As the world slowly begins to open up again, you may be thinking of all the places and countries you could visit.
If you have a lot of cryptocurrencies and are wondering what to do with them, here is a suggestion: why not go on a trip with your cryptocurrencies? You've HODLed and traded some of the wildest highs and lows. It's only fair that you treat yourself to a well-deserved trip.
Although there are some travel agencies and airlines that accept cryptocurrencies directly, the fact is that most of the major providers have not yet adopted these digital assets as a mode of payment. However, there is a way to avoid it: you can obtain a loan in fiat against your crypto assets. While you wait for your digital assets to continue to appreciate, consider using this method in the meantime to see the rest of the world.
What is a cryptocurrency-backed loan?
The concept of a cryptocurrency-backed loan is simple: it consists of using a crypto asset that you own as collateral to secure a loan in fiat. After that, you are free to use the fiat you have borrowed in any way you want. All you have to do is pay back the fiat you owe once the loan term has ended. In this case, you can ask for a loan with your crypto to secure some funds that will help you get the vacation you need.
In this article, we will take you through the entire process step by step.
Step 1: Ask for a loan against your crypto on a lending platform
Although there are a lot of loan platforms out there, we are going to use Nebeus as an example. It's simple, intuitive, and easy to use, perfect for beginners looking to put their crypto assets to work.
In the case of Nebeus, the first step would be to create an account through your desktop or app. Once done, you can start depositing your crypto and customize the conditions of your loan.
Nebeus currently offers two loan options. You can choose between their Quick Loans and their Flexible Loans. The first provides you with 50% LTV at an interest rate of 0% for the first three months. On the other hand, if you have a clearer idea of what you want, you can simply opt for a Flexible Loan. These loans allow you to choose the desired loan-to-value ratio, between 50% and 80%. The interest rate will change automatically based on the LTV you select. Best of all, you can request a loan of up to 250,000 euros and up to 36 months.
Step 2: Deposit your crypto and withdraw your fiat
Once you have chosen your loan plan, all you have to do is deposit the required amount of crypto as collateral for the loan. You can then confirm your loan and instantly receive fiat in EUR, USD, GBP or even stablecoins, and receive the funds directly to your Nebeus account. After that, you are free to withdraw your funds and send them to your bank account. Nebeus will also email you the PDF version of your loan agreement after securing your loan as a copy for your records.
Step 3: Book your flights and hotels
This is where the fun begins. Once you've gotten your loan, things are pretty straightforward from here. All you have to do is use the loan you have obtained to buy the plane tickets and hotel reservations you need before starting the trip.
If you are looking for inspiration to go, just look for the best summer destinations. You can even check out travel vlogs on your favorite social media channels to help you decide.
Step 4: Remember to pay back the loan
Holidays are great, but we all have to go back to work at a certain time. When you return, one of the most important things to remember is to pay back your loan. Remember: your crypto assets are still blocked as collateral on the platform, and you need to get them back in order to continue making them work for you. Once the term of your loan has ended, simply enter the platform with the amount of fiat necessary to repay your loan, follow the steps and let the platform take care of the rest.
Now that you are familiar with the process, you can start using your crypto and get cash without selling it. As long as you have the required amount of cryptocurrency needed to back your fiat loan, getting your loan backed by crypto really takes a minute.
As the crypto markets continue to consolidate, now is one of the best times to get a crypto-backed loan for your travel and other daily expenses. In this way, even if your assets are not appreciating at this time, you will continue to hold them while you take advantage of the value they can offer you.