Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
How to buy and sell ETHLend
Your comprehensive guide to ETHLend and the LEND token.
ETHLend is a decentralized, peer-to-peer lending service based on the Ethereum platform. Through the use of smart contracts, it aims to provide secure and transparent lending where borrowers can use cryptocurrency assets as collateral for loans.
The ETHLend token (LEND) is the native token of the borrowing platform and has a range of uses. Read on to find out how LEND works and how you can buy and sell LEND in the Philippines.
Where to buy LEND
LEND tokens can be purchased on a variety or popular cryptocurrency exchanges, such as:
A step-by-step guide to buying LEND
Want to buy LEND tokens? Follow these simple steps:
Step 1. Create an account on a cryptocurrency exchange where you can trade LEND
LEND is available in currency pairings with bitcoin (BTC) and Ethereum (ETH). To create an account, you’ll need to provide your name and email address and create a password. Depending on the exchange you choose, you may need to provide additional information, for example, proof of ID, to verify your account. It’s also recommended that you set up two-factor authorization for increased account security.
Step 2. Deposit funds into your account
Many cryptocurrency exchanges only permit trading between cryptocurrencies, which means you often can’t directly deposit fiat currency, such as PHP or USD. This means you’ll usually need to own or buy BTC or ETH before you can purchase any LEND.
The steps you need to follow to deposit funds will depend on the exchange you’re using. For example, if you’re using Binance you need to click on “Funds” and then “Deposit” in the links at the top right of the screen. On Kucoin you select “Assets” in the top menu, choose your desired currency and click “Deposit”.
Step 3. Buying LEND
Now you can exchange BTC or ETH for LEND. While the process varies slightly from one exchange to the next, you’ll generally have to search for your chosen trading pair (such as LEND/BTC) and enter the number of LEND. It’s then a simple matter of entering the number of LEND you want to buy, choosing a market or limit order and clicking “Buy LEND”.
How to sell LEND
The process for selling LEND is more or less the same as the process outlined above, with the simple difference that you’re looking to sell instead of buy. It’s also worth pointing out that cryptocurrency exchanges only offer certain pairings, so it may not be possible to immediately exchange your LEND for your desired fiat currency or cryptocurrency.
Which wallets can I use to hold LEND?
LEND is an ERC20 token and can be stored in any Ethereum-compatible wallet that supports these tokens. Examples include:
How ETHLend works
With a goal to democratize global lending markets, ETHLend held its initial coin offering (ICO) in November 2017, raising US$16.2 million. ETHLend is a peer-to-peer lending platform connecting borrowers and lenders from around the world.
ETHLend runs on the Ethereum platform and allows users to borrow ETH by using ERC20 LEND tokens as collateral. ETHLend also makes it possible for users to use Ethereum Domain Names (EDN) as collateral instead of digital tokens.
Borrowers can use ETHLend to:
- Access the ETH they need to participate in ICOs
- Engage in margin trading by increasing their leverage
- Fund an ICO
When a borrower submits a loan request, this creates a smart contract on the Ethereum blockchain. The borrower then enters data into the smart contract, including the loan amount, term and interest rate, as well as the number and digital address of the tokens to be used as collateral.
Once all the details are finalized, the tokens to be used as security are transferred to the smart contract. Lenders can then browse the available loan requests on the ETHLend website and choose the borrower that best meets their lending criteria.
If the borrower defaults on the loan, the tokens used as collateral are transferred to the lender.
What to consider when buying LEND
Before you buy LEND or any other cryptocurrency, it’s important to be aware that trading cryptocurrencies is complex and speculative. You should fully understand all the risks involved before you buy.
If you’re considering buying LEND, make sure you consider the following factors first:
- LEND token use. LEND token holders receive a 25% reduction in fees on the ETHLend platform. The tokens also provide users with access to certain features, for example, featured loan listings.
- Rewards for active lenders and borrowers. ETHLend will use 20% of the fees the platform generates to purchase LEND tokens on the market and airdrop them to lenders and borrowers.
- Rewards for introducers. ETHLend will also purchase LEND tokens to distribute to users who introduce new customers to the platform.
- Demand for tokens. The value of LEND tokens will, therefore, be greatly influenced by the level of success the ETHLend platform achieves. The more users and ending volume it attracts, the more valuable the tokens may become.
- Market competition. ETHLend isn’t the only company offering lending and other banking services based on the blockchain, so you’ll need to consider the competition it will face from companies such as SALT and WeTrust.
- Future developments. You’ll need to consider ETHLend’s future plans to get a better idea of whether LEND tokens might rise or fall in value in the months and years ahead. You can find this information in the Roadmap section of the ETHLend website.
More guides on Finder
Ethereum (ETH) price prediction 2021
What affects the value of Ethereum (ETH) and how might the price of ETH fluctuate in the year ahead? Find out in this comprehensive guide.
Axie Infinity guide: How to play and earn
Axie Infinity is an RPG game that is currently dominating the NFT sector. Discover what Axies are, what makes them unique and how you can earn money simply by playing.
How to buy Polkadot (DOT)
Learn more about the DOT cryptocurrency in this beginner’s and buyer’s guide.
Best wallets and strategies for storing Tether (USDT)
Wondering how to store USDT? Gain more insight with this guide to the best wallets for storing and managing USDT.
Review: Atomic Wallet
Learn how the Atomic Wallet lets you perform cryptocurrency atomic swaps and keep your crypto safe.
What is Compound Finance?
We explore how to use Compound Finance for lending and borrowing.
Metamask wallet review and guide
All you need to know about Metamask – the browser extension digital wallet and a user-friendly bridge to the world of Ethereum decentralised applications.
Finder Cryptocurrency Predictions Report: October 2020
We asked 30 panelists for their cryptocurrency price predictions, the outlook for DeFi and how long they think high returns on yield farming might last.
Where to buy Dogecoin (DOGE)
A beginner’s guide to buying and selling this decentralised, peer-to-peer cryptocurrency.
Finder’s Bitcoin Predictions Report: December 2020
We asked 47 experts for their cryptocurrency price predictions and took a deep dive into the Bitcoin price rally.
Ask an Expert