QUESTION
Is it possible to lose money by lending on KuCoin?
ANSWER
Certainly, one can lose money by lending on KuCoin. While lending cryptocurrency assets on the platform may provide an opportunity to earn interest from borrowers, there is always a risk of default, where the borrower fails to repay the loan. Moreover, the volatility of cryptocurrency markets can result in losses if the value of the collateral falls significantly and does not cover the loan amount when liquidated. Additionally, digital asset platforms themselves carry operational risks including security breaches or regulatory changes which could impact one's ability to recover lent funds. Therefore, lending on any cryptocurrency platform, including KuCoin, should be approached with caution and an understanding of the associated risks.
EXCLUSIVE OFFER