How to Invest in Crypto-Backed Loans Using CoinLoan

CoinLoan is a global peer-to-peer lending company that helps crypto investors access capital without interfering with their cryptocurrencies. By doing this, they get money they need right away and still remain with their cryptocurrencies hoping that their price will rise. Buy and hold is one of the main investment strategies in crypto market. The company also helps lenders make money by lending to borrowers from around the world. CoinLoan has received more than $3.1 million in venture funding.

We will look at how to invest in CoinLoan and everything else you need to know.

Why CoinLoan Was Started

The peer-to-peer lending industry has seen significant growth in the past few years. Today, a company like Lending Club is worth more than $1.4 billion. It has disbursed loans worth more than $40 billion and has more than 100k investors. Another company, Prosper is valued at more than half a billion dollars.

“Traditional” peer-to-peer lending marketplace companies like Lending Club face several limitations. First, they are only limited to a single geographic location. Because of their financial models, these companies have limited methods of scaling. Second, they are based on trust. The funds they give to borrowers is not backed by anything. This exposes them to defaults.

This is where a crypto peer-to-peer company like CoinLoan comes in. It removes the barriers that Lending Club and Prosper have in several ways. It is a global company that enables anyone to lend and borrow money. Also, all the borrowed funds are backed by crypto, which can be monetized in case of a default.

How to Invest in CoinLoan

Investing in CoinLoan
Investing in CoinLoan.

As a lender, you just need to create a free account by visiting the website. You only use an email address and other personal details to create your account. The company needs to verify your personal details and place of residence to comply with the law.

You will then deposit money on the platform. You can use your card or bank transfer to transfer these funds. You can also deposit cryptocurrencies from your favourite wallet.

Next, you need to create the appropriate loan conditions. Here, you will create your lending reserve, the term you require, loan limits, and interest rates. Finally, you should create an offer. You do this by going to the marketplace and accept loan requests.

After you invest, the borrower will start paying back the money in instalments based on your criteria.

How to Borrow Using CoinLoan

Borrow using CoinLoan
Borrowing using CoinLoan.

Borrowing using CoinLoan is very easy. As with lending, you need to create your free account. You only need your email or phone number to create an account. After this, you need to deposit your cryptocurrency. You can send it from your favourite wallet. Finally, you can request a loan from global lenders and get as soon as possible. It takes less than a day to have your loan checked. Unlike other P2P platforms, a credit check is not required.

The minimum amount you can borrow is $100. There is no maximum amount you can borrow. The minimum term for the loan is 7 days while the maximum term is 36 months. Also, there is no pre-determined interest rates. These rates are set and agreed by lenders and borrowers.

Benefits of Investing in CoinLoan

There are several benefits you get by investing in CoinLoans:

  • Loans are backed by cryptocurrency and stablecoins.
  • The company has invested in technology to backup cryptocurrency in cold storage.
  • Loans attract high interest rates.
  • Access to a global pool of borrowers

Risks of Investing in CoinLoan

The benefit of investing in CoinLoan is that loans are usually backed by cryptocurrencies and stablecoins. Still, there are several risks that come with investing in the platform:

  • Volatile industry. Cryptocurrencies are highly-volatile products and their prices tend to fluctuate. There are chances that the value of the collateral may decline significantly.
  • Cyber risk. CoinLoan is a digital company. This means that there are chances that its platform could be compromised.
  • Liquidity risk. There is a liquidity risk, which makes it difficult to exit some investments. This is because there is no secondary market.
  • Company risk. CoinLoan faces significant competition. There is a likelihood that the company may not make it.

Countries CoinLoan is Available

As a blockchain-related company, CoinLoan is available around the world. Borrowers and lenders can participate no matter where they are.


CoinLoan is one of the many companies that are in the peer-to-peer lending industry. It is also one of the several companies that are connecting the world of fiat currencies and crypto. Other companies offering a similar service are OkEx and Nexo. Using such platforms is a good thing because it can help you diversify your income. Still, you should always ensure that most of your funds are in index funds, gold, Bitcoin and stocks.

Crispus is a finance professional with more than a decade experience in the industry. Over the years, Crispus has written in-depth articles on leading platforms like CCN, Marketwatch, and Seeking Alpha. He also runs a Forex education and managed account company called WestEndFx.