Salt Coin: The Beginners Guide
Salt is a unique crypto that brings a lot of interesting features to the cryptocurrency market. In this article, we’re going to be taking a look at the primary ways in which Salt could have a sizable effect on digital currency.
A Closer Look at Salt Coin
So looking at CoinMarketCap and finding Salt, we can begin to get an idea of whether it’s worth what it says it is. Currently, it is coming in at number 146. It is an ERC20 token, and although it has risen recently, it is much lower than it has been previously. Things have been dropping quite considerably.
Hopefully, if you're reading this down the road, the price may have gone up. The circulating supply is 59 million Salt tokens, and the total supply is 120 million Salt tokens.
Salt was released last year. Currently, it’s fairly predictable. Just like every year, there's very few that have broken the mold. It has pretty much evolved along with whatever Bitcoin is doing at the time, and with Salt being a lending platform (which we'll talk about in a second), it makes sense that it would stick even closer to Bitcoin’s pattern than maybe some other projects.
What Does Salt Coin Offer?
If you start at the Salt website, you can see that it's a platform; albeit a totally different platform. It’s not as full of information as many of the other cryptos that we look at, but we do know that it’s a lending platform that lets you leverage your blockchain assets, for example: cryptocurrency to secure cash loans.
They say they make it simple to get money without having to sell your favorite investment. This is particularly important because if you needed money and you wanted to cash out (and you did cash out), two things would happen.
The first of these would be that you’d lose your ability to make gains on the cryptocurrency you have because you no longer have it anymore. And secondly, you create a tax event – this would make you responsible for those gains.
However, if you were to use Salt, you would be borrowing cash against your cryptocurrency. Technically, you still own your cryptocurrencies, and you can still continue to get gains off of them, plus you've not created that tax event.
That in itself is a great reason to like Salt, but there are also a lot of other things to like about this platform. We will say people, in general, from our research do not like lending platforms, as a lot of them are scammy. However, Salt seems to be one that a lot of people actually believe in and they actually are fond of.
There aren’t a lot of people who dislike Salt. Usually, they agree that it is the cream of the crop when it comes to lending platforms.
How Exactly Does Salt Coin Work?
So what is their process? Well, they have an easy application, fast approval and no credit checks. You get the cash deposited directly into your bank account, and they have competitive interest rates with no prepayment fees, which is great.
This way, you can maintain your position, avoid less than optimal tax events, you have the freedom to get your assets back whenever you want, and you can get your cash whenever you want too.
Because of this, they've already carried out 40 million dollars worth of loans, they’ve had 64,000 platform users (which is phenomenal), the platform itself is secure (also collateralized), and they have plenty of products designed to help you.
Again, this is reiterating what we've already talked about – you get your liquidity and your cash, but you don't have to actually sell your cryptocurrency. As the market starts growing again, you’ll find that the services here are something that a lot of people are going to be looking for.
The Different Tiers of Salt
For the service itself, they have three different tiers. The first of these is the base tier, then the premier tier and then the enterprise tier. The annual cost is based in Salt tokens, which is pretty interesting.
For the cost of the membership, they have a base rate for the Salt tokens. Essentially, their base rate is entirely dependent on their worth, which could be higher or lower depending on their standing at the time.
But instead of looking at it like that they're overvaluing (or undervaluing) the Salt, you can look at it like if you want to borrow it at $10,000, it’s only going to cost you, for example, $27.50, which is a pretty good rate. Basically, the rate is 2.75% to borrow the money in terms of what you had to pay using the salt tokens. This is pretty affordable compared to a lot of lenders. Rates like this aren’t out of control by any means.
You do have to verify your I.D. even though they don't do a credit check, they still do have some standards, and they require for you to be processed-worthy on their system to be able to take these loans out. From their wallet, you can hold Bitcoin, Ethereum or Bitcoin cash on here as well as collateral.
How Can You Get Hold of a Loan?
Next, we’re going to talk a little about the loan process. Salt reiterates often that they never ask for your credit score in order for them to lend effectively.
Lenders post terms at which they're willing to lend by and commit cash funds to the loan, funds are then deposited directly to the member's bank account. The member then makes monthly payments on the loan.
One thing that we know less about is what the terms are, how much payment is required and what the rates are. It would be good to know this or, as an example, know how quickly does the money get to our bank.
When you want to get a loan, most often, you have a purpose in mind. We’d definitely be interested to know how fast you're able to get the money to do that.
Lenders also post terms for this process – lenders can sign up on the website as a lender too, although being a lender requires you to pay membership fees. If you have a lot of money and you want to get into this platform, then you have to pay the same membership rates that a borrower uses.
The Team Behind Salt Coin
Let’s take a quick look at the team. Shawn Owen is the CEO of Salt. Shawn refers to himself as a serial entrepreneur.
Also involved with this project is adviser Erik Voorhees. He is the founder and CEO of Shapeshift. This is a crypto-to-crypto exchange, and he's a name a lot of people in the cryptocurrency are aware of, so it's always good when you have a big name behind a project.
When Is the Best Time to Use Salt?
One interesting thing to think about in the Salt project is how a bear market or a bull run affects the ability to take out a loan.
Think about it like this: if you take out a loan or you take cash out for your cryptocurrency, a bear market hits and the value of your cryptocurrency goes way down – you're really upside down on that loan by a longshot. Or at least, that’s the way it looks to us.
Conversely, it could work the other way too – if you're in a bull run and you take the loan at the beginning and then your cryptocurrency value goes way up, then you could pay off your loan with your gains, which would be a really great stroke of luck.
Probably the best place to take a loan out would be (always do your own research) wherever you feel like the bottom is. Ideally, you want to get it on a dip – you don't want to take this loan out on a peak.
You’d be better off to take your crypto and cash out for a little bit, let the market go back down, then take a loan out because the value of a cryptocurrency just isn't going match up against the amount of money that you took out.
Salt Coin – The Ultimatum
There are actually a few different lending platforms in this space, but Salt looks to be a strong contender for crypto owners looking for a new method of collateral.