Year on year, the world has witnessed seemingly never-ending waves of cryptocurrency adaptation – it was just a matter of time before the loan market got on board. Crypto-backed loan companies are on the rise, enabling borrowers to secure the capital they need by utilizing digital assets as collateral.
This comes as no surprise, with studies revealing that cryptocurrency markets skyrocketed in value, rising from $100 billion to $3 trillion between 2020 and 2021 alone.
As a result, many now believe that cryptocurrencies will be a part of daily transactions shortly. However, while some people remain skeptical about cryptocurrencies and their market volatility, the majority see the long-term advantages of investing in crypto.
Nevertheless, investors and traders are often left wondering what to do with their assets while waiting for their inevitable integration into everyday transactions.
The Solution: Crypto-backed Loans
How Do Crypto-backed Loans Work?
Like a bank or any other loan provider, crypto-backed lenders lend out cash. However, borrowers use their cryptocurrencies as collateral with crypto-backed 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 have to sell your cryptocurrencies to make money. You use it as collateral against a cash loan, giving it time to mature until you’re ready to pay back your loan and withdraw your crypto.
- Crypto-backed loans distribute your cash to you almost instantaneously.
- They often come with little to no interest.
- Your crypto assets are secure from cyber-attacks by being held in cold storage vaults.
As a result, and due to the financial benefits, many crypto-backed loan companies have appeared on the scene, offering borrowers unique opportunities. However, one company stands out – London and Barcelona-based crypto startup Nebeus.
What Is Nebeus?
Nebeus is a revolutionary crypto-backed lending app that offers a wide range of fintech and crypto services to help its customers buy, borrow and ensure their digital assets worth up to $100 million, backed by Lloyds of London.
Founded by Sergey Romanovskiy in 2014, Nebeus has seen significant growth in the past 8 years, with funding from venture capital executives, the British Business Bank’s Future Fund, and over 240 investors through the “Seedrs” crowdfunding platform. Nebeus has also won multiple awards, including the global “Digital Lending Innovation” award in the Finance Monthly Fintech Awards last year.
Why Should You Choose Nebeus?
Nebeus isn’t like a traditional lender: the loans are issued instantly, and you do not need 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 all-in-all in under 15 minutes.
Therefore, if, like many crypto investors, you’re thinking of other ways to use or leverage your crypto investments, Nebeus gives you the answers to all of your questions.
1. Quick Loans and Flexible Loans
As the name suggests, quick loans allow users to access cash loans at the click of a button (well, two clicks, to be exact).
In addition, quick loans provide borrowers with a 50% LTV (loan-to-value) rate plus 0% interest for three months.
However, if customers are looking to borrow a large sum and require a more tailored package, they can take out a flexible loan, allowing them to borrow up to 250,000 in 3 FIAT currencies or USDT and USDC stablecoins.
With flexible loans, customers can choose an LTV between 50%-80%, with the interest rate increasing the higher they decide to go with 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 Security (Hot Wallet and Cold Storage)
Security is a top priority for Nebeus, which is why they offer a $100 million insurance policy for all their clients. In addition to this policy, they also provide a “hot wallet” and “cold storage” service.
- Hot Wallet
The hot wallet is a two-factor, pin authentication digital wallet that allows users to manage their cash and cryptocurrencies and make global transactions.
- Cold Storage
Cold storage, also known as the Nebeus Vault, is a crypto storage system disconnected from the internet, making users’ assets impenetrable to cyber-attacks. This is an excellent solution for users who do not require instant access to their funds and comes as a free complimentary service for all Nebeus customers.
You can find out more details about Hot Wallet & Cold Storage Wallet on CryptoNewsZ’s crypto wallets post.
3. Loan Health Monitor
To help customers keep a close eye on their investments, Nebeus provides a loan health monitor service to measure investment volatility – allowing customers to take immediate action should the price of their crypto investments suddenly drop.
In addition, Nebeus also provides an automated loan collateral replenishing service that takes funds from a customer’s digital wallet to ensure that their collateral isn’t liquidated.
Finally, if there is a margin call, Nebeus gives its customers 10 days to add more collateral or repay their loans to save their crypto investments from liquidation.
Arguably the zero risk loans service is one of the things that sets Nebeus apart, as it provides customers with the comfort that their loans and investments won’t be too severely affected should the crypto market see any major downturns.
A Few Final Words
Nebeus takes away the risks usually associated with traditional loans, and when they say there aren’t any hidden fees – there aren’t. All service costs and charges are available to view upfront on their website.
It’s hard to know what to do with your crypto investments while the world takes its time to adjust 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 biggest drivers of the popularity of crypto-backed lending.
There’s one final notable mention – their app is incredibly straightforward and allows customers to manage their accounts directly from their mobile devices.