For quite some time, banks have monopolized loan issues. On the other hand, by the time when cryptocurrency or block chain technology has gained prominence, people noticed that there’s a new alternative they can get. Now, it has become possible to acquire crypto loans on multiple p2p platforms online while using their cryptocurrency as the collateral.
Good Reasons to Consider Loans from Cryptocurrency
The question here is, why should you go against traditional Zebra loans and opt for this mushrooming option? In fact, there are many good reasons why and I am going to show you…
Reason #1: You do not sell your coins – oftentimes, to buy a car, house or just a pair of shoes, you’ll need cold cash. In this regard, you will be forced in selling your crypto and at times, do it at a low price. Rather, you simply need to acquire USDT loan with your digital currency and use it as collateral. Then after, pay it back when you have more crypto or perhaps, sell your digital currency for a higher price.
Reason #2: Liquidity – due to the fact that cryptocurrency backed loans are accessible worldwide, various p2p lending platforms were able to take advantage of higher liquidity compared to conventional banks. As a result, those who are interested to file for a loan can get a good deal easier and faster.
Reason #3. Get money when you need it – banks are known for its bureaucracy.
Normally, it is a nuisance but when you are having an emergency, it could be a matter of life and death situation.
With p2p lending platforms, it is removing middlemen from the equation. As a result, you can acquire loan faster without dealing with red tape.
Reason #4. It’s you who are setting the conditions – the beauty about p2p lending platforms is that, it enables the borrowers and lenders to agree on an individual loan offer and request. Thus, both parties get what they exactly want. It’s a win-win situation!
Reason #5: Security – p2p loan is secured when there’s a provided collateral. On the other hand, numerous platforms are setting LTV as well as margin call requirements in an effort to protect the borrower and lender. Having said that, if the price of collateral has gone up, the borrower can get some of their digital currency back on their digital wallet; however if it goes down, then the borrower will have to top up on their collateral.
