Bitcoin loan is a proven method to get a loan since you don’t need to have good credit score or to be creditworthy. Using Bitcoin helps you build your reputation. Lenders create their reputation independently. With a good reputation, you can get a loan.
After building a good reputation and you become trusted, you can start lending Bitcoin. Lenders can offer different types of Bitcoin loans. For instance, some lenders will give you instant Bitcoin loans and Bitcoin microloans. Bitcoin loans have never been free or without verification. Instead, they are cheap due to the low-interest rates. No credit history is needed to borrow bitcoin.
There are no bitcoin loans without verification or free bitcoin loans. Also, there are no bitcoins loans without collateral. Don’t fall victim to crypto scammers.
How to Get Bitcoin Loan
Remember that you don’t need to have a credit history while making an application for bitcoin loan. Before taking a loan from a lender, it is important to do a thorough check and then compare terms such as the interest rates of the loan from different lenders.
Then make sure that you have all the necessary documents which are vital in building one’s reputation. With a good reputation, it is ways to get a cheaper loan. To access a loan, you might need a video verification with an agent.
Once you have provided all the necessary documentation, the next step is to build your Bitcoin reputation on the platform. Some of the ways to build your reputation are; constantly keeping in touch with the lenders and answering their questions. Once you get the loan, you can convert Bitcoin into currency.
Instant Bitcoin Loan
Are you a borrower and you need an instant loan or are you a lender and you wish to earn an interest? It is possible to get a bitcoin loan without involving a third party. The system only works with digital currencies such as ethereum and bitcoin. Both the borrower and the lender do not need a bank account to take part in the loan market. The best place to get bitcoin loan or to lend is through online peer to peer lending platforms.
How to Get Instant Bitcoin Loan
To get an instant bitcoin loan, the process is straightforward. When you borrow a loan, you repay it with some interest for the set period and some fees on top. Some lenders require repayment in installments while others require you to repay it all at ones.
You need to have an account with the lending platform. You will then be required to verify your details before you can list your loan. Then enter the amount that you wish to borrow, the period of the loan and the interest rate. In case there is a listed lender that is ready to lend at the terms you indicated, then the process is completed instantly. If that does not happen, the borrower will need to wait for offers so that he can review them and then accept the best offer to get bitcoin.
In case you do not want to negotiate, you can get an instant bitcoin loan with BTCPOP. These loans are usually private and you can do anything you want with it, unlike standard loans where you have to declare why you need a loan.
Bitcoin Loan without Verification or Collateral
There are no bitcoin loans without verification or free bitcoin loans. Also, there are no bitcoins loans without collateral. Don’t become a victim of scammers. What happens is that Bitcoin is profitable; hence some lenders can give loans at low interest rates. Other lenders give fast bitcoin loans while others give micro loans. What happens then if you need a loan? It is easy. Make sure that you have all the necessary documentation to get a loan. Then look for a lender who will hold your bitcoin as collateral and give you a loan equivalent in return. You will have to go through the verification process which may be a video call with the agent. By so doing, you get a loan to cater to your needs. In case of future appreciation of your bitcoin in future, you don’t lose the value of your digital assets.
Once you have provided the necessary documentation and you are verified, the next step is to build your reputation with the lenders so that you can qualify for a loan. To build your reputation with the lenders, keep in touch with them and if they have questions regarding bitcoin fast loans, make sure to answer them. Once you get a bitcoin fast loan, you need to buy bitcoin with the loan so that you can then convert them into cash.
Nebeus is a UK based firm that deals with online lending. It provides lending, trading and remittances. Cryptocurrency holders can participate in peer to peer crypto lending and also use their crypto portfolio as collateral for fiat loan. You can get a low minimum investments and loans. You can either get a fixed amount loan payable in 1 year or a microloan payable in 30 days. Borrowers don’t pay any fees but their rates vary from 0.01 to 3 percent per day depending on the lender.
The minimum loan one can borrow is 0.005 Bitcoin while the maximum depends on the borrower’s reputation. For the first loan, the maximum credit is 0.5 Bitcoin while the 5 Bitcoins and the third is 10 Bitcoin. However, the approval rate is low while the verification process, on the other hand, is slow.
