CoinRabbit is a cryptocurrency lending platform based in Seychelles that connects investors with borrowers to conduct financial transactions. Established in 2020, this prominent crypto lending platform provides access to an infinite amount of stablecoin loans utilizing various cryptocurrencies as possible forms of collateral.
When you sign up for CoinRabbit, you won’t have to go through the KYC protocol, and the interest rates are low and don’t add up. Borrowers are free to use the money however they want, including investing it in the market to get more cryptocurrency.
What Is CoinRabbit?
CoinRabbit is a cryptocurrency lending company that makes it easy to get loans using cryptocurrencies. The company aims to make cryptocurrencies operate much like conventional money for those who possess and lend it.
In light of this fact, CoinRabbit is hard at work developing a platform that will allow lenders to earn interest without running the danger of losing their assets. Moreover, borrowers can take out loans without worrying they will lose the underlying collateral they have provided.
Main Features
CoinRabbit is a peer-to-peer lending network for owners of stablecoins and cryptocurrencies. It makes the transaction process easier on both sides and makes it possible for borrowers to obtain loans in the bull or bear market. These are some of the more distinctive characteristics of this crypto-lending platform.
CoinRabbit Interest Accounts
The current yield on CoinRabbit interest accounts is 10% per year on average. You can put as little as $100 into your stablecoin account and as much as $1,000,000 into your fiat currency account.
CoinRabbit calculates the interest rate monthly even though it is accrued and paid out on a daily basis. You could watch your earnings grow each day, but you wouldn’t get paid at the end of the month.
At this point, maybe you’re thinking, “Is this like staking?” Since there are safer alternatives, why take a chance with CoinRabbit? You don’t have to stake your assets to profit on the platform. You can withdraw any amount from this crypto-lending platform at any time.
A unique function of CoinRabbit is the ability to top off existing deposits with extra funds transferred from another source. Investors can also quickly withdraw their funds from CoinRabbit, which is a huge plus.
Crypto Loans
Bull market loans allow borrowers to obtain stablecoins by using their cryptocurrency holdings as collateral (such as USDT or USDC). These loans come with holding periods that can go on for an unlimited time.
For loans taken out during a bull market, interest is accrued monthly at 14% APR. After all interest accrued up to that point has been paid in full, CoinRabbit will release the collateral.
You should know that CoinRabbit will cancel the loan and sell the collateral if the token used as collateral loses 45% of its value compared to the borrowed token.
Naturally, the platform will message or email you if any of your loans enter one of the predetermined limit zones I12.4%, 37%, and 50% of the value), allowing you to make necessary payments or post collateral to prevent the loans from being liquidated.
Types of CoinRabbit Loans
Depending on the state of the market, CoinRabbit, you can choose between two types of loans: bull-market loans and bear-market loans.
You can borrow stablecoins through bull-market loans, but you have to put up a speculative coin as collateral for the loan. Because you only apply for this type of loan under circumstances in which you believe the value of the collateral will increase, it is known as a bull-market loan.
Bear-market loans, on the other hand, are used when the borrower anticipates that the value of an asset will decrease and intends to engage in short selling.
To get a specified number of tokens, you could be asked to submit a certain amount of stablecoins (or another accepted crypto as collateral) as security. If your forecast is accurate and the asset’s value drops, you will still get the original crypto asset, which is now worth more in the digital currency world.
How to Borrow Crypto on CoinRabbit?
The procedure for obtaining a loan with CoinRabbit is quite easy to understand. There is no need to register, and the platform doesn’t do credit checks. Doing the following actions is all that is required of you at this point:
First, enter the total amount of collateral that you have available. Based on this, the system will be able to determine the maximum amount of money you can borrow.
Next, provide your phone number and the address where you want the USDT or USDC payments to be sent. You must transfer the collateral to the exact same. After that, you should receive your loan within the next ten minutes.
That’s it. Now you can put the money to use any way you want.
The Collaterals
You can choose between Bitcoin, Bitcoin Cash, Ethereum, and Nano (NANO) as collateral on CoinRabbit, and borrow Digital Open Market Exchange Tokens (DOGE) or Digital US Dollar Coins (USDC).
Once the deposit has been properly processed, the funds are transferred to CoinRabbit’s affiliate ChangeNOW to be analyzed for risk security and risk management before being returned to the client. If everything’s fine, the funds from the loan will be sent to the user’s designated cryptocurrency wallet. When the collateral is returned, the interest payment schedule will resume.
Moreover, the CoinRabbit platform uses a 50% Loan-to-Value (LTV) ratio to compute collateral. The LTV ratio measures how much of an asset has been borrowed in relation to its total worth.
CoinRabbit Fees
When you deposit (or withdraw) funds via CoinRabbit, you won’t be subject to any fees of any kind. To fund the wallet, you can either scan the QR code or the provided address to fund the wallet.
The depositing procedure can be finished anywhere from five to ten minutes after it has commenced, during which time the AML security framework will determine whether or not the transaction is legitimate. You can withdraw either a portion or the entirety of your deposit at any stage.
Is CoinRabbit Safe?
To begin with, the company has teamed with ChangeNow.io to provide efficient currency conversion services and Guarda.com to safeguard client assets. In the bargain, the bulk of CoinRabbit’s assets are kept in a protected offline storage unit, which is just one of the many precautions the company takes to safeguard its users’ financial holdings.
But, before putting money into anything, it’s vital to do your homework and fully comprehend the potential downsides, especially when it comes to the volatile crypto market. Also, there are risks associated with holding or lending cryptocurrencies because the market is highly volatile.
Conclusion
If you have any questions or concerns regarding CoinRabbit, you can get in touch with the company’s customer service team by sending an email, filling out a contact form, engaging in live chat, or using any of CoinRabbit’s social media channels.
The support team will do their best to get back to you as soon as possible. Be sure to offer them all the particulars of your issue, though, so they can provide a comprehensive solution.