YouHodler's Crypto-Backed Loans - A Web3 Way of Borrowing

Lesson 3: Crypto-Backed Loans

Naturally, sometimes in life, people struggle with cash flow issues. If those people own a valuable amount of cryptocurrency, then they could always technically sell their assets, but the problem with doing this is that it can cause FOMO to set in, where people worry that they will miss out on big returns during the time that they sell. For many, holding always feels like the safest route to take. This very reason is why crypto lending is one of the biggest sectors in this industry.

The ability to use digital assets as collateral in exchange for fiat is an exciting and necessary aspect of this space. For those who choose to hold onto their cryptocurrency, rather than sell it when they need traditional money, crypto-backed loans act as a lifesaver.

At YouHodler, gaining a crypto-backed loan is an easy and straightforward process. Users need to choose which cryptocurrency they like to use as collateral, with a range of over 50 different digital assets available, and then pick their desired loan amount, which can be in fiat or in another cryptocurrency, such as a stablecoin. The minimum is $100. You then pick a loan-to-value (LTV) that feels most comfortable to you. The available options are 97%, 90%, 70%, and 50%.

YouHodler’s dedicated calculator will then do all the heavy lifting for you, and will show you how much crypto you would need to put up for collateral in return for the amount that you are looking for. What is best about this is that its loan terms are flexible, ranging from 1 day to 364 days, with daily rates starting at as low as 0.0099%. There is even flexibility in when payments need to be made– they could be made daily, or postponed for a set future date.

YouHodler has designed this service in a very thoughtful manner, meaning that they provide various tools to help with the loan-management process, essentially de-stressing the situation. For instance, they have a “Take Profit” feature, as well as a “Close Now” feature. Plus, there are ways to extend the payment due date or increase the LTV.

All in all, YouHodler’s crypto-backed loans are a seriously useful and compassionate tool option that all crypto holders should consider if they are looking to free up some money or fix any cashflow issues without going out of their way to directly sell their assets. It is the perfect way of keeping your investments whilst having more financial options.

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