Delta Asia Capital: How do Cryptocurrency Loans Work?
Cryptocurrencies can be looked at as a unique Digital Asset. And similar to other assets, like a stock, house or car, your cryptocurrency can serve as collateral for loans. Several new lenders provide crypto loans, which are secured by your current crypto holdings. You are required to hold crypto before considering getting a loan as an option.
The benefits to these loans are access to funds for business funding, low interest rates, fast processing and funding and no credit checks. A crypto loan can be a Business Lifeline if you are requiring urgent business capital, but don’t want to sell out of your crypto.
What is a crypto loan?
A crypto loan is a type of secured loan in which your crypto holdings are used as collateral in exchange for liquidity from a lender. As long as you make your payments and pay the loan amount in full, you get your crypto back at the end of the loan term.
Typically, the crypto loan amount is a loan-to-value, or LTV, percentage of the cryptocurrency you are pledging as collateral. You can borrow up to 90% of your crypto’s value with a lender Delta Asia Capital Limited, Hong Kong. We accept as many as 40 different cryptocurrencies as collateral, with Bitcoin, Ethereum and USDT being the most popular. Loan terms can be anywhere from 1 year to 10years or more with low interest rates.
Crypto loans are attractive for holders who believe their crypto assets’ long-term value will increase, but need cash for purchases in the present.
What can a crypto loan be used for?
A crypto loan can be used at your discretion, often without any restrictions from the lender, similar to a personal loan. The cash from the loan can be used for project finance, purchases, refinancing or business start-ups.
A crypto loan can only be approved if an applicant holds a substantial amount of crypto and wants liquidity without having to sell.
Advantages of Crypto Loans
- No credit checks.
- Fast approval and funding.
- Doesn’t require selling out of crypto holdings.
- Loan terms can be from 1yrs to up to 10yrs.
- Low interest rates.
- A crypto loan can be used for almost any purpose.
How do Borrower get a Crypto Loan?
To get a crypto loan, you must own any of the cryptocurrencies that are accepted for loans. Check with us on which coins are accepted prior to submitting application.
We have our own application process, so read the eligibility requirements and terms and conditions carefully.
To complete your loan application, submit your request with the necessary information. Delta Asia Capital have been known to provide fast turnaround times. We can approve within 7 working days and fund your account with cash loan against the applicable value of your cryptocurrency deposited as collateral.