With Crypto Winter pulling down the energy, people are waiting for Crypto Summer. If you didn't anticipate Crypto Winter, you may not have enough money to tide you over until the next bull run. If you still have your digital coins, you would want to hold on to them; that way, you can sell them later at a higher price. But what if you run out of money for everyday expenses? Some companies have come up with a solution: loans backed by cryptocurrencies.
With crypto loans, you can deposit your coins as collateral to receive fiat loans from crypto lending platforms. Later, you can return the money in exchange for your crypto at a pre-arranged date. Of course, you may have to pay interest. But that is part of the game. Below are the top three crypto lending platforms we trust today.
Number 1 : Nexo claims to offer the first instant loans backed by crypto-currencies.
That said, the platform offers a range of loans from $1,000 to $2,000,000. With the money you borrow, you can spend it instantly. To do this, you'll need a card, or you'll need to withdraw the money from your bank account. Nexo uses an SEC-approved custodian, BitGo, which helps improve the platform's reputation.
Number 2 : SALT Lending is another cryptocurrency-backed lending site.
It offers loans starting at $5,000. Although it advertises low APR rates, it states that the rates are subject to jurisdictions and limitations. On its homepage, SALT Lending offers crypto-currency loans that use BTC, ETH, LTC and/or DOGE collateral. While loan approval is not instantaneous, SALT Lending says borrowers in some jurisdictions can expect approvals within 24 hours.
Number 3 : best crypto currency lending platform: YouHodler
YouHodler is the youngest and most promising crypto-currency-backed lending platform that recently joined The Financial Commission. The platform offers a high loan-to-value ratio (70%); certainly, it has one of the highest LTVs in the market. As a member of the Financial Commission Board Association, YouHodler must comply with best business practices. If users disagree with certain transactions, they can submit the case to the Financial Commission for independent resolution. In addition, YouHodler often offers promotions. Right now, it's the "Anti-Crisis" loan. YouHodler offers instant cash payouts and the sign-up process is fast, with an incredible customer support team.
The best crypto currency lending platforms on the market: near-instant payments
All three platforms above offer near-instant cash payments. No matter what your situation is, you can look into these options for yourself. If you need to make fiat payments for your mortgage, car loan or small business, try taking out a loan. If you don't need to make payments but want to invest in something immediately, borrowing money with crypto collateral can also be beneficial.