Coinrabbit Review

For a long time, fiat money has been the backbone of the finance industry. However, the introduction of cryptocurrency appeared to have temporarily reversed the trend. Nonetheless, due to Ethereum and other cryptocurrencies’ development, the crypto industry’s lending market has expanded. Over time, numerous borrowing platforms have been developed to meet the evolving needs of cryptocurrency holders. For instance, owners of Ethereum and Bitcoin can now keep their coins and gradually earn interest on them. Coinrabbit, like its close cousin Youhodler, is one of these platforms.

Peer-to-peer lending between investors and borrowers is made possible by the financial website Coinrabbit. borrowers may spend their coins in any proper context, including cryptocurrency investment. However, borrowers must exercise caution because Coinrabbit could revoke their loans, and investors could also lose money.

As an investor or borrower, you should know the following about Coinrabbit.

Coinrabbit: What is it?

A decentralized financial institution, Coinrabbit was established in 2020 to let investors and savers borrow cryptocurrencies while earning interest on their initial deposits. This system allows lenders and savers to use cryptocurrencies just like regular money.

This deposit-and-earn program is an incentive for investors who might want to strengthen their crypto banks even during a bear market to join and stay invested (that is, during a market decline). Investors stay away from participating in currency trading in real-time while a call is in a bear market;

They can choose an option to keep their stable coins while they become interested in it. This beneficial approach, the simplicity of signing up, and the ability to withdraw money whenever you want (without incurring additional fees) keep Coinrabbit a top pick among investors in cryptocurrency loans.

What are the services offered by Coinrabbit?

To satisfy the urgent needs of the cryptocurrency-aware markets, Coinrabbit provides a range of features, including:

• Cryptocurrency. Using cryptocurrencies rather than conventional currencies as the medium of exchange is one of the system’s key distinguishing features. The platform lends and pays interest on stablecoins accepted on its platform.
• Consumer Lending is a distinguishing feature of Coinrabbit that sets it apart from other cryptocurrency trading platforms. Coinrabbit provides loans to its borrowers through its peer-to-peer platform. When collateral is presented, these loans are disbursed. In addition, the loans accrue interest over time.
• FinTech: Coinrabbit functions as a typical fiat platform. Borrowers can take out stablecoin loans rather than fiat loans, which can be used on networks other than Coinrabbit.
• Financial Services: Coinrabbit operates a system similar to a conventional brick-and-mortar bank. It grants credit and disburses funds in the form of cryptocurrencies. The unique combination of these features and the user-friendly interface make Coinrabbit a top choice among catalog or other platform users.

Crypto borrowing

Since the beginning of the global financial system, credit has been the norm. Lending and borrowing have evolved from the days of bankers perched on stools in street corridors to the skyscrapers of today. They now form a crucial component of any financial institution.

Coinrabbit offers its users instant Ethereum loans as well as Bitcoin, USDT, and other currencies. The system is peer-to-peer, so a lender can offer a borrower a loan that accrues interest. Coinrabbit disburses loans in a 5- to 10-minute window depending on how quickly the collateral deposit is made. Conrabbit loans have an annual interest rate of 14%; this interest is calculated monthly and added to the amount the customer must repay each time.

The platform’s network strength significantly impacts the period they receive collateral. When the platform gets the collateral, it processes the funds using its ChangeNOW risk management system. Your loan is paid off with this check, which is then active for the predetermined period in your wallet. Your collateral will be released when the APRs you have accrued are paid.

All of your loan funds are stored in a unique wallet. Simultaneously, the private keys are kept in a secure location that customers can only access via a VPN network and certain IP addresses. A risk control system that checks your wallet’s balance every second renews these private keys monthly.

Customers can request your collateral at any time. However, this is not possible until the loan has been repaid. Your loan repayment consists of the amount borrowed and the APR that has accrued during the loan period.

What cryptocurrencies does Coinrabbit support?

Coinrabbit adopts numerous cryptocurrencies including BTC (Bitcoin), ETH (Ethereum), DGB (Digibyte), XMR (Monero), FIRO, XPR (Ripple), BCH (Bitcoin Cash), ETH-based tokens such as ENJ, LINK, MKR, Nano (XNO), and DOGE, etc. However, they specifically offer Tether USDT, ERC-20 and USDC too. They also intend to stretch their network of cryptocurrencies to extend to RVN (Ravencoin), LTC (Litecoin) and ADA (Cardano).

