[{"data":1,"prerenderedAt":345},["ShallowReactive",2],{"api/learn-center-post-en-what-is-decentralized-lending-and-borrowing":3,"footer-en":55,"learn/web3/what-is-decentralized-lending-and-borrowing-en-seo":253,"navigation-en-learn-center":258,"api/learn-categories-en":306},{"seo":4,"locale":27,"breadcrumbs":28,"excerpt":36,"featuredImage":37,"components":38,"title":5,"formattedPublishedAt":49,"geofencings":50,"category":51,"pagination":53,"campaignExternalId":7},{"title":5,"metaTitle":5,"metaDescription":6,"keywords":7,"metaRobots":7,"structuredData":8,"metaImage":9,"metaSocial":17,"canonicalURL":7,"localizations":18},"Decentralized Lending & Borrowing: A Complete Guide ","Decentralized lending and borrowing, powered by DeFi protocols, provides an alternative to traditional lending.  ",null,{},{"url":10,"mime":11,"ext":12,"width":13,"height":14,"name":15,"alt":16},"bitstampImageUrl/What_is_decentralized_lending_and_borrowingpng_afac9d54a2_d0c03192f3.png","image/png",".png",1920,1080,"What_is_decentralized_lending_and_borrowingpng_afac9d54a2.png","",[],[19,22,25],{"pathname":20,"locale":21},"/en-gb/learn/web3/what-is-decentralized-lending-and-borrowing/","en-GB",{"pathname":23,"locale":24},"/es/learn/web3/what-is-decentralized-lending-and-borrowing/","es",{"pathname":26,"locale":27},"/learn/web3/what-is-decentralized-lending-and-borrowing/","en",[29,33],{"id":30,"text":31,"url":30,"asUrl":32},"/learn/web3/","Web3",true,{"id":34,"text":5,"url":26,"asUrl":35},"what-is-decentralized-lending-and-borrowing",false,"\u003Cp>Decentralized lending and borrowing, powered by DeFi protocols, provides an alternative to traditional lending.  \u003C/p>\n",{"url":10,"mime":11,"ext":12,"width":13,"height":14,"name":15,"alt":16},[39],{"component":40,"props":41,"content":42,"secondaryContent":46,"ctas":47,"secondaryCtas":48,"ctasNoMarginTop":35},"section.full-text",{"centered":35,"withoutSectionContainer":35},{"text":43,"width":44,"align":45},"\u003Cp>\u003Ca href=\"https://www.bitstamp.net/learn/web3/what-is-decentralized-finance-defi/\">Decentralized finance (DeFi)\u003C/a> aims to address the inefficiencies and limitations of centralized financial systems by using blockchain technology to create a more open and accessible environment.  \u003C/p>\n\u003Cp>With DeFi, anyone can lend or borrow digital assets in a simple, transparent way, without needing intermediaries like banks. \u003C/p>\n\u003Ch2>How does it differ from the traditional banking system?\u003C/h2>\n\u003Cp>Before taking out a traditional loan, borrowers must go through a number of mandatory steps so a financial institution can determine the likelihood they will default (fail to make the required monthly payments). In other words, using traditional lending rails, you have to qualify for a loan. \u003C/p>\n\u003Cp>First, banks check potential borrowers’ credit scores, which are based on an individual’s borrowing and payment histories, total debt currently owed, and a number of other factors. There are also forms that ask for personal information such as income and current assets—like a house—that could be used as collateral. Some loans may even require another person to co-sign with a borrower. \u003C/p>\n\u003Cp>Qualification is not a prerequisite in DeFi. Because loans are secured by \u003Ca href=\"https://www.bitstamp.net/learn/crypto-101/how-do-smart-contracts-work/\">smart contract automation\u003C/a>, the process of lending and borrowing in DeFi protocols is trustless. Lenders don’t have to worry about borrowers defaulting on the loan, because the over-collateralization of loans ensures that the equivalent value of lent funds can always be recovered by the lender. In turn, borrowers don’t have to go through an approval process, have their credit history checked, or reveal their income to secure a loan \u003C/p>\n\u003Cp>Another