There are now a growing number of crypto finance platforms that enable holding to borrow for necessary expenses while continuing to hold their assets for gains over the longer term. In early May of 2021, the crypto markets saw a significant correction following a series of Bitcoin and Ethereum rallies. In the wake of this crash, investors were faced with a dilemma, should they cash out now or keep holding in the hopes of their assets pumping again? But what if, right after the correction, you need to sell your investments because you truly need the cash for an expense? If you sell at a low, you’ll lose money if you bought when the price was higher.
Crypto collateralized loans present an exciting alternative: instead of deciding between selling or holding, you can choose to use your cryptocurrencies as collateral instead. That way, as the bear market looms, you can keep your crypto investments while getting cash for your everyday needs. Crypto-collateralized loans platforms provide such services, and the demand for these kinds of loans has been increasing each year tremendously.
As a result, the worldwide Crypto-collateralized lending market has seen a 1170% growth since 2019, with nearly $30 billion leveraged as collateral today. Many players today offer crypto-collateralized loans.
There are all types of lenders for every type of situation. Here are just a few; Celsius Network, BlockFi, Crypto .com , YouHodler, and there are many more. Remember to do your research to find what fits your needs.
There is no shortage of ways that allow you to use your cryptocurrencies as collateral to get loans. Each platform is different, so you would need to choose based on the brand, positioning, and services that each platform offers. One thing that is for sure is that crypto-collateralized lending has a bright future in the crypto world: some say the whole market size will reach $990 billion very soon!
