Although there are several reliable and trusted money lender Singapore, picking the right one that would suit your needs could be a tedious and frustrating process since there are numerous aspects that you need think through, including:
- Licenses and Accreditation: Of course, it is crucial that the money lender Singapore has the necessary license from the government showing that they are operating legally and have met all the imposed standards and requirements. It has to be accredited by professional bodies as well to show it is a reliable, trusted and professional moneylender.
- Reputation: Reputation is weight aspect to consider. Nowadays, people rely on reviews from previous clients to see how well they interact with people and provide their service. Money lenders with excellent reviews have excellent reputation.
- Fees: All certified moneylenders will charge a certain fee when you get a loan and for the services they provide. Hence, look into these fees and compare them with other money lenders. Also ensure they are reasonable and affordable.
Usually, moneylenders require some type of collateral for a loan to be approved. While borrowers provide collateral like their home, their car or other assets and property they have, others make use of cryptocurrency to back their loans.
As many are already aware, borrowers are able to make use of their cryptocurrency assets to serve as collateral when loaning fiat currency or stablecoins from lenders who accepts cryptocurrency as a collateral. This could actually work the other way around as well wherein borrowers make us of fiat currency or stablecoins as the collateral to borrow cryptocurrency assets.
What are Stablecoins?
Stablecoins provide a lot of benefits that other cryptos don’t offer. Although they are similar to cryptocurrencies, stablecoins are more stable, as its name implies.
In a market wherein the value of the assets that one holds violently fluctuates, the choice to ‘store’ the value of funds in a manner that it eliminates volatility is rather crucial. Such option isn’t only for crypto traders, but also to retailers accepting cryptocurrencies without having to worry about the values fluctuating.
In most circumstances, most of the stablecoins are pegged or attached to broadly utilized fiat currencies, whereas some are pegged on commodities like as Gold.
What Are They Used For?
For numerous crypto traders, stablecoins serve as a fallback or an alternative when they would like to hedge their crypto without having to cash out to fiat currency. This is quite effective particularly when markets are bear or if the intend to keep revenue in fiat. The currency of the world, after all, is still fiat not cryptocurrencies like Bitcoin.
Stablecoins are expected to develop into a significant element in decentralized finance, popularly known as DeFi. DeFi offers an alternative to the present financial systems and structures with one that is designed and created on public blockchains.
As mentioned, stablecoins are also use for peer to peer loans. If DeFi is to progress and expand, stablecoins will surely play a significant role since people will be needing a way of transacting with one another without the volatility, and without wasting or losing advantages of cryptocurrencies.