As crypto markets have retraced from their early-2022 highs, many holders, rather than traders of crypto currencies have faced a dilemma. They are in it for the long-term and understand that crypto winters come and go, but, at the same time, sitting on dead money makes no sense in any investing context. The answer for many facing that problem could well be a crypto loan. Loans enable you to keep your crypto, but free up resources to use elsewhere; maybe for some short-term trading in volatile markets, or to expand a business, or simply to buy at a discount in a depressed market.
Crypto loans are something with which SmartFi is extremely familiar. They were, after all, what the company was originally designed to provide. Power Block Coin, SmartFi’s parent company, was a provider of energy to miners and saw their need for liquidity in bear markets. The miners often had quite substantial wealth in terms of holdings of bitcoin (BTC) and ether (ETH), but mining requires big investments in computing power on a regular basis. They therefore needed cash but were reluctant to sell their holdings as prices were falling.
It was exactly the problem faced by many individuals right now, and Power Block Coin provided an answer. They offered easy to get, instant crypto loans, using the miners’ bitcoin and ether holdings as collateral. That same product is now offered by SmartFi to you, an everyday holder of crypto.
The process for getting a loan is quite simple. You can go to our SmartLoan page, where you will find all the information you need. Current rates are there, along with an explanation of some of the terms and conditions and possible benefits of a SmartLoan, but there is also a link to our “Crypto Loan Calculator”. Using that tool, you can input the amount of crypto you wish to put up or the amount you want to borrow, and the calculator will tell you the terms available to you.
Once you have done that and know the numbers you are working with, you transfer the crypto that you wish to stake to the SmartFi portal if it is not already held there. Then, while in the portal, you click on the “borrow” button. That will take you to a more advanced loan calculator, where you choose the amount and terms of your loan. The submit, and you will go straight to a loan agreement. Sign that and submit, and your loan will be underway. Because SmartFi requires sensible levels of collateral, you will almost always be approved quickly, and the loan proceeds will be in your account and available for transfer immediately. Loan proceeds can be paid out in US dollars or stablecoin, depending on your needs and preferences.
There is no minimum amount for a SmartLoan, you can choose terms that suit you such as whether to pay interest monthly or defer payment until the end of the term and, should the value of your collateral increase significantly, you can either increase your loan amount or take back some of the crypto that you originally staked. Of course, on the flip side of that, should the value fall, you will be asked to put up more.
Taking out a crypto loan is not for everybody. It does require collateral and not everyone wants to stake their crypto, and it doesn’t make sense to borrow and pay interest unless you have a specific use for the money. If it is something that suits you, though, the practicalities and process are simple. There are no hoops to jump through, no long application forms or credit checks, and funds are available quickly. That is why borrowing against holdings of BTC, or ETH is so popular, and SmartFi, with a wealth of experience and a streamlined process, is one of the best places to do it.