Tokenize your assets with Fintelum

The advent of cryptocurrencies has inspired the emergence of a whole new financial era – where money is equivalent to technology in many ways. Today, it is possible for you to convert any of the assets you have into digital tokens – using tokenization.

And Fintelum is one of the pioneers in this sector. The platform allows you to create tokens that represent your assets or invest in other tokenized securities – all while focusing on compliance.

In this review, I will introduce you to what tokenization is and how Fintelum can help you tokenize your assets. In addition, I will also walk you through the process of how you can invest in tokenized assets through Fintelum, specifically by talking about my investment in the KEEPP project.

In addition to this review, make sure you check out my podcast episode with Liza Aizupiete, the co-cofounder and Managing Director of Fintelum. We spoke all about how Fintelum operates and about the future that Liza sees in this space.

What is Tokenization?

In the most simple terms – to tokenize is to represent the value or commitment of an asset as a crypto token. A tokenized security will be a legal agreement that is represented as a digital asset or a smart contract. When your securities are delineated by a smart contract on a blockchain, it offers transparency and trustless access to information.

Today, you can tokenize almost any asset, be it company equity, debt, real estate, a product, or service – thus creating an unchangeable record of ownership. Not only that, you can create tokens that represent whole or fractional ownership of the security.

What is Fintelum Tokenization?

Fintelum has designed its unique Security Token Implementation process that allows its users to tokenize their assets.

In a nutshell, the tokens created by Fintelum have the following features:

• The tokens have an Ethereum Solidity code base.
• The implementation follows a standard protocol with flexible features.
• It tackles the need for a compliant blockchain instrument that represents a transferable security in a given jurisdiction.
• Fully compliant with given security laws – including KYC, AML, and CTF.

As you can see, Fintelum aims to give investors an opportunity to tokenize their assets – without compromising on the security aspects. The company is based in Latvia, Europe.

In addition to token issuance, Fintelum also offers the following associated services:

• It functions as an equity crowdfunding platform for investments in companies based anywhere, although the legal structure will likely be chosen to be Latvia, Luxembourg and Ireland.
• Enables issuance of tokens in both primary and secondary markets.
• Allows users to invest in security tokens from anywhere in the world in fiat and cryptocurrencies.

Compared to the few other platforms that offer similar services – Fintelum differentiates itself by bringing in years of technical experience and legal expertise. The team behind Fintelum has been working together for over a decade and has significant knowledge about the ins and outs of the crypto industry.

In other words, Fintelum has a unique value proposition for investors that are looking for innovative ways to store their assets and make sizable returns compared to conventional listed securities.

Fintelum Products

The solutions offered by Fintelum can be broadly categorized into two – for investors and for issuers.

As an issuer, you will be utilizing the platform’s tokenization services to issue tokens for your respective asset. On the other hand, as an investor, Fintelum can connect you to viable investment opportunities.

Fintelum for Issuers

As I mentioned above, for issuers – the most important step on Fintelum is to tokenize your assets. However, as imaginable – not many issuers might be familiar with the concept of tokenization or how it practically works. Not to worry, Fintelum has developed a five-step process that can assist you every step of the way.

You will only have to provide the information you have regarding your assets, and Fintelum will take care of the rest.

Let us take a look at how you can start crowdfunding on Fintelum:

Step 1: Assess What You Want to Tokenize

Fintelum allows you to tokenize almost any type of financial instrument imaginable. Whether it is a company, a fund, a corporate bond, a contractual promise, or even a possession such as a boat or a property – Fintelum can create a token for your respective asset.

As such, your first option will be to define whether you want to create a security, a utility, or a hybrid token?

Step 2: Enter What Information You Already Have

If you are getting started on a new project, then Fintelum will ask you to take a look at the minimum requirements for your token to start selling. This includes:

• Idea
• Team
• Proof of concept
• Existing business
• Paying clients
• Minimum viable product.

If you have two of these six qualifications, then you can proceed to start setting the targets for your enterprise.

Step 3: Choose Your Jurisdiction

To proceed further, you will need to specify which is the appropriate jurisdiction of your project and your participants.

Step 4: Choose Your Communication Method

Based on your requirements, you will need to define whether your project is going to be on a local or a global scale. And consequently, how are you going to reach out to your investors and community?

Step 5: Let Fintelum Take Over

At this stage, you have provided everything that Fintelum needs to issue your token. The platform will look into KYC/AML compliance, the custody of crypto and escrow, define the security and utility tokens, and transfer agency.

In addition, Fintelum will also facilitate the secondary P2P trading and implementation of your STO. You can then sit back and focus on running your business efficiently.

What is an STO?

For those who are entirely new to tokenomics, you could also benefit from understanding what an STO is before you consider Fintelum. STO stands for Security Token Offering – and it is a method of fundraising that enables investors to invest in opportunities from anywhere.

Compared to the more popular Initial Coin Offering (ICO), the main attraction of an STO is that it conforms to regulatory requirements. It brings more regulation to blockchain-based crowdfunding and providers more guarantees by issuing tokens.

In other words, when investors inject money into a project through Fintelum, they receive a token in return.
The type of token will depend on the type of asset. Regardless of what it represents, the token is bound by both securities and crowdfunding laws which will be clearly laid out in the offering document following the KYC/AML processes.

With this in mind, let me tell you how an investor can use Fintelum to invest through an STO.

