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SALT’s Crypto-Backed Lending for Miners


Staff member
Mar 22, 2024
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Within the risky actuality of cryptocurrency, the notion of “HODLing” has change into synonymous with believers within the long-term potential of digital property. The mantra “keep lengthy” has change into a rallying cry for supporters within the long-term potential of digital property. The thought is easy: maintain onto your most popular cryptocurrencies and watch them respect over time. Nevertheless, as miners and crypto lovers know all too nicely, staying lengthy might be tough whenever you want entry to liquidity for on a regular basis bills or enterprise operations.

Right here we discover SALT’s method to crypto-backed lending for miners, providing an answer that permits them to remain lengthy on crypto whereas staying liquid in a world of restricted financing choices and to take care of their mining operations.

Understanding Crypto-Backed Lending​

Crypto-backed lending is an idea that permits people and companies to leverage their cryptocurrency holdings as collateral for loans. On the core of this technique is the popularity of the significance of liquidity in treasury administration, particularly for crypto miners.

The very fact stays, that conventional monetary techniques typically create obstacles for miners who wish to entry money. SALT bridges this hole by permitting miners to carry onto their crypto property whereas nonetheless tapping into the monetary assets they should function successfully.

The advantages of crypto-backed lending are quite a few. It allows customers to retain possession of their property, handle taxable occasions, and take part within the potential appreciation of their holdings whereas accessing much-needed liquidity.

Crypto backed lending allows you to retain crypto and get cash

Crypto-backed lending affords a number of interesting advantages to miners and different cryptocurrency lovers:​

Liquidity With out Promoting: Miners can use their crypto assets as collateral to safe loans with out having to promote their treasured holdings. This permits them to entry liquidity whereas nonetheless sustaining publicity to potential worth appreciation.

Handle Capital Beneficial properties Tax: When miners promote their crypto holdings, they might incur capital gains taxes. By taking out a mortgage with their crypto as collateral, they’ll defer the tax legal responsibility till they resolve to promote the property, doubtlessly lowering their general tax burden.

Hedging Towards Market Volatility: Cryptocurrency markets are extremely risky. Miners can use crypto-backed loans to handle worth fluctuations. In the event that they count on the worth of their property to extend, they’ll safe a mortgage, and if the value rises as anticipated, they’ll repay the mortgage with cheaper {dollars}.

Diversification: Miners can use the borrowed funds to diversify their investments or broaden their mining operations. This may also help mitigate dangers related to holding a single asset and doubtlessly enhance their general returns.

Retaining Possession and Publicity: Crypto-backed loans enable miners to maintain ownership and exposure to their assets. They will profit from worth appreciation, take part in governance actions (for tokens that supply this), and proceed to obtain rewards like staking or mining rewards.

No Credit score Checks: Crypto-backed loans sometimes don’t require conventional credit score checks, making them accessible to people who could not have a powerful credit score historical past or any credit score historical past in any respect.

Fast Entry to Funds: Conventional loans can contain a prolonged approval course of. Crypto-backed loans typically present fast entry to funds, making them appropriate for miners who want quick capital for gear upgrades or operational bills.

Versatile Mortgage Phrases: Debtors can typically select from varied mortgage phrases and rates of interest, permitting them to tailor the mortgage to their particular wants and threat tolerance.

The Significance of Lengthy-Time period Holding for Miners​

One of many basic rules of cryptocurrency funding is the idea of “HODLing,” which includes holding onto your property for the long run. This method aligns with SALT’s mission to assist customers stay committed to their crypto assets.

Miners are inclined to carry onto their crypto property, particularly Bitcoin (BTC), as a result of rollercoaster ride of its price over the years. With Bitcoin’s worth persistently above the $20,000 mark in early 2023, there’s optimism that the crypto winter of 2022 is thawing, hinting at a broader restoration in cryptocurrency costs.

Despite the extreme volatility, Bitcoin has showcased outstanding potential for substantial positive aspects for early traders. Those that had the foresight to purchase and retain Bitcoin have typically witnessed phenomenal returns. Nevertheless, it’s essential to acknowledge that the crypto market’s worth swings, exemplified by the turbulent occasions of 2021 and the following declines in 2022, have additionally resulted in vital losses. Miners, being deeply embedded within the cryptocurrency ecosystem, are nicely conscious of this dynamic and have a tendency to carry onto their property, anticipating potential future positive aspects because the crypto market continues to evolve and mature.


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Lengthy-term holding affords a number of benefits, together with capital appreciation and participation within the development of the crypto ecosystem. Whereas crypto markets might be extremely risky within the quick time period, historic knowledge has proven regular year-on-year development, making it a compelling long-term funding.

