CoinLoan Review: A Detailed CoinLoan Lending Service Review in 2020

An innovative cryptocurrency platform that merges the best out of cryptoassets and crowdlending features, CoinLoan offers a new way to make the most out of anyone’s digital assets. Let’s learn more below in our CoinLoan Review:

What is the CoinLoan Platform All About?

CoinLoan was established sometime during the late 2016. Operating from Estonia, the actual development of the platform took place the following year. Initially, the main idea of the platform was to be an avenue to store one’s cryptocurrency – without selling it at any given time! Instead, the stored cryptoassets are used as collateral for a cash loan (in fiat). The amount is then received back once the loan is fully paid.

Interesting, right? To explain it more, let us delve more into CoinLoan’s cryptocurrency lending feature below: 

More About Crypto Lending

Another way to explain what CoinLoan is all about is to tackle its nice crypto lending facility. Basically, CoinLoan is a P2P cryptocurrency lending platform. The platform focuses on securing fiat loans through the use of cryptocurrency. As a borrower, you temporarily lose your hold on a set amount of your crypto assets as a form of collateral that can be exchanged for a list of accepted fiat currencies.

Now, what makes CoinLoan’s lending facility different from others is the “over-collateralization” of its loans. This actually means that after depositing cryptocurrency assets on the CoinLoan platform as a form of collateral, you are actually taking a loan out up to 70% more of its market value! This unique feature gives both the borrower and lender a nice incentive to make things happen on the platform (additionally, in the case of any cryptocurrency price drops during a loan’s term, CoinLoan can use the remaining 30% of the over-collateralized amount as an insurance to pay back the investor)!

The CoinLoan Process

Before diving into how to create a CoinLoan profile, let’s break down the two most important processes done on the platform: borrowing and lending.

The Borrower Flow

Here’s how to secure some fiat funds without selling your crypto assets!

1.Create a CoinLoan profile 

This particular point will be discussed below.

2.Deposit Crypto Assets on the Platform 

This is done by going to the “My Wallet” tab. From there, choose the type of cryptocurrency you’d want to designate as an asset. Your chosen asset will be used to secure a loan.

3.Select Loan Conditions that Will Work for You 

Mix and match conditions that will work best for your situation. You can set and select interest rates, term, loan currency, and the loan amount. Remember: the higher the interest rate you’ve set, the faster your loan application will be accepted by the lender.

4.Set Up the Loan Request 

Once you’ve done setting the conditions, you can now create a loan request. You can either have a loan request generated or check various loan offers found on the CoinLoan Lending Market to suit your needs.

More CoinLoan Borrower Details You Need to Know About

Here are two more important details to know about as a CoinLoan borrower:

  • Every loan done on the CoinLoan platform is asset-backed. This means that no credit checks need to be done. 
  • Loans can be paid off whenever you choose to. Or you can do this on a monthly basis. 

Know More About LTV and Margin Calls

Understanding how Loan-to-Value (LTV) works will help you set up great loan requests.

Basically, an LTV refers to the ratio between the amount you’ve set on your loan and the collateral’s market value.

So, a lower LTV means your cryptoasset is safe in the event of any price drops (since your cryptocurrency is more likely not to be liquidated to secure the lender’s investment). A higher LTV, of course, means that you’d need to act fast to secure your assets back in any market price drop situations.

In cases of high LTV changes, an email will be sent out for you to address any changes. You will also receive an email if the market value of your collateral decreases. Of course, the best course of action to address market falls would be early loan repayments or adding extra collateral to decrease the actual LTV.

Borrower Benefits

Here is a comprehensive list of benefits you get when securing a loan on the CoinLoan platform:

Individual Loans

With your cryptoassets working as loan collateral and with no credit checks done, getting a loan approved is fast, easy, and secure.

Customizing your loan terms means you get to manage payments in an easier manner.

Legal Entities Loans

Since loans aren’t credit checked, you can now gain access to some much-needed funding for your ICO, mining, and other cryptocurrency business needs.

Storage Benefits

CoinLoan assures that all cryptoassets are stored using distributed key storage systems and cold multi-signature wallets.

Because of over-collateralization, minimal risks are experienced on CoinLoan.

All About the CoinLoan Instant Loan Feature

CoinLoan offers easy cryptocurrency borrower and lending features. But what does make it stand out from similar platforms is the inclusion of the Instant Loan feature.

Simply put, instant loan is explicitly what it is – you get a loan in the fastest and easiest way possible. Here’s how it works:

  1. Go through the simple process of depositing cryptoassets to the CoinLoan platform.
  2. After depositing, access Instant Loans on your account.
  3. Here, simply set loan parameters (amount of crypto collateral to use, the loan amount you hope to borrow, etc.). 
  4. Next, click Get Loan Now.
  5. You will now find a pending loan in your My Loans section. Approval is fast and easy this way!

