I'm hearing about people who want to lend out their bitcoin and I want to remind everyone about credit risk. If you buy bitcoin and you leave it on the blockchain, all you need to do is save your seed phrase and you can get it later.
However, if you lend out your bitcoin to another business like an exchange, they will use your bitcoin. They will figure out what to do with your bitcoin. If they make a mistake and go bankrupt, you will not get all of your bitcoin back.
Bitcoin is kind of a pessimistic asset. It goes up based on mismanagement of the world's currencies. When things become terrible, bitcoin will go the moon. In other words when bitcoin goes to the moon your exchange that borrowed bitcoin from you will probably go bankrupt and not return your coins to you.
That 10% yield is probably pretty pathetic now.
Not your keys, not your coins.
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