Fintelum for Investors

For investors, Fintelum serves as an innovative platform to get you access to unconventional opportunities. But if you are someone who is exposed to decentralized ICOs, then your first question would be why should you choose a centralized platform?

In order to answer this, Fintelum stresses the point of exerting control over your rights as an investor. For instance, the KYC/AML compliance ensures your ownership rights, voting rights, right to income, right to ownership inheritance, right to true and unobstructed information, litigation rights, and any other specific contractual rights.

Without such regulation,  external controls over your asset might not be easy to attain. In other words, security tokens that follow compliance are potentially a better way to represent your lawful rights as an investor. It not only enforces protection but also enables the issuer the obligation to fulfill them.

This protection can be crucial for an investor – when thinking of the security of the assets and your rights. Additionally, another important aspect of investing in tokens is access to the secondary market.

Now that I have established why investors might prefer to invest in tokenized assets – let me tell you how you can use Fintelum to start investing.

Step 1: Register as an Investor

The first step is to create your account on Fintelum by providing some basic personal information.

Step 2: Choose Your Project

Fintelum will then give you a list of vetted projects. Each project profile will include details of the company, its mission, use of funds, the total funding sought, and the type of investment. You will have options to choose between dividend shares, equity, asset-backed tokens, bonds, profit share, real estate, and revenue share.

I decided to invest in the KEEPP project, so I hit the “Make an investment” button to get started.

Step 3: Provide Your Compliance Information

As an investor, you will be required to offer further information in order to comply with the KYC/AML requirements. You will have to complete this step only once. When you are whitelisted – you can proceed to start investing in your chosen projects securely.

There’s nothing too daunting here, although as investors we are tired of filling in KYC forms, this is a necessity for any financial institution.

For ID verification you can use either your ID card, your passport, or your driving license. Here are a few screenshots of how this looks.

Once you’re verified, you can proceed with your investment. During the KYC process, you will also be asked how much you are going to invest and whether you will be using EUR, ETH or BTC.

At the end of the process, you will get an offer for the tokens and you need to proceed with your deposit of EUR, ETH or BTC.

Step 4: Trade Security Tokens

You can acquire new tokens or sell any existing ones you have through the Fintelum P2P trading desk.

However, this will be possible only if the issuer has opted for the secondary market. If not, you will have to purchase the tokens at the time of the STO.

Step 5: Track Your Investments

Once you have invested, you can follow your portfolio and see the updates on the Fintelum Investor profile. You will be able to access reports on your investment history and see any additional income if applicable.

If any of your projects has an affiliate program, you will have the option to enroll directly from your profit and profit from further offerings.

Why I Invested in the KEEPP Project

The KEEPP project is currently available for funding at time of writing, so I decided to invest in this project. I had to go through the KYC process I just described in order to be able to receive the investment offer, whereby I then had to transfer the money via bank transfer in order to formalize the investment.

What I really liked about Fintelum and the KEEPP project, is that, unlike other similar crowdfunding platforms, a ton of information was provided about the project. Indeed, the prospectus was comparable to other prospectuses I’ve analyzed in the past for companies going public. The document was written in perfect English, and some other languages were also made available.

With such projects, a major concern is whether the company will accurately report its financial performance. This is crucial because investor returns depend on a positive result for the company, and in that case, to what degree was it a positive result. To make sure that a stakeholder is on the board, Liza Aizupiete from Fintelum will be representing investors’ interests by being on the company’s board of directors.

Another important element is what kind of shares you’re getting. In this case, we are getting class B shares, and that entitles investors to be the first to receive dividends in proportion to the shares held. We also need to consider what price we are paying, and here we see that this round of investment carries a €510,000 share premium. That means that the price per share is €2.50, whereas the nominal or original value of the share was €1. This is normal for such issuances, as the value of the original shares would have typically gone up due to the company’s successful operation in the earlier years.

The team behind any business is always of utmost importance to me. In KEEPP’s case we can see that they have a solid team with lots of experience in the different matters needed for the successful operation of this business.

KEEPP is my first investment, but I’m hoping to see Fintelum continue to develop as a platform and put up more interesting projects. I’m also interested in the overall rate of acceptance of the STO model in Europe. It seems to be a space that’s heating up and I like the idea of directly investing in small and medium businesses in addition to my portfolio of public stocks.

Fintelum Development

Apart from investing and fundraising, Fintelum also offers development services. You can approach the platform for a customized solution on building a minimum viable product (MVP) or to set up a website for your business.

The company specializes in offering sophisticated solutions with a focus on user experience and user interface in mind. They are experts in developing complex payment systems, trading applications – for web-based, desktop, and mobile applications.

Fintelum Advisory

As I mentioned earlier, the team behind Fintelum has tons of experience when it comes to the development and legal aspects of building a business. The platform also offers advisory services for those who are seeking guidance during the establishment or the running of a business.

Here are certain areas where Fintelum can be of help:

• Developing a strategic vision
• Technical implementation
• Corporate finance
• Corporate governance
• Investor relations
• Brand development
• IT systems and security
• Token modeling

All in all, Fintelum has many facets that can be of high value to business owners.

Fintelum Fees and Charges

As a tailored token issuing service, the charges for tokenization will depend on each issuer’s specific requirements.

If you are an investor, the amount you pay for each token will also depend on the type of project you choose. However, it is unclear whether any other additional charges will be incurred when you make investments.

