Discover the Crypto Lending Business Model

Introduction

Sometimes you need to have access quickly to capital to grow your business or cash flow emergencies. Everyone needs to have access to cash flow for a multitude of reasons, and it is good to know where the options are.

This morning I was browsing the APP of Crypto.com and I explored all the options and one picked up my curiosity.

The crypto lending business

A lot of companies jump into this hot crypto niche market and position themselves to be a top leader there. Sometimes you need to act fast to position yourself and build a good userbase if you want to succeed.

While my focus is on crypto passive income lately, I noticed some companies that offer this crypto lending business service in the crypto space. The companies I know are Nexo, Crypto.com, Celcius, and now Binance.

They have the same goal and incentive to make interest in lending crypto. The milking of the bank system is from the deposit of people or lending money.

What terrifies me

You need to think twice if you want to take a crypto loan because the reality may shock you. It is the same as if you rush to the pawnshop!

You need to have access to the capital you have in your head before thinking about this option. What you have to do, you need to deposit 3 times the amount you want in Crypto.com to have access to 1/3 of your cash flow with a stablecoin. I believe it is a little overkill!

You also need to consider that the only option to use this service right now is Bitcoin, and you know when you send Bitcoin you rely on the third party.

I believe the only good benefit of using that method is to make sure you have money that will come soon to pay the loan. Otherwise, you may lose access to your funds since the crypto loans seem limited to 1 year.

My advice, always think before to take a crypto loan!

The future of decentralized banking

The positive side from an investor standpoint is to make 8% of interest when staking their crypto. In comparison with the current financial system, I can barely make a 0.8% interest with the money I have on my savings account. Now we have many ways to make more money.

This is what I call a great opportunity to jump on slowly but surely.

Conclusion

It is a good option to use if you have access to the money to pay back your loan as soon as possible. Don’t take a crypto loan if you are desperate to have access to fiat money. You need to have 3 times the amount to receive 1 third of it with a stablecoin or fiat depending on the company you use.

It is interesting to discover that this niche evolves in the crypto space.

Chesatochi.com - For the love of crypto

Disclaimer: Never invest more than what you can afford to lose. This post is my opinion, do your own research before making any investment decision. If you make any trades after reading this post, it is your responsibility. I am not responsible for any of your losses. By reading this post, you acknowledge and accept that.

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