difference is that interest rates for lending/borrowing in DeFi protocols are largely set by two factors: \u003C/p>\n\u003Col>\n\u003Cli>Supply and demand for loans – When there are more lenders than borrowers in a system (high supply environments), interest rates are pushed down to attract more borrowing. Conversely, when there are more borrowers than lenders (high demand environments), rates are increased to make lending more attractive. Although this is true within a system, it is also a factor that affects cross- market participation, driving DeFi users to patronize one platform over another. This helps ensure that DeFi lending and borrowing is a maximally efficient market. While this also works in the world of traditional loans, DeFi makes this a much more efficient phenomenon. \n2 Decentralized community governance – Base rates may be determined by a platform’s community governance, which can set a standard expectation and also be used to incentivize participation.\u003C/li>\n\u003C/ol>\n\u003Cp>Lastly, in DeFi you can directly be the lender of your funds without a third party doing it for you. Lending pool protocols, a cornerstone of DeFi, allow any crypto holder to generate passive rewards by lending their digital assets. This means anyone can benefit from the opportunity to charge interest (that is, generate passive rewards) as loans are repaid by those who borrow your crypto. \u003C/p>\n\u003Ch2>How does decentralized lending and borrowing work?\u003C/h2>\n\u003Ch3>Types of decentralized lending and borrowing\u003C/h3>\n\u003Cp>The \u003Ca href=\"https://www.bitstamp.net/learn/web3/what-are-liquidity-pools/\">lending pool\u003C/a> model is the most common form of lending and borrowing in DeFi. Protocols that use lending pools to deepen liquidity by aggregating funds from many sources for borrowers. It can therefore be conceptualized as a “peer-to-pool-to-peer” lending structure. Lenders deposit crypto into a pool of assets, where borrowers take out those same assets and agree to pay them back with interest. The interest charged for all borrowers is then divided among all lenders to generate a stable reward. \u003C/p>\n\u003Cp>\u003Ca href=\"https://www.bitstamp.net/learn/crypto-trading/what-is-leverage-trading/\">Leveraged trading\u003C/a> is another form of borrowing. In decentralized \u003Ca href=\"https://www.bitstamp.net/learn/crypto-trading/what-are-derivatives/\">derivatives markets\u003C/a>, like \u003Ca href=\"https://www.bitstamp.net/learn/crypto-trading/comparing-traditional-and-cryptocurrency-derivatives/\">traditional finance\u003C/a>, crypto traders can use \u003Ca href=\"https://www.bitstamp.net/learn/crypto-trading/understanding-margin-and-leverage-in-crypto-derivatives/\">margin\u003C/a> to increase their exposure to \u003Ca href=\"https://www.bitstamp.net/learn/crypto-101/what-is-cryptocurrency/\">cryptocurrencies\u003C/a> with the goal of increasing their earnings. However, in DeFi, the process aims to be more efficient and fair thanks to its transparency and automation as well as the overcollateralization of funds to account for the sometimes-high volatility in price. \u003C/p>\n\u003Ch3>Collateralization\u003C/h3>\n\u003Cp>In a standard \u003Ca href=\"https://www.bitstamp.net/learn/crypto-101/what-are-crypto-backed-mortgage-loans/\">mortgage\u003C/a>, a borrower’s assets (like a house, for example) are used as collateral to secure the loan. Therefore, if a borrower can no longer make payments, the bank has the right to repossess their house. \u003C/p>\n\u003Cp>Collateral is also necessary to secure certain loans in DeFi. \u003C/p>\n\u003Cp>Some protocols set collateralization ratios that govern how borrowers secure their loans. If a user borrows $100 of crypto at a 150% collateralization ratio, for example, they must always have $150 worth of assets