SALT Lending Review
Ease of Use
Platform & Account Security
If you’re in the cryptocurrency space then you may have heard of SALT Lending. SALT Lending is a service that let’s its users use cryptocurrency as collateral to open loans. Are you interested? Before you jump in and buy, read our review of SALT Lending and decide for yourself if this service is right for you.
About SALT Lending
The cryptocurrency industry has managed to reinvent the wheel of many legacy financial systems. While holding cryptocurrencies enables an individual to become their own custodian and “bank” of their funds, many services found in traditional banks (such as loans, earning interest on holdings, etc.) are unavailable. Fortunately, this has all changed, as the industry has seen massive progress in the area of decentralized and/or blockchain-based finance. SALT Lending is one of these services, which allows users to open loans and use their holdings of crypto as collateral, effectively giving crypto holders a way to use cash to pay for things in fiat without having to sell their assets. This seems like an ideal service on paper, but how effective and legitimate is SALT Lending, and is it worthy of your trust?
A History of SALT Lending
SALT Lending is based in Denver, Colorado, where it was established in 2016 with a mission to create a solution to allow cryptocurrency holders to maintain their long-term investments and speculation without having to sacrifice/sell their holdings for short-term means (such as paying bills). Since then, the company has built their brand, offering individual and business loans worldwide.
SALT Lending Product Offerings
Both business and individual loans are offered through SALT. Customers are able to open loans against their cryptocurrency holdings in exchange for USD, as well as stablecoins such as: USDT, PAX, and TUSD. The company has plans to add more national currencies and support for more cryptocurrencies.
Loans are available between $5,000 and $25,000,000 with a repayment window of 3 to 12 months, and a Loan-to-Value between 30-70%. Repayments are available as Interest Only payments, or Interest-plus-Principal payment options. A convenient Loan Calculator can be found on SALT’s website to determine exact rates.
Currently, customers can offer the following cryptocurrencies as collateral: Bitcoin; Ethereum; Bitcoin Cash; Litecoin; Dash; Dogecoin; Ripple (XRP); TUSD; USDC; PAX; PAX Gold; and SALT (the platform’s own token).
SALT Platform Security
The funds users stake as collateral are AES 256 encrypted, and then stored offline on Level 3 validated FIPS 140-2 hardware. SALT’s procedures meet the Crypto Currency Security Standard’s compliance to ensure user safety. The company strives to use multi-signature wallets whenever possible.
One unique feature that SALT offers is full insurance for customer funds. SALT offers both Crime Insurance (in the event of theft or infrastructure issues), as well as Cyber Liability Insurance (in the event of a breach or threat). This can help put customers’ minds at ease, as SALT claims that user funds are 100% safe as long as they are held on the SALT platform.
Getting Started on SALT Lending
The process of opening an account on SALT is easy, and is similar to the sign-up process found on many other cryptocurrency services around the web. To begin, simply click the “Sign Up” button found at the top header of SALT’s website. The website will then ask for a valid email address, a password, re-entry of password for confirmation, and an invite code if the new user has one.
SALT will then send a verification email to the address provided. Within the email, SALT will provide a 6-digit code which must be entered into the provided box within 24 hrs of the time the code was sent in the email (a new code can be generated if not entered within the given window).
After the code is successfully entered into the box, SALT will then have the new customer set up 2-Factor Authentication (2FA). A QR Code will be provided, which can be scanned with any authenticator application such as Authy or Google Authenticator. This application will link with your account, generating unique codes every 30 seconds. 2FA is a necessary step in personal account security, helping the service verify the user’s identity.
Once 2FA is set up successfully, SALT will ask the customer to provide their name, and residing country. To verify the user’s identity, SALT will then ask the customer for a form of identification, which can be in the form of a passport, and in some regions, an identity card, or driver’s license.
Next, the user must read, understand, and give their consent to the Membership Agreement proposed by SALT by checking the box and clicking the “Submit” button.
From here, SALT will ask the customer whether their account is for personal or business use. Users are able to create up to 7 different accounts, with only 1 personal account per user.
Once the appropriate account type is selected, the user will be taken to their account overview, from which they can complete their personal profile, and apply for a loan.
