Crypto Loans: Is This Good Idea

[Mika]

Just like in the traditional market where you use your assets (stocks, property, gold, etc.) as a collateral for your loan, you can use your crypto as collateral to get crypto loan. This can be a good option if you have crypto assets and need money on a short-term basis but do not want to sell your crypto assets as the market is sluggish. Just like with other type of loan, you also need to be careful on repaying it. If you might not be able to pay back for a long time and if the market is still bearish, selling your assets for money instead of using your assets to get a loan can be a good idea.

 

[Vladv26]

You have to take in considerations the advantages that crypto loans give ( speed,accessibility, lower interests). Its much easier to get them because you don't need a credit history or ways to prove your income such as regular banks require. But also keep in mind that collateral can always drop in value and you might need to add some more to make sure it doesn't get liquidated, the same thing happens if you are late for repayment, you can easily lose your collateral.

 

[Micheal]

You have to take in considerations the advantages that crypto loans give ( speed,accessibility, lower interests). Its much easier to get them because you don't need a credit history or ways to prove your income such as regular banks require. But also keep in mind that collateral can always drop in value and you might need to add some more to make sure it doesn't get liquidated, the same thing happens if you are late for repayment, you can easily lose your collateral.

I prefer not to take crypto loan because of liquidation.

 

[Monster Masterpiece]

It doesn't work sometimes since many people get crypto loan to cash out it from platform which is not ideal idea and doesn't bother even they ban his account because he has money on pocket money.

 

[Spencer]

Yes, I think it's a great way to get loans, the positive side of this for example is that it's not only about crypto loans, it's about expanding the economy and making it more robust, any currency you can take loan from is robust and can be trusted, I know it's only a matter of time before crypto becomes a legal tender in most countries.

I don't know if there's any restriction in how you can spend your crypto loan and also the measure a company will take if a user default on their loan, do they seize their asset or what do they do exactly.