Fintelum Safety

As a crowdfunding platform, Fintelum holds responsibility for the funds and assets of both investors and issuers. This is where the KYC/AML compliance and smart contracts come into play. By deploying smart contracts on the blockchain, Fintelum ensures accurate records of all transactions.

Additionally, the whitelisting of investors using KYC/AML compliance will protect the issuer from any fraudulent process. In addition, Fintelum will only issue share-tokens when the crowdfunding is complete and thus – after the participants and their funds have even verified.

The smart contracts are created only at this point, and tokens are distributed to stakeholders via their Fintelum accounts. In case the issuers have enabled secondary markets, any transaction made will be recorded on the blockchain – and will be available for review whenever necessary.

Moreover, Fintelum implements its STOs on the Ethereum blockchain. If this system fails for any reason, it is possible to replicate the tokens on other blockchains – by following the same legal and business requirements. This makes the STO implementation of Fintelum dynamic, giving an additional layer of safety to your investments.

Fintelum Customer Service

As Fintelum offers tailored services,  you might be required to contact the team on several occasions. The platform has made this process easier for you to connect with experts directly through the platform.

Even if you are not an issuer or investor yet, you can reach out directly through the contact form, or through one of the social media pages of the company.

Fintelum – What’s the Final Verdict?

If you are looking for alternative investment options, then Fintelum offers a way for you to achieve this. As an issuer, you have the opportunity to gain access to more investors to secure crowdfunding.

As an investor, you will be able to find innovative projects to back without having to compromise on any of the guaranteed rights to your invested capital.

Fintelum is headed towards an inevitable future, where STOs, ICOs, and tokenization are about to become increasingly common in the capital markets. With its regulatory and compliance features, the platform sets itself apart – by making the process more secure for all participants involved.

Tokenize your assets with Fintelum

Join BlockFi | Join Ledn

In the past, one of the main issues with holding cryptocurrencies was that other than a price increase, there was no additional value from yields. If you buy stocks with dividends, you make gains throughout the year. But, with digital assets, if the price goes down, any value gained is lost. You could hold onto cryptocurrencies for years and fail to make significant increases.

At the moment, you likely store your cryptocurrencies in a secure wallet with established online exchanges such as Coinbase, Kraken, or Binance. You might also be practicing self-custody with hardware wallets or mobile wallets. The main problem with just holding your cryptos is that they don’t provide any fixed returns.

But that’s all changing.

Now, it’s possible to earn from your cryptocurrency holdings and, compared to traditional savings accounts with fiat currency, the interest rate for crypto savings accounts are generous and compounded.

And no matter what the price of your crypto asset, you earn interest regardless.

[Read more…]

Earn rewards for renting

What is Nebeus?

Nebeus is a London & Barcelona-based fintech start-up company founded in 2014 by Sergey Romanovskiy. Their primary focus is to provide crypto asset-collateralized loans by integrating margin calls, health monitors, and volatility alerts. This unique platform aims to help bridge the gap between fiat and crypto with a wallet that allows you to earn, borrow, exchange, send or receive cash and crypto.

Some of the other features of Nebeus include:

• Make deposits and cash withdrawals at physical locations.
• International cash transfers to over 150 countries worldwide.
• Mobile phone top-ups on more than 500 mobile phone operators around the world.

They have also recently entered into a partnership with Railsbank and will soon provide users with their own Nebeus Mastercard to make purchases in everyday life.

Where is Nebeus Based?

At first glance, their website states, “The platform is developed and managed by Rintral Trading SL, Carrer de la Ciutat de Granada, 150, 08018, Barcelona, Spain.” and are registered in the Commercial Registry of Spain.

Although founded in 2014, they do not have a large social media following or many reviews from the public to date. However, they did a recent crowdfunding event on the “Seedrs” platform where 248 investors joined the campaign. Their funding was also match approved by the British Government’s “Future Fund,” resulting in a total of €995K raised. Allowing Nebeus to win the global award for “Digital Lending Innovation” in the Finance Monthly Fintech Awards 2021.

The Nebeus website offers English, Spanish and German translations. The English translation is not perfect and they have a few spelling errors here and there (which were promptly corrected when I pointed them out), but their blog posts are clear, educational, and easy to understand.

I felt as though the overall website user experience was a bit misleading. Many of the links I clicked on redirected me to the sign-up page to open an account instead of providing me with more information about the option stated on the link as I would have expected.

About Nebeus

Their “about us” page could use some improvement. Although it mentions their past and future, it does not include any information about the employees or company registration. I was not able to find a clear link to this page on the homepage, but it came up when I searched through Google.

Nebeus comply with all UK and EU regulations, and they are planning to obtain an EMI license in 2021 to improve the services they can offer.

By 2020 Nebeus had more than 60,000 users already. They currently provide options for you to make cash transfers to more than 150 countries and offer mobile top-up with more than 500 mobile phone operators supported around the world. They have made it possible for you to transfer and deposit money at more than 230,000 retail locations & post offices.

On Nebeus, you can add funds using any Visa or Mastercard, and your funds are instantly credited to your account. Soon you will also be able to use your Nebeus Mastercard to make payments.

Opening a Nebeus Account

Opening a Nebeus account is quick and can be done by providing your Name, Surname, Email, Password, and Country. They support a large variety of countries that other platforms often exclude.

Currently, you can use your account without completing the verification process. The only option that is not available without verifying your identity is to transfer Fiat from your Nebeus account.

