Cryptocurrency has soared this year both around the world and in India, with millions of new investors joining. After this, some crypto exchanges have started lending crypto-based loans in India. These loans allow you to get money on behalf of your cryptocurrencies like Bitcoin without actually having to sell them. In this article, we will discuss what crypto-based loans are, their main features and platforms that lend crypto-based loans in India.
Related article | Simple steps to convert Bitcoin and other cryptocurrencies into cashCrypto Based Loan in India
Crypto-based loans give you a loan for the current value of your crypto without having to sell them. People who take these loans are called Borrowers and the process of taking a loan is called Borrowing.How Do Crypto Loans Work?
Your crypto assets can be used as collateral to get a money loan on their behalf. The amount borrowed and the interest rate depend on the value of your cryptocurrency. You can get about 50-60% of your total crypto holdings.
Your crypto will be locked for the duration of the loan. It cannot be traded or sold until you play it again, after which it will be unlocked and returned to you.Key features of crypto loans
This is a great option with high-quality cryptocurrencies. One can get a good value for their crypto and get a loan to use or invest in other places without having to sell their cryptocurrencies. Here are some key features of such loans:1. Chances of Winning
If you think that the value of your cryptocurrency will increase during the loan period, you will make a profit, but since the value of cryptocurrencies changes unpredictably, if the value falls, you will lose.2. Lower interest rate
Crypto loans generally have a lower annual interest rate of 12-15% compared to traditional loans which can go up to 24% with processing fees of 2-3%. This interest rate is determined by the community or the exchange platform based on the value of the crypto.3. Loan without KYC
Some Crypto exchange platforms allow you to get a loan without background checks or KYC. So you can easily get a loan based on the cryptocurrency holding companies that you want to borrow as security for the loan. This allows you to maintain anonymity and speed up the process.
Also read | Best Places to Buy Bitcoin Anonymously without KYCBest Crypto-Based Loan Platforms in India
Now that you have a clear understanding of crypto-based loans and how they work, let’s take a look at some of the best platforms through which you can get these loans. These platforms are listed in no particular order.CoinDCX
CoinDCX is one of the most well known and trusted crypto exchanges here in India and besides trading it also offers a large number of crypto related services. Among all of them are borrowing and borrowing. CoinDCX allows lending and borrowing in 12 different cryptocurrencies and it is a very reliable option to borrow.
For more information, please visit this page.
Related article | CoinDCX App: How to Use, Refer, Buy & Sell Crypto and Withdraw MoneyBinance
Binance is another big name in the list of top crypto exchanges. Like CoinDCX, it is reliable with the right support teams. Binance offers you loans for a number of different cryptocurrencies. It calculates your interest on an hourly basis and you can get a loan for up to 6 months. Check out their FAQ page for more information.cashaa
Cashaa is a UK-based platform that acts more as an exchange and digital bank for cryptocurrencies. It is slowly growing its user base in India and very recently launched an option that allows users to get a loan against their crypto assets. The best part is that it allows you to get a loan without any KYC, just based on the value of your crypto.
They also offer attractive options for users who open a savings account on Cashaa. You can visit the Cashaa website for more information.To block
There is a fundamental risk associated with crypto-based lending. But they are still a good opportunity to get loans with your inactive assets. We have discussed various aspects and platforms where you can get these loans and we hope you now have a clear idea and understanding of crypto based loans in India.
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