Rate Cuts and Crypto Loans: How to Leverage Cheaper Borrowing for Greater Returns

Yesterday the Federal Reserve cut interest rates by 50bps - the higher end of the expected 25-50bps range. Let's get into what this might mean for you and how you can best position yourself!

Understanding the 50bps Rate Cut

A rate cut typically signals a move to stimulate economic growth by making borrowing cheaper. Here’s how it could impact various markets:

• Lower Borrowing Costs: With interest rates down, individuals and businesses can access cheaper loans, which could lead to increased spending and investment. This can enhance overall economic activity, potentially benefiting asset prices, including crypto.

• Shift to Alternative Investments: As traditional fixed-income investments yield less, investors may feel more confident allocating funds into riskier assets, including stocks and crypto, as they seek better returns in a lower interest rate environment.

Why Consider a Crypto-Backed Loan?

With the rate cut, you may be considering expanding your investment portfolio. But what if you don't have cash on hand to deploy? If so, taking out a crypto-backed loan could be a wise strategy:

• Leverage Your Assets: A crypto-backed loan allows you to borrow against your existing crypto holdings without selling them. This means you can maintain your investment position while gaining additional capital to invest in stocks, real estate, or even more crypto.

• Avoid Tax Liabilities: By utilizing a loan, you can access funds without incurring tax liabilities, preserving your overall investment strategy.

• Potential for Greater Returns: By using a crypto-backed loan to increase your investment holdings, you position yourself to benefit from potential market gains. As long as your investment rises more than the loan APR you're paying, the loan pays for itself.

• Flexibility and Control: Crypto-backed loans often come with flexible terms. You can choose the loan amount and repayment schedule that best fits your financial situation, giving you greater control over your investments.

­­­­­Consider a Lantern Loan

At Lantern, we provide access to crypto-backed loans with some of the most competitive rates in the industry:

• Lower Rates: Enjoy fixed interest rates starting at just 5%—significantly lower than even the average mortgage rate.

• Quick & Easy Process: Skip the credit checks and extensive paperwork. Receive funding within 24 hours of collateral receipt.

• Flexible Use: Use your Lantern loan for anything you need—whether it’s purchasing more crypto, paying down credit card debt, or making a down payment on a home.

• Retain Your Crypto: By opting for a crypto-backed loan, you can leverage your existing assets without selling them, allowing you to benefit from potential price appreciation.

Want a Loan?

Check out our latest rates here: https://lantern.finance/borrow and book a call with us if you would like to learn more. If you want to borrow against crypto other than BTC, ETH, or SOL, email back and we'll see what we can do!

As always, thank you for your continued trust and support. Remember to always do your own research and note that none of the above is financial advice. Please borrow responsibly.

Happy borrowing,

The Lantern Team