They also support multiple assets for a single collateral deposit. However, these coins are the most popularly used on the platform.

These cryptocurrencies also feature on Bitfinex lending platforms. Bitfinex lending allows BTC, ETH, XAUT, USDT and OMG as stablecoins on their platform.

What are Coinrabbit’s interest rates?

Currently, the interest rate in a bull market is 14% which accumulates each month. Collateral is also not returned until the loan is completely paid. Coinrabbit also operates interest rates that give up to 10% interest. The minimum deposit allowed on Coinrabbit is $100 while the maximum deposit is $10,000 in stablecoins.

Savers on the platform can withdraw their basic savings and interest from Coinrabbit at any time without a long process.

 How well has Coinrabbit performed so far?

If you have some extra assets and you are looking to lend some out, Coinrabbit has great interest rates. There are only a few other coin interest platforms that offer a higher yield on loans and savings than Coinrabbit.

However, some details used in Coinrabbit’s promotions have sometimes raised eyebrows. While the platform advertises itself as “fee-free and transparent”, borrowers still pay fees on loans that last less than 30 days. Also, when a lender withdraws their assets within three months, they must pay certain network fees. While these fees may seem like a tact to sustain activity on the platform, it also raises the question of whether Coinrabbit is truly fee-free.

The company also improved its terms and conditions, especially the clarity of the document. However, it is pertinent that you understand some risks within. When collateral submitted drops by 45% in value, the loan will be automatically called.

Coinrabbit has not lasted as long as some other crypto-lending platforms, however, it has maintained the consistency that these brands ensured in their initial stages as well.

Wallet

Loans and interest on savings are usually disbursed to a wallet that is not operated by Coinrabbit. It leverages a pre-established wallet service, Guarda.

The wallet also allows six major cryptocurrencies as collateral. The major ones include Bitcoin (BTC), Ripple (XRP), Bitcoin Cash (BCH), Ether (ETH), Dogecoin (DOGE), and Nano (NANO).

Mobile & app services

Coinrabbit does not have a mobile app for either iOS or Android, however, these are being developed. This marks the difference between Coinrabbit and Youholder. While Coinrabbit only runs on SaaS networks, Youholder works on SaaS, iOS and Android devices as claimed by various Youholder reviews online.

How to create a Coinrabbit account?

You can create a loan and interest account on Coinrabbit.io within a few minutes. The account authentication procedure is light and does not follow the KYC system. Instead, users are only required to input their phone number and a registered crypto address to open an account.

Is Coinrabbit safe?

So far, there have been no reported breaches on Coinrabbit. The assets for collateral are stored in cold storage in several crypto wallets. The company also does not delay withdrawals. All funds can be withdrawn instantly.

Also, all users are allowed to secure their accounts with a 2FA verification layer as provided by Coinrabbit.

However, Coinrabbit’s claim that your funds are protected and insured is sketchy. It does not state the exact way this is done. The platform relies on partnerships; hence, it must share user information with its partners through APIs. During transit to the servers of its partner, Coinrabbit puts the cryptocurrencies at risk of being hijacked if they are not encrypted.

Yes, there is a statement that “secure APIs…need to be accessed via a virtual private network”, but there is no solid security detail. The terms and conditions of Coinrabbit also do not spell out the insurance policies that cover the assets stored or borrowed on the platform.

In conclusion, using any cryptocurrency lending platform that deals in Bitcoin, Ethereum loans, etc. comes with certain risks as savers and borrowers have to give their private keys to a third party which could be counter-productive.

Contact & support

While the direct contact information for Coinrabbit is sparse, you can always reach them via the Chat Now feature which is on the bottom right side of the website. The chat is available 24/7. Coinrabbit also claims to have a 10–12-minute response bracket.

Users of the platform can also reach their customer service through support@coinrabbit.io.

While there is no information on the headquarters, branches, or phone number of the company on its website, the headquarters is published in the terms and conditions:

Rabbit Finance LLC.

First St Vincent Bank Ltd Building

James Street, Kingstown, St. Vincent and the Grenadines.

Conclusion

Coinrabbit is a great user-friendly peer-to-peer network system that allows you to take crypto loans and also earn interest on your crypto assets. These features and its no-KYC policy make it engaging and easy to use. However, you should balance its superb advantages and some of the downsides before using the site.