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MyConstant crypto loans review
Low interest rate, fast turnaround crypto loans that accept over 68 types of cryptocurrency as collateral.
Bottom line: This crypto loan platform offers loans backed by over 60 types of cryptocurrencies it accepts as collateral. And unlike other P2P platforms, it only takes minutes to receive your funds. But information on how extensively it protects your fund is slim.
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from 6%
Interest Rate
$50,000
Max. Loan Amount
Details
| Issued Currencies | USD or cryptocurrency |
|---|---|
| Interest Rate | from 6% |
| LTV | 66% |
| Loan Term | 1 - 6 months |
| Min. Margin Call Threshold | 125% |
| Liquidation Threshold | 110% |
Pros
- Offers loans at LTV ratios starting at 66%
- Accepts single crypto loans and multicrypto portfolio loans
- Accepts over 60 types of crypto as collateral
- Receive and pay back your funds in fiat or stablecoin — or trade your loan for crypto
- Option to automatically add more collateral to your account if your LTV gets too high (to help prevent liquidation)
- No early repayment fees or penalty
Cons
- Retains custody of your collateral during the loan term
- No in-depth information about security protocols on the website
- Only offers short terms of 1 - 6 months
Our take on MyConstant crypto loans
MyConstant may be best for borrowers who own multiple cryptocurrencies and are looking for a quick-turn, short-term loan of up to 6 months. This peer-to-peer or P2P lender offers crypto loans backed by either a single currency or a multicrypto portfolio. Where providers like Unchained Capital only work with Bitcoin, MyConstant accepts more than 60 types of cryptocurrencies as collateral.
To get a loan, you must complete the know your customer (KYC) verification and consent required to transfer your collateral over to the company. And while MyConstant offers smart contracts and Prime Trust custody to safeguard your collateral, you’re relying on the company and its partners to keep your assets safe. We recommend reading the terms of use and confirming information with the company if you’re concerned about protecting your assets.
Crypto loans: How it works, risks and rewards
Borrow up to $50,000 per order
MyConstant doesn’t advertise limits on loans, but you’ll need to take out multiple loans to borrow more than $50,000. The required loan-to-value (LTV) to get a loan is 66%, which is lower than similar lenders like Ledn or Guarda. For example, to get a $50,000 loan with MyConstant, you’d have to pledge the equivalent of $75,757 in crypto to back it up — not $100,000 in crypto required for an LTV of 50%.
You can borrow more than $50,000 with MyConstant, but you must split your loan into separate orders to do so. As with any crypto loan, be aware of the risks involved in placing a large amount of collateral with a single company.
MyConstant rates, fees and terms
- Starting 66% LTV
- Rates from 6% to 7%
- No trading fees
- Loan terms of 1 - 6 months
Accepts over 60 types of cryptocurrency as collateral
MyConstant accepts more than 60 cryptocurrencies, including altcoins that may not be accepted as collateral elsewhere. This makes MyConstant loans an attractive choice for investors who own a range of coins in their portfolio and want to hold on to them for the long term.
Get your loan as soon as your collateral is received
MyConstant advertises as soon as it receives your collateral, it deposits funds into your MyConstant account. Once funded, you can either:
- Withdraw your loan as US dollars to your bank account for free.
- Withdraw as a stablecoin to your wallet address for a fee.
How does MyConstant protect my collateral?
Protection of your collateral depends on the type of crypto you pledge. The company says that it holds your collateral with:
- The third-party custodian Prime Trust.
- An Ethereum smart contract.
- A password-protected web wallet on a dedicated server.
Like most crypto lenders, MyConstant will retain ownership of your collateral with its third-party custodian while the loan is active.
Keep in mind that crypto providers aren’t CDIC-insured, which means there’s a risk of losing your collateral if MyConstant goes out of business or becomes insolvent. While this risk is mitigated by insurance through Prime Trust, I wasn’t able to verify with the company the coverage amounts or the scenarios under which your funds would be covered.
Additionally, you risk losing your collateral if your LTV hits the liquidation margin. If you’re not able to pay off your loan or add additional collateral to raise the LTV to the required level, your crypto assets are automatically sold off.
What else should I know?
MyConstant allows you to pay off your loan early with no fees or penalty and you only pay interest for the days you had the loan.
How to apply for a MyConstant P2P loan
Go to MyConstant’s site and register a new account. To get a new loan, select your preferred term length and the type of funds you want to receive.
Then, deposit your collateral, which can consist of different cryptocurrencies. After you’ve sent your collateral, your account is funded with your chosen currency.
Pay back your loan at the end of the term
With MyConstant, you repay your loan at the end of the term. Unlike other lenders, monthly payments aren’t required.
When the loan is due, the company deducts your total repayment from your MyConstant account balance, which can be funded in one of three ways:
- Transferring US dollars to the company’s bank account
- Sending one of six stablecoins: USDT, USDC, TUSD, GUSD, PAX or USDS
- Repaying the loan using your existing loan collateral
What happens if my crypto drops in value?
If the value of your crypto significantly decreases, MyConstant asks you to add more collateral to your loan to bring the LTV to an acceptable level. This is what most lenders refer to as a margin call. Margin calls happen when the LTV reaches a specific threshold.
MyConstant’s has 3 margin call thresholds:
- 125% LTV
- 120% LTV
- 115% LTV
If your account reaches 110% either due to inaction or a “flash crash” in value, your collateral is automatically liquidated. You get to keep the loan, but you will lose your crypto.
Pay attention to these notices and take corrective action by either paying off the loan or adding more collateral to bring the LTV down to avoid liquidation.
MyConstant reviews are overwhelmingly positive
MyConstant earns a 4.6 out 5 on Trustpilot from more than 1,300 reviewers as of January 2022. More than 90% of reviewers rate the company “excellent” or “great,” while only 4% give it a “poor” or “bad” rating.
Satisfied customers like being able to use the platform to earn interest on deposits and mention low rates and fees. Negative reviews mention the app not working as expected, slow wait times on customer service queries and problems with making deposits.
MyConstant isn’t registered with the Better Business Bureau and earns an F business rating for how it’s handled five customer complaints over the past three years. Complaints are related to funds not being released to customers in a timely manner after they’re requested.
Alternatives to MyConstant crypto loans
Crypto loans may be a convenient option if you want to access cash or stablecoin without having to sell your existing crypto and incur capital gains tax. Learn more about crypto loan risks and rewards.
If you don’t own any crypto, you may be able to secure extra funds through more traditional methods:
- Low APR credit cards. Balance transfer credit cards allow you to transfer debt or make new purchases without interest payments for a set period of time, usually 6 to 9 months.
- Home equity line of credit. Leverage a HELOC to tap into your home’s equity as a revolving credit line that you can use as needed and pay off later.
- Personal loans. Borrow or consolidate high-interest debt with digital lenders offering loans up to $50,000 or more.
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