Getline used to be a Bitcoin lending company that offered bitcoin loans at low APR. It had an easy signup process and an informative website, but is not operational anymore. You only needed an email and a password to sign up. You could get a line of credit with fees structure of 30 percent for the lender. It charged 0 to 1 percent per day, depending on the lender. Getline had slow support while its system was buggy, maybe that’s why it ceased to exist. Lenders also paid high fees while there were some restrictions in some countries.
Bitcoin Collateral Lending Platforms
To get a loan with the following platforms, you need to give crypto as collateral. For these platforms, you can only borrow a loan but you cannot give a loan.
Nexo is an instant lending platform that was established in 2017. The platform works whereby the borrower deposits crypto assets into his wallet and in return gets an instant credit. You can spend the money using Nexo debit card or you can withdraw it to your bank account. You are then required to make a payment of 16% on what you spend. Nexo has over 40 fiat currencies and it is operating in more than 200 countries. Nexo was first to introduce instant crypto lending. The platform uses 256-bit encryption to ensure your assets are secure. You can use BTC, BCH, BNB, ETH, LTC, XLM, XPR, NEXO tokens and stablecoins and as collateral. Once the loan-to-value ratio has been determined, you receive money in the form of stablecoin or fiat. You can get a 50% discount on the interest loan if you repay the loan in Nexo tokens.
BlockFi was founded in June 2017 in New Jersey. If you have ethereum, Bitcoin or GUSD, then you can apply for an instant loan with BlockFi. With the platform, you can earn an interest and borrow money using crypto assets as collateral. The platform offer interest accounts and quick loans in Litecoin, Bitcoin and ethereum. The platform work this way; you send your crypto assets to a secure address and in return you receive dollars into your bank account. Every loan is given based on loan-to-value ratio to determine the value of collateral to be used. Verification is required to get a loan. The platform has crypto interest account that earns an interest on daily basis.
The loans duration is usually 12 months with an option to make early payments. The interest rates for the loans start at 4.5%, although it varies depending on loan-to-value ratio, deposits earn interest rates of 8.6% annually using the Interest Account.
SALT Lending was founded in 2016 in the US. It is now available in over 46 US states and in some countries in Europe. You can secure your cash loan with your blockchain assets. Once you get a loan, you get the funds directly to your bank account without additional costs. A member only pays for membership on the platform. If you do not have money and you need it, you do not have to sell your investment. You just need to use it as a security to get a loan. Salt has expanded to include other cryptocurrencies. It is now possible to get a cash loan and secure it using bitcoin, ethereum or litecoin. You do not need to have a credit score to qualify for a loan since the platform considers one’s reputation. You have an option to repay the loan in monthly installments.
Binance Lending is the world’s cryptocurrency exchange platform. The platform introduced lending for its customer deposits that can support Binance Coin (BNB), tether (USDT) and Ethereum Classic (ETC). The duration of the loan varies and it takes two weeks for the loan to mature. Also, the annual interest rate varies from 10, 15 and 7 percent for tether, binance coin and ethereum, classic respectively.
Celsius Network platform begin its operations in July 2018. The platform gives loans where borrowers can use crypto as collateral. Their loans attract 4.95% interest per annum. The minimum loan they offer is $1,500 with security of equivalent value. Celsius uses CelPay that allows free transfer of cryptocurrency form one wallet to another.
In one year, the platform had initiated secured loans worth $1.2 billion. Besides, it had also attracted over $230 million deposits and also issued over $3 million as interest to depositors. Customers earn interest from their deposits when they transfer their crypto assets to their Celsius wallet. While issuing loans, they use digital currencies as security for cash loans. This is an excellent platform which you can use to invest ad earn an interest.
LendaBit is a cloud mining platform that is now offering p2p loans. You can use your crypto assets as a security to receive USDT. You can get 300 USDT instant loan without verification with the platform. Besides, the platform is secured with BitGo ensuring that your assets are secure.
Bitcoin P2P Lending Platforms
P2P lending are platforms that bring together lenders and borrowers of bitcoin. They are safe ways to invest your bitcoin and also to get a loan. Some of the platforms include BTCPOP and BitBond.
