CoinLoan allows you to borrow, trade, and earn crypto. It also allows you to manage all your digital assets within one ecosystem.
There are many exciting opportunities in cryptocurrency right now. You can diversify your portfolio by investing in crypto assets on popular exchanges. You can also use different lending platforms to make passive income and take out loans.
How does CoinLoan compare to its competitors? Is this a worthwhile platform for crypto trading and lending? This review will cover all features, pricing and pros and cons so you can make an informed decision.
What Is Crypto Lending?
Crypto lending is a broad term that refers to lending your cryptocurrency in exchange for interest or a yield.
Companies want to borrow your cryptocurrency. They lend it to others to get a higher yield and a portion of the return.
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Cryptocurrency assets are volatile in nature. Buy and trade at your own risk.
Trading with financial instruments carries high level of risks that is not suitable for all investors. Before making any investment decisions, you should seek advice from independent financial advisor to ensure you understand the risks involved.
Trading with financial instruments carries high level of risks that is not suitable for all investors. Before making any investment decisions, you should seek advice from independent financial advisor to ensure you understand the risks involved.
Although it sounds risky, and it is more risky than a bank account, the returns are far greater than traditional bank accounts that offer.5% interest. Average interest rates on bank accounts are just.06%. You can get interest rates up to 300x higher than traditional bank accounts from crypto lenders.
They also have huge reserves in case of an emergency. It’s important to keep in mind that there is risk.
CoinLoan Crypto Interest account
There are many crypto interest accounts available on the market today. CoinLoan also offers an account. You can open an account for free and deposit fiat or cryptocurrencies to start earning daily interest.
The crypto lending platform currently supports more than 20 assets to its interest account. This includes popular cryptos such as Bitcoin and Cardano. To earn interest, you can deposit Euros, Great British Pounds and USD Coins (USDC).
Most assets pay 7.2% annual percentage yield (APY) which is much higher than what you will find in a high-interest savings account.
Interest accrues in-kind, meaning you earn Cardano if you deposit Cardano. There is no minimum deposit period and there is no maximum.
If you want to get the highest interest rate on any asset, you will need to also buy and stake CoinLoan tokens CLT.
You can purchase CLT directly from CoinLoan. While CLT does not pay interest directly, it can boost the interest rates of other assets in your crypto-interest account. These are the CLT staking levels:
- 125 CLT: Increases the interest rate by 0.1%
- 375 CLT: Increases the interest rate by 0.3%
- 1000 CLT: An increase in interest rate of 0.8%
- 1,250 CLT: An increase in the interest rate of 1%
- 2,500 CLT: Increases the interest rate by 2%
CLT costs $30 at the moment, so it’s worth spending at least $3750 to earn slightly higher interest rates. This means that CoinLoan’s interest rate is slightly lower than what you might expect for most users.
Even if you earn a base rate at 5.2% APY for most cryptos and 10.3% on fiat, it is better than sitting on the sidelines with your unused assets.
Keep in mind that the minimum deposit requirements for each asset are different. To fund your account, you will need to deposit at least 0.005 BTC (or 25 Euro).
Crypto Loans and Borrowing
Borrowing from traditional banks and getting loans is a tedious process that can take a long time. CoinLoan makes it easy to get a loan. All you have to do is deposit your collateral. After you sign up, complete the Know Your Customer process and deposit your collateral, you can get a loan. The amount you deposit will be based on how much fiat or cryptocurrency you have. Your deposit is free of charge. A loan can be obtained up to 70% of the collateral value. For example, if you deposit $10,000, you could get a loan up to $7,000.
There are three types of loans: Crypto-to–Fiat Loans and Crypto-to–Crypto Loans.
No matter what type of loan you take, you must repay the loan. A short-term loan (with a term of 7 days to 1 month) will require you to repay one repayment. You will have to pay monthly if you take out a longer-term loan (more than two months). The loan can be paid off early if you wish. Only after you have repaid the loan do you receive your collateral back?
CoinLoan Return and Risk
CoinLoan allows you to invest in crypto-assets-backed loans. As collateral, the borrower can deposit cryptocurrencies to their CoinLoan account.
Maximum. The maximum loan-to-value (LTV) is 70%. CoinLoan will pay you back your money if the collateral’s value decreases or the LTV rises to 90%.
Borrowers will be notified (margin calls) when the LTV changes due market fluctuations of their crypto-assets. However, during a rapid downturn in Bitcoin (or any other crypto-assets), the sale-off of collateral can result in significant losses for the borrower.