or more locked up in the protocol’s smart contract—until they pay back the loan. Because these ratios require users to lock up more than the amount being borrowed, such loans are called overcollateralized. \u003C/p>\n\u003Cp>However, overcollateralization can often be complicated by the fluctuations in values of cryptocurrencies, so most borrowers choose to secure their loans with a cushion that exceeds the stated collateralization ratio. If the value of a borrower’s collateral falls below the protocol’s threshold, their funds get liquidated, and their assets will be distributed to the platform’s lenders. \u003C/p>\n\u003Ch3>Flash loans\u003C/h3>\n\u003Cp>A flash loan is the process by which a user borrows and repays a loan in one block through complex computer code and interactions with smart contracts. \u003C/p>\n\u003Cp>Before blockchain and DeFi, flash loans were not possible. These unsecured, instantaneous loans are largely used to take advantage of arbitrage opportunities when two markets price an asset differently. In between the steps of borrowing and repaying the loan, a user sends the borrowed funds through one or more additional platforms to swap assets, resulting in a quick profit. \u003C/p>\n\u003Ch2>Benefits of DeFi lending and borrowing\u003C/h2>\n\u003Cp> \u003Ca href=\"https://www.bitstamp.net/learn/crypto-trading/what-is-crypto-lending/\">Decentralized lending\u003C/a> and borrowing offers a range of advantages over traditional systems, including: \u003C/p>\n\u003Cul>\n\u003Cli>Permissionless access: Platforms are open to anyone with an internet connection and a crypto wallet, and no \u003Ca href=\"https://www.bitstamp.net/learn/security/know-your-customer-kyc/\">KYC\u003C/a> is needed to access them. This opens up financial opportunities to those who may be excluded from traditional banking. \u003C/li>\n\u003Cli>Transparency and immutability: Transactions are recorded on an open ledger (the blockchain), providing a permanent and auditable history. \u003C/li>\n\u003Cli>Potentially higher returns: Rates on DeFi lending platforms can be more competitive than those offered in traditional banking because rates can be optimized based on supply and demand dynamics in real-time. \u003C/li>\n\u003Cli>Faster and more efficient: Smart contracts automate the process which helps eliminate the need for intermediaries and helps reduce transaction times and fees.\u003C/li>\n\u003C/ul>\n\u003Ch2>Risks of DeFi lending and borrowing\u003C/h2>\n\u003Cp>There are risks involved in the use of almost every financial tool. Even holding cash comes with the risk of devaluation due to inflation. It's important to be familiar with the risks associated with decentralized lending and borrowing before you start. \u003C/p>\n\u003Cp>One such risk is counterparty risk, where one party in an agreement fails to meet their obligations. While in traditional finance, a lender's counterparty risk is mainly about the borrower defaulting, in DeFi, it's more about the platform itself. This can take two forms: \u003C/p>\n\u003Cul>\n\u003Cli>Platform risk: Some platforms might not be truly decentralized, allowing their owners to take control of deposited funds and disappear – a move known as a \"rug pull.\" \u003C/li>\n\u003Cli>\u003Ca href=\"https://www.bitstamp.net/learn/security/https-www-bitstamp-net-learn-blockchain-what-is-etherscan/\">Smart contract risk\u003C/a>: \u003Ca href=\"https://www.bitstamp.net/learn/crypto-101/what-are-smart-contracts/\">Smart contracts\u003C/a>, while powerful, can have vulnerabilities. Hackers can exploit these bugs to drain assets from the platform, sometimes through sophisticated attacks like \"flash loan attacks.