Top Bitcoin Lending & Cryptocurrency Borrowing Platforms To Use

The Recession might officially be over, but new data from the Federal Reserve Bank shows that consumer lending in the years following the recession has been higher when compared to the demand for lending during the 2001 recession. Add to that need the fact that there is less credit available on the market. So what does that mean? Essentially, it means that for those who have less than excellent credit, the ability to get a traditional load for anything ranging from a car, school, or even a mortgage might struggle significantly trying to find a banking institution willing to do with work them.

Fortunately, digital currencies are shaking up the world of traditional financing. Peer to peer borrowing is only gaining more traction, particularly with the emergence of blockchain technology. Non-traditional borrowing methods such as cryptocurrency means that there’s a new way to lend funds, which is much more democratic and far less centralized.

This is good news for anyone who is seeking out an alternative to bank-backed loans, there are a variety of options available, each which uses a different blockchain technology, allowing for lots of personalization on the market. There are countless alternative lending platforms currently emerging. Here’s a breakdown of three with vastly different approaches to decentralized lending.

What Is SALT & Credible Friends?

SALT is a lending platform that uses Ethereum blockchain tech. Its approach is simple. Instead of relying on the credit of its users, SALT gives its borrowers the chance to pull from its own internal pool and uses its own SALT tokens as indemnity against the loan. SALT tokens have a set value but are currently being traded for one fifth of that value. This allows for membership fees and borrowing limits to be established for the borrower. Interest rates vary between ten and fifteen percent and Ethereum does not secure the loans SALT creates. However, SALT has established that its member lenders have been accredited, which gives its borrowers some piece of mind.

Whereas SALT relies on a core group of investors who have been scrutinized for their financial ability to repay loans, Credible Friends relies on the peer group of its users. It’s an app that works as a peer to peer line of credit but aims to be a replacement to a standard traditional credit card. It allows its users to cultivate a list of trusted peers within their various social circles and then borrow from them with an interest rate of 25%. Repayment is essentially the same as with a financial institution credit card in that it’s set out against a payment plan. Users of Credible Friends can use the loans just as they would a traditional credit card or in the form of Bitcoin.

Contrary to both SALT and Credible Friends, Ethlend uses Ethereum blockchain tech to create a platform where lenders and borrowers can meet to negotiate loan agreements. A far cry from the traditional route of a banking institution telling its clients how much an interest rate is going to be, EthLend gives the power back to the borrower. Any Ethereum tokens are accepted as collateral and loans are secured within the cloud.

SALT & Credible Friends Opportunity

All of these platforms essentially provide its users with the same opportunity – to step outside of the realm of traditional bank backed financing and explore options surrounding blockchain tech and cryptocurrencies.

SALT & Credible Friends Verdict

While these two alternative funding options vary greatly, they still hold onto a single core philosophy. With the introduction and acceptance of blockchain technology along with the growing popularity of cryptocurrencies, it’s clear that there is a very real need for non-traditional forms of borrowing and lending. The concept of decentralization of the financial industry might seem to some like a far-fetched idea, something that is incredibly unlikely to happen. However, the emergence of these platforms not only suggests that decentralized loan funding is here, but it’s here to stay.