With the growing popularity of cryptocurrency, it would be a sin for anyone to say they do not own at least a small percentage of their assets in crypto. And if they happen not to own any, there are cryptocurrency lending platforms that can help them explore the value their fiat can offer when used as collateral.
The reason for this is, there are so many benefits crypto has to offer ranging from its speed, low-interest rates, flexibility, and safety amongst others. What better way to tap into these benefits without having to sell your assets than obtaining loans from a crypto lending platform?
What are Cryptocurrency Loan Platforms?
For better understanding, think of cryptocurrency loan platforms as banks – but better. What these platforms do is offer you a collateralized loan (whether in crypto or fiat) for some time, then you repay that loan to get your asset back. Simple.
As of today, there are mainly two types of crypto lending platforms, which are Centralized Finance (CeFi) lending platforms and Decentralized Finance (DeFi) platforms. This breakdown would aid your lending platforms cryptocurrency search.
- Centralized Finance (CeFi) platforms
It is called “centralized” because the overall lending processes are being controlled by a particular company.
These platforms are more flexible as they give reasonable terms and tend to offer promising interest rates to their borrowers when compared to DeFi platforms.
- Decentralized finance (DeFi) platforms
DeFi platforms, on the other hand, are being executed using a set of protocols known as “smart contracts” to automate the distribution of crypto loans and interest rate payments.
The transactions are managed autonomously using code uploaded to Blockchain and escrow accounts.
What is Crypto Lending Platform CoinRabbit?
When deciding on the crypto lending platform to use, some people are often left confused about which platform to go for. CoinRabbit, being one of the top cryptocurrency lending platforms, would help you demystify it.
CoinRabbit is a crypto lending platform that believes your cryptocurrency should work for you right now, without fear of losing it and without waiting for the rate to rise to a certain level.
Its Key Features
Now let’s break down the features and benefits you stand to gain from using CoinRabbit.
- No registration required: Unlike any other cryptocurrency lending platforms, we do not require you to register in order to have access to loans.
- No credit checks: We do not carry out any credit checks.
- Low-interest rate: You get only 5% APR (Annual Percentage Rate) for any loan.
- Unlimited loan period: You can pay back your loan at any time because there is no deadline for repayment.
What can I use CoinRabbit for?
You can use CoinRabbit to obtain collateralized loans to leverage on your crypto assets without having to sell them.
Supported Crypto Assets
CoinRabbit currently supports the following assets as collateral deposits :
- Bitcoin (BTC);
- Ethereum (ETH);
- Bitcoin cash (BCH);
- Nano (NANO)
- Firo (FIRO)
- DogeCoin (DOGE)
- Ripple (XRP)
- Digibyte (DGB)
- Monero (XMR)
- Ravencoin (RVN)
- SHIBA INU (SHIB).
USDT and USDC are the only available options for loans.
We try as much as possible to minimize any risk, that’s why the 50% loan-to-value ratio (LTV) has been put in place, to make customers rest assured that their assets are in good hands irrespective of volatility.
If your loan reaches any of the three limit zones, you’ll be notified immediately via email and SMS.
Are there any limits for loans? Why?
There are no limits for loans. The reason for this is that our liquidity provider allows us to make sure you can loan as much as you’d like.