They have an easy automated KYC verification process. Once you have created your account, click on the profile icon top right and then click on “get verified,” where Nebeus will guide you to add your phone number and verify it with a pin code. Next, you will be required to go through an identity verification process where you are asked to take a selfie and a picture of your original document. Lastly, you need to provide your proof of address to verify it.

Once your account is verified, Nebeus will notify you via email. The entire verification takes around 24 hours to process and once completed, you will be able to use your account with all of its features.

Deposits

Nebeus offers a great variety of payment channels:

• Deposit directly from your Visa or MasterCard charged at 2.90% per transaction – this is the standard rate of most other platforms.
• Deposit cash at a Cash Collection Point near you for a fee of 6.50% to add or send funds – this option is great for those who do not have access to the other methods, and although it is a little higher in terms of fees, it still provides an option that would otherwise not be available.
• They also accept free SEPA deposits, and to send it is 7 € or 1% fee.
• Supercharged Wire Transfer for free – another great option that shows they are trying to accommodate as many people as possible.

Exchange

Nebeus makes it easy for you to add fiat and exchange it to crypto such as BTC or ETH within your account. Recently they launched deposits of USDC and USDT too. They also provide the option to exchange crypto for Euros, US Dollars, or British Pounds.

You can buy crypto by sending a wire transfer in Euros or transfer money via your bank account. These funds are then converted into crypto and deposited into your Wallet within one business day.

Nebeus charges a fee of up to 0.35% when you buy or sell cryptocurrency.

In June, they added two stablecoins, namely Tether (USDT) & USD Coin (USDC), and integrated both coins into some of their services, enabling you to:

• Buy, sell, and exchange stablecoins with crypto and fiat.
• Get crypto-backed loans in stablecoins.
• Top-up your mobile phone using stablecoins.
• Send or receive stablecoins to and from any other digital wallet.
• Withdraw stablecoins directly to your MasterCard.
• Send stablecoins to any other Nebeus user for free.

Borrow

As crypto has started to become a much better alternative store of value and investment option, it only makes us wonder about other ways to benefit from the crypto while holding it. This is where crypto-backed loans come in. It is a way to leverage your crypto and use it as collateral. Crypto-backed loans are an excellent option that allows you to use your loan to pay for your daily expenses without touching your crypto. Nebeus’ loans are pre-approved and insured.

Nebeus offers two options for borrowing.

1. Quick Loans. These are instant, pre-approved loans that are offered directly from their treasury.
2. Flexible loans. Fully customizable, where you can select your terms and borrow up to 80% of your crypto value.

How to Borrow?

Once you have opened your Nebeus account, you can get a loan in 3 steps:

1. Transfer your crypto from any other wallet for free
2. Choose the loan you would like to take out
3. Get cash while still keeping your crypto

Fees

• Quick Loans: 50% Loan-To-Value and 0% interest for three months.
• Flexible Loans: up to 80% Loan-To-Value, interest rate, and borrow up to €250,000 for as long as 36 months.

The fees are pretty similar to the other prominent players in the lending space like YouHodler and BlockFi.

These are two of my other favorite crypto lending platforms to earn interest in your crypto and obtain loans by providing crypto as collateral.

Transfers

You can transfer to over 150 countries from your Nebeus account as long as your account is verified.

• The minimum amount to send is 5€
• The maximum amount you can send is 3500€ per transaction
• The fee for transferring is 2.8%

You can also use SEPA transfers/withdrawals for a fee of 1%, with a minimum of €7. Deposits with SEPA are free.

Rent

If you are not interested in borrowing, perhaps an option that might be interesting to you is the rent feature that Nebeus offers. Crypto renting is a way to rent your crypto to someone and get rewarded for it.

The two options at Nebeus are:

• Juniper – Rent a minimum of 0.0025 BTC or 0.03 ETH for more than one month to earn 3.5% per year.
• Sequoia – Rent a minimum of 0.12 BTC or 3 ETH for more than four months to earn 6.75% per year.

How to Insure Your Crypto?

Nebeus stores your crypto in their Nebeus Vault, a Class III bank-grade secure cold storage that is a disconnected device, making it safer from cyber attacks and insured up to $100M by Lloyds of London.

Nebeus provides two options insured by Lloyds of London in which you can protect your crypto against risk.

• Single Insurance at 4€/month for one of your cryptocurrencies.
• Full Insurance at 6,90€/month for your full vault.

Customer Support

There is no chat service available on Nebeus. When clicking on the help link, you are redirected to their knowledge base, and at the very bottom will find the link to submit a ticket. I have submitted a ticket to them; although I received a timely response, it came from a [email protected]…us.zohodesk.eu email address with the subject Re:[## 2662 ##], and this can be easily missed or disregarded as spam. Perhaps something to take note of when requiring support from them.

Status Page

On their website, they have a link to a status page that provides you with a live status of their systems, whether they are operational or not, as well as the downtime. Proving to be quite a thoughtful feature.

Verdict

Overall, I like that Nebeus have taken a simplified approach, and the platform is easy to use for everyday people. Nebeus offers a great one-solution platform that provides a secure wallet to store a combination of fiat and crypto, allowing you to send, withdraw, lend, borrow and earn.

Nebeus aims to create a financial world without boundaries between cash and crypto and be known as a trusted financial service worldwide. Using Nebeus is a great way to help you earn interest on your crypto without needing to sell any of it by implementing some form of lending.

