What Are Crypto Loans? Everything Investors Should Knowby Tegan W. Media representative
Are you tired of holding your cryptocurrency and want to invest to make a profit? If that’s the case, you can always opt for crypto loans. It is not only safe, but you are assured of interest at the end of the day.
Cryptocurrency is known for its volatility, which makes it why most investors prefer to hold their coins and wait for the price to go up. Don’t just sit there with coins in your wallet. Be open-minded and try crypto loans.
Here is everything investors should know about crypto loans.
What Are Crypto Loans?
Crypto loans, as the name suggests, are a stable way in which you can lend your cryptocurrency or stable coins and earn interest on it. The lender, in this case, will not act like a bank but an individual who is a crypto investor. Crypto loans are different as compared to the loans you might get at a traditional bank.
Most banks simply bring your future cash flow to today, and this means you are borrowing against your future income. However, in crypto loans, you will be using your crypto as collateral, and in return, you get a percentage of your collateral value in fiat or stable coins.
Crypto Loans Platforms
With crypto loans becoming more and more helpful, there are a lot of platforms to choose from. Here are some of the best platforms to go with.
Youhodler- If reputation is what you look for in a website, then you should certainly choose Youhodler as your crypto loan provider. They offer loans with minimal interest rates and support a wide range of cryptocurrencies such as bitcoin. The good thing about Youhodler is that their security systems are excellent, so you don’t have to worry about loan defaults or security breaches.
Nexo - This platform has been running for quite some time now, hence its popularity. They support a wide range of cryptocurrencies such as bitcoin and Ethereum. The good thing about this platform is that the users can use a blend of different cryptos as their collateral, increasing the rate of loans earned.
Advantages of Crypto Loans
There are many advantages you can get when opting for crypto loans. Below are some of them.
Paperwork is excluded - They are usually instantly approved and you do not have to worry about credit checks. That is great news for those who don’t like to fill in endless paperwork that your bank tends to insist on.
It is safe - Most people might think traditional banks are safer than other alternatives. However, there have been many cases of money laundering scandals that have happened in many banks. Crypto loan platforms are known for their good reputation when it comes to safety measures.
The terms of crypto loans are more flexible - Most traditional banks have loan terms, determining your interest rate and the amount of loan you get to borrow. In crypto lending, the loans are determined by the amount of collateral you have.
Cryptocurrency is a new investment in the market today, which seems to be providing a wide range of opportunities to its investors. Crypto loans on the other hand provide you with instant liquidity while giving you the opportunity of holding up your cryptocurrency for future investments.
Created on Jun 2nd 2021 06:33. Viewed 100 times.