\"\u003C/li>\n\u003C/ul>\n\u003Cp>Another major risk is impermanent loss, which affects users who provide liquidity to lending pools. This happens when the value of your assets within the pool changes compared to if you had simply held them in your wallet. Essentially, the constant rebalancing of assets in the pool, driven by automated market makers and arbitrageurs, can sometimes lead to lower returns than just holding the assets. This loss is called \"impermanent\" because you don't actually experience it until you withdraw your assets from the pool. \u003C/p>\n\u003Ch2>Crypto lending and borrowing examples\u003C/h2>\n\u003Cul>\n\u003Cli>\u003Ca href=\"https://www.bitstamp.net/learn/cryptocurrency-guide/what-is-aave/\">Aave\u003C/a> is the prototypical lending and borrowing DeFi platform. It was one of the trailblazers of the pool-based model of issuing loans built on a system of smart contracts. It offers its services on multiple chains including \u003Ca href=\"https://www.bitstamp.net/learn/cryptocurrency-guide/what-is-ethereum-eth/\">Ethereum\u003C/a>, \u003Ca href=\"https://www.bitstamp.net/learn/cryptocurrency-guide/what-is-fantom-ftm/\">Fantom\u003C/a>, \u003Ca href=\"https://www.bitstamp.net/learn/cryptocurrency-guide/what-is-avalanche-avax/\">Avalanche\u003C/a>, \u003Ca href=\"https://www.bitstamp.net/learn/cryptocurrency-guide/what-is-polygon-matic/\">Polygon\u003C/a>, and \u003Ca href=\"https://www.bitstamp.net/learn/cryptocurrency-guide/what-is-arbitrum/\">Arbitrum\u003C/a>. \u003C/li>\n\u003Cli>\u003Ca href=\"https://www.bitstamp.net/learn/cryptocurrency-guide/what-is-compound-comp/\">ompound\u003C/a> is another example of a money market that uses pools to connect lenders and borrowers. Like Aave, some of its most actively loaned assets are ETH, \u003Ca href=\"https://www.bitstamp.net/learn/cryptocurrency-guide/what-is-wrapped-bitcoin-wbtc/\">wrapped bitcoin (wBTC)\u003C/a>, and \u003Ca href=\"https://www.bitstamp.net/learn/crypto-101/what-are-stablecoins/\">stablecoins\u003C/a>. \u003C/li>\n\u003Cli>\u003Ca href=\"https://www.bitstamp.net/learn/cryptocurrency-guide/what-is-makerdao-mkr/\">MakerDAO\u003C/a> is the issuer of \u003Ca href=\"https://www.bitstamp.net/learn/cryptocurrency-guide/what-is-the-dai-stablecoin/\">DAI\u003C/a>, a stablecoin that is pegged to the US dollar. Users can deposit their crypto into Maker Vaults to collateralize loans in DAI. As the first crypto-collateralized stablecoin, MakerDAO’s DAI changed the landscape of DeFi when it was introduced in 2017. \u003C/li>\n\u003Cli>\u003Ca href=\"https://www.bitstamp.net/learn/cryptocurrency-guide/what-is-dydx/\">dYdX\u003C/a> and Cap.finance are \u003Ca href=\"https://www.bitstamp.net/learn/crypto-trading/how-to-trade-cryptocurrency-derivatives-a-beginners-guide/\">derivatives markets\u003C/a> where users can trade cryptocurrencies using margin—a specific type of borrowing—for leverage.\u003C/li>\n\u003C/ul>\n\u003Ch2>Decentralized lending and borrowing essentials\u003C/h2>\n\u003Cul>\n\u003Cli>Decentralized lending and borrowing takes a familiar concept from traditional finance institutions and democratizes it using the tenets of DeFi and blockchain technology. \u003C/li>\n\u003Cli>Because of the trustless nature of DeFi, decentralized loans do not require evaluation of credit scores or other personal information, and interest rates are set solely by market participants rather than third-party institutions. \u003C/li>\n\u003Cli>The most popular model for decentralized lending and borrowing is through lending pools, which connect users through aggregate collections of digital assets; borrowers are required to overcollateralize the loans they take from these pools.