Peer-to-peer (P2P) crypto lending allows individuals to lend their cryptocurrencies directly to borrowers, bypassing traditional financial intermediaries. Investors earn interest while contributing to the crypto ecosystem's liquidity. The process occurs on centralized or decentralized platforms. Centralized platforms manage the lending process while decentralized platforms use smart contracts for automation. P2P lending features crypto-based loans, smart contract enforcement, and typically requires collateralization from borrowers. Risk factors include market volatility, platform failures, and regulatory uncertainties. When choosing a platform, security, interest rates, loan terms, and user experience should be evaluated. Stablecoins and major cryptocurrencies like Bitcoin and Ethereum can earn varying APRs depending on the platform. Users should diversify assets, monitor market conditions, and stay informed on regulations to maximize returns while managing risks. The article emphasizes that while P2P crypto lending offers a pathway to passive income, it is essential for lenders to understand and mitigate potential risks before committing their assets.

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