Cryptocurrencies are always innovating new opportunities for investors who can take full advantage of the many coin platforms in the market today. And with this innovation came the inception of crypto-backed quick loans.
Crypto-backed quick loans have given people a more convenient way of getting financial aid in times of crisis, emergencies, business construction, or anything that’s related to monetary issues. The advantage of loaning from these crypto-backed platforms is that you can still get access to cash and still be able to continue trading your coins.
In today’s market, we all know the good eggs from the rotten ones. There are countless scams out there that bait people in and we want to save you the hassle of not falling prey into these dreadful scams. Therefore, we’ve summarized the top 5 cryptocurrency-backed platforms for your quick loans.
This platform was founded way back in 2014 and is headquartered in San Francisco, California. Although they intend to help borrowers within the U.S., they have also expanded their business worldwide. This company has a good and easy system. Once you put up coins for lending, all the transactions and negotiations are handled by experts internally and quickly. If you want to lend from Poloniex, the mechanics are actually quite simple. Lenders deposit funds to their Poloniex portfolio like what traders do. Then the balances are transferred to a lending sub-account. Loan offers are then created for margin traders using the loan order book.
When looking for the perfect quick loan, interest rates and transaction fees are the first factors that people evaluate. BitLendingClub is a crypto-backed platform which offers the most competitive rates and the lowest transaction fees. The best part about this company is that they waive the lending fees until a loan is being paid off. This company also uses a Dutch auction-style lending which mainly gives borrowers the most efficient rates and offers lenders the most profitable return on investment. The entire borrowing process is also quite easy. At the time of writing, they verify social logins and government-issued IDs and that’s pretty much it.
This is a bitcoin lending platform that grant users to get Bitcoins through PayPal. PayPal has been a trusted digital money transfer service since it was established in 1998 and a lot of people actually use this for just about anything they do online. Therefore, XCoins is an advantage for those who want to maximize their PayPal account for their loan needs. XCoin’s loan origination fee is a 5 percent commission of the loan amount or maybe even higher, depending on the loan amount. When borrowers pay this amount, XCoin, in turn, does the following: Find borrowers by advertising in different sources, match lenders with borrowers, verify borrower’s identity, assess credit risk, review manual documents (if necessary), automate loan origination, and offer support through a friendly customer service staff.
This platform is headquartered in the United Kingdom. Although they utilize Bitcoin for their loans and payments, lending is only offered after reaching an eligibility level validated on their website. They use a point system that records loan history, creditworthiness, and other factors. Let’s say for example, when your rank increases, you can get more borrowing opportunities. In general, the first loan has a 30-day term. When a borrower proves himself and ups his rank, his second loan could have a longer term with a higher loan amount. It’s fair to say that the approval rate for this platform is extremely low.
The process for this crypto-backed quick loan is easy. However, the approval for these loans can take up to 14 days after a thorough credit check and financial evaluation. After the borrowers and lenders are matched, the loans are granted with terms between six weeks to five years. They have four easy steps that can land borrowers the loan they’ve been hoping for. First is to check the rates by submitting a short online application which is assessed by their managers. Next is you get the loan offer once everything is checked. Then the funds are deposited straight to your bank account.
If you have a cryptocurrency portfolio and have been running around like a headless chicken not knowing where to get a quick loan especially that the holidays are fast approaching, there’s no need to search anymore. These top 5 crypto-backed platforms for quick loans will definitely save the day.
Author Bio: Annah Brooks, a certified financial planner, author and blogger, enjoys sharing tips on personal finance, business and entrepreneurship. She is currently working for My Quick Loans, which offers fast loans online in the UK including Christmas loans, Payday loans, Late Night loans, Weekday loans, Student Short Term Payday loans and many more.