In this post, we are going to break down everything you need to know about instant Ethereum loans. What they are. Why they’re important, how to take one quickly?
What are Instant Ethereum Loans?
Instant Ethereum loans are crypto-collateralized loans that you can get by keeping your Ethereum as collateral. Through these kinds of loans, Ethereum investors can hold onto their Ethereum and receive borrowed crypto assets against their holdings.
Why take Ethereum loan?
Many Ethereum holders tend to stock on their holdings while it remains idle or in little use for long periods. Some of those optimists are even going through liquidity issues because their capital is caught in Ethereum. These investors can now borrow against their existing holdings. An instant crypto loan allows ETH holders the liquidity they need, while not having to sell their Ethereum position.
You can get these cash loans without going through rigorous KYC checks or credit history audits. The only requirement is, you need to have sufficient Ethereum to keep as collateral.
Keep the upside potential of Ethereum
Investors now have the ability to offer their Ethereum up as collateral for an Ethereum loan. By retaining Ethereum, investors do not risk losing any of the upside potentials in the long term. An Ethereum loan could help in securing a larger portfolio net worth in the current state of the crypto market.
Where and how to take instant Ethereum loans?
There are quite some crypto lending programs which have begun giving crypto-backed loans to crypto holders. Luckily, Ethereum is well-known, and a few lending players are accepting it as collateral to loan EUR or USD.
Nexo is probably the most reliable crypto lending service that gives loans for Ethereum. After signup, you can immediately deposit Ethereum into Nexo wallet. Once you deposit, your credit is ready in your preferred fiat or stablecoin currency as per the agreed LTV ratio.
The loan limit is decided by algorithms, relying on the historical and current market liquidity and volatility of the specific assets. This changes from 20% to 50%.
For example, if you deposit $1,000 well worth of ETH, you’ll be capable of withdrawing an immediate loan of about $500.
Spend money instantly with their debit card or withdraw to a bank account at any time. Pay 16% per year only on what you use. They were the first to introduce instant crypto-backed lending, SEC-approved custodianship, and military grade-security.
You can apply for a loan instantly here if you own Ethereum, Bitcoin or some stablecoins and get a decision within hours. Send your crypto to their secure storage address, and they will transfer the money straight into your bank account.
It is easy to get money without having to sell your investment as Salt lets you leverage your blockchain assets to secure cash loans. Get instant cash loans backed by ETH, BTC, and LTC, or even a combination of the three. Terms ranging from 3 to 36 months, rates as low as 5.99% APR and up to 70% LTV.
Lendabit offers you advanced collateral risk management along with high security granted by blockchain technology. Use your crypto assets to receive USDT online currency (you can change it for cash or other cryptos on online trading platforms). Since they are new, we are still reviewing them, but we already like the fact that the platform offers 300 USDT instant loans with no verification.
This platform has some unique features you can not find anywhere else. For example, they offer interest-only repayments as an alternative option to the conventional principal plus interest (annuity) repayments. Loans can last from 7 days to 3 years; a borrower can withdraw excess collateral from the overcollateralized existing loan.
Take out cash or stablecoin loan against your ETH, BTC, XRP and other cryptocurrencies at the lowest interest rates. Celsius guarantees the lowest interest rate on instant Ethereum loans, with no termination fees, no prepayment fees, no transaction fees. They offer three options depending on the amount you’d like to borrow.
You can get immediate access to fiat, since you can use your ETH or BTC as collateral to get a loan (get up to 56% of your crypto value in USD). For instant loans in fiat currency you must pass verification. You don’t need to pass verification procedure for loans in cryptocurrencies. They also offer a cryptocurrency prepaid debit card.
A lending platform accepts ETH, BTC, and BCH as collateral currencies. You can get 30-50% of a coin value in a stablecoin of your choice. There is a 10.000$ limit, and the interest rate stands at 0.2% daily or 6% per month. They work on accepting other collateral and loan currencies, including fiat currencies (USD, EUR, JPY, CNY, KRW). Warning: you can deposit your collateral without verification, but you must verify your account if you want to withdraw your funds.
Get blockchain-backed loans. Kambo wants you to keep your investment, increase your long-term position, and have cash on hand too. You can use Bitcoin or Ether as collateral and get an instant loan. Receive 50% of your blockchain asset’s market value into your bank account. Additional credit is immediately available to you upon the appreciation of your cryptocurrencies. Kambo loans do not have a prepayment penalty. You can repay your loan anytime you would like.
The world’s leading cryptocurrency exchange Binance launched a lending business for customer deposits. It initially supports tether (USDT), Binance Coin (BNB), and Ethereum Classic (ETC), but not Ethereum yet. More Binance Lending products would be released soon.
In theory, you can now instantly secure a loan in crypto credit with MCO, XRP, BTC, and ETH and enjoy as low as 8% APR on your credit. Much advertised Crypto.com is not a good option. Our experience is that they lost our initial Ethereum deposit. When we contacted the support, we got our ETH back, but they explained that they do not offer smart contracts yet. Well, it is not 2012 anymore.
How to earn passive income by lending Ethereum
If you do not need a loan, but would like to make some interest on your ETH holdings, you might want to check some of the mentioned loan platforms. Most of them offer crypto interest accounts that daily pays interest on your coins. Put your money to work and get an expected 3-8% return on your investments. Check BlockFi (3.3% APY), Celsius (3% APY) and Nebeus (up to 8.45%) first.
Why Ethereum (ETH)?
Ethereum is a high potential blockchain venture. It desires to be the world’s computer. Furthermore, primarily based on the brand new technology of blockchain, it is already in uncharted territories. Its blockchain can host ERC20 tokens which in itself have emerged as another huge opportunity inside the crypto sphere.
It is the second most valuable cryptocurrency in terms of market capitalization. Due to its popularity as the second most widely held cryptocurrency only to bitcoin, Ethereum has a vast range of holders around the globe.
Ethereum is not without problems. It is facing intense challenges in scaling its blockchain and looking for ways to remain viable for its users and developers alike. Because of this uncertainty, many traders have sold their ETH some months back. However, there are optimists and contrarians among those traders who don’t wish to part away with their coins.
- If you are a person who wants to take a loan in opposition to bitcoin, read this guide on bitcoin loans.
- ETHLend is a decentralised lending service that uses Ethereum tokens as collateral.
- Not enough ETH? Buy them or mine them!
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