Mar 13, · YouHodler is a FinTech platform focused on providing crypto-backed loans to end-users with fiat currencies (USD and EUR) and stablecoins etc. They have processed $10+ million in loans to customers around the globe. The most popular ones are BTC and stablecoin loans. The 5 Best Bitcoin Lending Sites #1 BLOCKFI. BlockFi was founded by Zac Prince and Flori Marquez. The first exchange that allowed individuals to buy #2 YouHodler. YouHodler is a relative newcomer, but it’s a strong competitor. APR stands for Annual Percentage Rate. #3 Coinloan. Coinloan.
Best platform to lend bitcoin8 of the best crypto lending platforms to use in - Earn extra income
Its main focus is crypto lending along with other popular crypto assets digital assets. The loan APRs start here from 5. BTC loans work similarly to all the other crypto loans. Heloc loans are home equity line of credit loans where one needs to keep their home as collateral to get the credit line. But in case of BTC loans, one first needs to keep bitcoins as collateral.
This provides the borrower the access to extra money without having to give up the advantage of HODLing their bitcoins. It is , and it is more than easy to get BTC loans. Instead, for BTC loans, you need to submit minimum documents for your identity check, and you need to have bitcoins that you are willing to collateralize.
Usually, this process only takes a few minutes, and your application of a BTC loan is done. After which in a day or two max, your application is reviewed. Upon review and underwriting, your loan is originated within minutes.
Well, all this process of getting a BTC loan is applicable for all the sites that we have mentioned in the previous section. Through these platforms, you can quickly get BTC loans by following this simple process, which is more or less similar for all the BTC loaning sites.
But first and foremost, the loan amount or value of loan will depend upon the current value of crypto assets digital assets anyone is keeping as collateral.
Many Bitcoin investors are here for the long term, and they believe in slowly accumulating as many bitcoins as possible. But despite their long term vision these investors also need liquidity for various other needs such as for vacation, repayment of a loan, or to buy a car, etc. In such cases, if they sell their bitcoins, they will lose their competitive advantage of holding BTC for the long term!! Enter, Bitcoin loans to resolve this…. Moreover, Bitcoin and cryptocurrency lending of other digital currency will become more than obvious in the coming days because financial usecases such as lending, borrowing, insurance, savings accounts like the normal bank account, etc.
Lastly, you get BTC loans in your Bitcoin wallet which you control whereas in traditional lending you get your loan amount in your bank account which bank controls. But some would argue that there are things like crypto trading to make your investment grow from 1 BTC to 1. Yes, of course, there are, but not all are comfortable and used to trading crypto.
Everyone knows about lending, and the same concept of lending if applied to Bitcoin makes it as Bitcoin lending. Moreover, in this type of lending, you have your underlying Bitcoin as collateral. In simpler terms when someone lends their USD or EUR or stablecoins to a borrower on an agreed rate of interest for an agreed duration against their Bitcoin collateral, this is Bitcoin lending.
For the lenders also it quite easy as they need to decide to lock-up their funds for the agreed duration of lending as per the agreed rates. This enables them to earn extra interest on their capital that they were just holding previously. Moreover, there are no rigorous KYC checks or credit history inquiries that undergo before carrying on Bitcoin lending. But since Bitcoin is the pioneer cryptocurrency much of the crypto lending market exists around it.
Moreover, the custodial storage infrastructure is much robust and readily available for Bitcoin in comparison to other cryptocurrencies. Now, that you know how the Bitcoin lending cycle works, it is indeed imperative to understand the working of Bitcoin lending platforms which facilitate this lending. Almost, all Bitcoin lending services work similarly except a few processes that they might follow in-house.
But if we generalize, here is a brief insight into their workings:. Of course, first, you need to register with the Bitcoin lending platform using your email. Once your KYC is complete, tell them about your loan requirements and submit an application.
Receive a loan decision within 24 hours including the LTV you are eligible for and the rate of interest you will be required to pay.
Now, you can send your Bitcoin to their safe custodial solution. Once the Bitcoins are settled on the blockchain, you will receive the promised loan amount in your bank account or stablecoins withing 90 minutes. Keep paying the interest-only payments monthly and pay the principal altogether in the end. This is how typically the lending process works inside a Bitcoin lending platform.