Both business and individual loans are offered in: Brazil; Switzerland; United Arab Emirates; Hong Kong; New Zealand; and the United States (Alaska; Arizona; Arkansas; California; Colorado; Connecticut; Delaware; the District of Columbia; Florida; Georgia; Hawaii; Illinois; Indiana; Iowa; Kansas; Kentucky; Maine; Maryland; Massachusetts; Missouri; Nebraska; New Hampshire; New Jersey; New Mexico; North Carolina; Ohio; Oklahoma; Oregon; Pennsylvania; Rhode Island; South Carolina; Tennessee; Texas; Utah; Virginia; Wisconsin; Wyoming).
Business loans (only) are offered in: the United Kingdom; Australia; Canada (Alberta; British Columbia; Manitoba; New Brunswick; Newfoundland and Labrador; Nova Scotia; Ontario; Prince Edward Island; Saskatchewan; Northwest Territories; Nunavut; Yukon); and the United States (Alabama; Idaho; Louisiana; Michigan; Mississippi; Montana; Vermont; Washington; West Virginia).
SALT Lending Fees
The fees one will be paying for SALT’s services and loans greatly depends on the type of loan opened, the amount of money the loan is worth, the location of the customer’s residence, and the repayment window duration. A handy calculator can be found on SALT’s website to get a good idea of how much one might be paying depending on the different variables unique to each individual. When applying for a loan, SALT will use this information to be transparent to the customer regarding the rates they will be paying, and the total collateral needed to fulfill the loan.
Customers living in certain areas can receive confirmation within 24 hours, with the waiting time heavily dependent on the customer’s location of residence. Once the loan is approved, fiat funds can be expected to be transferred into a bank account within 1-7 days, with stablecoin payments able to be sent within the same day as confirmation. SALT loans will not affect an individual’s credit, as SALT does not perform credit checks, nor do they report information to any outside party unless required by law mandate.
SALT Customer Resources
SALT provides a few different resources for customers and curious individuals to learn about their platform, and how their services work. For starters, SALT offers their “Newsroom” page, featuring articles and press releases relating to SALT.
Next, SALT offers a video series called “Worth Your Salt,” which features industry leaders giving their perspective on cryptocurrency topics.
An extensive FAQ is also provided for customers, answering many common questions one may have when using SALT’s services.
A mobile application is available to customers, allowing them to monitor the status of their loans, as well as the ability to make deposits and withdrawals, and more.
Handy SMS alerts, email alerts, phone calls, and push notifications can be set up to notify the customer of actions and reminders. This is a great feature as it allows the customer to remain completely aware and in control of their portfolio.
SALT Customer Service
In an industry where customer service is largely lacking when it comes to providing many different options for contact (and being present for them), SALT has decided to go the extra mile concerning their contact information. Should a customer have any questions about which loan may be right for them, they are free to contact SALT’s loan manager via a provided telephone number, or by email.
Technical issues can also be resolved by contacting their customer support team via their provided phone number and email address. A Live Chat feature is also provided to engage convenient interaction between user and support.
Is SALT Legitimate and Trustworthy?
SALT is a legitimate company, registered in countries worldwide. The company has been building a solid reputation for providing crypto-backed loans since their launch. SALT takes all necessary measures to secure user keys by using encrypted off-line hardware, multi-sig wallets, and full insurance for any funds on the SALT platform. One should be wary of the inherent risks involved in taking out a loan with a lending platform, as loans themselves can be risky if a user is ill-equipped to pay back the loan.
Conclusions For SALT Lending
SALT is a great option for the inevitable costly life events, where the cryptocurrency holder that doesn’t want to sell their bags of crypto to pay for costs or bills. While the cryptocurrency industry is still relatively new, lending platforms have been around for a good number of years. SALT feels like one of the more traditional lending platforms (such as LendingTree), but adapted to cryptocurrencies. One standout note to place emphasis on is the extent of SALT’s customer service. Very rarely does a cryptocurrency company list a telephone number; SALT has listed individual numbers for both their Customer Support team, and their Loan Support team, as well as the available hours the phones will be in service. In many ways, cryptocurrency companies are starting to reinvent the wheel of legacy finance. SALT Lending is one of these companies, having been a steady participant in the first wave of new finance.
No credit checks required; Can use a combination of different cryptocurrencies to stake as collateral for a loan; Can receive funds in USD or supported stablecoins; Confirmation can arrive within 24 hours; Both Crime Insurance and Cyber Liability Insurance are offered, giving full insurance to customer funds; User funds stored offline with multi-sig wallets used when possible.
Small window of repayment (3-12 months only); Loans may require higher repayment rates than traditional loans offered through a bank; Staking crypto as collateral for a loan is inherently risky; Loans may incur serious debts if not managed properly.