Bitbond is a Berlin-based p2p bitcoin lending platform. Its services are available worldwide. Businesses can borrow loans while lenders earn interests. They have a reputation system. To qualify for a loan, you need to have the minimum investment requirements. Their investments have high returns which makes them best suited for small businesses. However, they have high terms rate while loans depend on national currencies which can make lenders lose money in case of an increase in the price of Bitcoin.
BTCPOP is a UK based p2p banking that provides instant loans and deals with Bitcoin lending and altcoins exchange. The platform considers reputation and not credit score while giving a loan. You can get a loan from lenders and you can also give a loan to borrowers. It advances a minimum loan of 0.01 and 500 bitcoin loans. It offers personal loans, personal with collateral, business loans, instant loans, IPOs and bonds with collateral. You only need a user name, email and password to sign up for the loan.
When to Take Your First Bitcoin Loan with BTCPOP
There are two methods you can use to borrow a loan. The first is instant and instant collateral loans. This is the best loan to start with when acquiring Bitcoin loan. They are easy to work with hence helping you to build your reputation. The loan is usually small, but you can always increase the limit by adding collateral. Make sure to pay the loan early and on time to build a reputation. However, the loan is expensive, making the process costly.
Alternatively, you can borrow custom loans. Fill in all the necessary information online before submitting the request.
Paying Bitcoin Loan with BTCPOP
It is important to ensure that you pay the loan before the due dates. Late payment will ruin your reputation. To access your loan, go to PAYMENTS OUT tab in your account. Be careful of the following:
- Ensure that you have money three days before the due date. Sometimes Bitcoin blockchain can have delays and therefore, it is important to have the funds in advance.
- In case of an emergency and you suspect you may not pay the loan when it is due, inform the lender in advance. This can create a good image in a bad situation about you. Then make sure to pay partial payments than paying nothing.
How to Build Reputation
- The reputation of a person for Bitcoin transactions is not easy, cheap or quick. There are some steps you can take to ensuring that you build a good reputation. However, these steps are not a guarantee of getting a loan. The market determines if you qualify for a loan.
- Have collateral. To build a good impression, take collateral loans and then make sure that you fully pay the loan. Some of the securities you can use for the loan are shares or altcoins. BTCPOP offers altcoins for exchange which you can use for exchange. Alternatively, you can use shares listed on a platform. These shares have a market price and can be used as security for a loan.
- In case you have other platforms where you have a strong reputation, you can port it by sharing the information with BTCPOP. You can send them links to loan listings, PDFs or screenshots. Ensure that the proof is tangible and evident.
- If you know a person that uses BTCPOP and has a strong reputation, you can use him to help you build your reputation. Being active in the community can also play a key role in building your reputation. If your peers see you positively, then your loan is likely to be approved quickly. Lenders pay attention to how lenders see a borrower. To participate in the community, create a good profile that has a bio, profile picture and add some links. Then make sure that you chat and interact in the forums.
Why P2P Bitcoin Loans Over Banks?
If you are wondering whether to borrow p2p Bitcoin loans or bank loans; the following are the advantages of p2p Bitcoin loans over bank loans.
- They have better rates since lenders are not charged any fees while borrowers pay between 1% to 5% fees.
- They have faster loan approvals, unlike banks that are bureaucratic thereby requires a lot of time to approve a loan.
- Reduced chances of scams since Bitcoin lenders approve loan submissions manual and individually. They use manual checks, thereby reducing the chances of a fraud.
- It is a financial advantage to customers. Lenders get a better return on investment since rates range between 3 and 7 percent per month.
Documents Necessary for Bitcoin Loan
You might be required to provide the following documents when applying for a Bitcoin loan.
- Government Identity Card
- Credit card verification. If you have a credit card, it is important to verify that you have been paying credit on time.
- Verification of social media accounts. Lenders use social media accounts to verify that you are a real person with friends and have some activities. Ensure that all your accounts are active.
- Online bank accounts such a PayPal and TransferWise can also be sued to prove that you pay your debts on time.
- Utility bills such as apartment lease and electricity bills
- Income verification is a must since no lender will give you money without an income
- Email verification
Social Media Accounts You Can Use
The following accounts can be used to verify your loan:
Vincent is a Kenyan writer with an interest in finance, business, technology and health niche. He holds a Bachelors degree in Applied Statistics with computing from the University of Eldoret.