As HODLing became popular among cryptocurrency enthusiasts possessing large amounts of undervalued digital coins, companies like Nexo and SALT lending started showing up in the crypto market and offering a new type of service: crypto-backed loans.
For those who are not familiar with the term, a crypto-backed loan is a type of loan that is given to a borrower in exchange for cryptocurrency collateral. Some crypto-backed loan services offer more competitive rates, while some just approve applications at faster rates.
Up until now, there was no absolute leader in the market. However, it looks like a new player, YouToken Loan [aka YouHodler], is about to dominate the industry.
Why YouToken Loan is Better Than Its Competitors
Unlike its competitors, YouToken Loan has a wide list of competitive advantages on offer. Some of the most notable advantages are listed below.
Low-Interest Rate and Full Transparency:
Companies like Nexo and SALT Lending tend to trick their clients by not mentioning many of the hidden fees and nuances that clients should know. From paid memberships that are meant to suck you in, to withdrawals that must be $1000+, this list is only getting bigger. Many crypto loan providers are not running a fair and transparent game.
YouToken Loan is all about long-term collaboration. Clients are treated with respect and privilege. The average interest rate is 5% and there are NO mandatory memberships and/or hidden fees.
High Loan-to-Value Ratio:
A high loan-to-value ratio [LTV] is another significant competitive advantage that the company has to offer. Typically, LTV offered by other crypto loan companies varies from 35% to 50%. At YouToken Loan, it offers up to 70%, the highest LTV on the market.
Free YTN Tokens for Early Adopters
YouToken Loan is offering one more benefit to its early adopters. This extra benefit is depicted in the form of free YTN tokens. Only this month, every user who takes a crypto loan will receive 1 YTN token for free, in exchange for $10 worth of collateral.
YTN is an ERC-20 token representing the YouToken platform. According to the company’s CEO, the token is expected to be tradable in 10 months.
How to Take a Crypto Loan
Taking loans is as easy as using Coinbase, Binance, or any other crypto exchange. Just visit the website and you will figure out what to do next.
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