About CoinDepo

CoinDepo is a leading solution in the crypto world and one of the most reputable crypto loan providers. It’s also a reliable partner for people who want to earn interest on their digital assets like you’d do with a regular bank. CoinDepo offers the service of opening Compound Interest Accounts for major cryptocurrencies and stablecoins. By depositing funds on these accounts, the user can earn regular guaranteed passive income from their crypto assets. The CoinDepo platform supports major cryptocurrencies (Bitcoin, Ethereum, XRP, Litecoin, Bitcoin Cash) and stablecoins (USDT, USDC, DAI). With CoinDepo, you can safely store your crypto assets in Compound Interest Accounts and are guaranteed to earn from 12% to 24% per year without the risk of volatility, depending on the type of interest account you choose. Suffice it to say, it’s one of the cutting-edge solutions for decentralized finance at the moment.

It’s not a crypto exchange, there isn’t a way to dump your money into a certain market and execute orders there. Instead, it offers several alternative ways to make money off crypto: by playing off borrowed funds and earning on interest from funds stored on the platform. These methods aren’t that common in the crypto world, but it has been making waves.

Above all, it’s a reliable provider with an established reputation. That’s the most important thing if your livelihood depends on a crypto company paying back their dues years later, especially if you want to borrow money from them. CoinDepo, though, is known for having overall reasonable and mutually beneficial policies. 

Loans

CoinDepo offers crypto loans that require no collateral accounts. 

Collateral accounts are a regular sight in trading, including crypto trading. A lot of brokers provide the so-called margin trading features, which means that you can go on to invest in crypto without utilizing your money at all. You can trade with a broker’s money, but you have to borrow it, naturally.

The conditions for such loans are usually abysmal, and that’s where collateral accounts come into play. Collateral accounts are called so, because, in order to maintain them, you have to keep a certain amount of money there. If you go below a certain level of value, they start knocking hard.

The collateral is usually a mix of dedicated funds and your balance on that exchange. Although you technically can trade with a leverage of 1:1000 and even more (meaning you’ll get $1000 for each $1 you deposit), you should still maintain that collateral, and that’s a very uncomfortable arrangement for a trader.

On other crypto lending platforms, you also need to open a collateral account in order to receive a loan. Your digital assets in the collateral account are blocked until the loan is repaid, in other words, they do not work and you do not earn interest on them. These funds simply sit idle without generating any income.

Loans on CoinDepo require no collateral account – it’s a simple Instant Credit Line that you can get for any unspecified goal. Compared to what you get during margin trading, the loans here are much smaller. However, since you have to maintain giant collateral, your actual tradeable funds on a regular exchange are minuscule.

On CoinDepo, you don’t have to deposit extra money simply to use your own loan. It’s available immediately and at the designated value. You do have to deposit money on CoinDepo before you can take a loan, but it’s not nearly as extreme as the usual collateral accounts.

Taking a Loan

Taking a loan is directly tied to the other main feature on this platform – Compound Interest Accounts for cryptocurrencies and stablecoins. To start anything on CoinDepo, you have to deposit some funds. There isn’t a limit to how little you can deposit, but it is more lucrative if you add more money. You can do it in regular cryptocurrencies or stablecoins.

This function is important because you can only take a loan worth 50% of your current balance in CoinDepo Compound Interest Accounts. So, if you’ve deposited crypto worth $500, you can only take a loan of $250. In exchange, it’s simple, quick, and has no strings attached besides basic debt obligations

The good thing about these loans, though, is that you don’t need to pay any interest on your debt. There is an interest that varies based on several factors, but you won’t even have to pay it. See, you already earn interest on whatever you’ve deposited in Compound Interest Accounts, while the interest on the debt will always be lower than whatever you’re getting in profits here.

So, it might cut some of your passive income, but you won’t have to part with any money.

The only ‘collateral’ you need to provide is that deposit into Compound Interest Accounts. If your debt fails, CoinDepo will simply take the required funds from your balance. 

Using the Loan

A loan such as this can be used for a variety of ends. Here are several, just to name a few:

• Debt consolidation. You can take a loan on CoinDepo to repay a debt with less favorable conditions.
• Shorting. A very popular strategy to bet against the asset is to short it. Essentially, you borrow said asset, liquidate it, and buy it back later at a lower price.
• Staking. You can borrow tokens in order to stake them, which will increase their value over time, additionally improving your income.
• Long-term investment. You can open a classic long position without risking any of your own funds.

There’s a lot more you can do with such loans. The opportunities are, in fact, limitless. It is risky and a bit scary to commit someone else’s money to your ideas. However, it’s always better to invest a bit more money into a lucrative idea than to come short, especially when the loan conditions on CoinDepo are pretty reasonable.