Earn rewards for renting

Earn interest on your Bitcoin

Cryptocurrencies are exponentially increasing in popularity. Since the epic rise of Bitcoin in 2017, cryptocurrencies caught the public eye. Serious investors began adding cryptocurrencies to their portfolios and exploring how to capitalise on their crypto investments.

From an insignificant start, crypto growth has been outstanding. There are now over 5,000 listed cryptocurrencies. In 2020, the combined cryptocurrencies had a market capitalisation of 193 billion US dollars. But, by the end of January 2021, the market capitalisation for cryptocurrencies was over 1 trillion US dollars.

Over the past few years, there’s been a growing number of online crypto lending providers where you can make the most of your cryptocurrencies. Ledn is one example of a digital financial platform allowing you to maximise your Bitcoin holdings by expanding how you can use Bitcoin for profits.

If you are holding Bitcoin, you may want to know how to get the most out of it. In the past, the only way to profit from Bitcoin was to sell it at a higher price than you bought it.

With Ledn, you can now earn interest on your Bitcoin and even access a loan against your holdings. You can also create a passive income stream with your Bitcoin. And you can increase your portfolio by buying more crypto assets.

Adam Reeds and Mauricio Di Bartolomeo founded Ledn in August 2018. They set out to build a world-class financial product platform with industry-leading rates to help people save on digital assets.

Their headquarters are in Toronto, Canada. They provide a global service through Bitcoin and digital assets.

In this review, I provide an in-depth analysis of the financial products available with Ledn. I will discuss the process of setting up an account with the Ledn platform so that you can start making passive income from your Bitcoin holdings or borrowing against the Bitcoin you currently own.

Remember that I also interviewed Ledn’s co-founder Mauricio on my podcast Mastermind.fm, so do check out that episode if you want to learn more about Ledn.

Ledn Products

Ledn has three flagship products –

1. Bitcoin-backed dollar loans
2. Bitcoin and USDC savings accounts
3. Bitcoin balance doubling service (B2X)

I want to guide you through each of these carefully as it is very important to understand what each product consists of and where it can be most useful. We need to keep in mind that these are relatively new products in the finance space, and therefore utmost diligence is required before you use them.

I am personally very bullish on such services, but as with anything crypto, the first investment you should do is in your own education. That will prevent you from making bad decisions.

Without further ado, let’s dive in.

Bitcoin-Backed Dollar Loans

Bitcoin-backed loans facilitate liquidity for investors who are hodling (buy and hold) their assets. It’s an efficient and fast service to use your Bitcoin as collateral and receive dollars without selling your Bitcoin.

Loan terms are twelve months, but you can apply for an extension of the loan when the original loan term ends. The maximum LTV (maximum loan-to-value) ratio is 50%. So if you had $10,000 of Bitcoin as collateral for the loan, you could borrow up to $5,000.

On the Ledn website, you can access a Bitcoin-backed loan calculator. The minimum loan is $500.

You cannot pay off your Bitcoin-backed loan by installments. When you pay the loan, you are required to pay the total amount owing. There are no penalties for early repayment.

There are multiple benefits to Bitcoin backed loans –

1. Your Bitcoin still belongs to you, and, as there is no sale, there are no taxable transactions. Most Bitcoin investors wish to hold long-term but want to access cash and build up their Bitcoin holdings. Once you pay the loan, your Bitcoin returns to you.
2. Your Bitcoin is safe. Ledn uses BitGo, the world’s first qualified, purpose-built custodian for storing digital assets. BitGo has one of the most comprehensive industry insurance policies and has recently been acquired by Galaxy Digital in the industry’s first $1bn+ acquisition.
3. Approval for Bitcoin-backed loans is fast, with funds available within 24 hours of approval from Ledn. There is no mandate for payment and no necessity for monthly installments. You can pay off your loan any time – with dollars or Bitcoin – without penalties.

How to Apply for a Bitcoin Backed Loan

It’s surprisingly simple to apply for a Bitcoin-backed loan. As you’d expect, you have to share your personal information to prove your identity. Ledn request the following four documents –

1. A copy of a government-issued document such as a driving licence or passport
2. An image of you holding the above
3. Proof of address, such as a recent utility bill
4. Your bank details

Subject to your documents being in order, the approval process is a matter of a few minutes.

What Happens if the Price of Bitcoin Drops?

Like all cryptocurrencies, Bitcoin is volatile. For instance, the Bitcoin price was $64k in May 2021 but promptly dropped to below $30k in less than a week.

Bitcoin is sensitive to media coverage by large investors.

Recently, the price of Bitcoin dropped 10% overnight, following a tweet by Elon Musk (owner of Tesla and a prominent investor of Bitcoin) regarding the energy-intensive resources of Bitcoin mining. He is concerned about the damage to the environment and consequently has removed Bitcoin payment options for vehicles until Bitcoin becomes less energy-dependant.

If a significant price drop like this occurs, Ledn asks you to add more collateral to your wallet or make an appropriate payment on the principal loan. If you fail to fulfill these requirements, Ledn has the right to sell part of your Bitcoin to meet the loan to value ratio levels. It’s similar to a margin call.

Therefore, before you consider a Bitcoin-backed loan, you must assess the risk for this potential scenario and have backup funds available if necessary.

If Bitcoin prices rise, you get to keep the gain in value, and the amount you owe for the loan does not change.

