Bitcoin loans is an proven method to get a loan. Since you don’t need to have good credit scores and to be creditworthy in the conventional way. While using Bitcoin, 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.
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 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. Make sure to follow the above steps to get the loan.
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 0.005 Bitcoin while the maximum depends on the reputation of the borrower. 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 proves, on the other hand, is slow.
Bitbond is a Berlin-based company that deals with P2P Bitcoin lending and its services are available worldwide. 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.
Getline was a Bitcoin lending company that offers bitcoin loans at low APR. It has an easy signup process and an informative website. You need an email and a password to sign up. You can get a line of credit with fees structure of 30 percent on profit f the lender. It charges 0-1 percent per day, depending on the lender. Getline has slow support while its system is buggy. Lenders pay high fees while there are some restrictions in some countries.
Btcpop is a UK based company that deals with Bitcoin lending and altcoins exchange. They advance 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 s=user name, email and password to sign up for the loan.
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
The following accounts can be used to verify your loan:
How to Build a 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.
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.
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.