Сrypto Loans Vertical: Just a Hype or a Golden Mine?
Are you tired of running standard traditional financial products offers, and want to try out something new?
The Finance vertical is much more diverse than you think! There is a fresh and hyped direction called Crypto-Backed Loans, and it’s gaining traction.
So, if you are not familiar with crypto loan offers yet, here is everything we know about them—in a very reader-friendly Q&A format!
When considering crypto loans, it’s important to use only legitimate and regulated services that comply with financial laws. Always check if the platform is registered with a recognized authority and follows procedures.
What’s Wrong With Traditional Loans?
Nothing, in fact. There are plenty of lending companies that are ready to pay affiliate marketers for leads and clients. They have various CPA offers for different traffic types, and nice enough payouts. Still, hitting conversions in this vertical is getting harder with time.
Serge Abramov, media buyer:
It’s harder to stand out among tons of competitors and make users convert when you run conventional loan offers. Yes, entering this niche is relatively easy: you can find an offer with ready creatives and guidelines in a minute. However, scaling is tough because leads are hard to acquire — the market is oversaturated, and many people submit multiple loan applications.
Meanwhile, the crypto lending industry has some significant advantages:
- In most cases, affiliate marketers and media buyers can get payouts in crypto
- Crypto loan offers can have higher conversion rates because the application process is easier
- It’s an absolutely new industry on hype, that interests wealthy enough users from Web3
- Affiliates can earn ongoing commissions while the application of a user remains active
What are Crypto Loans?
Crypto loans allow people to borrow cash or stablecoins by locking up their cryptocurrency as collateral. In short, it works like this – on the example of borrowing USDT backed by Bitcoin:
- You indicate how much you need to borrow in USDT
- You see the sum of your collateral – you can take no more than a certain percentage of the collateral amount, usually, it varies between 70%-80%
- You check the loan interest – usually, you are charged hourly or daily
- You pay out the loan within the requested timeframe
However, people can lose their collateral if they don’t repay. Also, if the collateral’s value drops too critically, a lender can diversify the loan to cover the debt.
Although it sounds simple, this practice has many nuances. For example, the audience for these loans is quite specific: it’s unlikely that your grandma will participate, even after the top-notch kitten ad creative.
Who is the Crypto Loans Audience?
To answer this question, we asked another one: why do people take crypto loans at all? It turns out there are four main reasons to do it, which evolve into the four crypto loans audience types:
- Experienced crypto investors. The crypto market can unexpectedly surge. So if you need fiat dollars but don’t want to simply sell your Bitcoin for them, what if it loses value meanwhile? – You can borrow these dollars and leave your Bitcoin as it is. That’s how crypto investors sometimes manage their funds. Besides, there are some special trading strategies with crypto loans.
- Crypto holders. This type is not into trading much, but they know the nature of blockchain and search for some new ways to profit from their crypto assets without selling them. Besides, there can be some unusual goals, like this:
So, although the audience is narrow enough, it’s pretty clear who you will primarily target: people holding crypto assets, who want to invest and trade their currencies.
Where and How to Promote Crypto Loan Offers?
There’s not much difference between crypto loans and traditional loans in terms of funnels. However, you need to remember that the audience is specific enough. So you will want a traffic source full of people who are interested in Web3, or those who want to learn more about it.
Besides, the topic of crypto lending might seem complicated even for those who are familiar with blockchain tech. Your funnel might include some educational moments to develop a better understanding and trust in the products: it can be video explainers, articles, or free PDF guides.
So, where and how can you find the traffic you need?
Telegram
The first option is Telegram, a messenger and social network with many services for crypto enthusiasts, including an in-house crypto wallet.
You can advertise on Telegram with three methods:
- Native ads on Telegram channels related to crypto or trading in general;
- Ads in Mini Apps via ad platforms
- Telegram official ads that also appear in channels and allow you to target people by interests
We explained the difference between these three types in this article:
And here are some creative examples (those are for official Telegram Ads):
Facebook allows you to target people by interests, too, so why not actually do it? Any of your familiar Facebook ad creatives and funnels will do: for example, you can post a Reels video with a small text and CTA.
Here are some examples:
YouTube
Here we are mainly speaking crypto influencers who are ready to educate people on crypto products, and advertise loans at the same time. YouTube is full of explainers where respectful and popular traders educate people on crypto loan products very clearly and in very simple terms. Usually, they do it by using examples from various platforms. And yes, these video descriptions predictably contain links to these platforms. So, they basically handhold users towards products.
Of course, this is more about direct partnerships with crypto loans affiliate programs than promoting CPA offers as an affiliate marketer.
Blogs and Forums
This can include articles in various listicles on crypto-related platforms – something like ‘What is the best crypto lending offer’ or “Crypto lending offers explained’.
Image source: screenshot from https://coinledger.io/
Besides, Reddit, Quora, and other forums often have discussions where people ask about the best crypto loan platforms.
Where to Find Crypto Loan Offers?
Nothing too complicated here again: just like with most verticals, you can check CPA networks or direct affiliate programs.
Here are some offer examples (we don’t name the brands due to our policies):
| Microlending company for crypto-backed loans – CPA + RevShare: [Desk+Mob] [EU] | 9 EUR per lead, 1,8% from each loan taken |
| Crypto broker with a loan offer | RevShare, 0.2% monthly on each active loan |
| Crypto broker with a loan offer | RevShare, 10% of the monthly interest from a user’s loan |
To Sum Up, Is It Perspective or Not?
It seems that yes, it is. The crypto industry keeps growing, and more Web2 audience is stepping into the blockchain services and products.
With such a rising demand, crypto loan services will keep offering competitive payouts to media buyers, affiliate marketers, and influencers.
That said, the vertical might still remain pretty niche and specific, with a very particular audience of crypto investors and traders.
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