\u003C/li>\n\u003C/ul>\n","full","left",{"text":16},[],[],"December 1st, 2022",{},{"title":31,"url":30,"geofencings":52},{},{"previous":7,"next":54},"/learn/web3/what-is-a-decentralized-exchange-dex/",{"ready":32,"sections":56,"disclaimer":251,"copyright":252},[57,100,128,151,188,207],{"title":58,"content":16,"items":59},"About",[60,65,70,75,80,85,90,95],{"noFollow":32,"isExternal":35,"name":61,"value":62,"isEmail":35,"isPhoneNumber":35,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":63,"geofencings":64},"Who We Are","/about-us/",{},{},{"noFollow":32,"isExternal":32,"name":66,"value":67,"isEmail":35,"isPhoneNumber":35,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":68,"geofencings":69},"Careers","https://careers.robinhood.com/",{},{},{"noFollow":32,"isExternal":35,"name":71,"value":72,"isEmail":35,"isPhoneNumber":35,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":73,"geofencings":74},"Legal & Privacy","/legal/",{},{},{"noFollow":32,"isExternal":35,"name":76,"value":77,"isEmail":35,"isPhoneNumber":35,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":78,"geofencings":79},"Legal & Privacy - USA","/legal/terms-of-use/inc/",{},{},{"noFollow":32,"isExternal":35,"name":81,"value":82,"isEmail":35,"isPhoneNumber":35,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":83,"geofencings":84},"For Law Enforcement","/legal/guidelines-for-law-enforcement-agencies/",{},{},{"noFollow":32,"isExternal":35,"name":86,"value":87,"isEmail":35,"isPhoneNumber":35,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":88,"geofencings":89},"Disclosures and Disclaimers","/legal/disclaimers",{},{},{"noFollow":32,"isExternal":35,"name":91,"value":92,"isEmail":35,"isPhoneNumber":35,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":93,"geofencings":94},"Fee Schedule","/fee-schedule/",{},{},{"noFollow":35,"isExternal":35,"name":96,"value":97,"isEmail":35,"isPhoneNumber":35,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":98,"geofencings":99},"FAQ","/faq/",{},{},{"title":101,"content":16,"items":102},"Products",[103,108,113,118,123],{"noFollow":35,"isExternal":35,"name":104,"value":105,"isEmail":35,"isPhoneNumber":35,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":106,"geofencings":107},"Mobile App","/mobile/",{},{},{"noFollow":35,"isExternal":35,"name":109,"value":110,"isEmail":35,"isPhoneNumber":35,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":111,"geofencings":112},"Tradeview","/market/tradeview/",{},{},{"noFollow":35,"isExternal":35,"name":114,"value":115,"isEmail":35,"isPhoneNumber":35,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":116,"geofencings":117},"Earn Stake","/crypto-staking/",{},{"geofencing-uk":32},{"noFollow":35,"isExternal":35,"name":119,"value":120,"isEmail":35,"isPhoneNumber":35,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":121,"geofencings":122},"Earn Lend","/crypto-lending/",{},{"geofencing-uk":32},{"noFollow":35,"isExternal":35,"name":124,"value":125,"isEmail":35,"isPhoneNumber":35,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":126,"geofencings":127},"Derivatives","/perpetual-futures/",{},{},{"title":129,"content":16,"items":130},"Services",[131,136,141,146],{"noFollow":35,"isExternal":35,"name":132,"value":133,"isEmail":35,"isPhoneNumber":35,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":134,"geofencings":135},"Institutions & Partners","/institutional-trading/",{},{},{"noFollow":35,"isExternal":35,"name":137,"value":138,"isEmail":35,"isPhoneNumber":35,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":139,"geofencings":140},"Bitstamp as a Service","/bitstamp-as-a-service/",{},{},{"noFollow":35,"isExternal":35,"name":142,"value":143,"isEmail":35,"isPhoneNumber":35,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":144,"geofencings":145},"The Bitstamp Ecosystem","/partners/",{},{},{"noFollow":35,"isExternal":35,"name":147,"value":148,"isEmail":35,"isPhoneNumber":35,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":149,"geofencings":150},"Pro","/pro/",{},{},{"title":152,"content":16,"items":153},"Resources",[154,159,164,169,173,178,183],{"noFollow":32,"isExternal":35,"name":155,"value":156,"isEmail":35,"isPhoneNumber":35,"isText":35,"showOnDesktop":35,"showOnMobile":32,"attachment":157,"geofencings":158},"HTTP