SALT is a monetary lending platform that allows investors of crypto to borrow dollars in exchange for BTC repayments. They have fees and interest rates as with any money lending institution and allow Bitcoin owners to borrow freely as and when needed.
Well, it's seen by many Bitcoin investors as a no-brainer platform to use to get richer. However, there are still pitfalls that can catch you. Essentially, BTC owners use the SALT platform to store BTC in return for the cash loan, then use that loan to purchase more BTC. The reasoning is that if SALT is hacked and the BTC is lost, then they still have the BTC they purchased, so they have not really lost anything. Also, betting on the upward trend of Bitcoin's value, any borrowing should turn them a significant profit.
Bitcoin isn’t indestructible. There is this blind faith that BTC is big enough now that the bottom can’t fall out. The truth is, it can fall out at any time. Given its structure, there will come a time when its limitations will begin to show the huge cracks that are unfortunately inevitable. At this point, the bottom could literally fall out, leaving people owing a lot of money and having lost a fortune. Coupled with even a drop in value, you’re immediately making a loss on the interest of the loan. It is not something that a smart investor would consider.
We recommend using SALT if you’re a BTC owner. SALTcoin is good if you need to free up cash in on this globe for fixing your car, holidays, etc. This means you aren’t putting all the eggs in one basket. Providing that you’re comfortable with the repayment structure, you are not over-committing yourself.
If you want to explore other lending platforms with more collateral options, fewer fees, margin trading options, higher loan to value ratios and cool features like a crypto savings account, then check out YouHodler. YouHodler does not have tokens like SALT but for people who are serious about trading and active Hodling to use loans to multiply their crypto portfolio, then YouHodler is a superior option.