SALT Lending, a service which allows members to take out loans against their crypto assets, has launched today. This platform presents a way for users to receive money for their cryptocurrencies, without having to sell them and give up potential future gains. SALT has stated that they are expecting to loan $10 million before the end of 2017. The service will grow exponentially as it is scaled up into the new year; $75 million in active loans is anticipated before the end of January 2018. This is great news for investors holding SALT tokens, as their value is set to skyrocket as the service develops. If you haven’t yet invested in SALT, there is still an opportunity to get in before the platform reaches its peak capacity. If you are new to cryptocurrency investing, or aren’t sure how to buy SALT tokens, this guide will take you step-by-step through the process.
SALT tokens are a great investment right now, even if you don’t plan on using the service, because they can be used to pay for membership fees and repay loans on the SALT platform. The SALT company, however, values these tokens at $27.5USD, while they are currently trading for ~$15USD on Binance. This means that users of the SALT Lending platform will purchase tokens from exchanges to pay off their loans, because it is much cheaper. For example, you could take out a loan for $275, then repay it with 10 SALT tokens, which you purchased for $150 on Binance. The value of the SALT token will therefore quickly rise to $27.5USD to match its price on the SALT platform. In addition to this, SALT has stated that they will increase the cost of a SALT token on their platform such that it is always above exchange price; there is no limit on how high the value could get. Get in quick, the price of SALT has been estimated to realistically hit $50 in 2018 and potentially $200-300 in the long term. If you’re interested in taking out a loan through SALT, you can sign up here.
SALT boasts that its service has an easy application process, fast approvals, and no credit checks. Members of the SALT Lending platform can temporarily give SALT possession of their Bitcoins or Ethereum in return for USD and other currencies. As a basic member, you can access up to $10,000, while Enterprise members can take out multi-million dollar loans. When users pay back the loaned amount and any interest, their cryptocurrencies are returned. This is extremely beneficial for volatile assets such as cryptocurrencies as their value can easily increase with time.
For example, if you needed $600, you could take out a loan against 1 ETH, or sell the Ethereum and get ~$700. Say you took the loan and repaid it in one month, during which the price of Ethereum doubled to $1400. After repaying the initial $600 and interest, you would get back your 1 ETH, which is now worth $1400. You could now sell it and receive $1400, whereas if you had sold it initially, you would have only gotten $700. As you can see, this service can be great for people who need to cash in their Bitcoin/Ethereum but believe the value will keep rising into the future.
