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Bored Ape Crypto Club
Guest
The crypto world has long had tools similar to regular loans, but with one difference - they work without intermediaries, directly through the blockchain.
Loans allow you to receive free liquidity without having to sell your assets.
Why borrow cryptocurrency?
Preservation of assets.
Don't want to sell your tokens on the bull market, because everything is growing by the hour? Loans will help you get money secured by your tokens.
Reserve for unexpected expenses.
Sometimes there are cases of unforeseen expenses, in which case a crypto loan can also be considered as one of the options.
Trading with leverage.
Using borrowed funds, you can increase trading volumes.
Tax optimization.
In some countries, the sale of crypto is taxed, but loans are not.
How does it work?
Put your crypto as collateral on the chosen platform and get a loan (usually you need to put in more than the loan amount).
The loan accrues interest that must be paid.
Be sure to monitor the collateral if it is not in stables. If the price drops, the platform can sell it (liquidation).
Repay the entire amount of the debt with interest and take the collateral.
There are different platforms that carry out the borrowing procedure:
DeFi: Aave;
Exchanges: Binance Loans;
P2P: YouHodler.
Loans allow you to receive free liquidity without having to sell your assets.
Why borrow cryptocurrency?
Preservation of assets.Don't want to sell your tokens on the bull market, because everything is growing by the hour? Loans will help you get money secured by your tokens.
Reserve for unexpected expenses.Sometimes there are cases of unforeseen expenses, in which case a crypto loan can also be considered as one of the options.
Trading with leverage.Using borrowed funds, you can increase trading volumes.
Tax optimization.In some countries, the sale of crypto is taxed, but loans are not.
How does it work?
Put your crypto as collateral on the chosen platform and get a loan (usually you need to put in more than the loan amount). The loan accrues interest that must be paid. Be sure to monitor the collateral if it is not in stables. If the price drops, the platform can sell it (liquidation). Repay the entire amount of the debt with interest and take the collateral.There are different platforms that carry out the borrowing procedure:
DeFi: Aave; Exchanges: Binance Loans; P2P: YouHodler.