How to Get P2P Bitcoin Loans

Bitcoin is one of the best cryptocurrencies to invest in. You can get a Bitcoin p2p lending through open market places where borrowers request loans and then lenders evaluate their proposals and see which one to invest in. There are several p2p Bitcoin lending platforms that you can use to get a Bitcoin loan. Most Bitcoin loans are secured using assets like real estate or cryptocurrencies. A Bitcoin loan is availed to a borrower at a certain rate.


What is Peer to Peer (P2P) Lending?

Peer-to-peer (p2p) lending is where a lending platform connects a borrower with a lender. The lending platform acts as an intermediary between the two. When investors lend money, they lend it to the p2p platform and then the platforms lend the money raised by investors to borrowers.

The role of the platform is to do a profile check of the borrower and determine the risk rate. The risk that is usually there for lenders is that if a peer-to-peer lending platform closes, lenders cannot recover their investment. It is because most peer-to-peer lending is not regulated.
To minimize the chances of losing your investment, you need to:

  • Research a p2p platform before investing in one.
  • Asses a project before investing
  • Diversify your investments in various projects and platforms

Bitcoin is one of the best cryptocurrencies to invest in or get a loan. You can get a Bitcoin p2p lending through open market places where borrowers request loans and then lenders evaluate their proposals and see which one to invest in. there are several p2p Bitcoin lending platforms that you can use to get a Bitcoin loan. Most Bitcoin loans are secured using assets like real estate or cryptocurrencies. A Bitcoin loan is availed to a borrower at a certain rate.


What is Peer to Peer (P2P) Lending?

Peer-to-peer (p2p) lending is where a lending platform connects a borrower with a lender. The lending platform acts as an intermediary between the two. When investors lend money, they lend it to the p2p platform and then the platforms lend the money raised by investors to borrowers.

The role of the platform is to do a profile check of the borrower and determine the risk rate. The risk that is usually there for lenders is that if a peer-to-peer lending platform closes, lenders cannot recover their investment. It is because most peer-to-peer lending is not regulated.
To minimize the chances of losing your investment, you need to:

  • Research a p2p platform before investing in one
  • Asses the planned project or business before investing
  • Diversify your investments in various projects and platforms

How to Choose Bitcoin P2P Lenders

When choosing a Bitcoin lending platform, you need to consider, you need to consider the amount you are borrowing, interest rates, loan duration, and reliability of the lending platforms. Most loan lenders use the loan to value ratio to determine the amount to lend to a borrower. Consider your loan-to-value ratio and what the lender is offering.

You can get reviews online and also check people’s experiences through crypto forums or Reddit, Twitter, and Quora.

Best Peer-to-Peer Lending Platforms

Peer-to-peer lending platforms connect lenders with Bitcoin investors. The following are some of the best peer-to-peer bitcoin lending platforms.

BTCPOP

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 Bitcoin loans, investment pools, and p2p loans at favorable terms. Loans fees range between 1 and 2 percent. Various loans have varying APRs that range between 10-45%.

CoinLoan

CoinLoan is an Estonian peer-to-peer Bitcoin lending platform founded in 2017. It is among the safest platforms for your crypto assets. Their loan duration ranges between 7 days and 3 years and the minimum loan is 100 euros. They offer a 6.6% APR for Bitcoin. However, lenders can set a rate at which they are willing to issue Bitcoin loans and borrowers can choose lenders with the best rates.

XCoins

XCoins is a peer-to-peer Bitcoin lending platform that allows lenders and borrowers to use PayPal. Interest rates are sent to lenders via PayPal. The minimum deposit is $20. Lenders set their loan rates and borrowers select lenders with the best rates. There are charges on the borrower’s side when he is taking and repaying a loan.

Benefits of Bitcoin P2P Loans

There are many benefits that you will get through Bitcoin P2P loans.

  • The volatility of Bitcoin loans can be an advantage to both the lender and the borrower. For instance, a borrower can get a loan today and pay less, or the lender can give out a loan and get more due to the volatility of Bitcoin. – If you have poor credit scores, you can get a Bitcoin loan if you have crypto assets to back your loan.
  • Bitcoin peer-to-peer lending platforms process Bitcoin loan applications very fast since there are no bureaucracies. This makes it a better place to get finding compared to traditional banks that take long to approve loans. It is an advantage for borrowers.
  • Better interest rates. Unlike traditional banks where interest rates are extremely high, Bitcoin p2p lenders offer favorable interest rates.
  • Earn passive income. Lenders can get a regular income from loans they have issued through interest rates.

Disadvantages of Bitcoin P2P Loans

  • Price volatility. The volatility of cryptocurrencies can make the lender or the borrower lose. For instance, if the price of Bitcoin falls, a lender can lose since he will get less than what he gave out.
  • Lack of regulation. In many countries there are no regulations for Bitcoin, making it difficult to solve conflicts.
  • Scams. There are many scams that take place in the cryptocurrency industry leading to many frauds. Many people fall victims and end up losing their money.