(Newswire.net — November 15, 2021) —
The cryptocurrency sector is evolving at lightning speed. Artists, as well as any other crypto enthusiasts, now have a token they can identify with called NFT (non-fungible token). If you are new, it might be an uphill battle to understand what this is all about. NFT is a form of digital data that is stored in the Ethereum blockchain’s ledger and cannot be replaced with anything else, it is unique.
NFT could be art, music, or at a very high level, AI information downloaded from your brain. Apart from what is supported on the Ethereum blockchain, other blockchains such as Bitcoin are still coming up with their versions of NFT.
All that said, let us dive into NFT loans and how to go about them. If you have already invested in NFT, you can use the NFT as collateral to ask for loans. The insights discussed below will be of help to you.
How NFT Loans Work
If you are new to NFT loans, you are probably wondering how it works. Currently, the technology works on Bitcoin and Ethereum blockchains under the NFTfi smart contract on the latter. So, when people apply for a loan and it gets approved, their assets are locked in the smart contract and only transferred back when you repay the loan.
On one hand, there is NFT lending by an investor, and there is NFT borrowing by an individual with the tokens to be used as collateral. Simply, you need to invest in NFT on the Ethereum blockchain to qualify for a loan. The investor enjoys interest on their investment for lending the tokens to borrowers, and this is facilitated by various platforms.
Where to Get NFT Loans
This article is written for the borrower of NFT loans, but even the lender, commonly known as the investor, gets a handsome reward at the end of the day informing of APY. But who facilitates all these? A reliable platform will. So, here are some of the platforms you can trust with NFT loans.
· YouHodler – The good news is that YouHodler is now accepting a variety of things as NFT. For instance, Polarrana has a new original song as an NFT on YouHodler. You too can use any acceptable item such as music or art as an NFT and get an NFT collateral loan in return. Visit their website to find the process to apply for your loan right away.
· NFTfi.com – This is the original website with the NFTfi smart contract running on the Ethereum blockchain. They also have the feature of using NFT collateral to apply for NFT loans. The process is straightforward for anyone interested. If you have pieces of valuable items such as art or music, convert them into NFT crypto and use them to apply for loans.
Conclusion
As the technology around cryptocurrencies is evolving, new enticing projects are coming up. Who would have ever thought of a product such as NFT loans? Frankly, not many. But it is here now. Getting the loan is quite simple if you have things that you can convert into NFT and use them as collateral to convert into loans.