CoinLoan, a platform that allows you to earn, borrow and trade cryptocurrency, is all-in-one. It is a platform that allows you to manage all of your digital assets from one place.
There are many exciting opportunities available in crypto right now. Many popular crypto exchanges allow you to diversify your portfolio using digital assets. Additionally, you have the option to borrow money or earn passive income from your crypto.
What does CoinLoan do when compared to its competitors? And is it worth investing in crypto trading or lending? This review covers all the pricing details, pros and cons, so that you can make the best decision.
What is Crypto Lending?
Crypto lending is a general term that describes lending cryptocurrency to earn a yield or interest.
Why would companies want to borrow crypto? They typically lend it to other entities to obtain a higher yield, and to give you a percentage of the return.
This might sound risky and it is, but the returns are much higher than traditional bank accounts which offer 5% interest. Average interest rate on a bank account is just 0.01%-1.4%. The interest rates you can receive from crypto lenders are 300 times higher than those offered by traditional banks.
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78% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Trading forex or CFDs on margin involves a high degree of risk and may not be suitable for all investors. There is a possibility that you may suffer a loss equal to or greater than your entire investment.
CFDs are complex instruments and involve a high risk of losing money quickly because of the leverage effect. 68% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
They also keep huge reserves in reserve for the event of an unfortunate outcome. Yet, there are always risks like the recent Celsius bankruptcy.
CoinLoan Crypto Interest Account
There are many cryptocurrency interest accounts on today’s market. CoinLoan offers an interest account. To start earning interest daily, you can open an account free of cost. You can deposit any number of fiat and cryptocurrencies.
The platform currently supports 20 assets in its interest account. These include popular cryptos like Bitcoin, Cardano and more. You can also deposit Great British Pounds (Euros), and USD Coins to earn interest.
Most assets are currently paying 7.2% APY. This is much more than you’ll find with regular high-interest savings accounts.
Interest accrues in-kind, meaning you earn Cardano if you deposit Cardano. There is no minimum deposit amount and there are no maximums.
To earn the maximum interest rate on any asset you own, you must also purchase and stake CoinLoan tokens.
The native token of the platform is CLT, which can be purchased directly on CoinLoan’s website. Although CLT stakes don’t pay any interest, they can increase the interest rates on other assets in your cryptocurrency interest account. Here are the CLT Staking Tiers:
- 125 CLT – Increases interest rates by 0.1%
- 375 CLT – Increases interest rates by 0.3%
- 1,000 CLT – Increases the interest rate by 0.8%
- 1,250 CLT – Increases interest rate by 1 %
- 2,500 CLT – increases interest rate by 22%
CLT is currently $30. This means that you will need to spend at least $3,750 in order to begin earning slightly higher interest. CoinLoan interest rates are lower than most people might expect.
It is worth earning a base rate, of at least 5.2% APY on cryptos or 10.3% for fiat, than leaving your assets unused and idly by the sidelines.
You should also note that minimum deposit requirements can vary depending on which asset you are using. You will need to deposit a minimum of 0.005 BTC and 25 Euro in order to fund your account.
Crypto Loans and Borrowing
Borrowing money from traditional banks can be a lengthy and tedious process. CoinLoan allows you to obtain a loan by simply depositing your collateral. Once you sign up for the platform and have completed the Know your Customer process (which is required due the fiat currency aspect) you will be eligible to receive a loan based upon the amount of fiat money or cryptocurrency you deposit. You don’t have to pay any fees for deposit. The loan amount can not exceed 70% of the collateral. If you deposit $10,000, you can get a loan as high as $7,000.
There are three types available for loans: Crypto to-Fiat Loans; Crypto-to Cryptopto Loans; and Fiat-to Cryptopto Loans.
You will need to repay your loan, regardless of the type of loan. You will only have to make one repayment if you take out a short-term loan (7 days-1 months). A long-term loan (2 to 3 months) will require you to make monthly payments. You have the option of paying off the loan earlier if necessary. You will receive your collateral only after you have repaid your loan.
CoinLoan Risks and Returns
CoinLoan is a platform that allows you to fund loans backed with crypto-assets. The borrower will deposit cryptocurrencies as collateral to the account.
The maximum amount that the platform will accept is $70. LTV (loan-to-value) is 70%. CoinLoan can sell your collateral (cryptocurrencies) if the collateral value drops and the LTV goes above 90%.
Borrowers will be notified by margin call if the LTV changes because of market fluctuations in their crypto assets. However, borrowers can suffer significant losses if the price of the collateral drops quickly.
