Blog

FreeTether.com Blog

Why Crypto Loans are the future

Crypto Backed Loans

MyConstant gives you the freedom to borrow money with high flexibility

If you have Crypto currency that is worth for example $1,000 and you want to use a leverage for trading purposes then why not borrow money against it and this way you can make much more?

Let us give you an example.

Let’s say there is an event you wish to bet on. For example you wish to bet that the Bitcoin price will go up in value against the dollar. Let’s say you are very conservative and 3% yield in 1-2 days would be a good outcome for you. And let’s say a global event like the Coronavirus or any other future event is impacting the current price and you want to take advantage of it right away without waiting - what would you do?!

Now if you risk only $1,000 on the event you would win $30. It’s nice but would you say no to get double that amount if you are quite certain whatever you risk is a good investment?

MyConstant can loan against your Crypto instantly

If you have $1,000 worth of Crypto you can put into a loan and get additional money in Bitcoin, so if you planned to make 3% on $1,000 and get $30 - imagine making that 3% on $2,000 and getting $60 in profits from the very $1,000 you had!!

The whole point of using a Crypto loan is to get what you need instantly, fast, in a secured way, and most importantly - have the assurance the service you’re using is 100% reliable and safe.

No Credit Score Check

If you have $1,000 worth of Bitcoin or Tether or whatever that you wish to invest, then that is your collateral. You are risking your collateral in the trade that you wish to open, but even if it goes against you then you can rest assured you can always pull out, you can always repay the loan anytime.

Unlike traditional banks that work only Monday thru Friday and require you to sign forms, and fill out an application and it could take days before you get the money transferred to your account (even an ACH transfer in the US in most cases is not instant) - here with Crypto you can get the loan you need right away. There is no need to check your credit score, there is no need to hassle you with phone calls, forms, nor to get to the bank at the time that is convenient for them - you do everything when it’s convenient for you.

The fee you pay for this investment is quite small

If you take the example above of wanting to invest $1,000 in order to make $30 and by using MyConstant you (hypothetically) invest $2,000 in order to make $60 but you are actually using only that $1,000 you have in the first place - you’re probably asking yourself how much this investment would cost me?

Well, the answer is simple. At the time of writing MyConstant is offering that loan for a 6% APR, that is even lower than what Binance is charging! This is 6% per year, you’re looking to make 3% per day or two!

Putting things into perspective that means if you risk $1,000 in order to make $60 then every day you would pay around $0.16 - 16 cents! That is peanuts in comparison to what you could be making!

This is why Crypto investment is overtaking the traditional world of loans you might be familiar with. We invite you to check out MyConstant and give it a try.

Why use MyConstant and not other services?

Okay, let’s say you are convinced Crypto investment using loans is a good product for yourself, because you would like to buy/hold/trade a certain Crypto against another currency and make money from it. But you might be asking yourself why use MyConstant and not other providers?

If you compare other providers such as Nexo for example then you would realize providers such as Nexo, Celsius and Blockfi don’t allow you to withdraw your investment in Crypto. MyConstant does allow you to withdraw in Crypto.

In addition, MyConstant supports 71+ currencies, other providers normally support only 20 or even less than that.

Get interest rate paid on your deposits

If you want to play it safe then you can deposit money with MyConstant as well and earn 4% APY in their anytime instant access or up to 7% APR in a fixed-term loan. Have you tried investing USD with your local bank? Very likely they would offer you 0.1% per year (at the time of writing, July 2021). That is because interest rates are so low.

What MyConstant is doing is pretty smart. It’s providing a peer to peer loan mechanism. But if they charge 6% from borrowers and pay 4% to lenders then they make 2% and everyone wins. Basically, the loan is protected because it has a Crypto collateral against it, and thus the lender is protected from a situation where the borrower cannot pay. There is no room for having issues here. The loan is protected. The lender is protected. The borrower is not hassled. Everybody wins.

The irony

The irony behind P2P lending is that traditional banks charge close to 5% or even more on loan products, whilst they pay out so little on fixed deposits - 0.1% and the like. Crypto has come into the world to change part of this. Just like in the past people were booking vacations using offline travel agents and now online booking has become more popular. So too, are P2P lending schemes. Slowly our ever changing world is evolving into a new way of making money. Don’t stay behind and make the most out of it now.



x
x
x