API","/api/",{},{},{"noFollow":35,"isExternal":35,"name":160,"value":161,"isEmail":35,"isPhoneNumber":35,"isText":35,"showOnDesktop":35,"showOnMobile":32,"attachment":162,"geofencings":163},"Websocket API v2","/websocket/v2/",{},{},{"noFollow":35,"isExternal":35,"name":165,"value":166,"isEmail":35,"isPhoneNumber":35,"isText":35,"showOnDesktop":35,"showOnMobile":32,"attachment":167,"geofencings":168},"FIX v2","/fix/v2/",{},{},{"noFollow":32,"isExternal":35,"name":170,"value":156,"isEmail":35,"isPhoneNumber":35,"isText":35,"showOnDesktop":32,"showOnMobile":35,"attachment":171,"geofencings":172},"API Documentation",{},{},{"noFollow":35,"isExternal":35,"name":174,"value":175,"isEmail":35,"isPhoneNumber":35,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":176,"geofencings":177},"PGP Key","/pgp-key/",{},{},{"noFollow":35,"isExternal":35,"name":179,"value":180,"isEmail":35,"isPhoneNumber":35,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":181,"geofencings":182},"Lightning Network","/lightning-network-node/",{},{},{"noFollow":35,"isExternal":35,"name":184,"value":185,"isEmail":35,"isPhoneNumber":35,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":186,"geofencings":187},"Market Details","/market-details/",{},{},{"title":189,"content":16,"items":190},"Address",[191,195,199,203],{"noFollow":35,"isExternal":35,"name":192,"value":16,"isEmail":35,"isPhoneNumber":35,"isText":32,"showOnDesktop":32,"showOnMobile":32,"attachment":193,"geofencings":194},"Bitstamp Ltd",{},{},{"noFollow":35,"isExternal":35,"name":196,"value":16,"isEmail":35,"isPhoneNumber":35,"isText":32,"showOnDesktop":32,"showOnMobile":32,"attachment":197,"geofencings":198},"5 New Street Square",{},{},{"noFollow":35,"isExternal":35,"name":200,"value":16,"isEmail":35,"isPhoneNumber":35,"isText":32,"showOnDesktop":32,"showOnMobile":32,"attachment":201,"geofencings":202},"London, EC4A 3TW",{},{},{"noFollow":35,"isExternal":35,"name":204,"value":16,"isEmail":35,"isPhoneNumber":35,"isText":32,"showOnDesktop":32,"showOnMobile":32,"attachment":205,"geofencings":206},"United Kingdom",{},{},{"title":208,"content":16,"items":209},"Contact",[210,215,219,223,227,231,236,241,246],{"noFollow":35,"isExternal":35,"name":211,"value":212,"isEmail":35,"isPhoneNumber":35,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":213,"geofencings":214},"Customer support","/customer-support/",{},{},{"noFollow":35,"isExternal":35,"name":216,"value":216,"isEmail":32,"isPhoneNumber":35,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":217,"geofencings":218},"info@bitstamp.net",{},{},{"noFollow":35,"isExternal":35,"name":220,"value":220,"isEmail":32,"isPhoneNumber":35,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":221,"geofencings":222},"press@bitstamp.net",{},{},{"noFollow":35,"isExternal":35,"name":224,"value":224,"isEmail":32,"isPhoneNumber":35,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":225,"geofencings":226},"support@bitstamp.net",{},{},{"noFollow":35,"isExternal":35,"name":228,"value":228,"isEmail":32,"isPhoneNumber":35,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":229,"geofencings":230},"complaints@bitstamp.net",{},{},{"noFollow":35,"isExternal":35,"name":232,"value":233,"isEmail":35,"isPhoneNumber":32,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":234,"geofencings":235},"+44 20 3868 9628","+442038689628",{},{},{"noFollow":35,"isExternal":35,"name":237,"value":238,"isEmail":35,"isPhoneNumber":32,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":239,"geofencings":240},"+1 800 712 5702","+18007125702",{},{},{"noFollow":35,"isExternal":35,"name":242,"value":243,"isEmail":35,"isPhoneNumber":32,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":244,"geofencings":245},"+352 