Bitcoin and USDC Savings Accounts

Interest with traditional banks for fiat currency is hardly worth considering. But, if you have Bitcoin holdings, Ledn offers high-interest savings accounts, which they can do through their collaboration with Genesis.

Genesis Capital offers high-level service to elite groups of institutions, offering the ability to buy large quantities of digital currencies such as Bitcoin and USDC.

In 2019, Genesis processed over $3.1 billion in digital asset loans and has the best processing standards for lending and reporting. Ledn savings accounts have such high interest because they lend Bitcoin to Genesis.

Interest on Bitcoin and USDC saving accounts is paid monthly by Ledn with compound interest.

The potential interest on a Ledn Bitcoin savings account could be as high as 6.10% APY (annual percentage yield) paid in Bitcoin.

For USDC savings accounts, the potential interest is 11% APY and paid in USDC.

Note that these rates can change at any point due to market conditions.

Ledn complies with high standards of consumer protection and privacy and, as such, is incorporated under Canadian Federal Laws. Ledn provides a purpose-built, highly-qualified platform for digital assets storage and has undoubtedly one of the most comprehensive insurance policies for the crypto industry.

Note: the Canadian Deposit Insurance Corporation doesn’t cover USDC savings accounts. Nor are USDC savings accounts covered by any other deposit protection policies.

The Benefits of Bitcoin and USDC Savings Accounts

1. There is no minimum balance requirement, and your investment is not locked in, meaning you can withdraw your funds at any time. The beauty of this is the availability to all investors, not just those with significant capital investment.
2. Your savings aren’t affected by the traditional money market issues, such as market crashes etc.
3. You earn compound interest, meaning your savings account grows exponentially. Your compound interest payout is monthly.

Should you wish to send Bitcoin or USDC to another Ledn account, the transaction is free.

For the USDC savings account, there is a $10 USDC fee for withdrawals. There are no fees to use the Bitcoin savings account. When you withdraw, the transaction fee on the Bitcoin blockchain deducts automatically, and this is equivalent to the mining fee. Ledn does not charge any extra fees on withdrawals apart from the mining fee that applies to any BTC transaction.

B2X: Bitcoin Balance Doubling Service

If you want to make the most from your Bitcoin, B2X is a Ledn service that allows you to increase your Bitcoin holdings through a Ledn Bitcoin-backed loan purchase and an equal purchase of Bitcoin.

The concept is simple. You apply for a dollar loan and then purchase Bitcoin equal to the value of your current holdings. The result is, you have twice as much Bitcoin and a Bitcoin-backed loan.

Who would Benefit from B2X?

If you believe in the value of Bitcoin increasing over the coming years, B2X doubles your exposure, potentially doubling your Bitcoin gains. If you already have a Ledn Bitcoin savings account, you can use funds from that. The process takes less than a minute.

You can check the B2X calculator on Ledn’s website. There doesn’t appear to be a minimum requirement for transfer, although a Bitcoin-backed loan requires a minimum of $500 of Bitcoin.

What are the Risks of B2X?

As you know, Bitcoin is volatile. If the price rises, your gains increase, doubling your Bitcoin. But, if the price of Bitcoin falls, you’re exposed to double the risk.

Should the latter happen, the procedure is the same as a regular Bitcoin-backed loan. You are required to add funds or pay off some of the principal of the loan. And, Ledn has the right to sell some of your Bitcoin holdings if you fail to take either of the above actions.

B2X is for the investor who is not risk-averse and has the capital to back up a shortfall in the price of Bitcoin if needed.

A few countries have B2X service-related restrictions. These details may be subject to change, but the current (June 2021) list is below.

• Iran
• Libya
• North Korea
• Syria
• United States
• Africa
• Uruguay

The product is thus not available in those countries at the moment.

How to Register for B2X and Repayment Process

It’s easy to access B2X by simply opening an account with Ledn and verifying your user profile.

You can deposit any amount you wish into your Bitcoin savings account to use for your B2X loan. After making your deposit, go to the B2X products page to make your selections

Repayment of your B2X loan is hassle-free because you can repay the loan at any time you wish without penalties, but Ledn payment requirements are to pay the loan in full with one payment. In addition, interest accrues daily, so the quicker you pay off the B2X loan, the less interest you pay.

Proof-of-Reserves Standards

Before investing your Bitcoin in platforms like Ledn, the first question you should ask is if your investment will be safe. Ledn is the first to launch the Proof-of-Reserves standards initiated at the beginning of 2021.

Proof-of-Reserves allows Ledn to prove how much Bitcoin they could spend without exposing themselves to the risks of moving funds and without the need to generate a live transaction.

In short, Proof of Reserves means that Ledn is financially viable, with enough Bitcoin to support their platform.

Ledn assures their clients of Proof of Reserves Standards with their statement, “Ledn is the only digital asset lending company to have performed a Proof-of-Reserves attestation by an independent top-25 public accountant, Armanino LLP. As such, Ledn clients can take comfort that their bitcoin and USDC are being properly and accurately accounted for – to the satoshi, and to the cent, at all times.”

To check your Bitcoin assets are in the Proof of Reserves, log in to your Ledn account and look for the report’s details at the bottom of the page, where you will find a hashed ID and a link to Armanino LLP’s TrustExplorer website.

Enter your hashed ID to confirm your balance at the time of the Proof of Reserves attestation.

