Crypto loans offer a great deal of financial freedom and stability, which are an extremely important element of the crypto industry, as it is such a new asset class and so there are many people who still see it as risky. Crypto loans help traders and enthusiasts get some peace of mind, knowing they can get fiat cash for their investments while still staying in the market. In other words, they do not have to compromise.

 

Here are several ways in which crypto loans offer more freedom to their users.

 

Multiple lending options

 

Crypto loan providers offer many lending opportunities, offering options on Bitcoin, Ethereum, Litecoin, and others. This means that multiple traders who all specialize in different areas in the crypto market can find some financial help. DeFi lenders offer many options on the Ethereum network, and CeFi lenders can offer those options plus others such as BTC which run on their own network. 

 

Crypto traders can stay in the market

 

Crypto traders and enthusiasts are often hesitant about converting their money into fiat, as they are nervous about missing out on further gains. Others enjoy holding onto their cryptocurrency because they support the projects they are investing in. The problem, however, is that most coins and tokens are not accepted as financial payment options, so these cryptos often sit in people’s wallets as their fans and owners wait for greater adoption so they can spend them. However, with crypto-to-fiat loans, people do not need to leave the market or wait for adoption to appreciate their earnings. They can put their crypto up as collateral, and in return get fiat cash which they can then use however they see fit. 

 

You can still own your cryptocurrency

 

Many crypto fans stay away from crypto-to-fiat loans because they are scared that they will lose their coins and tokens, as they look at it as being the same as handing away ownership. But this is not always the case. Some loan providers allow you to keep ownership of your cryptocurrency, even after you have collateralized it, meaning that it stays intact and is not exactly converted. These providers often put your crypto in a cold-storage wallet, where it will stay untraded and insured, with it all still being in your name. Cold-storage wallets are important in the crypto industry because they are offline, and therefore a safer and more robust method of holding coins and tokens. Additionally, some loan providers even let you keep a portion of crypto gains, should they increase in value by the end of your loan.