4.5 out of 5 stars
CoinLoan is a strong contender in the space of lending and managing your crypto.
Using the P2P lending market to earn interest has become a new way to acquire more crypto capital or transform tokens into fiat currency without a sale. Are you interested in margin trade, increasing your hodling portfolio, or buying a house or car with digital assets? You can do so with CoinLoan. In this CoinLoan review, we will explain how to make it possible.
People who buy crypto often keep their funds in offline wallets for years, preparing to sell once the price hits the targeted highs. However, the lending market is prone to volatility, making the entire process slow and unpredictable. Much like keeping fiat currencies in interest accounts with a poor interest rate, holding onto cryptocurrencies while you wait for their value to increase is inefficient at best.
However, what if you can increase your tokens' volume without actually doing much? There are different CoinLoan interest accounts and crypto-backed loans for these purposes. An interest account is like a bank savings account - all you need is to deposit crypto and earn interest. Interest accounts, however, are a more complicated route, yet it has significant benefits - you can get a loan agreement in fiat currencies straight away while maintaining your crypto assets.
How exactly does CoinLoan interest account work, and is it really worth it? Keep reading our CoinLoan review to find out now.
|Lending (23)||Bitcoin||Up to 5.2% APY|
|Stablecoins||Up to 10.3% APY|
|Dai||Up to 12.3% APY|
|Loans (15)||Bitcoin||From 4.5% APR|
|Stablecoins||From 4.95% APR|
CoinLoan Review: The Basics
CoinLoan is a European crypto management and lending market, an alternative to more well-known names like YouHodler and BlockFi. It allows crypto users to earn interest rates on crypto and receive loans in return for crypto collateral. Two options differ in mechanics, returns, and level of risk.
Compared to conventional bank loans, crypto-backed p2p lending generally offers better terms and conditions.
How Crypto Lending Works
Cryptocurrency has experienced an enormous surge in popularity since Bitcoin's creation in 2009. Crypto investors buy tokens hoping their currencies of choice will increase in popularity and market value. If the price of crypto rises, tokens can be later sold at a profit.
Bitcoin and other cryptocurrencies are notorious for making early investors millionaires. However, crypto is volatile — as tokens can dramatically surge in market value, they can also plummet in the same fashion. For the past several years, volatility has been on the rise - but while crypto tries to find its place in the financial world, new tokens are being released in great numbers.
To profit from cryptocurrency, you either have to hold on to your crypto assets for a long time or discover the coin before it gains traction. It's nearly impossible to predict when tokens will find their fame, thus making the hodling practice inefficient and risky for many. Fortunately, there is another way to earn money from cryptocurrency. Instead of keeping particular crypto assets for years, if not decades, you can deposit your crypto to the interest account for the platform to lend some of your funds out and, in return, receive compound interest credited daily.
You won't get rich overnight with crypto-backed p2p lending, but it's a reliable way to earn passive income from your cryptocurrency. If you have a big stash of crypto in your vault, you may even be able to make a decent living by lending your crypto assets.
For borrowers, crypto lending works differently. If you seek a loan, you have to provide your crypto as collateral. In return, a crypto lending platform lets borrowers borrow money in various currencies, including fiat currencies, and keeps the collateral until a borrower pays back your loan plus the interest rate. Unlike conventional lending, lending on crypto does not do lengthy credit or background checks, meaning they can secure a loan quickly.
How CoinLoan Works
CoinLoan supports 24 different assets, including fiat, crypto, and stable coins. Users who prefer Interest Accounts to crypto loans can earn daily compound interest of up to 12% APY. Like most lending platforms, CoinLoan doesn't perform credit history checks.
The high-interest rate comes from borrowers - CoinLoan lends out some portion of funds deposited in the Interest Account in return for crypto collateral provided by loan seekers. CoinLoan then uses the interest paid by the latter to pay account holders a good fixed interest rate on their funds.