Some Benefits to Try Out the CoinLoan Instant Loan Feature

  • It’s fast – it takes just a minute to apply for a loan on the platform.
  • You never need to submit any paperwork when applying for a loan. The only thing that is of value is your crypto collateral.
  • Since crypto is all there is, your personal information is secured.
  • Approval is automatic – no more waiting to check for counter offers and the like that may be found on the CoinLoan Lending Market section.
  • There are no fees to pay when using this feature.

The Lender Flow

Here’s how to lend your cash to earn very competitive returns

1.Create a CoinLoan profile  

This particular point will be discussed below.

2.Fund Your Wallet on the Platform  

This is done by going to the “My Wallet” tab. From there, choose the type of cryptocurrency or fiat you’d want to fund your wallet.

3.Select Loan Conditions that Will Work for You  

Mix and match conditions that will work best for your situation. You can set and select interest rates, term, loan currency, and the loan amount.

4.Set Up the Loan Offer 

Once you’ve done setting the conditions, you can now create a loan offer. You can either have a loan offer generated or check various loan requests found on the CoinLoan Lending Market to suit your needs.

Funds can be easily withdrawn either through AdvCash or bank transfers (SEPA and SWIFT)!

Lender Benefits

Here is a comprehensive list of benefits you get when lending on the CoinLoan platform:

Evaluating Risk

CoinLoan follows a strict Anti-Money Laundering (AML) policy.

The platform’s P2P aspect follows a highly liquid protocol – this assures that payments are done seamlessly and on time.

Lenders are Protected

CoinLoan is certified and licensed as a European company.

Repayments on the platform are guaranteed and without any default risk involved. 

Transactions done on the platform are protected with SSL protocol.

More About the CoinLoan Interest Account

Let us focus more on how to earn easily on CoinLoan. As a lender, your assets are maximized to give amazing returns in the CoinLoan Interest Account.

The process of setting up a CoinLoan Interest Account is really easy. Simply deposit an amount that you’d want to lend – CoinLoan will automatically calculate your (potential) returns.

Important Points that the CoinLoan Interest Account Brings to the Table:

  • Your deposited assets can earn you up to 8% APR.
  • Interest in your CoinLoan Interest Account is accrued daily (to simplify matters, this is set at 14:00 UTC). 
  • The compounded interest earned on your account will be credited every first day of the month (also set at 14:00 UTC).

What is the CoinLoan Lending Market

If you want to go in deeper in getting customized loans (or setting up specific assets to be loaned), then simply hop on over to the CoinLoan Lending Market section.

The Lending Market is essentially a consolidation of loans available on the platform. This is also where you get to set up a loan that will best suit your preferences. 

Here’s What You Get When Making the Most Out of the Lending Market

  • You can borrow crypto in this section – even BTC against BTC is possible here.
  • You can also accept loan requests here. Depending on the terms set by the borrower, you can make the necessary details that will match and satisfy each preference. 
  • Creating a loan is simple. Simply fill out the form to set up details for borrowers to check.
  • Working seamlessly with the Recent Loans section, you can get a clearer idea on how to set up interest and loan terms for your customized loan.

Making it Easy with the CoinLoan Crypto Exchange

CoinLoan aims to cover every little detail in borrowing and lending loans using cryptoassets. And a really great idea on making this seamless is having a crypto exchange found on the platform itself.

It does make sense – it prevents the hassle of getting out of the platform when you need to buy or sell some coins. And considering that time is crucial when both lending and borrowing loans, the CoinLoan crypto exchange does streamline the entire process.

Simple Flow of Using the CoinLoan Crypto Exchange Section

  1. Login to your CoinLoan account.
  2. Make sure you have crypto on your CoinLoan wallet (if not, simply deposit some!).
  3. Head on over to the Crypto Exchange section.
  4. Find out which currencies are available. Match it with a price that you’re comfortable and simply press BUY to complete the exchange.

Easy does it indeed with this awesome section.

Setting Up a CoinLoan Profile

Setting up a CoinLoan profile is simple and easy. Here’s the basic flow to do just that:

  1. Locate and click the “Sign Up” button on the CoinLoan homepage.
  2. Provide your email and password to sign up.
  3. Check your designated email for the sent verification code. Provide this code on the verification link.
  4. Go through the Verification process to make out the most of your CoinLoan experience.
  5. The most important details that you need to provide for the Verification process are:
  • Complete Name
  • Date of Birth
  • Place of Birth
  • Gender
  • Phone Number
  • Identifying Documents

CoinLoan Safety Protocols

As mentioned briefly on both the Borrower and Lender flows, CoinLoan integrates several layers of security measures to safeguard activity on the platform. Let us break down the features by listing them below:

Storage is Solid

By making use of cold wallets (which have multi-signatures) and a keen distributed key storage system, cryptoassets are definitely safe from harm on the platform.

AML is Solid

CoinLoan follows and sticks to AML protocol. 

Licensed and Secured

The platform is regulated be Estonian financial laws and is certified and licensed as a European Financial company.

Borrowing or Lending, You’re in for a Win on CoinLoan

CoinLoan offers a direct yet innovative approach on both lending and borrowing funds. By maximizing cryptocurrency’s many features, one can expect great returns and funds on this platform.

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