20 88 10 96","+35220881096",{},{},{"noFollow":35,"isExternal":35,"name":247,"value":248,"isEmail":35,"isPhoneNumber":32,"isText":35,"showOnDesktop":32,"showOnMobile":32,"attachment":249,"geofencings":250},"+65 3105 1676","+6531051676",{},{},"\u003Cp>Please read the general \u003Ca href=\"/legal/risk-warning/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Risk Warning\u003C/a>, and \u003Ca href=\"/legal/uk-investment-risk-warning/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Risk Summary\u003C/a> for UK residents before investing in crypto-assets. \u003C/p>\n\u003Cp>Crypto-assets services are provided by the following Bitstamp legal entities depending on client residency: (1) Bitstamp Europe S.A., which is authorized by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg as a payment institution (licence number Z00000012) and crypto-asset service provider (licence number N00000003); Registered address: 40, avenue Monterey, L-2163 Luxembourg, Grand Duchy of Luxembourg; Registration number: B196856; (2) Bitstamp UK Ltd., which is registered with the Financial Conduct Authority (FCA) in the UK for the provision of certain cryptoassets activities under the Money Laundering Regulations (Firm Reference Number 978690); Registered address: 5 New Street Square, EC4A 3TW London, United Kingdom; Registration number: 14174243; (3) Bitstamp Ltd.with its registered address at 5 New Street Square, EC4A 3TW London, United Kingdom and registration number: 8157033; (4) Bitstamp Global Ltd., which is registered as a Virtual Asset Service Provider in the British Virgin Islands and is supervised by the British Virgin Islands Financial Services Commission (FSC); Registered address: Floor 4, Banco Popular Building, Road Town, Tortola VG1110, British Virgin Islands; Registered number: 2086429; and (5) Bitstamp Asia Pte Ltd, which is authorized by the Monetary Authority of Singapore (MAS) as a major payment institution (licence number PS20200667); Registered address: 63 Chulia Street, OCBC Centre East, #15-01, Singapore 049514; Registered number: 202016687K;\u003C/p>\n\u003Cp>Virtual currency services to US residents are provided by Bitstamp USA, Inc., which is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Licensed as a Money Transmitter by the New York State Department of Financial Services. Review a \u003Ca href=\"/legal/usa-inc/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">list of its licenses and other registrations\u003C/a> (NMLS number \u003Ca href=\"https://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1905429\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">1905429\u003C/a>) for more information; Registered address: 85 Willow Road, Menlo Park, CA 94025, United States of America; Registered number: 5481543.\u003C/p>\n\u003Cp>Investment services with regards to trading in crypto derivatives are provided by Bitstamp Financial Services Ltd., which is authorized and supervised by the Slovenian Securities Market Agency (ATVP) as a MiFiD investment firm. Trading crypto derivatives carries significant risks and may result in substantial losses. Please trade responsibly and ensure you understand the associated risks. You can find more about the risks \u003Ca href=\"/legal/financial-services/general-terms-and-conditions/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">here\u003C/a>. To help you understand the risks involved we have put together a series of \u003Ca href=\"/derivatives/key-information-documents/\" target=\"_blank\" rel=\"noopener noreferrer\">Key Information Documents (KIDs)\u003C/a> highlighting the risks and rewards related to each derivatives contract. Crypto derivatives trading is not available to customers in the US, Canada, Japan and some other countries. Bitstamp Financial Services Ltd. does not provide crypto-asset services.