In the cryptosphere, things are still relatively new. Nevertheless, there are numerous great assets in the cryptocurrency sphere that have a direct effect on the development of the whole field. RVN is definitely one of these assets. In first place our mission at CoinRabbit is to provide such assets with better adoption. As a collateral currency, RVN can be used to expand your wealth horizons and we’ll share some insights in this article.
What Is Ravencoin (RVN)?
Ravencoin is a digital peer-to-peer (P2P) network that aims to implement a use case specific blockchain, designed to efficiently handle one specific function: the transfer of assets from one party to another. Built on a fork of the Bitcoin code, Ravencoin was announced on Oct. 31, 2017 and released binaries for mining on Jan. 3, 2018 with what is called a fair launch: no premine, ICO or masternodes. It was named in reference to a TV show Game of Thrones.
The Ravencoin whitepaper was published by Bruce Fenton, Tron Black and Joel Weight.
They stand out over the majority of the crypto crowd in that they were all seasoned businessmen and developers before they started this project.
What Makes Ravencoin Unique?
As a fork of the Bitcoin code, Ravencoin features four key changes: modified issuance schedule (with block reward of 5,000 RVN), block time reduced to one minute, coin supply capped at 21 billion (a thousand times more than BTC) and a mining algorithm (KAWPOW, formerly X16R and X16RV2 respectively) intended to mitigate the centralization of mining caused by ASIC hardware.
Ravencoin aims to solve the problem of assets transfer and trading over blockchain. Previously, if someone created an asset on the Bitcoin blockchain, it could be accidentally destroyed when someone traded the coins it was created with.
RVN coins are designed as internal currency within the network and must be burnt in order to issue token assets on the Ravenchain. The assets can represent anything: real world custodial objects like gold or physical euros, virtual goods and objects, a share of a project like stocks and securities, airline miles or an hour of someone’s wage, etc.
The planned future versions of Ravencoin protocol will support integrated messaging and voting systems.
Why RVN Is The Most Efficient Collateral?
RVN is definitely one of the most convenient and efficient collaterals nowadays: its high transaction speed, cheap fees and relatively low volatility compared with highly volatile assets. First of all, while working with crypto backed loans transaction speed matters much: the best option is to use fast assets for deposits, withdrawals or any other transactions to prevent losing significant amounts of time. RVN speed is high. Also, RVN reached its All-Time-High on Feb 20, 2021 (8 months ago) which means it has at least 62% of growth potential since its price on Nov 06 was fluctuating around $0.107.
The cryptocurrency market is filled with numerous innovations, especially in the decentralized finance (DeFi) sector. However, some of these innovations are futuristic and are yet to pick up as fast as expected.
Luckily, this is not the case for all cryptocurrency-based innovations. Ravencoin is one of the not-so-futuristic blockchain projects that have been forked from the Bitcoin blockchain. Ravencoin has grown significantly and has led to an incredible adoption of the cryptocurrency token within the crypto markets.
Trading volumes of Ravencoin have increased tremendously due to its promising future. The blockchain, named after the popular Game of Thrones HBO TV series, aims at correcting fundamental issues within the Bitcoin blockchain such as reducing the block time to one minute, increasing the coin supply cap to 21 billion, altering the issuance schedule to accommodate 5000 RVN tokens and changing the mining algorithm.
The four changes above are what sets Ravencoin apart from Bitcoin, and it solves the fundamental problem of trading and asset transfer over the Bitcoin blockchain.
Consequently, instant Ravencoin loans have become popular on CeFi crypto loan platforms. So what is a Ravencoin loan, and how to get an instant Ravencoin loan?
What is a Ravencoin loan?
An instant RVN loan is a type of cryptocurrency loan taken out by cryptocurrency users upon depositing a particular amount of Ravencoin as Collateral. At CoinRabbit, several crypto tokens are supported as Collateral to take out crypto loans for daily use.
Crypto loans such as instant RVN loans allow crypto enthusiasts to beat market volatility challenges by depositing their cryptocurrency and receiving crypto loan amounts in the form of stablecoins for immediate usage.
