SALT Crypto Lending Review – A Blockchain Loan Platform

    I’ve been following cryptocurrency and blockchain technology since Bitcoin was the only crypto on the market. It’s been enjoyable to watch the industry evolve, bringing new features to customers and offering higher levels of simplicity in finance. 

    One thing I’ve found challenging in the world of cryptocurrency is utility. Sure, you can sell your cryptocurrency for cash, but there are very few retailers that accept these digital currencies. 

    Simply put, crypto has far less liquidity than cash. But SALT Lending aims to solve that problem. You can borrow against your crypto assets, and soon, you’ll be able to do so in real-time with the SALT Card. 

    What Is SALT Lending?

    SALT Lending offers cash loans against your crypto assets. That means when you need access to cash, you don’t have to sell your crypto to get it. 

    Soon, you’ll be able to charge it on your crypto-backed SALT credit card. But for now, you can take out a personal SALT loan of at least $1,000 up into the millions of dollars. As with competitors, you can borrow against any crypto assets you deposit with the company. A smart contract locks up the crypto, and you get it back once you pay it off. 

    You should know that SALT works a bit differently from its competitors. But that’s not necessarily a bad thing.

    What Sets SALT Lending Apart?

    SALT Lending is quickly emerging as a leader in the crypto lending industry. Leaders only claim their positions when they offer unique advantages over their competitors. Some of the most exciting aspects of working with SALT include:

    Key Features of SALT Lending

    SALT Lending offers a robust platform with several features that could make it the preferred lending platform for many crypto investors. 

    Selection of Digital Currencies to Borrow Against

    Although the company doesn’t accept the widest range of digital assets, it does accept a lot of popular cryptos. So, if you’re a cryptocurrency investor, there’s a strong chance you have one or more of the accepted digital currencies.

    You can also combine collateral types within your portfolio, which other crypto lenders may not allow you to do. 

    SALT Token

    SALT Token is an ERC-20, blockchain-based token the company developed for use specifically in the SALT Lending ecosystem. 

    You can’t buy SALT Token from the company anymore. But if you already have some, you can use it to make up as much as 20 percent of your collateral portfolio to secure your loan, use it to lower your loan-to-value ratio, or use it to make interest payments.

    Easy Loan Terms

    Borrowing is easy with SALT Lending. You get the money you need quickly and pay it back over a period of 12 to 60 months. There are no tricks or hidden fees in the terms either. You won’t pay a prepayment penalty, there’s no loan origination fee, and there’s no hassle. 

    When you complete the repayment of the loan, you get your crypto collateral back. It’s as simple as that. 

    Ridiculously Low Interest Rates

    Interest rates are critical when choosing lending options. 

    According to the company’s website, annual percentage rates (APRs) on SALT loans start at just 0.52%. 

    In today’s market of increasing interest rates, it’s nearly impossible to find a lender that’s willing to fund a loan with a 0.52% APR. Though your APR may be higher, the rate you can get with SALT is likely one of the most competitive across all lending options. 

    As with all loans, your interest rate is tied to your loan-to-value ratio, a measure of the risk the lender faces for letting you borrow money. But in the case of crypto, you could also see it as a measure of how much risk you face borrowing against such a volatile currency. Fortunately, the SALT Lending platform lets you track your own loan-to-value ratio, or LTV, in your account.

    As you can see, your LTV reflects your loan’s health based on the current value of your collateral (the cryptocurrency you have in your SALT account). If the value of that drops, you have less valuable collateral backing your loan and less ability to repay the full amount of the loan.

    That influences your interest rate at the time you first get the loan. But LTVs are important on SALT loans for another reason, one unique to SALT Lending that may make this crypto-backed loan a more appealing option for many borrowers: SALT stabilization.

    SALT Stabilization

    The crypto market is a highly volatile one, and using cryptocurrencies as collateral can be dangerous. Locking up your crypto by taking out a loan on it takes away your liquidity, meaning if prices fall, you can’t get out before too much damage is done.

    SALT Lending helps alleviate that risk. 

    When your LTV reaches 90.91%, the platform automatically converts your digital currency into a USD stablecoin guaranteed to trade at a one-to-one rate with the U.S. dollar. 

    There’s a 5% fee for stabilization, but in the event of a market crash, it can buy you time to decide what to do while protecting the value of your assets in the meantime. From there, it’s all about your loan-to-value ratio. 

    The expected move is for you to cure your LTV to 83.33% or better, either by paying down the loan or depositing more collateral. But thanks to stabilization, you have time to figure out how to do that. 

