CoinRabbit review: Features, benefits and more

Our Verdict

Our Verdict

CoinRabbit is a cryptocurrency lending platform designed to provide users with quick and easy access to crypto-backed loans and interest-earning deposit accounts. The platform aims to offer a user-friendly experience, allowing individuals to leverage their cryptocurrency holdings without needing to sell them.

Pros

• Instant loans
• No credit checks
• User-friendly interface
• Interest-earning deposits
• Flexible collateral options

Cons

• Market volatility risk
• Limited regulatory oversight

4.9

Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Starting price

$29.95

Interest-earning deposit accounts

Yes

Crypto-backed loans

The platform offers a straightforward process with no credit checks

CoinRabbit, a cryptocurrency lending platform headquartered in Seychelles, facilitates financial transactions between investors and borrowers. Founded in 2020, it offers a wide range of stablecoin loans backed by various cryptocurrencies as collateral. CoinRabbit doesn't require KYC verification upon signup and offers low, transparent interest rates. Borrowers have the flexibility to utilize the funds for various purposes, including cryptocurrency investments.

What is CoinRabbit?

CoinRabbit, a cryptocurrency lending firm, simplifies the process of obtaining loans through cryptocurrencies, striving to emulate traditional currency functionality for holders and lenders. With a focus on this objective, CoinRabbit is actively building a platform to enable lenders to earn interest securely, mitigating the risk of asset loss. Simultaneously, borrowers can access loans without concerns about losing their provided collateral.

Main features

CoinRabbit functions as a peer-to-peer lending network catering to stablecoin and cryptocurrency owners, streamlining transactions for both parties. It enables borrowers to secure loans regardless of market conditions, whether bullish or bearish. These unique features distinguish CoinRabbit as a notable crypto-lending platform.

Interest-bearing accounts by CoinRabbit

CoinRabbit's current interest rate for its accounts averages at 10% annually. You can deposit as little as $100 in your stablecoin account or as much as $1,000,000 in your fiat currency account.

Interest is calculated monthly but accrues and is paid daily. While you can see your earnings grow daily, payouts occur continuously rather than at the end of the month.

You might wonder if this resembles staking. CoinRabbit offers safer alternatives as you don't need to stake your assets to earn. Plus, you can withdraw funds from the platform anytime.

A standout feature of CoinRabbit is the option to add extra funds to existing deposits from another source. Additionally, investors can swiftly withdraw funds, providing added convenience.

Crypto loans

Bull market loans enable borrowers to secure stablecoins using their cryptocurrency assets, like USDT or USDC, as collateral. These loans have open-ended holding periods.

Interest accrues monthly at a 14% Annual Percentage Rate (APR) for loans acquired during a bull market. Once all accrued interest is settled, CoinRabbit releases the collateral.

It's important to note that CoinRabbit will liquidate the collateral and cancel the loan if the collateralized token depreciates by 45% compared to the borrowed token.

CoinRabbit notifies borrowers via email or messages if any of their loans approach predefined limit zones (12.4%, 37%, and 50% of the borrowed token's value), allowing them to take necessary actions to prevent liquidation by making payments or posting additional collateral.

Types of CoinRabbit loans

Depending on market conditions, CoinRabbit offers two loan options: bull-market loans and bear-market loans.

Bull-market loans allow borrowers to acquire stablecoins by pledging a speculative coin as collateral. These loans are sought when borrowers anticipate an increase in the collateral's value, hence the term "bull-market loans."

Conversely, bear-market loans are utilized when borrowers predict a decrease in asset value, often for engaging in short selling.

To obtain a specific token amount, borrowers may need to provide stablecoins or another accepted cryptocurrency as collateral. If their prediction proves accurate and the asset's value decreases, borrowers receive the original cryptocurrency, now valued higher in the digital currency realm.

What is the process for borrowing cryptocurrency on CoinRabbit?

The process of acquiring a loan through CoinRabbit is straightforward. Registration is unnecessary, and credit checks are not conducted. The following steps outline what is required:

Begin by inputting the total amount of collateral available. The system will then calculate the maximum borrowing limit based on this information.

Next, furnish your phone number and the address for receiving USDT or USDC payments. Transfer the collateral to the designated address. Following this, you should receive your loan within ten minutes.

That's all there is to it. You're now free to utilize the funds however you wish.

The collaterals

You have the option to use Bitcoin, Bitcoin Cash, Ethereum, or Nano (NANO) as collateral on CoinRabbit, allowing you to borrow Digital Open Market Exchange Tokens (DOGE) or Digital US Dollar Coins (USDC).

After the deposit is processed, the funds are sent to CoinRabbit's partner, ChangeNOW, for risk analysis and management. Once approved, the loan funds are transferred to the user's specified cryptocurrency wallet. Upon return of the collateral, the interest payment schedule resumes.

CoinRabbit employs a 50% Loan-to-Value (LTV) ratio to calculate collateral, which determines the proportion of borrowed assets relative to their total value.

CoinRabbit fees

When you deposit or withdraw funds using CoinRabbit, you won't encounter any fees whatsoever. To fund your wallet, you have the option to either scan the QR code or use the provided address.

The deposit process typically takes between five to ten minutes to complete, during which time the Anti-Money Laundering (AML) security framework verifies the transaction's legitimacy. You have the flexibility to withdraw either a portion or the entire deposit at any point.

Is CoinRabbit secure?

Initially, CoinRabbit has partnered with ChangeNow.io for streamlined currency conversion services and Guarda.com for asset protection. Additionally, the majority of CoinRabbit's assets are stored in a secure offline storage facility, one of several measures implemented to protect users' financial holdings.

However, before investing, it's crucial to conduct thorough research and understand the possible drawbacks, particularly in the volatile crypto market. Holding or lending cryptocurrencies carries risks due to market volatility.

In conclusion, if you have any inquiries or concerns about CoinRabbit, you can contact the company's customer service team via email, completing a contact form, engaging in live chat, or through any of CoinRabbit's social media channels. Rest assured, the support team will strive to respond promptly. It's important to provide all relevant details about your issue to enable them to offer a comprehensive solution.