CoinLoan allows borrowers to take out crypto loans against collateral in cryptocurrencies, stablecoins, and even fiat currencies. Fiat loans get instant approval without paperwork or credit checks of any kind - the only requirement is collateral provision.
However, loan seekers must go through KYC verification - a minor security measure taking a few minutes to complete - before filing a loan application. If a borrower refuses to pay back their loan, CoinLoan will keep the collateral. Сollateral is held securely at CoinLoan's custodian.
CoinLoan offers different LTV (loan-to-value) ratios: 20%, 35%, 50%, and 70%. Interest rates for borrowers vary from 4.95% to 11.95%.
CoinLoan: Facts and Features
CoinLoan offers several features to help you manage your crypto portfolio. Let's dive in and go through them.
There are several ways to use CoinLoan. You can deposit funds into an interest account, apply for a loan or buy and swap crypto.
Interest Account is the most straightforward option. Start to earn interest by depositing your coins or fiat currencies. You can withdraw your assets anytime - compound interest is credited daily.
When people borrow from a lending platform like CoinLoan, the desire to get fiat loans for a purchase or investment without losing crypto tends to be the main driving force. Instead of selling off their crypto, they can turn it into collateral in crypto exchange for fiat. The practice allows avoiding digital assets' loss in return for having enough leverage to purchase tangible assets.
Another reason why loan seekers might turn to a crypto lending platform is the simplicity of the entire process. If you turn to a bank for money, you would likely spend hours on paperwork and have to wait for credit history check results before the loan approval. Thus, you save a lot of time and nerves by temporarily giving up some of your digital assets in return for instant loan approval.
To get a loan on the CoinLoan crypto exchange, you must go through KYC verification and provide collateral according to the chosen LTV. For example, if you wish to lend $700 under 70% LTV, your collateral must have a value of $1000. Once approved, you will simply pay your loan back with one of CoinLoan's flexible interest payments and then reclaim your crypto without any credit history checks.
Compare with CoinLoan alternatives
|Platform||Interest Rates (APY)|
|Nexo||Up to 7% on BTC|
Up to 12% on Stablecoins
... 34 more coins
|Go to site →|
|Midas.Investments||Up to 9.42% on BTC|
Up to 14.5% on Stablecoins
... 15 more coins
|Go to site →|
|CoinLoan||Up to 5.2% on BTC|
Up to 10.3% on Stablecoins
... 23 more coins
|Go to site →|
|YouHodler||Up to 3.05% on BTC|
Up to 8.33% on Stablecoins
... 55 more coins
|Go to site →|
CoinLoan: The Pros and Cons
CoinLoan is a strong contender in the space of lending backed by crypto. But is it right for you? Compare these pros and cons to find out.
- Relatively high-interest rates for lenders;
- Fiat and crypto asset support;
- Instant loan approval;
- Various LTV ratios;
- Flexible payment options for borrowers;
- Global access;
- Multiple fiat transfer options: Wire Transfer, SWIFT, SEPA, AdvCash;
- User-friendly platform;
- Regulated Licensed in Europe.
- A relatively young platform with a limited track record;
- Crypto market volatility can sometimes dramatically affect crypto loans;
- Lower compound interest for assets that are not CoinLoan's native token (CLT);
- Higher interest rates may be available on other lending platforms
No crypto loan platform is perfect, and CoinLoan is no exception. Yet, the features that the platform offers can help you better manage your crypto. Hopefully, these pros and cons can help you make your choice.
Frequently asked questions
CLT, CoinLoan's Native Token
The current price is $19.93 per CLT, -89.948% from the all time high of $192.18. The current circulating supply is 0 CLT.
Where to Go From Here
Now that you've read this CoinLoan review, you should be prepared to start managing your cryptocurrency. And if you ever want to borrow crypto from others, you know how CoinLoan lets you do that, too.
Bitcompare has you covered with the latest, most user-friendly, up-to-date information no matter your crypto needs and interests. Just like our CoinLoan review, check out our other cryptocurrency reviews right here to keep learning more.