Margin lending involves borrowing funds to invest in cryptocurrencies, aiming to amplify returns. Investors use their existing crypto assets as collateral to secure a loan from a margin lender. This allows them to increase their purchasing power.When an investor borrows, they must repay the loan with interest, typically based on the amount borrowed and the duration of the loan. If the value of the asset rises, the investor can sell for a profit, repay the loan, and keep the difference. However, if the asset’s value falls, the investor faces the risk of margin calls, which require them to either add more collateral or repay part of the loan to maintain the loan-to-value ratio.While margin lending can lead to higher profits, it also involves significant risks. Losses can exceed the initial investment, so careful consideration and risk management are crucial for anyone engaging in this type of investment.