Year after year, the world has witnessed seemingly endless waves of cryptocurrency adaptation – it was only a matter of time before the lending market took off. Crypto lending companies are on the rise, allowing borrowers to secure the capital they need using digital assets as collateral.
This is not surprising, with studies revealing that the value of cryptocurrency markets skyrocketed from $100 billion to $3 trillion between 2020 and 2021 alone.
As a result, many now believe that cryptocurrencies will soon be part of everyday transactions. However, while some people remain skeptical about cryptocurrencies and their market volatility, the majority see the long-term benefits of investing in crypto.
Nevertheless, investors and traders often wonder what to do with their assets while waiting for their inevitable integration into day-to-day transactions.
The solution: Crypto loans
How do crypto-backed loans work?
Like a bank or any other loan provider, crypto lenders lend money. However, borrowers are using their cryptocurrencies as collateral with crypto loans instead of putting up physical assets such as their house or car.
Crypto-backed loans offer many unique opportunities for investors, including:-
- You don’t need to sell your cryptocurrencies to make money. You use it as collateral against a cash loan, giving it time to mature until you are ready to repay your loan and withdraw your crypto.
- Crypto loans distribute your money to you almost instantly.
- They often come with little or no interest.
- Your crypto assets are protected against cyberattacks by being kept in cold rooms.
As a result, and due to the financial benefits, many crypto lending companies have appeared on the scene, providing borrowers with unique opportunities. However, one company stands out – a crypto startup based in London and Barcelona Nebeus.
What is Nebeus?
Nebeus is a revolutionary crypto lending system application which offers a wide range of fintech and crypto services to help its clients buy, borrow and secure their digital assets worth up to $100 million, backed by Lloyds of London.
Founded by Sergey Romanovskiy in 2014, Nebeus has grown significantly over the past 8 years, thanks to funding from venture capital executives, the British Business Bank’s Future Fund and more than 240 investors via the crowdfunding platform “Seeders”. Nebeus has also won numerous awards, including the global “Digital Lending Innovation” award at the Finance Monthly Fintech Awards last year.
Why should you choose Nebeus?
Nebeus is not like a traditional lender: loans are granted instantly and you do not have to go through rigorous background checks. As long as you verify your identity and deposit your crypto into your Nebeus accounts to use as collateral for your loan, you can get your loan in less than 15 minutes.
So if, like many crypto investors, you’re thinking about other ways to use or profit from your crypto investments, Nebeus has all your questions answered.
1. Quick loans and flexible loans
As the name suggests, Quick Loans allow users to access cash loans with one click (well, two clicks, to be exact).
Additionally, Quick Loans offer borrowers a 50% loan-to-value (LTV) rate plus 0% interest for three months.
However, if customers are looking to borrow a large sum and need a more personalized package, they can take out a flexible loan, allowing them to borrow up to 250,000 in 3 FIAT currencies or in USDT and USDC stablecoins.
With flexible loans, customers can choose an LTV between 50% and 80%, with the interest rate increasing as they decide to opt for the LTV.
Interest rates vary between 6% and 13.5% and users have the option of taking out their loans for up to 36 months.
2. Loan Guarantee (Hot Wallet and Cold Storage)
Security is a top priority for Nebeus, which is why they offer a $100 million insurance policy to all their customers. In addition to this policy, they also provide a “hot wallet” and “cold storage” service.
The hot wallet is a two-factor PIN authentication digital wallet that allows users to manage their money and cryptocurrencies and conduct global transactions.
Cold Storage, also known as Nebeus Vault, is a cryptographic storage system disconnected from the Internet, making user assets impenetrable to cyberattacks. It’s a great solution for users who don’t need instant access to their funds and it’s a free and free service for all Nebeus customers.
3. Loan Health Monitor
To help clients keep a close eye on their investments, Nebeus provides a loan health monitoring service to measure investment volatility, allowing clients to take immediate action if the price of their crypto investments suddenly drops.
In addition, Nebeus also provides an automated loan collateral replenishment service that draws funds from a customer’s digital wallet to ensure that their collateral is not liquidated.
Finally, if there is a margin call, Nebeus gives its clients 10 days to add more collateral or repay their loans to save their crypto investments from liquidation.
Arguably, the zero-risk lending service is one of the things that sets Nebeus apart, as it provides customers with the assurance that their loans and investments won’t be affected too badly if the crypto market experiences major downturns. .
A few last words
Nebeus removes the risks typically associated with traditional loans, and when they say there are no hidden fees, there aren’t. All costs and service charges can be viewed in advance on their website.
It’s hard to know what to do with your crypto investments as the world takes its time adjusting to everyday crypto transactions, but by taking out crypto-backed loans you can start spending while you let your cryptocurrencies mature . You can also use your loan to reinvest in another asset, which is one of the main drivers behind the popularity of crypto loans.
There is one last notable mention – their app is incredibly simple and allows customers to manage their accounts directly from their mobile devices.