What is Loan on Cryptocurrency: Benefits & How to Get Crypto Loans?

Buying Cryptocurrency nowadays became the investing in digital assets with lucrative returns in the short run. However, if you want to gain long-term profit from the cryptocurrency investment you have to hold this digital asset for a longer time.

Maybe your crypto investment portfolio running into a loss or at a breakeven point neither giving any profit nor any loss. Here, at this moment if you need money for any unexpected situation or unexpected condition, you can avail the feature of a loan against cryptocurrency to fund your needs.

Yes, I’m right you can enjoy the loan against crypto which means you don’t need to sell your coins. Just need to keep these digital coins as collateral security and you can get the loan and pay the nominal interest to enjoy such benefits in the short run.

What is Crypto Loan & How does it work?

A Crypto loan is a loan given against cryptocurrency that you held and like a mortgage & or auto loan. Here crypto loan is backed with cryptocurrency as collateral security. And you can pledge your crypto investment and get a loan through a crypto exchange or from any crypto lending platform.

Just like a loan against the equity share you retain the ownership of your cryptocurrency but are deprived of certain rights like you can’t trade or use to buy or sell against these cryptocurrencies. And if the value of the crypto investment goes significantly down you might be asked to pay back a certain amount or pay the higher rate of interest against the loan you are enjoying.

Loan on CryptocurrencyBenefits of Crypto Lending

Though taking a loan against any asset is not a wiser decision but at the time of need, you can avail the benefits of taking a loan against the cryptocurrency. Compare to other assets like equity or gold there are various advantages of taking a loan against the cryptocurrency.

No Credit Check Required: Here while taking the loan against the cryptocurrency your credit score or credibility will be not checked. It is highly beneficial having a bad credit history due to baking transactions.

High Assets Value: Compare to other assets you can get up to 90% of the value of the asset as a loan. Not all the crypto exchanges but many of the cryptocurrency exchanges offer a high credit line against the cryptocurrency.

Low Rate of Interest: Another advantage of taking a loan against cryptocurrency is it is offered at a very low rate of interest. Compare to personal loans or credit offered by credit card issuers, the crypto loan is cheaper. And some of the exchange and crypto-oriented websites offer the loan at below the 10% interest rates.

Quick Loan & Fast Funding: Yes, as soon as your loan is approved, it will be transferred to your account. This means you can get your loan funds in as little as a few hours depending on the exchange and its rules & regulations on such loans.

Disadvantages of Crypto Loan

Every coin has two sides – here just like advantages, taking the loan against crypto has various disadvantages that may discourage the investors.

  • High Minimum Borrowing Need.
  • Short-term Repayment Schedule.
  • Inaccessible Assets.
  • Margin Calls as A Threat.

How to Borrow Against Cryptocurrency?

For taking a crypto loan, first of all, you should have a sizable quantity of cryptocurrency holdings so that it can be kept as a mortgage to get the money from such loans. And there are various cryptocurrency lending platforms offering loans against cryptocurrencies.

Visit Cryptocurrency Lending Platforms

Pro Crypto Invest is one of the leading cryptocurrency platforms offering a quick loan against your cryptocurrency. Here you can enjoy the various features while opting for the crypto loan facility with an unlimited number of benefits for the users as well as from the lenders.

PCI is allowing the crypto loan with quick disbursement and the highest credit amount. And to get the loan against cryptocurrency at PCI you just need to visit the website and apply for the loan. Once you applied for the loan the team of experts will evaluate the value of your cryptocurrency investment and decide the amount. And finally, the loan amount will be disbursed into your bank account.

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