. Such systems are basically centralized services operating on their own technology and addressing the common crypto banking and DeFi services problems:
- Closed source. The source code is protected from third parties, malicious attacks and security vulnerability search.
- Scalability. The service technology operates without smart contracts; any expansion is embedded in the system.
- Original technology. The technology is made from scratch and is subject to continuous testing.
BitcoLoan is one of the most typical hybrid service representatives. The service offers its users not only crypto lending opportunities, but also investing in such loans.
Investing in Crypto Lending
DeFi and centralized platforms provide an option to invest in crypto lending. As a result of its high relevance, given the circumstances, such an investment method has become very popular among all of the investors worldwide. Low barriers to entry, minimal risks and sustainability only add to its benefits.
Such services act as an intermediary between a lender and a borrower while making the whole process as simple as possible. They make certain commitments so that investors wouldn’t have to worry about anything but topping up their account and making a deposit. Another benefit, for example, is no delay when withdrawing funds.
Why We Should Give More Credit to Hybrid Financial Systems
As it has been pointed out by the experts of cryptocurrency and IT sectors, a bunch of new technologies, like DeFi, have gained the users’ trust too early. In reality, such a financial model unleashes its potential only in 5-7 years since the mass adoption.
Such hybrid services as BitcoLoan use only the proven crypto banking techniques while fixing the identified problems. For this reason, the "trial period" of such technologies is being significantly reduced. In terms of centralized hybrid systems, one could say that this niche is already on the verge of mass adoption and is safe for work and investment.