It is clear that cryptocurrencies are becoming an integral part of our day to day financial environment. Developments such as crypto loans are helping in this regard.
Potentials and benefits of crypto loans
Experts have long predicted the potential for cryptocurrencies to establish themselves to such a level that they will be viewed as equal, if not superior, to traditional banking methods.
In order for this to truly come to fruition, developments will still be needed to be made. One such development is the relatively recent availability of a cryptocurrency loan.
In essence, they are exactly what you think they are. A crypto loan allows you to borrow money while using your crypto assets as collateral. While they are similar to traditional loans in their objective, they are different in that you don’t have to access them through a bank.
And just as cryptocurrencies have benefits over traditional currencies, crypto loans come with their own unique advantages too. This article has been put together in order to show you the top four benefits of crypto loans. So, let’s get started…
Crypto Loans are accessible
For those of you who have ever tried to get a loan from a traditional bank, you will be more than aware that it can prove to be an incredibly frustrating and time consuming process.
This here outlines one of the biggest benefits of a crypto loan. As a result of not having to go through a traditional bank in order to get one, you don’t need to provide identity numbers, proof of employment, bank statements and/or credit scores.
This means that crypto loans are more available and easier to access than traditional loans, a fact which could see crypto lending prove to be the favoured option by a large proportion of the people.
Approved within 24 hours
Once again, when compared to traditional banks, crypto loans are approved much faster. Where a traditional bank loan can take several working days to be processed, a crypto loan will be approved within 24 hours, giving you the freedom to access a loan when and where you want.
Based on the fact that we are now living in the digital age, the speed of such a service has become of vital importance.
Even when you are able to get a loan from a traditional bank, the terms and conditions are strictly determined by the bank itself. However, when it comes to a crypto loan, you are in control.
You can choose the length of the loan and which currency you would like the loan to be paid out in. Furthermore, some crypto lending platforms do not require you to pay a minimum monthly payment, giving you greater autonomy over your long-term repayment plan.
You are able to get a crypto loan that has a fixed interest rate, which gives you protection against the dangers of fluctuating interest rates. When getting a loan from a traditional bank, many people find themselves in an extremely difficult financial situation when after entering a loan contract with a low-interest rate, the interest rate suddenly explodes and they are faced with much higher fees.
Furthermore, the exchange rates are much lower than with traditional loans so you can use the money exactly how you want without the fear of getting less than you deserve.
The Bottom Line
Based on the aforementioned benefits, cryptocurrencies are now beginning to widen their appeal to the general public, and look set to challenge traditional banks on all fronts in the coming years. If ever anyone had concerns about the potential of cryptocurrencies, it is abundantly evident that they are being resolved with each passing day.
*This article has been paid. The Cryptonomist didn’t write the article nor has tested the platform.