By: Taurus Cornu
Crypto is hot right now. With the pandemic disrupting economic markets worldwide, more and more people are looking at crypto currencies as an alternative means of making money. Whether it is Dogecoin, Bitcoin or Monero, we’re going to be covering how to get involved in the crypto scene and start investing money using Coinloan.
Crypto investing is not for the faint of heart. They’re volatile. They’re overhyped. And are subject to various pump and dump schemes (Dogecoin anyone?). Knowing which crypto currency to pick is one thing but timing your entry and exit in the crypto markets is a beast on its own. A dangerous beast. We all know that day trading carries enormous risks and high brokerage fees. And let’s face it, your average day trader won’t make money or if they are making money, then not for long. But don’t let my words discourage you. If you have the technical chops (and money) to day trade crypto then you can go ahead and do so. Maybe you’ll be one of those who manage to find success and live the high life.
But Crypto for the most part is unregulated. And when there are no regulations to be found, huge profits can then be made. Now I’m not saying to take your life savings, find some random coin online and put all your money into it. Absolutely not. But you can create an investment budget, calculate how much money you can afford to lose and find a crypto currency worth investing in (like Monero, for example).
If you don’t know how to create a budget, then stop reading this article and go read our “How to Save An Emergency Fund?” article; it’s filled with tips and tricks on how to create a budget. Seriously. Go read it. It’s that important.
Got your budget? Hot diggity! Let’s move on.
As an investor, one of the ways I make money with crypto is by depositing my money into a high savings interest account. It is a passive income stream that I am actively developing and depending on how much money you have to invest; can be quite lucrative indeed. Currently, I make $2.69 a day. Which comes up to $80.70 a month or $968.40 a year. No work required. No day trading necessary. And it is all due to Coinloan.
Coinloan is a crypto lending platform for asset-backed loans. You can issue a loan or take out a loan that is backed by crypto-collateral. If a borrower applies for a loan, Coinloan uses the deposits made from the users of Coinloan’s interest account to comply with the borrower’s request. Coinloan is essentially operating like a bank. Only instead of fiat currencies, it’s crypto instead. Their loan service is quite popular because they don’t check your credit score and require no paperwork. They only require that you secure your loan using your cryptos as collateral.
Coinloan’s interest account is quite similar to any bank’s interest account. The premise is simple. You deposit money into an interest account. The interest account has a percentage that the bank pays you periodically for holding your money into that account. When you hold your money in that account, you’re essentially letting the bank use your money to issue loans to borrowers. This is why the bank pays you interest. Sounds good right? Well not so fast, buster.
The problem is the interest rates. Banks nowadays offer extremely low interest rates (looking at you American Express). Banks like American Express offer an annual interest rate of 0.40%. To give you some perspective, the current inflation rate is 4.16%. That means if you deposit your money into an American Express “high” savings interest account, you’re actually losing money!
To say that this is a terrible deal would be a huge understatement, wouldn’t you agree?
This is where Coinloan really shines. For major crypto currencies such as Bitcoin, Litecoin or Ethereum they offer annual interest rates at 5.2%. Stable coins such as USDC, PAX or DAI offer annual interest rates at 10.3%. The interest is paid monthly and is compounded daily. Your cryptos are stored in offline cold storage wallets and are also secured by a $100 million insurance policy issued by BitGo. Coinloan is also licensed by the Financial Crimes Enforcement Network (FinCen), the IRS and by the European Union Intellectual Property Office (EUIPO) to name a few. Oh, did I mention they also have an affiliate program?
I’ve personally verified that they exist in the IRS database. And I don’t know about you but I don’t know any scammers who can mess with the IRS and get away with it. Case in point, they’re legitimate. I have been with them for six months and had no issues. And I say this as someone who has his money on the line.
Here’s my proof that shows I put my money where my mouth is:
How To Create Your Coinloan Account
To get started with Coinloan, follow these simple steps:
- Go to Coinloan.io or scan the QR barcode below. Enter your email address and password. Make sure to check the box that says you understand their terms and conditions.
2. Check your email and put in the code to activate your account.
3. Once you put in the activation code, it will bring you to this screen.
4. Click on “Deposit” under BTC or with any crypto of your choice.
5. A screen will pop up and will ask you to complete a KYC procedure.
6. Click on “Start Verification” and it will bring you to this screen. Make sure to check both boxes and hit next.
7. Fill out the required information and then hit next.
8. Select a form of ID and your country.
9. Depending on which form of ID you pick you will be prompted to take a picture of the document. Continue through and finish the KYC procedure. It may take some time to be verified but once you are proceed to step 10.
10. After you are verified, log back into your Coinloan account and click on “Deposit”. Make sure you have a green check on your profile before continuing.
11. You will be shown a QR code and your wallet address that you can use to deposit your bitcoins to the Coinloan platform. After three network confirmations your Bitcoins will be reflected in your wallet.
12. Once you deposited your Bitcoins into the wallet. Click on “Interest Accounts” and then “Deposit” under Bitcoins.
13. Enter the amount of Bitcoins that you want to transfer into the interest wallet. Do bear in mind, the minimum deposit requirement is 0.015 BTC (or about $100).
And voila! You’ll start generating interest starting tomorrow. You can monitor your profits by clicking on “Interest Accounts” and then “Transactions” as seen here.
And you can choose to withdraw your cryptos by clicking on “Interest Accounts” and then “Withdraw”.
Choose the amount you want to withdraw. The amount will then be sent back to your main wallet.
From here. Go back to your main wallet and click on “Withdraw”. Enter the Bitcoin address that you wish to withdraw the Bitcoins to and enjoy your profits.
And that’s all she wrote! Remember. Create a budget, calculate how much money you can afford to invest and then start depositing! Try to keep your deposits consistent as this would allow you to grow your money consistently over time. So what other crypto investments are you guys looking at? Tell me, what’s your favorite crypto and why?