Borrowers have the option of repaying the loan or depositing more cryptocurrency to maintain the maximum LTV. 70%.
You are protected in any case because collateral will be sold once the LTV reaches 90 percent.
This crypto lending platform provides (in theory) solid protection for your money.
CoinLoan is not the most yielding P2P platform in terms of returns. Your BTC assets yield 5.2% annually, even if you don’t stake the CoinLoan token.
As collateral protects your investment, lower yields are a good thing. This is not the case with other P2P lending websites that finance payday loans and unsecured consumer loans.
CoinLoan has a positive feature: if the borrower pays off the loan within half the term, they must pay at least 50% interest. This is not true for most P2P lending websites.
Crypto-backed Loans
You don’t have to sell your cryptos to obtain cash. This is one of the biggest advantages to using crypto for loans. Crypto loans can be used to borrow money. You don’t have to worry about your credit score or other strict requirements.
You must first deposit collateral before you can use CoinLoan for a loan. You can deposit any cryptocurrency the platform supports, including Bitcoin and Ethereum. You can then enter the amount of your loan, the asset that you are borrowing, your loan term, and your loan to value (LTV).
You can choose to borrow up to 36 months, but the minimum loan term is one month. The LTV ratios are 20%, 35% and 50% respectively. A lower LTV means that you have less collateral in order to obtain loans. However, this will increase your interest rate.
CoinLoan is affordable even with the loan origination fees and interest. If you are in need of a quick loan of 1,000 Euros, you can deposit 0.138 Bitcoin, if BTC is available, and then take out the loan at a total cost of 1,059.5 Euro.
You can also adjust the LTV ratio to make it less likely that you will need to deposit as much BTC in order to borrow. This allows borrowers to access crypto and fiat faster, without the need to deal with strict lenders or submit paperwork.
Loans can be paid back at any time. You can’t use crypto from your interest account to secure loans. You can however withdraw cryptocurrency from your interest account and use it to borrow.
You also get a discount of 50% if you pay your loan fees using CLT tokens.
Liquidity
Do you want to know how long it takes for your investments to be withdrawn?
Although CoinLoan can take up to seven days to process withdrawal requests, support said that most requests are processed within 24hrs after you request to withdraw your Interest Account and to transfer funds to your hardware wallet.
We do not have any information on other users who may have reported discrepancies in withdrawing funds from CoinLoan.
CoinLoan Fees
CoinLoan charges no withdrawal fees. You can also deposit without fees. If that’s what you want, the platform will allow you to earn interest and not worry about fees.
CoinLoan charges various fees for its trading and loan features.
- Borrow Currency: Borrowing fees equal 1% of principal amount.
- Liquidation fees: 7% of liquidated collateral.
You get a discount of 50% if you pay your borrowing fees using CLT tokens.
When trading with CoinLoan, you will also have to pay network fees. This is a normal fee that the lending platform charges. It is due to the fact that assets are moved around on the blockchain.
If you use fiat to purchase crypto, you will also have to pay transaction fees. These fees vary depending on the country and bank you use, so make sure to check the exchange rate on your order screen before making a trade with CoinLoan.
Opening a CoinLoan account
Enter your email address and password to sign up for CoinLoan. After verifying your email and receiving a verification code, you can unlock all features by completing your customer (KYC).
KYC requires you to enter your name, address, phone number, and email. CoinLoan requires you to upload a government-issued ID such as a passport, driver’s licence, or selfie.
It takes only a few minutes. CoinLoan is available worldwide, but it does state that some countries may not be eligible due to risk. To verify if your country is included, you will need to complete KYC verification.
CoinLoan Security
All loans from CoinLoan are secured loans. A number of licenses and certificates have been issued by FinCEN MSB registration, FATCA FFI registration, MTR Virtual Currency Wallet Services License, and MTR Financial Institution License. It also publishes the three European Financial License numbers at the bottom of each page.
Conclusion
There are many companies in the crypto lending market, including BlockFi, Celsius, Hodlnaut, and Hodlnaut. CoinLoan is still a top-rated lending option despite all the competition.
Interest rates for CLT tokens are very competitive if you’re willing to buy and stake them. CoinLoan offers some of the highest interest rates for cryptos and fiat, even without stacking bonuses. Additionally, CoinLoan has very low borrowing fees and is easy to sign up for.
Celsius offers more options for asset support. Celsius has lower loan fees. However, there are multiple lending platforms that can be used to obtain the best interest rates or borrowing terms for cryptos.
