What are the benefits of investing in crypto-backed loans? │ Bondster

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What are the benefits of investing in crypto-backed loans?

What are the benefits of investing in crypto-backed loans?

September 22, 2024

Investing in loans secured by cryptocurrency offers a high level of security and above-standard returns exceeding 10% p.a. Each loan is always secured by Bitcoin in the amount exceeding the value of the loan. The cryptocurrency is stored out of the borrower’s reach on a smart contract. It is an algorithm that monitors whether the Bitcoin collateral is sufficient at any given moment and automatically releases the collateral to the borrower the moment the debt is repaid, including interest, or, in the event of default on the loan, lets the Bitcoin be forfeited to the provider. In the event of early termination of the investment, investors get back 100% of the funds invested plus interest for the entire period.


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