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Crypto Backed Loans as an Alternative to Trading

June 6, 2019

Updated March 5, 2020

As the crypto market continues to evolve, more advanced trading tools are coming out to enhance participation. Until recently, all traders communicated with the market through the use of cryptocurrency exchanges (e.g. Binance,  or Coinbase. Recently, however, crypto backed loan platforms such as YouHodler offer an “all-in-one” experience that can help traders multiply their assets and act as an alternative to margin trading on exchanges.

Crypto backed loans loans explained: how to increase your profits 200-400%

Lending is an increasingly popular cryptocurrency investing and trading tool. Using this strategy, traders and investors use “borrowed” capital to grow the potential return on their investment. In the traditional stock market, for example, an investor would purchase some shares (e.g. Tesla). Then, the investor uses their Tesla shares as collateral to get more capital and pay a small interest on that loan. With this newly borrowed capital, the investor can then purchase more Telsa shares. This process can be repeated multiple times.

Next, the investor simply waits for enough value appreciation to close the stock position, close the loan position and receive their original shares. Using this method, an investor could receive up to 200-400% more profit compared to if they just held their shares. In the crypto market, one could theoretically do this using a traditional bank loan and a cryptocurrency exchange, but there is a far better alternative.

Crypto backed loans: make crypto work for you

Crypto backed loans platforms let users buy, sell and convert crypto while also receiving crypto backed loans all in one, convenient location. Unlike seeking a loan at a traditional bank, there are no extensive background checks on YouHodler to request a loan. In minutes, users can sign up, pass KYC and receive instant cryptocurrency loans. Furthermore, users can connect their personal credit/debit card to the platform, allowing to buy crypto with credit card and direct withdrawals of fiat funds.

To use cryptocurrency loans to multiply assets on YouHodler, follow this procedure:

  1. Go to YouHodler.com. Use a debit/credit card, bank wire or stable coins like USDT  to buy any of the available crypto options (BTC, BNB, ETH, XRP, XLM, LTC, BCH, BSV, DASH, EOS, BAT, REP).
  2. Use the purchased crypto as collateral for a fiat (USD/EUR) or stablecoin loan.
  3. Use the newly acquired capital to purchase more crypto.
  4. Repeat steps two and three until satisfied.

Crypto Exchanges vs. Crypto backed loans Platforms

By combing multiple loans together, the borrower can leverage their original collateral amount to drastically increase their return on investment. This is not possible on crypto exchanges without margin trading tools since they do not offer the ability to acquire crypto backed loans. YouHodler is the only platform that lets users receive a loan, buy, sell and convert crypto all within the platform. They also feature the highest loan to value ratio (90%) in the industry meaning borrowers receive more value for their collateral then anywhere else.

Crypto backed loan platforms are not just a place to get money without selling your crypto. They are creative tools that can help users buy, sell, hedge and utilize their crypto portfolio for maximum growth. It doesn’t stop there though.

To discover more creative ways to make your crypto work for you, visit YouHodler.com today and explore the platform’s growing list of features.

Note: Using loans to buy more assets does not guarantee profits. Before taking part in such behavior, make sure you understand the risks that are involved in lending and margin trading before proceeding.

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