Salt Lending will change the credit world as we know it. We all know how difficult it is to just hold your favorite cryprocurrency. Whether you are invested in Steem or Bitcoin, the last thing most of us want to do is cash out our coins in order to pay some mundane bill. We all know, however, that sometimes this is necessary.
Salt takes care of the liquidity problem that so many crypto investors face. Salt makes loans to consumers and uses the crypto as collateral. At the moment, Salt only deals in Bitcoin and Ethereum, but we will probably see more coins added as the market continues to grow.
Salt offered their first loans in 2017. At the moment the loans are to individuals and are usually for 36 months. The average interest rate of 12 to 20 percent seems high, but not when compared to the double digit gains you may have if you can continue to hold your investment. Salt will hold your crypto and loan you up to 60% of the value of your collateral. Some states limit the service to financial institutions while others allow individuals to participate.
At the moment the industry of issuing loans backed by cryptocurrency is quite small, but with a current crypto marketcap of 400 billion dollars,we will see more companies offering this type of service.
Salt is currently trading at $1.86