\u003C/p>\n\u003Cp>To find out more about which Bitstamp entity you receive services from, please check the Profile/My information in your Bitstamp account. You can read more about our legal terms, policies and disclosures \u003Ca href=\"/legal/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">here\u003C/a>.\u003C/p>\n","\u003Cp>All rights reserved © 2026 Bitstamp by Robinhood. \u003Ca href=\"https://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1905429\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">NMLS #1905429\u003C/a>\u003C/p>\n",{"description":6,"ogDescription":6,"ogImage":254,"twitterImage":254,"twitterSite":255,"twitterCreator":255,"twitterCard":256,"twitterTitle":5,"twitterDescription":6,"titleTemplate":257},"https://assets.bitstamp.net/msc/_ipx/enlarge_true&f_png&fit_cover&q_85&s_1200x630/bitstampImageUrl/What_is_decentralized_lending_and_borrowingpng_afac9d54a2_d0c03192f3.png","@Bitstamp","summary_large_image","%s",{"items":259,"ready":32,"platformButtonText":302,"backButtonText":303,"logInButtonText":304,"signUpButtonText":305},[260,264,268,271,274,277,280,285,288,293,298],{"headerName":261,"sidemenuName":132,"url":133,"noFollow":35,"showInHeader":32,"showInSidemenu":32,"geofencings":262,"submenu":263,"tag":16},"Institutions",{},[],{"headerName":124,"sidemenuName":124,"url":125,"noFollow":35,"showInHeader":32,"showInSidemenu":32,"geofencings":265,"submenu":266,"tag":267},{},[],"NEW",{"headerName":147,"sidemenuName":147,"url":148,"noFollow":35,"showInHeader":32,"showInSidemenu":32,"geofencings":269,"submenu":270,"tag":16},{},[],{"headerName":104,"sidemenuName":104,"url":105,"noFollow":35,"showInHeader":32,"showInSidemenu":32,"geofencings":272,"submenu":273,"tag":16},{},[],{"headerName":114,"sidemenuName":114,"url":115,"noFollow":35,"showInHeader":32,"showInSidemenu":32,"geofencings":275,"submenu":276,"tag":16},{},[],{"headerName":119,"sidemenuName":119,"url":120,"noFollow":35,"showInHeader":32,"showInSidemenu":32,"geofencings":278,"submenu":279,"tag":16},{"geofencing-uk":32},[],{"headerName":281,"sidemenuName":281,"url":282,"noFollow":35,"showInHeader":32,"showInSidemenu":32,"geofencings":283,"submenu":284,"tag":16},"Markets","/markets/",{},[],{"headerName":109,"sidemenuName":109,"url":110,"noFollow":35,"showInHeader":32,"showInSidemenu":32,"geofencings":286,"submenu":287,"tag":16},{},[],{"headerName":289,"sidemenuName":289,"url":290,"noFollow":35,"showInHeader":32,"showInSidemenu":32,"geofencings":291,"submenu":292,"tag":16},"Blog","https://blog.bitstamp.net/",{},[],{"headerName":294,"sidemenuName":294,"url":295,"noFollow":35,"showInHeader":32,"showInSidemenu":32,"geofencings":296,"submenu":297,"tag":16},"Learn","/learn/",{},[],{"headerName":299,"sidemenuName":299,"url":105,"noFollow":35,"showInHeader":35,"showInSidemenu":32,"geofencings":300,"submenu":301,"tag":16},"Get Bitstamp by Robinhood app",{},[],"Go to platform","Back","Log in","Get started",[307,311,315,319,323,327,331,335,339,343],{"title":308,"url":309,"geofencings":310},"Blockchain technology","/learn/blockchain/",{},{"title":312,"url":313,"geofencings":314},"Company profiles","/learn/company-profiles/",{},{"title":316,"url":317,"geofencings":318},"Crypto 101","/learn/crypto-101/",{},{"title":320,"url":321,"geofencings":322},"Crypto definitions","/learn/crypto-definitions/",{},{"title":324,"url":325,"geofencings":326},"Crypto trading","/learn/crypto-trading/",{},{"title":328,"url":329,"geofencings":330},"Cryptocurrency guide","/learn/cryptocurrency-guide/",{"geofencing-uk":32},{"title":332,"url":333,"geofencings":334},"People profiles","/learn/people-profiles/",{},{"title":336,"url":337,"geofencings":338},"Security","/learn/security/",{},{"title":340,"url":341,"geofencings":342},"Tutorials","/learn/bitstamp-tutorials/",{},{"title":31,"url":30,"geofencings":344},{},1776263753531]