Copyright © 2022 SmartFi, a DBA of Power Block Coin LLC. All rights reserved. December 2, 2022 Crypto Lending Industry Contrary to what some would have you believe the crypto lending industry is alive and well. “It’s extremely easy to apply for a loan. The platform is simple. It’s clean, and there’s not a lot of jargon to comb through, which makes it significantly easier to go through the loan process.” Our custody process and custody partners, like Fireblocks, require multi-user authorization, meaning that access to your assets never hinges on one individual.
Additionally, it has a multisig collaborative custody model, which gives borrowers more transparency into their assets and increases security. The platform has processed over $130b over five years and serves more than 5m users. Nexo’s LTV rates are typically slightly higher than average CeFi loan providers. Borrow rates cap out at 13.9%, while on the lending side, you can make up to 17% APR.
The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners. Crypto lenders typically have quick turnaround times; you may hear back immediately and receive your funds within 24 hours. Apply through the app All retail loans are issued by Celsius Lending, LLC. Subject to Celsius’ Term of Use and the terms of the applicable loan agreement. Rates effective for new loans requested as of May 2,2022. Check your Celsius mobile app to see if you live in an area where such loans are offered.
Introducing USDC on NFTfi
However, the safest borrow cryptos are found at the lowest LTV (15% to 35%) because price changes can cause a liquidation if the LTV increases with falling prices. In 2022, two prominent crypto platforms, Celsius and BlockFi, filed for bankruptcy protection following the fallout from the Terra Luna collapse. We learned the industry is deeply interconnected, and one company’s hardships can create ripple effects or even tidal waves elsewhere. Crypto assets put up as collateral are still owned by the borrower, so you continue to benefit if the price of the collateral appreciates. Borrowers are not taxed on their loan proceeds, which is especially useful to those with large unrealized gains in their cryptocurrency portfolio. Download the BlockFi app to manage your crypto portfolio and get access to financial tools wherever and whenever you need them.
All core and periphery smart contracts have been double-audited by ChainSecurity & Halborn. The NFTfi dApp runs on Ethereum and is non-custodial, decentralized, and permissionless. Once you realize that you can get money from your “illiquid” NFT and still keep it, it’s a no-brainer. Being able to fix the terms directly with the other party is the best part. Bitcoin, and crypto markets in general, have been acting all grown up over the last few months. Borrow from as little as 7% interest rate and up to 70% LTV backed by ETH collateral.
- Once you top up, you will be able to borrow immediately with no credit checks.
- When you own crypto, what you really own is a private key that gives you access to your coins.
- Swap 500+ market pairs via Nexo’s Crypto Exchange with zero fees and no price fluctuations.
- As such, many services and features are not available at this time.
- Receiving cash against a cryptocurrency deposit as collateral is not treated as a taxable event and is similar to taking out a home equity line of credit.
We have determined a careful risk-assessed loan to value for cryptocurrency assets posted as collateral for loans. Our risk-based assessments allow for significant movements in the value of crypto-assets, before any triggering event can occur. The current LTV varies from 30% to 60% and depends on the selected currencies. In the event of this changing, we would notify all loan holders, and current loan applicants immediately, to agree a plan of action, for adjusting all LTV ratios. You will be charged a liquidation fee if there is a liquidation.
More Ways to Get the Best Out of Nexo
Nexo provides you with tools to monitor your credit line health and preserve the value of your collateral even in a market downturn. Choose from 60+ collateral options and 40+ fiat currencies and stablecoins to borrow in. To learn more about the benefits of our Instant Crypto Credit Lines compared to traditional loans, click here. Pay off your balance partially or fully when you want with no fixed payment schedule. Borrow without selling your crypto at rates starting from 0% APR.
Crypto Tax Software
Interest-only loans are typically more expensive than interest and principal loans, as the risk of default tends to be higher. And, because you are not gradually paying down the principal with an interest-only loan, your LTV will typically stay higher . The platform supports borrowing for numerous types of cryptos. You’ll need to connect a wallet to transfer collateral or give the lender access to your collateral.