What is CoinLoan?

As for all crypto lending platforms, CoinLoan is a financial platform that allows investors to invest cryptocurrencies, in exchange for payments of interests over time. Those interests are then coming from people that borrow cryptocurrencies on the platform, which is also a service they offer. CoinLoan is an already established platform, as it was founded in 2018. They are based in Tallinn, Estonia.

What I really like about crypto lending compared to 'traditional' Peer-to-Peer lending is that here, all loans made through the platform are backed by a collateral in the form of a cryptocurrency deposit.

Whereas on a 'traditional' P2P lending platform you can never be sure that the borrower will pay you back, here if the person doesn't pay back the collateral will simply be taken by the platform automatically. This means that as an investor you don't have to worry at all about losses or defaults because of borrowers - you will always get the returns that are indicated by the platform.

What returns can I expect from investing on CoinLoan?

The returns you can expect on CoinLoan depends on which assets you invest in, that are displayed on the main page of the platform: 

Currently, with the assets listed on the platform you can get up to 12.3% annual interests, mostly in fiat currencies or stable coins like Tether or USD Coin. This is definitely similar to many classical Peer-to-Peer lending platforms, again here without the risk that someone won't pay back their loans. 

Is it safe to invest on CoinLoan?

The question of the safety of the investors funds is central when investing on a crypto lending platform, as they will be managing all the money that you deposit on the platform. When reviewing a new platform before adding it to my portfolio, I look at two things: what the platforms offers in terms of money safety, and the company itself (and their team).

Risks & guarantees on CoinLoan

On CoinLoan, all the assets are stored at a custodian, BitGo, and they have a $100 million insurance from Lloyd's. All assets are also stored in offline cold wallets. They also strictly follow the Cryptocurrency Security Standard (CCSS), meaning they really take the safety of investors money seriously on their platform.

They are also the first licensed crypto platform in Europe, with both a virtual currency provider & financial institution licenses:

This is definitely great to see for a crypto lending platform, as a lot of them are still completely unlicensed, and definitely a very good point for the platform. 

The company & the team

As I mentioned earlier, the company is operating from Estonia, and as for all platforms I add to my portfolio I checked if the company was officially registered in Estonia, and it is indeed.

Before investing on a new platform, I like to check in details the profile of the management team of the company, so for example I checked the LinkedIn profile of the CEO of the company, Alex Faliushin.

I found that he has a great track record in the field of finance, IT and payment solutions. I also reached out to them to do an interview to talk more about the platform, which I will share in this article once it is done.

Getting started with CoinLoan

It is actually really easy to get started with CoinLoan and have your money start generating income on the platform.

The first step is to open an account and get verified. This was done really quickly, and including the ID verification part it was all done in under 5 minutes.

Next, you will have to deposit funds in your account to start investing and generate interests. This is also really easy to do with CoinLoan.

Being a crypto lending platform, depositing funds of course completely depends on which asset you want to add on the platform. For example, if you want to deposit cryptocurrencies you will get a QR code that you can use with any crypto wallet or exchange:

I for example tried to send money from my Binance account, and it was there within 30 minutes.

You can also of course also deposit fiat currencies from a bank account, with no fees at all:

I tried that as well by doing a bank transfer from my bank account, and the money was there within a day.

Once you have funds on your account, it is actually really easy to start earning money on the platform. You can simply go to the Interest Account tab, pick the asset of your choice, and deposit money:

Note that as it is a crypto lending platform, you can withdraw your money at any time, without having to wait for some loans to be repaid.

I also tried to withdraw money (in Euros), and the money was back on my account in just 1 day.

My Results so far with CoinLoan

I deposited money on CoinLoan in 2021, and it invested it in USDC as it was the highest return available. I got exactly the promised interests, and no issues with the platform at all. It is of course too early to talk about long-term yields on the platform, but I can say that so far everything went smoothly and I will definitely invest more on the platform in the future.