In today’s time, the crypto loan has become one of the hottest topics out there. Buying things with crypto loans is definitely a great idea. Your crypto works as collateral, and you get your loan amount within the same day. There is no need to go through any credit check or tedious process to get a loan like the traditional banks.

As a result, many people consider taking crypto loans to buy homes or cars. So the question is, how to use crypto-backed loans to invest in real estate?

Well, let me talk about it in brief over here:

Why to use your Crypto Portfolio to Invest in Real Estate?

Low Interest Rates:

One of the top benefits of using your crypto portfolio for taking a loan is that you enjoy low interest rates. Although, in some cases, the loans wouldn’t be as cheap as a mortgage or car loan. But compared to personal loans or credit cards, crypto loans are pretty cheap. There are many services that can offer you a crypto loan with an interest rate of 10 percent or below it.

Loan Amount Is Based On Asset Value:

You cannot take a loan against your home or any other collateral when it comes to crypto loans. Instead, you take a loan against your crypto holdings or your asset value.

You can borrow up to 50 percent of your portfolio value in most cases. Even some crypto loan leaders can offer you 90 percent of your portfolio value.

No Credit Check:

When you take a loan from a bank, you usually go through a credit check process. If your credit score is good, you will get your loan. But with crypto lending platforms, there is no such thing.

These lending platforms usually don’t run a credit score when you apply for a loan. As a result, it becomes extremely easy for you to get a loan when you have a poor credit score or no credit history.

Fast Funding:

Taking loans from the bank can take weeks to get approved. Plus, there are lots of documents to go through. But with crypto loans, each and every process happens over the internet. Also, they do have a faster approval rate. You can get your loan within a few hours only once approved.

Ownership:

The best part of the crypto loan is that there is no need to sell your holdings when you need money. Instead, you can borrow cash against your crypto holdings. As a result, your crypto holdings will remain as it is, and you will still be the owner of them.

How to get Crypto Loan?

Crypto loan is a type of decentralized finance that allows investors to lend their digital assets to different borrowers through a platform. This way, they get to earn interest payments on their assets.

Also, crypto backed loans uses digital currencies as collateral which is similar to banks’ securities based loans.

Also, once you use your crypto as collateral, you do have your ownership over the funds. But it restricts you from doing certain things. For instance, you won’t be able to trade or use the funds to make transactions.

Moreover, if your digital assets value drops during the loan time, you will need to pay much more back to the investor than what you have borrowed.

There are many companies that offer crypto backed loans. Among them, I find Celsius Network services a pretty good one. As the platform allows you to borrow at 1% APR, offers you 40+ collateral options and has affordable rates.

To help you know more about it, here is a brief introduction:

What is Celsius Network?

Celsius is a blockchain based lending platform. Using the platform, people can borrow crypto funds or leave their crypto assets with Celcius to be lent out, and in return, they will earn interest.

The platform allows you to borrow in cash or CEL, which is the native token of Celsius. However, as you are going to invest in real estate, you have to borrow cash.

The platform allows you to deposit over 40 coins which you can use as collateral. It supports currencies like BTC, ETH, Dash, BCH, ADA, and many more.

How To Get A Crypto Loan From Celsius Network?

Step 1: First, visit Celsius.network website and click on the Sign up button.

Step 2: Enter your name and email, set a password, and click on the Sign up button to create an account.

Step 3: Verify your email account.

Step 4: Next, you have to verify your identity. So fill in your details like name, date of birth, gender, and so on.

Step 5: After that, you will need to upload one of your government IDs. Such as Passport, driver’s license, or any other ID, and complete the KYC verification.

Step 6: Once your account is ready, click on Borrow from the dashboard.

Step 7: Then enter the amount you wish to borrow and choose a stablecoin or dollars.

Step 8: Then, you have to pick a collateral and interest rate. For this, you will need to choose a crypto coin from the available currencies.

Step 9: The next step is to select the length of your loan. For instance, you can choose a loan period of 1 year to 3 years.

Step 10: Finally, you will need to confirm your details and transfer your collateral to the Celsius network, and you are good to go.

Depending on your selection, you will receive your funds in your bank account or in your crypto wallet. And then you can spend the funds to invest in real estate.

Final Words:

So that was all for how to use crypto backed loans to invest in real estate. I hope the above steps did help you with your first crypto loan borrowing.

However, do make sure you know the risks involved in crypto loans. Anyway, if you get stuck at anything, do drop a comment below, and I will help you out.

Featured