A crypto-based loan is a DeFi product where cryptocurrency holders can apply for a loan when they put the Bitcoin, Ethereum or any other supported cryptos as collateral in less than 2 minutes and gets funded in USD or other Supported currencies, directly into their bank accounts or wallets in a few minutes. It basically gives users an instant credit line in exchange for their cryptos which they can later repay at a small interest and get their cryptos back. Users retain 100% ownership of their digital assets. Without the need to sell them, the borrowers now keep the full benefit from the assets’ value appreciation.
Investors around the globe currently own digital and crypto assets worth billions of dollars that remain idle. The value of those assets is expected
to grow to over $5 trillion by 2025. It is not possible to conveniently leverage a
digital asset in order to pursue a lucrative investment opportunity or meet a short-term liquidity need without having to sell assets with good upside potential. Also, By selling a digital asset (i.e. Bitcoin), its owner incurs exchange and withdrawal fees and becomes liable to capital gain tax which makes short-term liquidation an expensive and tax-inefficient solution. But, now…
You no longer have to sell your crypto and lose the upside potential. With Instant Crypto Loans you can Keep it and get an Instant Credit Line in minutes and access cash conveniently anywhere around the world via bank transfer.
But, Why Should one take a Cryptocurrency Backed Loan?
Many crypto investors have a long haul perspective (HODLers) on their investments. Despite the fact that they intend to hold their cryptos, in some cases their financial conditions or urgent need of something compels them to sell their crypto for USD. Now, Instead of selling, HODLers can utilize the benefit of Crypto Loans by getting instant money while keeping ownership of their cryptos. This allows them to maintain ownership of their funds while gaining access to the USD they need to fund their needs. Pretty neat, right?
What Can We Use the Crypto Loan For?
Crypto backed loans are one of the most cost-effective and efficient ways to keep control of your cryptocurrencies while getting access to traditional currencies. HODLers use their loans towards a number of different purposes, including:
Blockchain which powers the Crypto Ecosystem is one such product and has been disrupting and revolutionizing the way we use traditional finance right now. From payment transactions to Remittances. From Loans to Margin Trading. Crypto has empowered and will continue to empower unbanked from around the world. Especially with De-Fi (short for Decentralized Finance) platforms offering at least 10x more interest rates, instant loans, better usability, and reliability than the traditional banking systems, has resulted in the growth of both retail and institutional interest in the cryptocurrency ecosystem. One such feature in DeFi is Crypto Loans.
Crypto based Financial Products are on the rage. Propelling way beyond the niche Bitcoin use-cases and is now becoming the mainstream conversation for people around the world. Especially banking experts and institutional investors.
Copyright © 2018. Yet Another Blockchain Company by Cointify. All Rights Reserved.