Loans

Loans mean that you can borrow cryptocurrency at interest by providing collateral in another cryptocurrency.

When can this be useful? It's convenient when you have an asset you don't want to exchange for another, but you need access to a different asset for a certain period of time.

Example 1: You have Bitcoin, but you urgently need USDT stablecoin because you don't have any cash dollars (your salary hasn't arrived) to buy a laptop, and you don't want to sell your BTC. In this case, you can provide BTC as collateral, receive USDT in return, buy the laptop, and when your salary arrives, you repay the USDT with interest and get your BTC back.

Example 2: You have BNB, but you want to speculate on the spot market using BTC without actually buying it. You deposit BNB as collateral, receive BTC, and now you can trade BTC on the spot market or use it for other personal purposes. To get your BNB back, you need to return the borrowed BTC with interest.

Benefits of Crypto Loans

• No need for selling: Borrowers can borrow money without selling their cryptocurrency.

• Flexibility: Crypto loans can be done in multiple currencies and assets, providing borrowers with choice.

• Accessibility: The loans are available worldwide and can be easier to obtain than traditional loans because they don’t require a credit check.

Risks of Crypto Loans

• Market fluctuation: Decreases in market value might cause a substantial decline in collateral values, resulting in liquidation.

• Overcollateralization: Borrowers must lock up significant amounts of assets to obtain small loans.

Cryptobörsen, die Kredite unterstützen

• OKX (OKX is user-focused first and foremost. They relied on maximum convenience and speed of the exchange, and OKX does this very well. In addition, OKX has its own and very convenient decentralized wallet to store tokens securely.).

• Kucoin (Popular exchange, operating since 2017. In our opinion, Kucoin is the crypto exchange with the most user-friendly user interface we have ever seen.).

• CoinEx (The CoinEx cryptocurrency exchange was founded in Hong Kong in 2017. Today, it serves over 10 million users worldwide, which speaks to its reliability and popularity.).

• XT.com (XT.com was founded in 2018 and operates worldwide, but is especially popular in Asia. XT is not just a cryptocurrency exchange where you can trade cryptocurrencies, but an entire ecosystem for trading, earning, and borrowing cryptocurrency.).

How to Get Started with Crypto Loans 1. **Choose a platform:** Select a reliable exchange or DeFi platform that allows you to borrow cryptocurrency. 2. **Confirm your identity:** Complete KYC verification if necessary. 3. **Deposit collateral:** Deposit the currency you want to use as collateral in your account. 4. **Apply for a loan:** Specify the amount, collateral, and terms of repayment. 5. **Get paid:** Once approved, funds will be transferred directly to your wallet. 6. **Monitor Collateral Ratio:** Keep an eye on the collateral-to-loan ratio to avoid liquidation. Crypto loans are revolutionizing the financial landscape by offering a decentralized, efficient, and flexible way to borrow and lend assets. While crypto loans have distinct advantages, users need to weigh risks such as market changes and potential liquidation. Ultimately, it’s a great and transparent tool that can be helpful in many life situations—just use it wisely.