We came across an interesting service in cryptocurrency eco-system. It’s about Crypto PawnShop, it’s a moment when we really need Bitcoin but we are holding other cryptocurrencies and we really don’t want to sell. Mostly we need BTC for a trade or for a quick investment. So the guys from Crypto PawnShop is there to help you. All you have to do is to give your coin(DASH/LTC/DOGE and many others) and they will give you Bitcoin with a certain interest.
How Crypto PawnShop works?
As I said before the main service offered by Crypto PawnShop are BTC loans. If you need BTC for your operations, and you have other cryptocurrencies that you don´t want to sell, you just have to complete the form on their homepage. Tell them how many BTC you need, your email, choose the cryptocurrency’s that you will provide the guarantee, and how soon you want to repay the loan. Before sending the form, you will see how many coins you need to let them for bail.
What happens if I can not return the borrowed BTC?
If you can not repay your loan in the stipulated time but you still want to get your deposit, we can open a trading period to refinance your debt.
If for any reason you can not or want to tackle the debt nothing happens, your deposit will become the property of Crypto PawnShop and the loan closes. This does not mean you can not ask for more loans in the future.
What happens if I want to repay the loan earlier to get my deposit?
If you want to get your deposit before the stipulated time for your loan there is no problem, the coins you left as guarantee are stored in cold wallets and are ready to be returned at any time. But you must return the same BTC as if it had completed the loan in the time given.
What is the Security Level of Crypto PawnShop?
Currently both the majority of their funds in BTC and the bail coins are stored in cold wallets, hence the method for lending is manual. We are working to automate the whole process and be able to give loans with more rapidity and of course with the highest safety standards.
What is the interest on loans?
Interest on loans is 0.8% daily on the initial amount. Loans are granted in three-time frames, one week (5.6%), 15 days (12%) and 30 days (24%).
As an example for 1 BTC provided to 15 days, the customer must return when the loan ends 1.12 BTC.
Here is an example of how you could use Crypto PawnShop:
What are the future plans of Crypto PawnShop?
Crypto PawnShop aims to become a reference point for all kinds of services related with Bitcoins and other cryptocurrencies.
Initially the loans (pawns) will be improved by automating the entire process and prioritizing security. On the other hand, they are working on improving the shop adding digital goods as large batches of cryptocurrencies, IPO’s, ICO’s, Keycodes of PC Games and many other digital goods. They also intend to incorporate auctions platform.
In the end Crypto PawnShop it’s part of the new Bitcoin Startup Business’s that are flourishing every day. And a very useful service that can be used in case of needs.