What is a Crypto Loan?
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Crypto loans allow you to borrow a lump sum of money in return for putting up your cryptocurrency assets as collateral. Lenders provide these loans through their platform with low-interest rates and no origination fees.
A crypto loan works much like a traditional line of credit — a borrower is approved for a loan, funds are deposited into their account, and they are assigned a repayment schedule with a monthly payment that covers the principal of the loan as well as interest, or just interest in the case of an interest-only loan.
In the case of a traditional loan, a physical asset such as a vehicle or a real estate property may be the collateral for the loan. With crypto loans, the borrower deposits their cryptocurrency assets as collateral.
The borrower still owns these assets, even while they’re being held as collateral, so if the market price of the assets appreciates, the borrower still benefits from that appreciation.
How do Crypto Loans Work?
Crypto-backed loans let you easily borrow cash using your Bitcoin or other crypto assets as collateral for your loan. This allows you to quickly access liquidity without needing to sell your crypto holdings, which can be tax advantageous for certain investors.
A handful of crypto lending platforms offer crypto loans with competitive interest rates, same-day funding, and limited to no credit checks. We compare each provider's rates, terms, and why you may want to use each to help you decide which crypto lender may be right for you.
When considering a crypto-backed loan, keep in mind that cryptocurrencies are volatile; if the crypto collateral's value falls below a certain threshold, you will need to post more collateral or risk having your existing collateral liquidated. Therefore, it's essential to carefully consider the loan-to-value ratio and keep it as low as possible to get the best interest rates and withstand market volatility.
What is the Loan-to-Value (LTV) Ratio?
LTV (%) = Loan Amount ÷ Value of Collateral.
A loan’s LTV (loan-to-value) ratio determines the amount of crypto collateral you need to post to take out a loan. This number only applies when you’re getting a collateralized loan. These types of loans require clients to give the lender an asset, in our case digital currency, to hold until their loan is paid off. Once the loan is paid off, you’ll receive the full collateral back.
Interest rates: Fixed
Min/Max loan size: No minimum or maximum. You can borrow any amount if you can post collateral and comply with the required risk ratio.
Why borrow with Adonis Network?
The platform supports borrowing for numerous types of cryptos.
Terms are flexible and borrowers can choose from terms that include 7, 14, 30, 90, or 180 days.
There are no early repayment penalties if you want to pay back what you borrowed before the term is up.
The borrowing fees are relatively low in comparison to other platforms.
o credit checks
If you have crypto, you have credit. We can move quickly and fund your loan within 24-48 hours.
Our support team is available via email during normal business hours
Payout in fiat or stablecoin
No bank? No problem. Stablecoin payouts and deposits make it easy for you to manage your loan outside of normal banking hours
Easily manage your loan outside of normal banking hours and stabilize your Loan-to-Value (LTV) at anytime
No hidden fees
We don’t charge origination or prepayment fees, so you can pay back as much of your loan as you want