What do you think of collateralized crypto loans?

[CryptoMaster 95]

I've been following some projects enabling users to require loans against their crypto holdings. A couple of them are NEXO and Bankera, also BTCpop is a BTC lending service existing since many years. What I find useless in these services, is that you have to double the amount you need to borrow, but to get it back you need to repay the loan with fresh money. Wouldn't it be easier if I could repay the loan + interests straight from the collateral? What are your thoughts?

[BullRunBit 2773]

9 hours ago, CryptoMaster said:

I've been following some projects enabling users to require loans against their crypto holdings. A couple of them are NEXO and Bankera, also BTCpop is a BTC lending service existing since many years. What I find useless in these services, is that you have to double the amount you need to borrow, but to get it back you need to repay the loan with fresh money. Wouldn't it be easier if I could repay the loan + interests straight from the collateral? What are your thoughts?

- On bitcoin talk collateral can be your account on forum or some altcoins

- On lending websites, you must to send some document (like a KYC) 

And inerest can be from 0.1% till 1% daily or monthly or weekly, all depends on agreement.

[CryptoMaster 95]

1 hour ago, BullRunBit said:

- On bitcoin talk collateral can be your account on forum or some altcoins

- On lending websites, you must to send some document (like a KYC) 

And inerest can be from 0.1% till 1% daily or monthly or weekly, all depends on agreement.

Yes in this case I was talking about lending websites. For example, I get that you deposit 1000$ worth of cryptos to get a 500$ loan, but I find it absurd that I need to then send another 500$ + interests to get back my 1000$... 
It would have more sense if I could just detract the 500$ + interests from my collateral and then get what remains of my collateral back.

[BullRunBit 2773]

9 hours ago, CryptoMaster said:

Yes in this case I was talking about lending websites. For example, I get that you deposit 1000$ worth of cryptos to get a 500$ loan, but I find it absurd that I need to then send another 500$ + interests to get back my 1000$... 
It would have more sense if I could just detract the 500$ + interests from my collateral and then get what remains of my collateral back.

I dont see logic here, you send 1000$ like collateral to get 500$ loan? 😀

Which site is that? 😀

Collateral can be only like amount which you want to borrow, can not be higher.

[CryptoMaster 95]

6 minutes ago, BullRunBit said:

I dont see logic here, you send 1000$ like collateral to get 500$ loan? 😀

Which site is that? 😀

Collateral can be only like amount which you want to borrow, can not be higher.

I'm not joking, for example the most used one is NEXO platform, https://platform.nexo.io where you can ask instant loans by locking cryptos as collateral. That's just for BTC and ETH, for istance if you lock 1000$ worth of XRP or LTC you can ask up to 300 or 400$ 😂 Then you have 2 years to repay those money and (maybe) you will get your initial 1000$ back LOL

[BullRunBit 2773]

9 hours ago, CryptoMaster said:

I'm not joking, for example the most used one is NEXO platform, https://platform.nexo.io where you can ask instant loans by locking cryptos as collateral. That's just for BTC and ETH, for istance if you lock 1000$ worth of XRP or LTC you can ask up to 300 or 400$ 😂 Then you have 2 years to repay those money and (maybe) you will get your initial 1000$ back LOL

Still I dont see logic. 😀

If you have 1000$ to lock up on that site, why you need loan of 300$/400$? 😀

Only I can understand if they give you some interest on that 1000$ monthly or yearly.

[CryptoMaster 95]

2 hours ago, BullRunBit said:

Still I dont see logic. 😀

If you have 1000$ to lock up on that site, why you need loan of 300$/400$? 😀

Only I can understand if they give you some interest on that 1000$ monthly or yearly.

The use case for that is if you want to hold your coins but need cash, you ask a loan against your cryptos instead of cash out, similiar to a pawn shop. 
 

I also don't see much logic in that, I usually just cash out what I need for my current expenses.

[BullRunBit 2773]

18 hours ago, CryptoMaster said:

The use case for that is if you want to hold your coins but need cash, you ask a loan against your cryptos instead of cash out, similiar to a pawn shop. 
 

I also don't see much logic in that, I usually just cash out what I need for my current expenses.

Oh I understand now, you send cryptocurrency like collateral and if you need loan you get but in fiat.

Yes there some logic if is like I write above, but one more question do you pay some interest on fiat when you pay back loan?

I understand that you must to pay back fiat to get your crypto back but do you pay some extra interest on fiat when you pay back?

[CryptoMaster 95]

41 minutes ago, BullRunBit said:

Oh I understand now, you send cryptocurrency like collateral and if you need loan you get but in fiat.

Yes there some logic if is like I write above, but one more question do you pay some interest on fiat when you pay back loan?

I understand that you must to pay back fiat to get your crypto back but do you pay some extra interest on fiat when you pay back?

Exactly, they ask around 16% yearly as interest, to repay in fiat together with the initial loan. I suppose only people with too much cryptos and few ways to cash out are using those services. 

 

 

45 minutes ago, Sakkievt said:

I would not make a loan against my crypto as the value of your crypto could easily fall well below tye value of your loan.its not worth the risk

Yes that's a big risk, also coupled with the fact that you can't be sure after repaying your loan these services give your collateral back.

[CryptoMaster 95]

2 minutes ago, lovesybitz said:

would you if I ask the site of lending site you are talking about mate? Because I think it will be too risky if you continue to file a loan to this lending site company. Be careful dude, and think twice before you do it. 