Pros of Ravencoin Loans at CoinRabbit
Why would someone consider taking an instant Ravencoin loan with no verification? Well, cryptocurrency loans like instant RVN loans from CoinRabbit are fast and stress-free.
CoinRabbit platform offers instant RVN loans with no verification than conventional loans requiring long bureaucratic processes. The instant Ravecoin loan no credit check feature ensures that all cryptocurrency holders qualify for cryptocurrency loans regardless of their credit score or loan history.
Depositing Ravecoin cryptocurrency as Collateral offers users hedging against market risks. The Collateral is stored in safe wallets powered by Guarda and is released to your loan address upon completion of the loan repayment.
CoinRabbit offers an unlimited loan repayment plan for its instant RVN loan program. It gives users ample time to gather funds and repay their loans with no extra hidden fees.
Steps to getting a Ravencoin loan
The CoinRabbit crypto borrowing and lending platform has made applying and getting an instant Ravecoin loan straightforward. Today, crypto loans are processed in under 10 mins upon completing the entire process, and the appropriate Stablecoin is deposited to the provided wallet address.
Below is a step-by-step guide with images of the steps on how to get an instant Ravecoin loan.
- Visit the CoinRabbit Homepage
- On the right side, under the Bull Market Loans, select Ravencoin as your preferred collateral token.
- Select the amount of Ravencoin you want to deposit as Collateral, and the calculator will automatically display the total Loan Amount you qualify for.
- Click “Get Loan” to advance to the next page.
- Enter your Stablecoin payout address and confirm your phone number for verification.
- Deposit the Ravecoin and wait for your loan amount to be disbursed in minutes.
Risk Management and What Should You Keep in Mind While Taking RVN Loans?
Crypto backed loans are relatively new and flexible tools. However, as with other financial activities, taking crypto backed loans has several different risks. Here are the most important things you should know and/or constantly keep:
- Liquidation price. You should be constantly aware of your collateral currency price swings. The ONLY way to lose your collateral completely is to let it reach its liquidation price;
- We always send our clients multiple notifications if their collaterals are nearing liquidation prices. To avoid it either buy your collaterals back by repaying the loan amount + accumulated APR or deposit more funds in order to reduce the liquidation price;
- Applied LTV rate is 50% which means your collateral price must decrease by 50% before the liquidation. (Loan-to-Value is a necessary part of crypto backed loan and defines what percentage of your collateral value you receive when getting a crypto-backed loan);
- The best time to get crypto backed loans is when you are sure about the currency price going to grow in the future (no matter the time frame). One more tip is to get loans when you think its “a dip” already;
- Throughout the years the crypto market grows from year to year. That’s why we suggest to choose long timeframes for your loans to increase potential returns and reduce the risks of being liquidated;
- As all the financial activities take everything moderately.
What should you do if the market dumps?
- Firstly, you are able to return the funds anytime. If you feel that the liquidation price will be reached and strongly broken through then buy the collateral back;
- Secondly, you can always increase your deposit amount to adjust your liquidation price if the market drops significantly;
Not sure about another market price swing? You can always choose between bearish and bullish loans;
- We have released CoinRabbit Earnings so you are able to earn on stablecoins at any convenient time without adding any additional risks.
What crypto can I use for Collateral?
Since cryptocurrency loans like instant RVN loans are a relatively new concept, some platforms restrict users to well-known cryptocurrencies like Bitcoin and Ethereum to be used as Collateral. However, CoinRabbit believes in providing opportunities to all crypto holders regardless of their preferred token.
As a result, CoinRabbit supports a wide range of loan collaterals, including BTC, BCH, ETH, FIRO, NANO, DOGE, XRP, DGB, XMR, and many more. Check the CoinRabbit homepage for more loan collateral options.
Rethink forward crypto loans with CoinRabbit.
Not financial advice. Do your own research and take everything moderate.Crypto backed loans have their own risks that should be taken respectively.
Sources used: Coinmarketcap, RVN.