<figure class="wp-block-image size-large"><img width="325px" height="183px" srcSet="https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/06/16032136/Avoid-dormant-capital-2-375x211.webp 375w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/06/16032136/Avoid-dormant-capital-2-662x372.webp 662w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/06/16032136/Avoid-dormant-capital-2-768x432.webp 768w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/06/16032136/Avoid-dormant-capital-2.webp 688w" sizes="(max-width: 425px) 150px, 450px" src="https://ll-blog-dev.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2023/06/16032136/Avoid-dormant-capital-2.webp" alt="Avoid Dormant Capital" class="wp-image-3056"/></figure>



Let&#x27;s face it. The biggest gains often come from investing over longer periods of time.



But most people can&#x27;t afford to be separated from their money for months on end. After all, a sudden expense could be just around the corner.



As a consequence, they&#x27;re often forced to let their money collect dust.



That&#x27;s called dormant capital, and it&#x27;s a major wealth killer.



But how can you choose between investing or keeping your money somewhere safe for a rainy day?



Well, what if you didn&#x27;t have to choose...



Here&#x27;s how you can use the <a href="http://liquidloans.io" target="_blank" rel="noreferrer noopener">Liquid Loans protocol</a> to avoid falling into the trap of having dormant capital.



<h2 class="wp-block-heading tablecontent">What is Dormant Capital?</h2>



Put simply, &quot;dormant capital&quot; is any money you have that isn&#x27;t being used to earn more money. 



The term can refer to unused credit lines, unmanaged investments, and money in your bank account. Hell, it can even refer to piles of cash that you&#x27;ve hidden in an oh-so-secret hiding place (*cough* under your mattress).



In traditional finance, banks can even close your account if you&#x27;re not touching your money at all. That is, unless you throw them the occasional &quot;Hey, just calling to let you know I&#x27;m not dead!&quot;



Dormant capital often means missed opportunities and — frankly — it means not being very efficient at building wealth.



But did you know that dormant <a href="https://www.thecoinzone.com/defi/protocol-owned-liquidity/" data-wpil-monitor-id="723">capital is actually a massive problem</a> in crypto as well?



<h2 class="wp-block-heading tablecontent">Dormant Capital in Crypto</h2>



Unless you&#x27;re staking or using a <a href="https://www.thecoinzone.com/defi/defi-yield-protocol/" data-wpil-monitor-id="267">protocol to earn yield</a>, your coins are probably doing nothing for large stretches of the year.



So while you&#x27;re waiting for that price high, those coins in your wallet might be collecting dust.



Worse still, many investors end up being forced to sell their crypto before they&#x27;re even able to benefit from real price momentum. 



When it comes to an appreciating asset, that means missing out on the reason you invested in the first place.



In other words, even the disruptive world of crypto isn&#x27;t safe from the slog of dormant capital.



But here&#x27;s the secret: you don&#x27;t have to wait to start earning.



<h2 class="wp-block-heading tablecontent">Avoiding Dormant Capital With Liquid Loans</h2>



<figure class="wp-block-image size-large"><img loading="lazy" width="325px" height="183px" srcSet="https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/06/16032215/Avoid-dormant-capital-1-375x211.webp 375w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/06/16032215/Avoid-dormant-capital-1-662x372.webp 662w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/06/16032215/Avoid-dormant-capital-1-768x432.webp 768w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/06/16032215/Avoid-dormant-capital-1.webp 688w" sizes="(max-width: 425px) 150px, 450px" src="https://ll-blog-dev.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2023/06/16032215/Avoid-dormant-capital-1.webp" alt="Earn Yield with USDL" class="wp-image-3057"/></figure>



Long-term investing doesn&#x27;t have to delay your earnings. And it definitely shouldn&#x27;t stop you from being able to spend your own money for months or years at a time.



That&#x27;s why Liquid Loans was built.



It&#x27;s a tool that lets crypto enthusiasts and longer-term investors earn yield without having to sell their coins.



Liquid Loans works by letting you put the crypto you already own into a safe and secure smart contract called a Vault.



In exchange, you get to take out a stablecoin known as USDL. You can then spend your USDL as you wish or use it to make money through staking. 



Then, whenever you want to reaccess your capital, you can instantly do so by simply <a href="https://www.thecoinzone.com/defi/crypto-compound-interest/" data-wpil-monitor-id="1669">returning the USDL — with no interest</a> and no predatory fees for cashing out.



Over the past year, this transparent tool has allowed a huge community of users to stop their crypto from collecting dust.



Instead, they get to keep their investment position safe while also getting to earn real yield.



That means making money regardless of the market, while having the peace of mind of being able to instantly cash out whenever it&#x27;s time to catch those massive price swings we&#x27;re all waiting for.



If you&#x27;re ready to defeat dormant capital, head to the <a href="https://go.liquidloans.io/" target="_blank" rel="noreferrer noopener">Liquid Loans Dapp</a> and build your own first-hand understanding of how it all works.

ETH Exchange Supply at Record Lows: What the Data Shows

Managing Your Average Price: A Complete Guide

Why I Don’t Invest Without Looking at the Bigger Picture

Cumulative Abnormal Return (CAR): Formula, Event Windows, and How to Use It

Don't Let Your Money Collect Dust

How to Defeat Dormant Capital

Is your money collecting dust right now? Learn how to earn yield without having to wave goodbye to your assets.

Avoiding Dormant Capital with <a href="https://www.thecoinzone.com/liquidloans/why-real-estate-investors-understand-ll/" data-wpil-monitor-id="827">Liquid Loans</a> (How to Put Your Money to Work!)