What Cryptocurrencies Can I Use for Collateral?

Last Updated on December 16, 2021 by Diana Kelley

The majority of crypto-asset owners have a long-term investment policy in motion. Despite the original target of holding investments and profiting as rates climb, unexpected situations compel borrowers to obtain loans for a variety of purposes. This is where crypto-assets can be used as leverage.

CoinRabbit is a very comfortable platform that allows investors to secure loans using cryptocurrency as collateral.

At CoinRabbit, investors can use the following assets for crypto collateral. 

• Bitcoin (BTC);
• Ethereum (ETH);
• Bitcoin cash (BCH);
• Nano (NANO)
• Firo (FIRO)
• DogeCoin (DOGE)
• Ripple (XRP)
• Digibyte (DGB)
• Monero (XMR)
• Ravencoin (RVN)
• SHIBA INU (SHIB).

When the debt is paid off, the cryptocurrency collateral is returned to the borrower. The total APR (interest) accrued during the loan term is included in the loan number. The collateral is held in encrypted wallets that can only be accessed through VPN and from certain IP addresses. 

Borrowers who take out interest-bearing loans only pay the interest per month, so the balance is paid off by the conclusion of the loan term. Individuals with a grim financial outlook will profit from interest-only loans.

Here you can learn how to get an instant crypto loan.

Bitcoin (BTC)

Bitcoin is a peer-to-peer digital currency that was first introduced in 2009. It was the world’s first cryptocurrency. When compared to other conventional types of investment, investing in BTC can sound different. Cryptocurrencies, such as Bitcoin (BTC), work similarly to traditional financial assets. As a result, it’s fair to say that borrowers will receive loans using Bitcoin as leverage.

Bitcoin Loan on CoinRabbit

At Coin Rabbit, investors can use Bitcoin loan collateral for crypto loans. However, the minimum loan amount for BTC is 100 USDT, but this amount can change, depending on our liquidity providers.

Use the following steps to secure a Bitcoin loan on CoinRabbit.

1. Visit the CoinRabbit.
2. Select your collateral, BTC in this case.
3. Calculate the amount of your loan. 
4. Set up your loan with numerous collateral options, then confirm it with a phone number and your preferred USDT/USDC payout address.
5. Send us the collateral, and we’ll send you the loan balance without any complications or extra checks to your repayment address.
6. You are free to retain the loan for as long as you want. We’ll call your attention to the current rate of your leverage currency.

Ethereum (ETH)

Ethereum (ETH) is another popular crypto asset and comes second after BTC by market capitalization. ETH was first launched in 2015 and by the end of the year 2017, 96 million Ether were in circulation. One advantage of ETH over BTC is that most stable coins are Ethereum-based.

Ethereum Loan on Coin Rabbit

ETH is among the crypto collateralized stablecoins accepted on the CoinRabbit platform and the minimum loan amount for Ethereum is 30 USDT. The below-listed steps can help investors to secure an Ethereum Loan on Coin Rabbit:

1. Visit the CoinRabbit
2. Select your crypto collateral, ETH in this case.
3. Calculate the amount of your loan. 
4. Set up your loan with numerous collateral options, then confirm it with a phone number and your preferred USDT/USDC payout address.
5. Send us the collateral, and we’ll send you the loan balance without any complications or extra checks to your repayment address.
6. You are free to retain the loan for as long as you want. We’ll call your attention to the current rate of your leverage currency. 

Bitcoin Cash (BCH)

BCH is a cryptocurrency that was first introduced in 2017. In 2018, Bitcoin was divided into two parts: Bitcoin Cash and Bitcoin SV. BCH has a 500 percent projected annual growth rate, making it an outstanding cryptocurrency to keep an eye on. Many developers expect that BCH will break out in 2021 as a result of its ability to survive in a volatile climate. 

Bitcoin Cash Loan on CoinRabbit

If you have invested in Bitcoin Cash, you can secure a Bitcoin Cash loan on CoinRabbit. Use the following steps to secure a BCH loan on CoinRabbit.

1. Visit the CoinRabbit.
2. Select your crypto collateral, BCH in this case.
3. Calculate the amount of your loan. 
4. Set up your loan with numerous collateral options, then confirm it with a phone number and your preferred USDT/USDC payout address.
5. Send us the collateral, and we’ll send you the loan balance without any complications or extra checks to your repayment address.
6. You are free to retain the loan for as long as you want. We’ll call your attention to the current rate of your leverage currency.

Nano (NANO)

RailBlocks was the former name for Nano (XRB). It first went live in October of 2015. This open-source crypto asset was developed to fix the following issues that plagued other cryptocurrencies, especially Bitcoin (BTC).

• High electricity and mining costs.
• Heavy computing loads that needed the use of complicated and expensive machinery.
• Slow BTC transactions.

Nano Loan on Coin Rabbit

Nano investors can use the assets to secure loans on Coin Rabbit. Use the following steps, just like in the other cryptocurrencies:

1. Visit the CoinRabbit
2. Select your crypto collateral, NANO in this case.
3. Calculate the amount of your loan. 
4. Set up your loan with numerous collateral options, then confirm it with a phone number and your preferred USDT/USDC payout address.
5. Send us the collateral, and we’ll send you the loan balance without any complications or extra checks to your repayment address.
6. You are free to retain the loan for as long as you want. We’ll call your attention to the current rate of your leverage currency.

Which Crypto-Assets are Best for Crypto-Collateral?

Not all cryptocurrencies are suitable for use as crypto collateral. In the cryptocurrency market, different cryptos behave in different ways. Some people are unreliable and erratic, making them bad collateral candidates. Borrowers should start using the other cryptos in their portfolios as crypto collateral if the price of a crypto asset is normally volatile and unstable. 

There should, however, be no cause for concern. Any crypto-asset can be used as collateral with the correct strategy. Furthermore, all crypto properties, including crypto collateralized stablecoins, have a loan-to-value (LTV) rate of 50%. This ensures that any cryptocurrency that can be collateralized receives 50% of the worth of your collateral.

Stablecoins Vs Ordinary Cryptocurrencies

The price stability of stablecoins is a major benefit of investing in them. Unlike other cryptocurrencies, such as Bitcoin, the price of stablecoins, such as Tether (USDT), is linked to the dollar. Stablecoins are also easier to convert since they are used on the majority of websites. You may use USDT or USDC to access a crypto facility at CoinRabbit. Stablecoins have the following benefits over traditional crypto properties, aside from market uncertainty.

• High transaction speeds;
• Compatibility with Ethereum assets, the most used Blockchain platform;
• They are easily cashed out;
• Low transaction fees;
• They are secured by fiat USD.

Stablecoins aren’t entirely different from ordinary cryptocurrencies. They’re similar in the following ways:

• Can make payments.
• Can be sent to any part of the globe.
• Holders can convert them to ordinary currencies.

Why Secure a Cryptocurrency Loan With Coin Rabbit

CoinRabbit is based on the ChangeNow system in conjunction with Guarda Wallet, authorities in the cryptocurrency world. Our platform makes use of cutting-edge technologies to keep your money safe and stable. We still have some of the lowest APR prices on the board right now (5%).