Bitcoin loan is almost the same as financial loans. However, Bitcoin loans are different from standard loans in that you do not need to have a credit score to get a Bitcoin loan. All you need is to have some Bitcoins to get a loan. Bitcoins loans have a quick turnaround and they do not have strings attached. It means you can get the loan quickly and the investor doesn’t have to know how you wish to spend the money.
For Bitcoin loans, the borrower gives the lender their Bitcoins as collateral while the lender gives him cash that accrues some interest. Therefore, Bitcoins act as collateral for the loan advanced to a borrower.
You can get a quick Bitcoin loan by using your Bitcoins to borrow cash. You do not have to sell your Bitcoins. For instant loans, you do not have to declare how you intend o use the cash, unlike standard loans. To get an instant Bitcoin Loan, take the following steps:
- Select a lending platform
- Create an account and verify your identity
- Select the type of loan
- You will receive loan offers and you need to select one that suits you
- Accept the terms of the loan
There are many Bitcoin marketplaces where a borrower can get bitcoin loan fast. To get a fast bitcoin loan, you only need collateral and a lending platform. There are many p2p lending platforms that offer cryptocurrency backed loans, connecting borrowers investing in Bitcoin with cash lenders. Other platforms give loans directly to Bitcoin investors.
The following are some of the best Bitcoin lending platforms to use.
BlockFi offers Bitcoin loans that are backed with cryptocurrencies. It is the best Bitcoin lending platform and has the best Bitcoin rates in the market. Borrowers get Bitcoin loans at 4.5% interest rates while lenders get a 6.2% interest rate. This makes it have the best crypto interest rates in the market. You get a Bitcoin loan for a duration of 12 months while you also get the first withdrawal free in a month. It is very secure and uses Gemini; a third party that stores cryptocurrency.
BTCPOP is among the leading peer-to-peer lending platforms for entrepreneurs and small businesses. It is considered the most secure lending platform in the market. They offer instant loans, investment pools, and p2p at favorable terms. To get a loan on BTCPOP, you need to register to get an account. Once you have created an account and it is verified, you can apply for a loan. You need to specify the type of loan you want. Finally, complete the form and then submit it for verification. Loans fees range between 1 and 2 percent. Various loans have varying APRs that range between 10-45%.
Nexo has been providing Bitcoin loans to borrowers since 2017. Nexo offers a 50% Loan to Value Bitcoin loan. Therefore, if you have $100 in your Bitcoin wallet, then you can get a $50 Bitcoin loan. You can withdraw Nexo Bitcoin loans through your bank account. Alternatively, you can withdraw the funds using a mobile app free of charge. If you use the Nexo token as collateral for your Bitcoin loan, you will get a 50 percent discount. The interest rate for a Bitcoin loan is 5.9% per year APR.
Celsius Network offers excellent Bitcoin loans. You can get a loan for between 6 and 12 months. There is no deposit limit and it is free to deposit. The interest rate for Bitcoin is 4.95%, but you can get up to a 10% interest rate based on your Loan-to-value ratio. You can access its services through a mobile app.
Nebeus is a crypto lending platform for cryptocurrencies and you can easily get a Bitcoin loan. They have flexible repayment terms and you can get between 72% and 80% loans. You can get a loan for between 1 and 12 months. You can back your Bitcoin loan using Ethereum while the maximum loan is 250,000 euros. For Bitcoin quick loans, Nebeus offers 0% percent interest rates for three months.
LendaBit is the safest Bitcoin lending platform and has simple loans. It has features suitable for lenders and borrowers. It offers zero interest rates on loans in the first 45 days and does not charge prepayment penalties. Their interest rates are between 5 and 15% and have additional charges like withdrawal and loan processing fees. Its wallet sources are provided by BitGo, a reputable cryptocurrency company.
Bitcoin loans are fast and do not require an excellent credit score, unlike standard loans. Using the best lending platform to borrow or advance a loan provides security to the lenders’ cash and the borrower’s collateral. Bitcoin loans are a good way to easily get a loan. Some of the best platforms to use include peer to peer Bitcoin loans. However, the biggest risk is the volatility of Bitcoins that can make the lender or the borrower to make a loss.