How to Use Nebeus Crypto-backed Loans: 3 Biggest Use Cases

With prices set to rise for almost everything from utilities to groceries, there has never been a better time to take out a crypto-backed loan if you’re looking to capitalize on your crypto investments without having to sell.

Unlike traditional loans that require physical assets, crypto-backed loans allow you to put up your crypto as collateral.

This lending style is unique as it allows you to use an asset that you probably weren’t planning on using anyway (well, not just yet – not until crypto because more widely used in day-to-day transactions).

While several crypto-backed loan companies have appeared in recent years, one, in particular, stands out, London/Barcelona-based, Nebeus.

Nebeus has impacted the crypto market, already winning the global “Digital Lending Innovation” award at the Finance Monthly Fintech Awards in 2021 and being praised by multiple industry leaders.

So, what draws so many people to Nebeus each year, and what benefits can someone expect to see from taking out one of their crypto-backed loans?

For time’s sake, we’ve whittled it down to three core benefits.

Fund your lifestyle

Whether you’re looking to move house, buy a new car or start a business, a crypto-backed loan from Nebeus can help get you on your way.

While traditional loan providers make it difficult for people who don’t have much in terms of physical assets to take out a loan and usually only provide loans to those with outstanding credit history, Nebeus is different.

Nebeus helps its customers work towards their goals by providing a range of crypto-backed loan services that cater to each client’s unique requirements.

Whether you need a small amount for a holiday or you’re looking to take a loan for a deposit on your house, Nebeus can help.

Nebeus offers two loan options: quick loans and flexible loans.

The quick loan option provides users with an instant loan with 0% interest at 50% LTV (loan-to-value) for up to three months. In addition, there are no early repayment fees, and your assets are insured for up to $100 million backed by Lloyds of London.

However, if you’re looking to borrow a more substantial amount (up to $250,000), you can take out a flexible loan where you can borrow up to 80% of the value of your crypto and pay back your loan over a 36 month period. 

Whatever your needs, Nebeus has a solution to help you out.

Diversify your investments

If you’re new to crypto investments, you may only have a few coins, and you will most likely be sticking to popular currencies such as Bitcoin, Ethereum or Stablecoins. 

Not that we’re saying there is anything wrong with that!

However, with more and more coins appearing each year, it’s a good idea to diversify your crypto wallet and start investing in up and coming coins.

New coins such as Polygon and Solana have seen outstanding growth in recent months, proving that it pays to invest early on!

With Nebeus crypto-backed loans, you can use your existing coins as collateral to take out a loan to start purchasing new coins. 

Worry less about taxes

Yes, you heard it right; when you use your crypto as collateral instead of selling it, you don’t have to pay tax on it.

Instead, you simply use your crypto as collateral until you’re ready to pay back your loan.

Granted, you will have to pay CGT (capital gains tax) at some point when it comes to selling your crypto, but there’s no need to pay until you’re ready.

Conclusion

If you’re not sure what to do with your crypto while you’re waiting for your investments to mature, taking out a crypto-backed loan is an excellent idea.

Crypto-backed loans allow you to start making the most of your crypto investments without having to sell them and potentially miss out on massive gains in the future. 

The next couple of years is set to see crypto prices skyrocket with recent studies showing that Bitcoin could reach $100,000 in the next year, so there’s never been a better time to not sell. 

However, it’s not just popular coins such as Bitcoin that are set to do well. 2022 is set to be the year we see new coins emerge onto the market, so if you’re looking to invest and diversify your crypto investments, now is the time. 

If you’d like to know more about how Nebeus crypto-backed loans work, head over to their website or download their app to start making your cryptocurrencies work for you. 

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