Did you know that you can take out a crypto loan using your digital assets as your collateral?
Well depending on the platform you use you can transfer the ownership of your BTC and ETH and many other digital assets.
The way it works is you hold up your crypto assets as collateral and based on the value of that collateral you can then take out a loan.
In the interest you would need to pay on the loan is typically much much lower than a high street bank.
If you can’t repay the loan you’re would lose part of your collateral that you put forward initially.
You’ll also have to bear in mind that if your crypto assets lose the value you may be forced to offer up more of your stash to further collateralise your loan
So if you need a loan for Xmas, here are three companies that might be able to offer you cash in return for your stash.
Nexo is able to offer an instant credit line by depositing your crypto assets to a secure account.
A credit line then becomes instantly available without any need for a credit check.
You can then spend money instantly by card or withdraw to a bank account.
There are no minimum repayments and no hidden fees interest is debited from your available Limited and you can make repayments at any time.
Loans from $1000 – $2 million.
BlockFi has become a one-stop-shop for crypto capital and treasury management.
They offer a secure storage approach backed by Gemini, a New York trust company licensed by the New York State Department of financial services. They have a perfect track record when it comes to security and loss prevention. ￼
BlockFi offers home loans in crypto for real estate, auto loans, and even loans to travel the world.
3) SALT Lending
￼Salt is a Blockchain loan platform that gives you the chance to receive cash deposited into your bank account using your crypto as collateral.
It has serviced over $50 million in loans and has over 60,000 platform users. ￼￼
To conclude there are many crypto loan platforms and whichever one you end up choosing is up to you.
In any case, it pays to do your due diligence and be aware that this is crypto and due to its volatility you might end up paying a bit ￼￼more than you think.