How Crypto-to-Cash Lending Works

"Cash rules everything around me", said a prolific writer once upon a time. The truth behind that statement is enough to make you ask just how much money actually rules around us and the answer WOULD be, everything. There's no way a person can have a good life without money, and a person without money in this world has a lot more real problems than those who have it. Because not having money is a problem, there have been solutions available and the most recent one is called crypto-to-cash lending. Forthat reason in this article Sean Seshadriwill be discussing the topic of crypto currency and how it isaffecting the lending space.

How Crypto-to-Cash Lending Works

By definition, cryptocurrency is a completely virtual and digital currency which is secured by cryptography. Cryptography is simply the writing of codes and it is what makes this currency so strong. Cryptocurrency has a limited amount of its currency and once one of these coins is "mined" or "spent", the system readjusts itself so that no one can make a copy of an existing coin. There's no central bank or any regulatory council since the whole system is run by the collection of individuals. There is much more to cryptocurrency and it can go over your head, but if you want to learn more about it, you're more than welcome to do further research. For now, we will simply list how crypto-to-cash lending works.

1. Apply for loan: The first thing to do is obviously to open an account with the loan provider and apply for a loan. They will need what other lenders ask, but because it is crypto currency and a brand new avenue to make and receive money, credit checks may be more lenient. In order to apply for the loan you will need to have a digital wallet with enough crypto currency to provide as collateral to the lender.

2. Provide crypto-currency collateral: If you have your cryptocurrency in a different wallet, you will have to take it out of there, transfer it to your wallet, and then send it over, or authorize a transfer to the lender's digital wallet. If you don't know what you're doing make sure to contact a professional who can help you figure it out, since you may have to pay some fees if the lender does this for you.

3. Repay the loan: As with any loan, the third step is to pay the loan back. You will be paying with regular cash as it would make the process easier for the lender, but you can always ask whether or not you can also pay back with cryptocurrency to increase the value of the collateral, and thus balance out the loan.

4.Receive crypto-currency collateral back: Once you have paid off the loan in full, the collateral will be returned to you to keep, invest, or purchase something with. You may also want to get another loan ifyou find this process better and feel more comfortable than going toa regular bank.

Conclusion

In conclusion, in this article we discussed the topic of cryptocurrency and how you can receive almost instantaneous loans by providing existing cryptocurrency from your digital wallet as collateral for the loan. The only major requirement in order to do this is to have a digital wallet and enough cryptocurrency to act as collateral. For example, if you need a $10,000 loan, you better have enough bitcoin or other type of currency that equals this or more.