Loaning crypto on popular DeFi platforms offers investors a relatively risk-free means to make passive income from their assets. All they need to do is pick a DeFi platform, create a wallet and pick a lending pool to invest in, then reap the rewards. Then there’s borrowing. On the surface, it might seem like you’d only borrow crypto when you really need the extra cash. While this does happen, many investors are borrowing crypto to increase their liquidity, so they can make other investments - in other words, for margin trading. In either case, it allows investors to make the most of their held assets.