Why Get a Loan Backed by Crypto?
For a long time, banks have held monopoly over loan issue. However, once cryptocurrencies gained foothold in finance, people discovered a brand new alternative. Now they could get crypto loans on online P2P platforms, using their crypto as collateral.
Why should you go against the tradition and choose this novel option? Why should you get a loan backed by crypto?
You Don’t Sell Your Coins
Often, in order to buy a house, a car or even a pair of shoes, you need traditional money. Normally, you’d be forced to sell your crypto assets, sometimes at a really low price.
Instead, you can just get a USDT loan using your crypto as collateral and pay it back when you either have more cryptocurrency or can sell your crypto at a high price. You Enjoy Higher Liquidity
Because crypto-backed loans are available to people across geographical borders, P2P lending platforms have a much higher liquidity than traditional banks. So you can strike loan deals much faster and easier.
You Won’t Wait in Emergency
Banks are notorious for their bureaucracy. Usually, it would just be an aggravating nuisance, but when you have an emergency, it can be a matter of life and death.
P2P lending platforms remove intermediaries from the equation. This way you can get a loan much faster, without having to deal with the never-ending red tape.
You Set the Loan Conditions
P2P lending platforms allow lenders and borrowers to create individual loan requests and offers, so the parties can get exactly what they want. No intermediaries can impose their rules on you.
You Get Security Guarantees
A P2P loan is sealed when the collateral is provided. However, many platforms usually set LTV and margin call requirements to protect the lender and the borrower.
So, if the collateral price goes up, a borrower may receive some of their crypto back on their wallet. If the collateral price goes down, a borrower will need to top up their collateral.
You Don’t Pay More Tax
Usually, you need to pay tax to sell cryptocurrencies. When you borrow USDT, you do not have to do it.
You Leverage the Crypto Volatility
Some borrow USDT to buy more coins when the crypto market takes a dive. Whenever that happens, there may not be a lot of time to take action.
P2P lending platforms are usually much more expedient than banks. So borrowers can get USDT loans and buy coins at a low price almost instantly.
You Keep Your Credit Scoring Intact
Unlike bank loans, crypto-backed loans do not affect your credit scoring, even if you fail to pay it off.
P2P lending is a relatively new phenomenon in finance, but if you consider how popular it got in the last years, it definitely has a bright future ahead.
Join the future now. Get a crypto-backed loan on LendaBit.com.
Deniss has been in asset and risk management for more than 20 years in one of the top Latvian banks.
He is highly proficient in finance, investing, blockchain and startup development.
Being CEO at LendaBit.com, he is dedicated to solving company problems using impeccable judgment and critical thinking skills.