ethlend

How to buy and sell ETHLend

Your comprehensive guide to ETHLend and the LEND token.

ETHLend is a decentralised, 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 Australia.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Where to buy LEND

LEND tokens can be purchased on a variety or popular cryptocurrency exchanges, such as:

Name Product Deposit methods Fiat Currencies Available Cryptocurrencies
Cash, BPAY, POLi, Cryptocurrency
AUD
BTC, BCH, ETH, XRP, ADA, XEM, LTC, XLM, MIOTA, TRX, DASH, NEO, XMR, EOS, QTUM, BTG, LSK, ETC, XVG & over 60+ more
CoinSpot is an Australian-based marketplace that allows you to easily buy, sell or trade more than 100 cryptocurrencies.
Cryptocurrency
BTC, XRP, USDT, ETH, NEB, XVG, TRX, NEBL, ETH, NEO, FUN, ETC, BCC, POE, DASH, ELF, ICX, BNB, ZRX, APPC & 80+ more
Trade an extensive range of reputable coins on this world-renowned exchange, popular for its high liquidity and multi-language support.
Cryptocurrency
-
BTC, BCH, KCS, DRGN, DBC, XRB, ETH, PRL, LTC, SNOV, DENT, RPX, QLC, NEO, UTK, BNTY, ACT, POE, UKG, LA, LEND, VEN & 50+ more
Browse a variety of coin offerings in one of the largest multi-cryptocurrency exchanges and pay in cryptocurrency.

Compare up to 4 providers

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 authorisation 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 AUD 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 democratise 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 finalised, 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.

FAQs

Tim Falk

A freelance writer with a passion for the written word, Tim loves helping Australians find the right home loans and savings accounts. When he's not chained to a computer, Tim can usually be found exploring the great outdoors.

Was this content helpful to you? No  Yes

Related Posts

Latest crypto guides

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.
Ask a question
Go to site