Blog Getting started Crypto Credit: The Only Margin Account You’ll Ever Need

Crypto Credit: The Only Margin Account You’ll Ever Need

date April 17, 2020 time 4 min read 1469 views

Exchanges have long held margin traders over a barrel. Want a margin account? Then pay their fees, interest rates, and prices – or walk away. They lock you into their system, which limits the possibility for trade, and importantly, profit. 

Some of us are margin traders, so we feel your pain. It got us thinking about a better way – what if you could trade the margin and skip the exchange? Or more precisely, what if you could exploit multiple exchanges – ensuring you get the best price – and have total control over rates and terms?

The result is Crypto Credit – a margin a ccount with a difference, and possibly the only one you’ll ever need. 

What is Crypto Credit?

Crypto Credit is a credit facility for margin traders. Think of it as an extension of our crypto-backed loans. We use your borrowed funds to source crypto for you at the best prices and deliver it straight to your coin balance where you can withdraw to any wallet you like. 

Simply put, Crypto Credit allows you to borrow USD against your existing crypto to buy new crypto – and at your own rates and terms. And since you don’t get involved in exchanges, it’s much faster, with fewer fees, and better protection on your collateral. 

Why use Crypto Credit?

Crypto Credit beats exchange margin accounts in many ways, including:

  • You set the rate and terms. This gives you total control over the loan and can ensure the rate and term fits with your trading strategy. 
  • Borrow from as low as 7% APR. You’re guaranteed to match at 7% APR or higher, which is around half the interest rate charged by most exchanges. It could be a great way to beat the highest interest rates on savings accounts.
  • Your collateral is secured in an insured cold wallet. We use a Prime Trust cold wallet to store collateral until you repay. Exchanges usually keep your collateral in hot wallets, which are less secure and aren’t insured. 
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Crypto Credit beats exchange margin accounts in many ways.
  • Best crypto prices, guaranteed. We search multiple exchanges to find the best price for your chosen cryptocurrency. Exchanges use only their own prices, meaning you can lose out on better deals elsewhere. 
  • We support over 70+ different cryptos. Choose from a huge range of different cryptocurrencies, not just those supported by a single exchange. This frees up new trading opportunities – and their potential returns. 
  • Withdrawals and trading is FREE. You don’t get charged a penny for withdrawing your own money and say goodbye to exchange trading fees, too. You’re charged a simple 1% matching fee and that’s it. 
  • 24-7 customer service. Speak to a real human whenever you need help. No call centres. No waiting days for a reply. Just prompt, helpful support around-the-clock.   

How does Crypto Credit work?

Crypto Credit is an extension to our crypto-backed loans. You’re using your USD loan to finance the purchase of new crypto and at a great price. Here’s how it works:

  • Head to our Crypto Credit page and enter your chosen crypto and how much you want to buy. 
  • Select your collateral – if you don’t have enough, deposit some into your coin balance first. You can’t create your order without enough collateral in your coin balance.
  • Set your interest rate and term. The default interest rate is 7% as this guarantees a match – set it higher if you want to match faster. The maximum term length is 9 months. 
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How does Crypto Credit work?
  • You’ll then see the value of the USD you’ll borrow. We calculate this using data from multiple exchanges to ensure you get the best price. This is also what you’ll repay at the end of the term, either in fiat, crypto, or stablecoins.

    We’ll do our best to match you at the full amount, however it’s possible we might only find a partial match. In this case, we’ll proceed to buy as much of your chosen crypto as we can for the value of your loan.
  • Click “Borrow now” and we’ll securely store your collateral with Prime Trust, match you with an investor, buy your chosen cryptocurrency, and deliver it to your coin balance. This whole process should take no longer than 30 minutes.

    Depending on the final purchase price, the exact amount of crypto you receive might be less than your original order. Any “change” left over from the purchase will be returned to your MyConstant account. You can track these details on your Accounts page.
  • Repay before your term ends and we’ll return your collateral to your coin balance. 

Our usual borrowing terms apply – so if your collateral falls in value or you default, we’ll sell it to repay the investor. If you’re worried about this, deposit money a bit more collateral and enable auto top-up. You can still repay early, too. To read the FAQs, please visit the Crypto Credit page.

Happy trading!

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Chris Roper

Chris Roper

Communications Manager

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