Since the advent of cryptocurrency and the blockchain technology, crypto-backed loans have been on the increase; thus giving birth to several crypto-backed loan services across the world. The primary aim of a crypto-backed loan is to receive fiat currencies without necessarily selling your Cryptocurrencies. In addition, this service is meant for those who want cash but believe the value of the cryptos will increase in the future.
Operators of crypto-backed loan services such as the Nebeus Lending Platform will allow you to place your Cryptocurrencies as collateral and then in return, you receive cash or stablecoins. Taking crypto-backed loan is good in several fronts. Firstly, you will have access to cash for your everyday use while still holding on to your cryptos. Secondly, you can use a crypto-backed loan to fund your crypto purchases. What’s more? You can take a crypto-backed loan to buy more cryptos and thus make money on growth.
Of course, whenever the value of cryptocurrencies decreases, a crypto-backed loan would become less attractive. But, as it stands, the crypto ecosystem has a lot of growth potentials. So how does this service work and which lending platform is the best? Read on to find out!
How Does a Crypto-backed Loan Work?
The amount of fiat currencies or stablecoins you will receive once you place a request for a loan depends largely on the lender and the value of your Cryptocurrencies. Most lenders on the market will usually provide you with fiat currencies that are lower than your crypto holdings. Once you get the loan, you will pay interest depending on the rate agreed with the lender. Until your loan reaches maturity, you will continue to pay the interest in order not to lose your collateral. In some cases, you may be able to fully or partially repay your loan at any time.
If you have the feeling that the value of your cryptos will decrease during the repayment period, you should avoid using such cryptos as collateral. The reason is that you will have to add more cryptos to prevent liquidation.
Now you know how a crypto-backed loan works, so which lender should you choose?
No doubt, there are several lenders on the crypto ecosystem. But one lender that has all the trappings which loan seekers will appreciate is the Nebeus Lending Platform. Nebeus is a leading crypto-backed loan provider in the world. Whether you need a loan to take care of your everyday needs or you want a quick loan to pay for your crypto purchases, the Nebeus lending platform has got you covered.
Here is why you should choose Nebeus:
● No credit checks: At Nebeus, we don’t check our customers’ credit history, meaning, even if you have a bad credit history, we will still give you a loan.
● Immediate access to fiat currencies: Once we receive your request for a loan, within 5 minutes, we will provide you with the requested loan.
● Low-interest rate: This is one of the reasons most borrowers love our platform. Our interest rate is very low. Currently, our interest rate stands at 10.5%.
● Secure lending platform: Our platform is very safe, and your collateral is safe with us. You can go to bed and sleep with your two eyes closed.
● Instant loan up to €250,000: At Nebeus, you can take up to €250,000 loan in fiat currencies.
● Open account within 10 seconds: Our account opening process is very seamless. You can open an account on our platform within 10 seconds.