    Then when you’re ready, you can convert it back to the asset mix of your choice. The first conversion is free, and subsequent conversions incur a fee of 1%. But the fees are better than losing your proverbial shorts. 

    If you’re still unsure how stabilization can benefit you, SALT published the story of how stabilization impacted one customer twice in one week. It’s under the story about how SALT’s CEO came up with the idea after experiencing a loss first-hand. SALT also created an easy-to-follow infographic explaining it (Beginners, note that BTC means Bitcoin and ATH is all-time high).

    3-Pronged Security Protocols

    In addition to its unique stabilization practice, SALT Lending has additional controls meant to keep your crypto safe. It partners with Fireblocks, a custody-management firm (like virtual armored cash transport vehicles) that makes your transactions secure and fast.

    Additionally, the associated security protocols at SALT and its partners require multiuser authorization. That means no single employee can influence what happens to your transactions. 

    Combined with the stabilization, that translates into increased security and speed. SALT says it’s had a 0% loss of customer collateral since it funded its first loan in 2017.

    All the same, SALT’s third prong is its cyber-insurance, which protects it from various cybercrimes and virtual failures. And if anything happens to your money while it’s in transit, its partner Fireblocks maintains e-crime event insurance. So if the first two prongs fail, the third one has you covered the old-fashioned way.

    StackWise Rewards Program

    When you borrow from SALT Lending, the company automatically enrolls you in the StackWise Rewards program, which rewards you with crypto (Bitcoin, Ether, or USD Coin) directly in your wallet every time you make a monthly payment. You can hold it or apply it directly to your monthly payments.

    SALT Lending App

    SALT makes it easy to manage your loan on the go with a handy app rated at 4.9 out of 5 stars on the App Store and 4.3 out of 5 on Google Play. Its clean and intuitive interface makes it easy to see how much you owe, where your loan-to-value ratio stands (along with how close you are to stabilization), and all the essential details about your loan.

    In fact, you never need to go to SALT’s website if you don’t want to. You can manage the full loan process from beginning to end inside the app. You can even contact and communicate with customer service from your phone or tablet. 

    The SALT Card (Coming Soon)

    SALT plans to make it easy to borrow against your crypto assets at the point of sale with the SALT Card. 

    The company hasn’t announced a bank partner yet, but the card is expected to give you a credit line of up to 60% of the value of your crypto collateral and provide significantly lower interest rates than traditional credit cards. So keep your eyes peeled for this soon-to-come product offering.

    How SALT Lending Stacks Up

    Crypto lending is still a relatively new market with few competitors on the playing field. Nonetheless, companies like SALT Lending are quickly emerging as leaders. Another such company is YouHodler. But the companies are quite different. 

    SALT Lending YouHodler
    Starting APRs  0.52% 13.68%
    Loan-to-Value Requirements 20% – 70% Up to 90%
    Number of Cryptos 9 57 
    Minimum Loan Amount $1,000 $100
    Auto Stabilization Yes No

    Advantages of SALT Lending

    SALT Lending’s competitive interest rates, quality customer service, and highly secure crypto wallet keep consumers coming back for more, but they’re not the only advantages to working with the company. Some other exciting reasons to consider signing up include:

    Disadvantages of SALT Lending

    There are plenty of reasons to sign up for SALT Lending, but there are also a few disadvantages. Don’t borrow without understanding the risks.

    Is SALT Lending Legit?

    There’s no question SALT Lending is a legitimate service. Although the company isn’t accredited with the Better Business Bureau, SALT Lending has managed to earn an A+ rating. That’s a difficult task to accomplish. There are also plenty of positive customer reviews across the web. 

    The SALT Lending platform and its website ( feature bank-level security features, including 256-bit SSL encryption. So not only is the company a legitimate one, it also takes all the necessary steps to keep your personal data safe. 

    Alternatives to Consider

    There are a few popular crypto lending platforms to choose from. If you’re not interested in working with SALT, consider one of the following alternatives. 

    Platform Best For
    YouHodler Low loan minimums
    Nexo High security
    Binance Using multiple currencies
    CoinRabbit Best overall 

    Final Word

    Crypto-backed loans are an exciting new concept that has the potential to greatly reduce your borrowing cost and bring more simplicity to the process. If you need a loan and have plenty of cryptocurrency in your wallet, SALT Lending is worth checking out. 

    With the company’s industry-low interest rates, quality customer service, and wide range of features, you might be surprised how painless SALT makes the lending process. 

    This content was originally published here.

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