Thanks for your thought, I really appreciate it. No I'm never going to use those services, the most used on is the Nexo Platform, for what I've read. I was just curious to know if someone really find them useful, because I don't 🤣

[Mohs3n71 0]

On 10/6/2019 at 11:27 AM, CryptoMaster said:

Thanks for your thought, I really appreciate it. No I'm never going to use those services, the most used on is the Nexo Platform, for what I've read. I was just curious to know if someone really find them useful, because I don't 🤣

I don'tt see a point in using them too, I don't understand why some should do this while they can cash out their own money

[CryptoMaster 95]

6 hours ago, Mohs3n71 said:

I don'tt see a point in using them too, I don't understand why some should do this while they can cash out their own money

I think in the end it's mainly a service for whales and big customers. For example Brock Pierce bought an house worth 1 million. If he want to exchange his 1 million in BTC he will need to pay taxes on it, instead he locked 2 millions worth of BTC and received 1 million in FIAT tax-free. Of course being a crypto millionaire (or billionaire) you don't have big troubles repaying it in the next 2 years, and you avoid being forced to pay taxes on your cash out. 
For small fishes the sevice is indeed useless!

[duncun007 3577]

On 10/5/2019 at 7:54 PM, CryptoMaster said:

I've been following some projects enabling users to require loans against their crypto holdings. A couple of them are NEXO and Bankera, also BTCpop is a BTC lending service existing since many years. What I find useless in these services, is that you have to double the amount you need to borrow, but to get it back you need to repay the loan with fresh money. Wouldn't it be easier if I could repay the loan + interests straight from the collateral? What are your thoughts?

i think loans in crypto in general is a bad idea because with this severely volatile market we can never be sure what the prices will be like when taking the loans and how will it be while paying it back.

[bean 515]

I the collateralize crypto loans are good to me, if you are a great trader and you have analyze and predict a movement on the market but lack the necessary crypto assets, these crypto loaners can be of a great help and the collateral is good just incase you may a bad call, the crypto market is highly volatile.

[andrehol 16294]

Of course, different laws are different in different countries, but I don’t understand why a person who has a cryptocurrency should pay% for a loan? is it not better to exchange part of the crypto for cash?

[littledi059 1010]

It is a service for people who don't have any other hope. For example banks don't give them money and also it is a new instrument for traders

[Sumayya 493]

They had been helpful i also took on of them from the nexo platform.they help me a lot

They had been helpful i also took on of them from the nexo platform.they help me a lot

[febriyana 934]

That is normal condition where you need a loan you give your crypto as collateral. Not all coin is accepted, they will take some from top coin.

For me the loan is really high interest. I ever see in Bitcointalk the interest is 1% per day. Oh my god if i using my loan for business i will bankrupt in one day. For using it in trading that is crazy... you maybe lose because the price coin you trading going down. So what the purpose take a loan with high interest also short time. For purchasing goods or something i think not profitable.

I also not interested loan in Nexo and other sites, need lock our crypto to get crypto no sense.

[soupster 239]

On 10/5/2019 at 7:54 PM, CryptoMaster said:

I've been following some projects enabling users to require loans against their crypto holdings. A couple of them are NEXO and Bankera, also BTCpop is a BTC lending service existing since many years. What I find useless in these services, is that you have to double the amount you need to borrow, but to get it back you need to repay the loan with fresh money. Wouldn't it be easier if I could repay the loan + interests straight from the collateral? What are your thoughts?

i dont see the need to use those collateral loan services. I rather use my own money than loaning. The only use i could think of those site is to earn by lending and not for borrowing.

[Akbor 1042]

Yes this is a good way to take loans for holding crypto but there are some fake sites who want to scam with people. they give the guarantee for safety of your crypto but they steal it.

[Cryptominded 704]

12 hours ago, febriyana said:

That is normal condition where you need a loan you give your crypto as collateral. Not all coin is accepted, they will take some from top coin.

For me the loan is really high interest. I ever see in Bitcointalk the interest is 1% per day. Oh my god if i using my loan for business i will bankrupt in one day. For using it in trading that is crazy... you maybe lose because the price coin you trading going down. So what the purpose take a loan with high interest also short time. For purchasing goods or something i think not profitable.

I also not interested loan in Nexo and other sites, need lock our crypto to get crypto no sense.

It makes sense if you feel strong that the value of your coins is going to appreciate, so the collateralized coins are secured and reserved for you though at a prize. To sell them outright means losing out on any possible gain from price appreciation.

[bliznec 22267]

I think that today you should not take loans, and even more so if you give them in cash. I never took loans in cryptocurrency.

[tienda 8776]

For those who have a little of trade knowledge and those with a good trade level and experience in trading they are not need to use loans to get profit or maybe no! because the the volatility price.

[Nurul Huda 944]

On 12/13/2019 at 1:21 AM, Wish107.5 said:

I will lend my bitcoin if the borrower are have collateral,  so that I can safely recover my profit and also my money that I lend and I think nexus are good on this.  

Genius thinking and it is very suitable for developing your profit more and more by lending you bitcoin even more money you get, especially something like that will be far from hackers and you will not experience losses if your bitcoin is lent.

[SyntaxEr. 709]

On 12/15/2019 at 3:58 AM, bliznec said:

I think that today you should not take loans, and even more so if you give them in cash. I never took loans in cryptocurrency.

Most of the users that making a loan is those swing traders who see an opportunity to make a profit in one trade because the interest in lending is not that really high so if you are a good trader you can make profit without using your own money as long as you can give some collateral to your loans.