Cryptocurrencies have brought so many benefits to our lives. Besides acting as a medium of exchange, used in place of fiat currencies to pay for goods and services, they have become seen as excellent investment vehicles.
Another way crypto holders can make money is through crypto lending. This is a fairly new and innovative idea in the lending investment industry that has grown rapidly over the past several years.
The primary purpose of this kind of investment is to offer a chance for investors holding crypto assets to earn dividends paying between 4% and 17% annual ROI, by lending on their digital currencies. The lending takes place through crypto lending platforms.
Advantages of crypto loans to crypto-traders
Since crypto traders have tied up their money in crypto assets, they may not enjoy the benefits of using the cash and still hold their digital assets. However, if they want to spend their funds and not sell their digital assets such as Bitcoins, they can take out loans using the assets as collateral.
That way, they can retain their crypto assets because they anticipate their prices will go up and still have some cash to spend. Also, traders may want to hold their crypto assets long enough to avoid tax on short-term capital gains.
Identifying the best crypto loan provider
The market for crypto loans has many loan providers, but all are different based on their terms and the benefits they give to the borrowers.
After a detailed look at the various crypto lenders, we have found that YouHodler is the best crypto loan provider. Some of the reasons you should get your crypto loan from YouHodler include:
- The platform has a wide range of collateral options because it lends against the top cryptocurrencies. These coins include BTC, ETH, LTC, DASH, and XMR, etc.
- YouHodler has the highest loan-to-value ratio (90%) among all the players in the market. This means you get more loans for your collateral of digital assets. The 90% LTV can allow you to access a loan equivalent to up to 90% of the value of your digital assets.
- The platform enables you to access the funds lent in various currencies such as the US dollar, euro, and even digital coins like BTC or USDT.
- You have many withdrawal options, such as bank transfer to your account via SWIFT and SEPA (which work globally), or use your VISA or MasterCard credit cards. You may also withdraw the funds as cryptos via the platform’s integrated crypto exchange.
- The platform provides instant cash to crypto loan borrowers saving them the hassle of finding the best crypto loan provider that has terms that favor them, like in a P2P platform.
- YouHodler allows you to repay your loan conveniently through credit cards, bank accounts, and stable coins.
- The loan provider allows access to loan amounts as little as $100, allowing you to leverage liquidity easily.
Crypto investors or traders can enjoy spending their cash by borrowing using their crypto assets as collateral, thus keeping their assets for speculative purposes.
The crucial thing is to find the best crypto loan provider that offers flexibility and many other benefits.