Borrowers always have the choice to repay the loan, or to deposit more cryptocurrency in order to maintain the LTV at maximum. 70%.
The collateral will be sold when the LTV is at 90%.
This crypto lending platform is supposed to offer you solid protection of your money.
The platform doesn’t have the highest returns when it comes to P2P platforms. Without staking the CoinLoan token, the annual yield on your BTC assets currently stands at 5.2%.
Low yields can be justified if your investment is secured by collateral. This is not true for many P2P lending sites which fund payday loans or unsecured consumer loans.
CoinLoan’s positive aspect is that the borrower must repay the loan at least half way through the loan term. Otherwise, the borrower will have to pay at most 50% of the interest. The opposite is true with other P2P lending platforms.
Crypto-backed Loans
To get cash, you don’t even need to sell your cryptocurrency. Additionally, crypto loans can be taken out without the need for credit checks or strict borrower requirements. If you have crypto you can use it to borrow.
CoinLoan allows you to borrow money by depositing collateral. The platform allows you to deposit cryptocurrency such as Bitcoin or Ethereum. There you can enter your loan amount, asset, loan period and loan-to-value ratio.
Minimum loan term is 1 month, but you have the option to choose between 36 and 36 months. There are five LTV ratios: 20%, 30%, 50%, 70% and 50%. A lower LTV will require less collateral, but this will increase the interest rate.
CoinLoan can still be affordable, even with loan origination fees and interest. You could, for example, deposit 0.138 bitcoin if you have BTC and get a loan of 1,059.5 euros.
Again, you can adjust your LTV ratio so that you need to deposit less BTC to get loans. This helps borrowers get access to fiat and cryptocurrency faster without needing to fill out paperwork or deal with strict lenders.
You can also repay loans at any time. To get loans, you cannot use cryptocurrency from an interest account as collateral. However, you can withdraw crypto without incurring fees from your interest account to be able to borrow.
Also, note that 50% off your loan fees can be paid with CLT tokens.
Liquidity
Is it possible to withdraw your investments in as little as a week?
CoinLoan has a 7-day processing time for withdrawal requests. However, support informed us that requests are usually processed within 24 hours of you requesting to close your Interest Account to send funds back to your hardware wallet
We don’t have information on any other users that may have reported discrepancies about withdrawing assets from CoinLoan.
CoinLoan Fees
CoinLoan does not charge fees for withdrawals. It also offers free deposits. You can use the platform to create interest, but you don’t have to worry about paying fees.
CoinLoan has a range of fees associated with its loan and trading services.
- Loan Currency: Borrowing Fees are 1% off the principal amount.
- Liquidation Fees: 7 % of the collateral.
If you pay borrowing fees with CLT tokens, you can get a 50% discount.
CoinLoan also charges network fees for trading. These fees are not avoidable and can be charged by exchanges such as Kraken and Coinbase. They cover the costs of moving assets on the blockchain.
Transaction fees vary depending on which payment method you use to buy crypto. This will vary depending on where you live and what your bank is. Before placing a trade on CoinLoan, make sure you check the exchange rate displayed on your order screen.
Opening a CoinLoan Account
Sign up for CoinLoan using your email and password. To unlock all features, verify your email using a verification code.
KYC requirements require you to enter your name and address as well as your phone number. The cryptocurrency lending platform also requires that you upload a government-issued identification such as a passport or driver’s license, and a selfie.
It only takes a few moments. CoinLoan works worldwide. However, it warns that certain countries are not eligible due to risks and you must verify KYC to confirm if your country has been supported.
CoinLoan Security
Everything is secured because CoinLoan loans are secured loans. They are also holders of a variety of regulatory licenses, including certificates from FinCEN MSB Register, FATCA FFI Registry, MTR Virtual currency Wallet Service License and an MTR Financial Institution License. You will also find the 3 European Financial License numbers at bottom of every page.
Conclusion
With companies such as BlockFi, Celsius and Hodlnaut dominating the crypto lending industry, it is quite crowded. CoinLoan, despite the competition, is still one of the most trusted lending options.
If you are willing to purchase and stake CLT tokens the interest rates will be very competitive. The platform also offers higher interest rates on certain cryptos and fiat currencies, even without stacking bonuses. Signing up for CoinLoan takes just minutes and there are no fees.
Celsius has more options for asset support. Celsius charges lower loan fees. You can still use multiple lending platforms to get the best rates and terms for certain cryptos.