If you had assets on Ledn on 31^st January 2021, you were automatically included in the Proof of Reserves attestation.

Ledn plans to conduct independent Proof of Reserves attestations every six months. Ledn clients will receive timely notifications.

Ledn Customer Service

Customer service feedback and support is essential as a measurement of what you might expect as a client of Ledn.

I’m a happy user myself, and all my support interactions were pleasant and timely. To be fair, I haven’t needed much help as I’m used to such products. So let’s take a look at the next best thing to gauge customer service levels – TrustPilot.

Ledn opened a TrustPilot account in October 2020, so it’s early days for feedback, in fact there were only 13 reviews at time of publishing.

Overall, the reviews for Ledn’s service and support is good. They have a TrustPilot score of four-star. Happy customers are delighted with their service and customer response. Notably, if a difficulty occurs, Ledn is quick to solve it, even if it’s a user error.

For instance, Ledn quickly resolved an account holder issue when a client couldn’t access his account. The client reported the efficiency and helpfulness of Ledn support staff.

Ledn’s TrustPilot score could be higher, but, reading the reviews, the customers who posted one-star reviews failed to grasp how Ledn works, such as thinking they were borrowing Bitcoin with a Bitcoin-backed loan.  As a result, they were upset when they received dollars but admitted they hadn’t clarified the details before requesting the loan.

This information is fully transparent to readers on the Ledn website. The negative reviews are unfair as they are due to user ineptitude rather than Ledn’s service.

I would recommend that Ledn’s customer service team keep tabs on their TrustPilot and respond to reviewers, especially those who had a perceived negative experience. This would enable other visitors to understand better what went wrong and be able to judge for themselves whether there is any valid concern with Ledn’s offering or not.

Is Ledn Secure?

Ledn is a security-centric platform, and they take the privacy of their clients seriously. They have two-factor login authentication and for specific actions on the platform when logged in.

The website has AES-256 website encryption. Ledn addresses all the layers that could possibly fall prey to security threats.

Ledn does not want to monetize client data. They offer a high level of client protection, so your data is not stored on Ledn local servers. Instead, your data is stored in private networks with strong security protocols.

What index does Ledn Use for Bitcoin Prices?

Ledn uses the  Coindesk Bitcoin price index to determine loan-to-value ratios for Ledn loans. Therefore, before investing your Bitcoin with Ledn, you can check the current Bitcoin price with Coindesk.

How do I Open a Ledn Account?

Opening an account with Ledn is easy.

To register for a Ledn account, click on join at the top of the page and enter your first and last name, email address and phone number. You then have immediate access to your account.

From that point, once you choose the desired service, you will need to provide proof of identity with the documents detailed on how to apply for a Bitcoin-backed loan earlier in the article. In addition, you may also have to provide your date of birth.

Ledn Alternatives

Ledn is one of the best options for a Bitcoin-specific loan or savings account. They are committed to Bitcoin and do not offer other crypto offerings. While this can be a negative point to some, I appreciate the fact that they are not going after the shiny (but less secure) crypto flavors of the day and focusing on Bitcoin. This allows them to focus all their energies on securing one cryptocurrency, which makes sense to me.

For other cryptocurrencies, my favourite crypto lending platforms are YouHodler and BlockFi.

Similarly to Ledn, you can earn interest on your crypto holdings with a savings account with YouHodler or BlockFi, or use your crypto as collateral for a loan. Thus, if you are HODLing other cryptocurrencies, YouHodler and BlockFi are also excellent platforms for making the most of your crypto holdings and generating a passive income.

BlockFi is a more conservative platform than YouHodler when it comes to cryptos and services offered, and so I believe they are more of a direct competitor with Ledn. I will therefore be doing a head-to-head review of the two services in order to determine which one is best for what.

I believe that all top platforms end up specialising in certain products or services, and therefore it’s important to understand that it’s not a winner-takes-all situation but rather a case of choosing the right platform for your needs. I personally use both BlockFi and Ledn, for example. One straightforward reason for using Ledn over BlockFi that I could mention is that rates on Ledn for Bitcoin deposits are significantly higher than BlockFi’s if you are depositing bigger sums of BTC. So if you only hold Bitcoin and have significant sums, it pays to use Ledn instead of BlockFi.

Of course, you could also play the hedging game and decide to split your holdings between 2 or 3 platforms to protect against the unlikely case of one of these platforms having problems in the future.

Ledn Review – The Verdict?

Ledn is a robust and secure platform where you can maximise your Bitcoin holdings, earn more Bitcoin or secure a loan against your Bitcoin without selling it.

With crypto industry experts predicting that Bitcoin could one day hit $500,000 or more, a platform such as Ledn is a superb way to build your Bitcoin holdings from earning interest or doubling up your Bitcoin with the B2X.

Ledn’s fees are low, but their security is high, and they have insured custody from industry leader BitGo and the backing of Genesis Capital.

Ledn is one of the leading Bitcoin lending services available today. Regardless, when investing your assets with any third-party services, you should always perform due diligence and proceed with caution.

You can access Ledn services via the website or by downloading the Ledn app from the Google Play store or Apple’s App Store.

Whilst I have described every aspect of Ledn in this guide, always check the current details on the Ledn website.

Open a Ledn account

Please note that the above information is not providing advice on tax, investment, or financial services. I offer the above information without consideration for risk tolerance and a specific investor’s financial circumstances.