SALT’s Strategy to Being Your Personal Lender​

SALT empowers customers to change into their very own lenders, providing a flexible treasury administration resolution for miners and crypto lovers alike. Right here’s how SALT’s method works:

  • Through the use of their crypto property as collateral, customers can get hold of loans of as much as 70% loan-to-value (LTV) ratio.
  • SALT acts as a bridge between the standard monetary world and the crypto area, enabling customers to transform their crypto holdings into money with out promoting their property.
  • Customers have flexibility in selecting mortgage phrases and collateral choices that swimsuit their wants.
  • The appliance course of for a SALT mortgage is easy, offering fast entry to funds with minimal problem.
  • SALT helps decrease prices for miners with Luxor Mining Pool Partnership: One of many key challenges miners face is the excessive value of vitality required for cryptocurrency mining. Power bills typically must be aligned with the rewards generated from mining actions. This balancing act might be complicated, and miners attempt to optimize their operations to scale back prices.
  • SALT understands the significance of value optimization for miners. As a part of our mining resolution, we collaborate with Luxor Mining Pool, which permits miners to decrease their pool charges. This cost-saving measure is a vital step towards attaining profitability within the mining trade.

For instance the sensible advantages of SALT’s method, contemplate this state of affairs:

Contemplate the state of affairs the place a mining firm urgently wants $100,000 to cowl their energy payments or payroll. Historically, they’d be compelled to promote their hard-earned Bitcoin property instantly, typically at unfavorable or ailing timed market costs, simply to satisfy this monetary obligation.

This lack of flexibility can have a major affect on their general profitability. Right here’s the place SALT’s crypto-backed lending resolution shines.

With SALT, miners acquire a broader window of alternative to resolve when and the way a lot of their crypto property they promote, permitting them to decide on extra favorable market circumstances.

Moreover, by leveraging their mining rewards for added mortgage capital, they keep away from the necessity to promote their treasured Bitcoin holdings altogether. This method not solely ensures smoother monetary administration but in addition positions miners to profit from the potential development of their crypto property over time. Within the ever-volatile crypto market, having the pliability to promote when the market is favorable turns into a strategic benefit for miners trying to maximize their returns. And thus, you’ll be able to see SALT lending has helped:

  1. Mining firms dealing with the problem of aligning their vitality prices with crypto rewards can use SALT to entry money with out promoting crypto holdings.
  2. People can leverage their crypto property to fund vital life occasions like dwelling purchases, schooling bills, or holidays, all whereas preserving their crypto investments intact.

SALT ensures full safety and management for miners​

SALT affords a complete suite of options tailored to enchantment to miners, enhancing their lending expertise and general monetary safety.

Get Bitcoin security with SALT Lending
Get Bitcoin security with SALT Lending

At the start, the Stabilization Characteristic is a security web, robotically changing the complete crypto portfolio to USDC within the occasion of a market downturn, thus safeguarding the worth of their property.

Moreover, SALT’s collaboration with Luxor not solely reduces pool charges but in addition allows miners to build up extra Bitcoin of their SALT pockets, aligning completely with their long-term crypto holding technique.

The partnership with Fireblocks, a trusted custody administration platform, bolsters safety, assuring miners that their property are held with the utmost care. SALT’s dedication to cyber insurance coverage additional underlines their dedication to safeguarding crypto property.

With a custody-agnostic method, SALT optimizes threat distribution, safety, and mortgage funding, all whereas increasing wealth preservation choices.

Miners can belief SALT to offer dependable entry to their property, due to a strong custody course of and multi-user authorization, making certain peace of thoughts of their crypto lending journey.

Keep Lengthy, Keep Liquid with SALT​

For cryptocurrency lovers and miners, the mantra “keep lengthy, keep liquid” has by no means been extra related. Believers within the long-term potential of digital property perceive the significance of holding onto their investments whereas nonetheless accessing the liquidity wanted for on a regular basis bills and enterprise operations.

SALT lending’s method to crypto-backed loans has confirmed worthwhile for miners and crypto lovers who wish to obtain this delicate steadiness. By turning into your personal lender via SALT, you’ll be able to navigate the intricate panorama of cryptocurrency with confidence.

You’ll be able to entry liquidity in 4 simple steps with SALT Lending:

  1. Create your SALT account and bear id verification.
  2. Tailor your mortgage to your particular wants by selecting your borrowing preferences and submitting your mortgage utility.
  3. Switch your crypto collateral to your designated SALT pockets.
  4. Upon approval, entry stablecoin funds instantly deposited into your account.

You can begin the method right here.
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