Why Are Crypto Exchanges Expanding Beyond Trading Services: Key Points
NDTV
These exchanges are trying to tap the growing number of new investors eager to join the crypto industry with a variety of services.
The rise of cryptocurrency has led to a flourishing industry in India. An increasing number of new investors are joining the industry, seeing in it a promise to grow their wealth rapidly. Also, the trading is less complex for the young professionals, who understand technology far more intimately.
Cryptocurrency exchanges, too, find it less taxing to deal with them, compared to other sectors. Emboldened by their initial success, these exchanges are now gearing up to test the waters beyond just trading services to include lending, fixed deposit and SIPs.
Crypto lending
This service allows users to obtain cash by depositing part of their crypto assets to the exchange as security, without the need to sell them. The amount of cash received depends on the current value of the asset and the lending rate. A crucial benefit of crypto lending is traders can expect the value of their asset to increase during the time they keep it deposited with an exchange.