Trading or investing in Bitcoin may not be suitable for all investors. It does involve risk and the possibility of a loss of capital.

Sign up to Cointracking

If you own or trade any crypto, the approach of tax season might present a whole new set of challenges. Trading and investing across multiple cryptocurrency exchanges can easily become very confusing for the average trader. In other words, it can be very tricky to keep track of your digital portfolio, your gains, and losses at all times.

If you regularly engage in cryptocurrency transactions, then the burden of calculating these profits and losses usually falls entirely with you. Fortunately, there is software out there that can help you keep an account of your cryptocurrency portfolio and generate tax reports based on your activities.

CoinTracking.info is one such platform that can function as your personal crypto portfolio monitor. In this review, I will walk you through the different features of this product and how you can use it to simplify the process of crypto tax reporting.

CoinTracking.info – An Overview

As you likely already know, the first cryptocurrency – Bitcoin, was launched in 2009. In 2012, CoinTracking was created as one of the first companies to have tapped into the upcoming market of crypto tax reporting tools. The platform was intended to make the lives of traders easier, by managing their portfolio throughout the year.

Over time, CoinTracking.info has gained the trust of over 880,000 users and handles portfolios worth $24.7 billion. It has built a worldwide network comprising expert tax advisors, professional cryptocurrency investors, and lawyers who can offer you any assistance with international filing requirements.

In simple terms, CoinTracking.info allows you to evaluate all your relevant information about your crypto portfolio in one place. With this tool, there is no need for you to extract your trading reports and enter them manually. Instead, the platform will directly import your data, and then do the rest of the work by itself.

At the moment, CoinTracking.info integrates with 68 cryptocurrency exchanges, 22 wallets, and offers legacy support for 22 closed trading platforms.

CoinTracking.info – Features

You can look at CoinTracking.info as a multi-faceted platform. It can serve as a portfolio manager, as well as a tax calculator for your crypto holdings.

As a portfolio manager, CoinTracking.info allows you to:

• Calculate your historical balances and profits
• Check coins and currency on each exchange
• View current balances
• Review your realized and unrealized gains
• Analyze the total profit and losses of your trades

CoinTracking.info also offers a unique Capital Gains Tax Calculator for thousands of different cryptocurrencies, digital assets, and tokens. And most importantly, the platform will be able to generate reports that are compliant with your country’s specific tax laws.

The tool is also accessible through its mobile app, allowing you to track different cryptocurrencies and your assets while on the go.

Now that you have an idea of what CoinTracking.info is all about, I’ll now explain how you can start using the platform.

How to Start with CoinTracking.info?

Once you have created an account on the platform, in order to start using its features – you will first have to import your trading data from an exchange or a wallet.

How to Add your Trades

CoinTracking.info allows you to import your trading data using three methods.

1. Automatic API Import

As I mentioned earlier, CoinTracking.info has partnered with several cryptocurrency platforms to monitor your trading data automatically. This can be done by linking the API Keys of your respective exchanges and wallets.

The platform also comes with an API Live Data Check that will allow you to check your current balance across multiple exchanges that you have connected through an API. This will ensure that the trades are added seamlessly, and you do not have to worry about manual updates.

2. Uploading Data Using CSV

You can also transfer data by uploading a CSV file that contains all your trading information. Many exchanges allow you to export these directly from their platforms.

Then you can simply drag and drop these files into CoinTracking.info and you are ready to go.

3. Manual Data Entering

In case there are some trades you were unable to import automatically, you can enter the data manually. You will be entering the details in the form of a table, by entering the specific numbers of coins bought and the trading involved. You will also have the option to edit these entries or erase them later.

If you are having any trouble setting up your account, not to worry – CoinTracking.info offers you detailed instructions every step of the way. When this is completed, the platform will give you a complete analysis of your trades, prices, volume, gains, losses, and the entire value of your portfolio.

Note: The automatic import options are available only for paid users of the platform. If you are accessing the free service, you will have to manually enter all the data.

CoinTracking.info – Interface, and Tools

When you have set up your account, you can proceed to explore the different features of CoinTracking.info. Let us start with what you will find in the portfolio management section.

CoinTracking.info – Analysis Tools

CoinTracking.info has one of the most user-friendly interfaces you will come across. Although the website might look a bit outdated, it has clearly defined each section and categorized its features.

In terms of analysis, you will be able to find the following useful features on CoinTracking.info:

Dashboard

Your dashboard will give you a complete overview of your portfolio. This will include the summary of the coins you hold, the value of each coin, your total profits/losses, the list of your exchange, and much more.

You will also be able to get a synopsis of your trades per day.

Reporting

The Reporting Tab consists of a wide range of different data regarding your trading activity. These charts and tables are interactive, which allows you to take a look at individual datasets if needed. You can also set the graph to view information for a specific period.

This includes:

• Trade Statistics – Here, you will find separate graphs for your historical balance, the current value of each currency, your trading volume, and the number of coins you hold.
• Trade List –  Under this section, you will be able to see a detailed listing of all your trades, such as the buy and sell volumes. This will also include any comments that you have added for individual coins at the time of uploading the data. CoinTracking.info allows you to export this list in multiple formats directly from the platform.
• Trade Prices– This will calculate the cost of all your trades on any particular day, or until the date specified.
• Trade Fees – Here, you will be able to find an account of any trading fees applicable to the trades you have imported.

CoinTracking.info – Research Area