Crypto loans and crypto platforms
Cryptocurrencies have only grown in popularity in recent years. This generates new offers: for example, loans secured by cryptocurrency. Their advantage is instant access to funds at low-interest rates. In addition, there is no need to check creditworthiness. Let’s look at how much can I get a crypto loan without collateral.
Earnings from mining cryptocurrencies
The relevance of mining depends entirely on the current state of the market. When it is in decline, many go out of business, and when it comes back to life, it makes sense to mine again. At the moment, many people see prospects in mining altcoins. Bitcoin is gradually becoming the prerogative of large companies with the ability to create entire farms of expensive ASICs.
There is also cloud mining, where the equipment is at the company that rents it to users for a certain percentage. This option is chosen by those who want to try earning from cryptocurrency, but are not ready to invest in equipment, take care of it and update it in time.
Trading on a cryptocurrency exchange for profit requires knowledge and skills that come with many months of practice. You need to be able to read charts, analyze them, and turn off emotions when trading.
Many exchanges offer a demo account – an account with virtual money on it, where you can practice and try out new strategies. The principle of work is similar to that of real trading, therefore, it is highly recommended for every beginner test his skills with this method first. This will allow me to get acquainted with the terminology and basic tools, and after that, it is possible to pass to trading small real sums.
Varieties of popular crypto exchanges:
- Centralized: Binance, CoinLoan, OKX, Currency.com, Huobi, MEXC Global, EXMO. The most convenient option for beginners, easy enough to learn, with loyal commissions. The main disadvantage can be called centralization, which carries increased risks for the integrity of the funds.
- Decentralized: Binance DEX, Uniswap, DODO, 1inch, Pancake Swap. A more professional option for those who want full control over their assets themselves rather than sending them to a centralized account. DEX is based on blockchain and smart contracts.
- p2p: Binance P2P, Bybit P2P, OKX P2P, Huobi P2P, Garantex, Bitzlato. Peer-to-peer platforms where users trade directly with each other, exchanging cryptocurrency for fiat or vice versa. P2p-platforms support a wide range of payment methods for different countries but relatively few cryptocurrencies (only the most popular).
In addition to the usual trading, which boils down to the principle “buy cheaper – sell more expensive,” there are other varieties. For example, futures trading is a kind of betting on the price going up or down in a certain period of time. In this case, it is possible to earn even on a fall in the price.
Or margin trading – almost all well-known cryptocurrency exchanges now provide this opportunity. This means that users are offered a leverage that is several times higher than the deposited amount. This way, you can significantly increase your profit (but the risks also increase).
Or arbitrage – making profit from the divergence of rates between different exchanges. There are a lot of stock exchanges, and all of them have different liquidity and other factors, and the prices may slightly differ, which creates a potential profit in arbitrage.
How you can use crypto-loan funds
Crypto-loan funds can be used as you see fit, often with no restrictions from the lender, such as a personal loan.
- Margin Trading: With crypto-loan funds, you can reduce the risk of leveraged trading. With leveraged assets, you can increase your available margin and avoid liquidating leveraged positions.
- Increase capital investment: cryptocurrency loans can be used to top up investments in CoinLoan products. Borrowed assets can be invested in risk-free savings programs or even transferred to staking in Launchpool projects to get new tokens for free.
- Income Farming: on leveraged crypto assets, you can earn income with variable or fixed rates in the DeFi market through lending.
Multiply assets without selling them: you don’t have to sell cryptocurrencies to get money. CoinLoan gives you the opportunity to borrow money secured against crypto assets. That way, you get a loan, and your favorite cryptocurrencies stay in your ownership. With crypto personal loans, you can borrow up to 100% of the value of the collateral and use the borrowed funds to purchase assets that have recently entered the CoinLoan spot market.
What are the risks associated with crypto loans?
Cryptocurrencies are affected by fluctuations in the price of the underlying coin, and if the LTV increases, there is a need to post additional collateral. In addition, if you miss another payment or your LTV increases significantly, and no additional collateral is deposited, lenders can liquidate your assets.
Crypto loans also carry a high risk of cybercrime, hacking, or bankruptcy because crypto lenders are not subject to the same level of scrutiny as traditional banks. Therefore, if you lose funds due to a security breach, you may not receive a refund. When you provide access to your crypto account, it is crucial to find a reliable and secure lender.
CoinLoan prides itself on its status as the most reliable and secure cryptocurrency exchange in the world. We are constantly investing in improving security standards, such as protecting users’ funds in HD cold wallets, encrypting data, and monitoring suspicious activity on the platform.
Crypto platform: Coinloan
It is the first crypto-fiat lending platform for loans secured by digital assets with marketability. The company allows cryptocurrency holders to get fiat money.
Features of Coinloan:
- Ability to get multiple loans at the same time.
- Cryptocurrency to cryptocurrency loans.
- Highest maximum LTV of 70%.
No need to sell your digital assets. They combine the best of traditional and new financing, offering strong protection and favorable terms.
Nexo is one of the global leaders in cryptocurrencies. Provides access to a line of credit for an instant bitcoin transfer loan to Nexo Wallet. After a secure transfer to the wallet, instant access to a loan
- Interest rate of 5.9% APR with NEXO tokens, or 11.9% without.
- BTC, XLM, ETH, PAXG, XRP, BCH, LTC, EOS, various Stablecoins, NEXO, BNB are used as collateral. The list is growing.
- You can receive funds in any fiat currency to your card or bank account.
- Minimum loan amount – $500, maximum $2 million.
- Collateral is calculated based on the required loan amount.
- Verification is not required; it only extends limits and allows withdrawal to a bank account.
- There are no time limits, you only need to maintain a balanced ratio of loan to value of the collateral.
Nexo additionally offers other financial services, such as interest-bearing accounts. As of 2020, the platform already has more than a billion dollars in loans.
CoinLoan offers cryptocurrency loans and interest-bearing accounts. get a cash or cryptocurrency loan using cryptocurrency as collateral. Get interested in your crypto-assets and stablecoins with no lock-in period.