ADA Crypto Loans: CoinRabbit increases Cardano Adoption

Cryptocurrency sphere is relatively young and still evolving. Nevertheless, there are many reputable decent assets that affect the whole sphere and are a kind of catalyst for further evolution of the whole cryptocurrency world. ADA is definitely one of these assets.

CoinRabbit is more than glad to contribute to the whole Cardano ecosystem. With that in mind, ADA-backed loans were released on Jan 28, 2021.

In this article we would like to share some insights on ADA itself and how you can expand your wealth horizons by using it as collateral currency.

Why ADA Is The Most Efficient Collateral

There are several reasons for ADA to be one of the most convenient and efficient collaterals nowadays. Let’s take a closer look at these reasons. First of all, transaction speed matters when working with crypto-backed loans because it changes everything when deposits, withdrawals or any other asset transfers take a significant amount of time. ADA transaction speed is very fast. Also, ADA reached its All-Time-High on Sep 02, 2021 which means it has a huge growth potential since its price on Feb 01 was fluctuating around $1.07. It all makes ADA a great collateral.

Using ADA as Collateral at CoinRabbit

CoinRabbit is one of the first services to accept ADA as collateral. All the assets we support deserve an exclusive approach. With that said, while keeping in mind distinctive aspects of ADA we released ADA crypto-backed loans strongly related to them:

● The process of taking ADA loans at CoinRabbit is very simple and easy. Literally a few clicks to get your funds. You don’t have to browse through the whole website to learn what to do

● It takes under 10 minutes to receive the loan

● You don’t have to pay multiple fees for depositing, withdrawing or transferring your ADA

● We do not identify our clients, we do not know where you are from and who you are. In the most cases passing KYC is not needed (except for the cases when funds haven’t passed AML security level)

Taking crypto-backed loans at CoinRabbit has more different opportunities and provides wider adoption of ADA. Here are some of the capabilities:

● Unlock the value of your holdings without selling or switching to other currencies

● Spend received loans wherever you want. Let it be daily purchases or reinvestments

● No time frames. Repay the loan whenever you want let it be in 1 year or in 1 month

● The APR is 14%

● No KYC required. You should not pass any approvement process

● You only need your phone number to get the funds

● 24/7 customer support is always at your back

Risk Management and What Should You Keep in Mind While Taking Loans?

Though crypto backed loans are great and powerful tools like any other financial activity, taking crypto-backed loans has its own risks. We would like to share some important points you should know and/or constantly monitor:

● There is a liquidation price of all collaterals. You should be aware of your collateral currency price fluctuations. If your collateral currency reaches its liquidation price it will be sold instantly. This is the ONLY reason to lose your collateral

● We will notify you multiple times before selling your collateral as it reaches liquidation price. The best thing you can do to avoid it is either buy your collaterals back by repaying the loan amount + accumulated APR or deposit more funds to reduce your liquidation price

● Our LTV is 50% which means your collateral price should drop by 50% before being sold. Still, you have to keep an eye on it closely (Loan-to-Value is a necessary part of crypto backed loans: the percentage of your collateral value you receive when using such services)

● The best time to take crypto backed loans is when you believe that the currency price is going to grow in the future (no matter the time term). One more tip is to get loans when you think its “a dip” already

● Statistically, the market grows further every year. That’s why we suggest to choose mid-term and long-term loans to increase potential returns and reduce the risks

● Take everything moderately, let it be investing, holding or taking crypto loans. Do not overextend

What should you do if the market dumps?

● First, we are always ready to return the funds. If you feel that the liquidation price will be broken through very strongly then buy the collateral back as soon as possible

● Secondly, you can always increase your deposit amount to lower your liquidation price if the market drops significantly. Or buy your collateral back at any convenient time

● We have released CoinRabbit Earnings so you can earn with no risks at all by simply making a stablecoin deposit

● Finally, take advantage of all these tips and then you will discover the true potential of using our service, and at the same time you will still be able to count on the full amount of your ADA in the future (or even accumulate more) since more and more new ways of using this asset appears

Hopefully, these tips and insights about this brand-new ADA feature will help you. Give it a shot today if you still have any questions you can always contact our team and customer support on our website and we will gladly help you. Or join our telegram group.

Not financial advice. Do your own research and take everything moderate.

Crypto backed loans have their own risks that should be taken respectively.