CoinRabbit is an excellent option for crypto enthusiasts who want to increase their knowledge about decentralized finance.
It facilitates loans between crypto investors by serving as a cryptocurrency lending platform. The borrower can use the loans for any type or spending, including crypto investing.
Borrowers need to be aware that loans can be cancelled. Investors need to be careful as they could lose their funds. CoinRabbit is able to help you save or borrow money.
What is CoinRabbit?
CoinRabbit, a crypto lending platform, facilitates crypto loans.
This company was established in 2020. It aims to make cryptocurrency work like a traditional currency for both borrowers and lenders.
This is the goal of the company. It provides a platform that allows lenders to earn interest while borrowers can borrow without losing collateral.
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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.
ChangeNow.io, the company’s exchange partner, and Guarda.com for asset protection services. CoinRabbit, the P2P forum’s “meat-and-potatoes”, is CoinRabbit.
Register for CoinRabbit
CoinRabbit differs from other cryptocurrency lending platforms. To apply for a loan or savings, you don’t need to create an account. Verify your contact information by sending an e-mail or calling the number.
Because CoinRabbit is easy to use, it’s simple to set up an account. It is possible to need to verify your identity as federal and state regulations for crypto lending platforms are being developed.
How does CoinRabbit’s crypto loan work?
CoinRabbit offers loans starting at $80 USDT to Bitcoin users and $30 USDT to those who use Ethereum or Bitcoin Cash. Contrary to other crypto loan providers, CoinRabbit does not have a maximum amount. The lender allows you to borrow as much or as little as you want, provided that you have collateral.
To be eligible, you must have a minimum of 50% loan-to-value (LTV). This means you will need to secure twice as much collateral than your loan. You will need $10,000 collateral if you are looking for a loan amounting to $5,000. Although the loan term is unlimited there are $100 prepayment charges to repay the loan within 30 days.
You will need to monitor the value of your collateral throughout the term in order to ensure it doesn’t fall below LTV margin.
Features
CoinRabbit Borrow
Let’s say you have 10 Ethereum Coins, which is approximately $35,000 at current rates. Although you don’t intend to sell Ethereum, you do know that Ethereum’s value will continue to increase.
You had to do something. An emergency will require you to spend $10,000. What are your options for an emergency fund? You could sell a part of your ETH portfolio to meet the demand. What happens if Ethereum’s price rises after you have sold a portion? Oof! It won’t be well. You can trust me.
CoinRabbit comes in to save the day. To get a loan, you can use your ETH. You can use the loan to purchase whatever you want. When you’re ready, you can repay the loan with interest and get your ETH back. It’s as easy as that!
How to borrow cryptocurrency
CoinRabbit makes it easy to obtain a loan. There are no credit checks. These steps will help you get started.
- Enter the amount of collateral you have. This will allow the system to calculate how much you are able to borrow. This is what we will discuss in detail in the article.
- You can confirm your decision by calling the number provided. You will receive the USDT or USDC payout address.
- Send your collateral to the following address
- You should receive the loan within ten minutes
- Spend!
CoinRabbit Earn
You have just sold a coin you’ve held for a while, and you made a good profit. Although you aren’t ready to convert to fiat yet, the stablecoin profit is there.
You don’t have to keep your stablecoin active in your account. Instead, you can use it on CoinRabbit to make a loan for borrowers. You will earn approximately 10% APY before you can use it. Plus, there’s more! There is no lockup period. You can withdraw at any time.
Fees
CoinRabbit claims there are no fees. This is false. Borrowers who borrow less than 30 days will be subject to a $100 fee or an equivalent token fee.
It could also take a cut of a loan’s profits. All loans have a 14% APR. Investors receive a 10% return on their coin. CoinRabbit cannot assume that there is a gap of less than 4%.
CoinRabbit claims it doesn’t charge withdrawal fees. Important to know that the terms and conditions of this crypto lending platform state that investors who withdraw funds in less than three months will lose accrued interest as well as have to pay all network fees.
How do I open a CoinRabbit account?
Loans and interest accounts can be opened on the CoinRabbit website in just minutes. CoinRabbit’s account authentication process is simple. Users do not need to open a traditional account. However, they must comply with Know Your Customer laws. Users will need only a phone number and a crypto adress to open an account.
Safety and Security
CoinRabbit, just like other crypto lending platforms, protects your collateral and deposits with a Guarda cold vault. It is therefore not connected to the Internet. Your private keys are kept in secure storage and can only be accessed via a VPN to a specific IP address. It claims private keys are renewed every month and that ChangeNow’s risk management system monitors your balance every second.
Hacking isn’t the only threat to your collateral. This platform doesn’t offer insurance on its wallet. Crypto savings accounts and loans are not FDIC-insured.
Although the lender may use security-focused language when negotiating a loan agreement, you will give the keys to your crypto to them at the end for safekeeping. If CoinRabbit, Guarda or any other lender goes out of business, you could lose your collateral.
Conclusion
CoinRabbit is a cryptocurrency lending platform. It’s one of the most popular crypto lending platforms. No credit checks or KYC are required for instant loans. Because of the low LTV, you have a high chance of staying above liquidation waters.
It isn’t regulated nor audited and is still relatively new to the market. If you are interested in crypto trading, I recommend that you start small.
