YouHodler Establishes Crypto Backed Loans for Miners
While the market remains relatively stable right now, it’s bearish status is affecting everyone, particularly crypto miners. Yet, your mining operation doesn’t have to generate a negative income. With crypto backed lending platforms like YouHodler, miners can use their mined coins as collateral in exchange for a loan. This helps to not only keep operations functional but even find ways to thrive in a bear market.
Crypto mining isn't the cash grab it used to be
The outrageous “crypto bubble” of 2016/2017 is long over. Today, whether you are running a large scale mining operation or something on the smaller side, generating a large income with mining is not easy anymore. Everyone has expenses that need to be paid, regardless of market conditions. Even in countries like Venezuela where it can cost less than 600 USD to mine a single Bitcoin (due to cheap electricity), miners are always on the lookout for new ways to optimize their business. One such concept is the crypto backed loan. New startups like YouHodler help miners keep their mined crypto while receiving funds to keep their business afloat.
HODL and crypto mining: a perfect match
Asking for a loan to keep a business running smoothly is hardly a new invention. For centuries, farmers have been putting up their land as collateral in order to receive funds until harvest time. Today, instead of taking out a loan to buy farming equipment or seeds, crypto miners are taking out a loan to repair mining hardware, pay electricity bills and more. There are a few reasons crypto miners are interested in crypto backed loans:
Avoiding banks: Miners don’t have to seek a bank loan which involves more time and complex credit score checks. Within minutes, they can sign up and receive a loan with crypto lending platforms.
No selling: Often times, miners are forced to sell their mined crypto at a low price in order to cover business expenses. Crypto lending platforms prevent this loss of profit along with any additional work like accounting and taxation issues caused by selling crypto.
Miners can HODL and profit: Once the loan is paid off, the miner gets his cryptocurrency back. This helps the miner HODL their crypto and keep its value. Furthermore, if the price of their crypto goes up during the loan term, then they get it back and can profit off their loan.
Miners can minimize risks: Seeing as cryptocurrency is itself a high-risk investment, mining is in turn, a risky way to generate income. Crypto lending platforms can help minimize this risk though. For example, if you take a cash loan, and the value of your crypto suddenly drops, you don’t have to take that crypto back and lose money. Instead, YouHodler lets you keep the cash in this scenario. On the other side, if the price of your crypto grows during the loan process, then you can use the cash loan to leverage your assets.
What YouHodler offers for crypto miners around the world
While there are a handful of crypto lending platforms out there, YouHodler has a few unique features that benefit miners specifically. For one, YouHodler has more collateral options than the competition (BTC, BCH, BSV, LTC, ETH, and XRP with Stellar, Dash, and Zcash soon to follow.) Also, an industry best loan to value ratio of 80% ensures miners receive the best value on their loan. Currently, the platform offers three, unique loan terms for a variety of scenarios but users can customize loan terms for amounts up to 30,000 to suit their needs as well.
YouHodler works with miners in 10+ countries and is rapidly expanding throughout Venezuela, Chile and other South American countries where the cost of mining is still low. To better accommodate this globalized user base, miners can choose to pay and receive their loans in USD, EUR and USDT with more options on the way. In addition, bank wire, credit/debit card, and USDT pay-in and payout options ensure everyone that passes KYC can receive a loan quickly and conveniently.
YouHodler helps miners keep their business open and sell their crypto at higher prices in the future. Putting up crypto as collateral lets you use the value of crypto without having to sell it now. Essentially, it gives more freedom to miners who were previously controlled by this current, bearish market.