For more example, see this short video of Nexo lending, where it explains the Bitcoin lending process in three simple steps:. For example, Nexo is offering 6. When it comes to regulatory talks around Bitcoin, the situation becomes a bit tricky. As of now the regulation around Bitcoin is highly fractured and fragmented across the globe and for Bitcoin lending services it is no different.
Many of the Bitcoin lending services are operating only in one or two jurisdictions where there is some regulatory clarity. For example, BlockFi is operating in 45 states in the USA and is compliant with both the federal and state-level guidelines. Another big player in the Bitcoin lending space, i. For the rest companies also they are operating in their small arena untill the regulatory framework is set on a global scale. In the U. The service specializes in helping their customers acquire Bitcoins through Paypal using their credit cards.
While most other such services and platforms have shunned Paypal, XCoins actively embraces the platform and is thus great news for all those who prefer to channel all of their financial dealings through Paypal. The process for obtaining the Bitcoins remains pretty simple and basic. All you need to do is sign up or register on the service, give away your identifications details and verify your identity, and deposit the US dollars equivalent of the Bitcoins you need to borrow.
You might even be asked some to submit a nominal processing fee to so be prepared for that as well. Now the service is as open to lenders as it is to borrowers. If you feel that it would be in your best interest to lend some of your Bitcoins to borrowers in exchange for whatever fee the website has agreed upon, and are looking to make a quick buck, do sign up on this service.
The first step for lenders, however, begins with deciding the amount which they are ready to lend. This is an essential part of the process since based on this very information, matches will be made between the borrower and lender. As far as customer support is concerned, although XCoins does provide an option to contact the website administrators or support staff for resolving complaints, it could potentially take several days before a proper and effective response is received. Another peer-to-peer lending platform which specializes in Bitcoins, the BitLendingClub has been in service for a few years now and has managed to build considerable trust for itself over the years.
They even boast of a low transaction fee but the most exciting and intriguing aspect of the website happens to be the fact that they feature a Dutch auction that gives a platform for the lenders to compete in. Borrowers can effectively go through a large number of lenders at one place through this auction and effective decisions on which lender to borrow Bitcoins from on the basis of their respective rates.
Also, the fee on this website is almost always pretty low and absolutely no lending fee is charged to the right until the point that a loan is being paid off. Poloniex is a pretty famous exchange service, one of the best Bitcoin lending sites and happens to be the undisputed leader among a great many cryptocurrency exchange websites or services out there.
This diverse platform is famous and hugely successful for a number of reasons. First of all, it offers great liquidity options for a good number of Altcoins, which can then even be exchanged for Bitcoins. Founded way back in , and operating out of San Francisco, California, currently, the Poloniex developers have decided to make the residents of the USA the focus of their campaigns. However, they do have plans to expand their business and extend support to other countries as well in the near future.
Credible Friends is a peer to peer Bitcoin lending platform, which enables you to extend credit to friends. Unlike extant Bitcoin loan outfits, Credible Friends is aimed not at those seeking the loans, but at using the preferential lines of credit to allow people to enjoy Bitcoin and its benefits. It is a very easy to use platform.
Once you create an account, you can either connect your social media accounts to the same or invite friends by email. Once your friends join Credible Friends, you can add them to your list of people you can lend to. When you lend Bitcoin to someone, you receive an interest from which you can gain a profit. Credible Friends ensures that the lender gets paid their full amount.
Some borrowers may not be able to pay in time, in which case they will incur an overdue fee. The credibility of the borrower is for the lender to judge, based on their personal relationship, mutual understanding as well as the trust that they have in them. The credibility of the borrower can also be judged based on the various feedbacks and reviews on the app which are given by other lenders.
Nebeus is a Crypto Bank, based out of London. It is a cryptocurrency platform which is used to create and consume financial services and products. Two of their achievements is introducing the Nebeus Crypto debit card and making available crypto-collateral loans in Bitcoin and Ethereum. Nebeus is a step beyond all the other regular cryptocurrency apps as it allows you to convert cryptocurrency into Fiat.
Thus, letting you spend it freely, without worrying about all the restrictions that come with digital currency. The Nebeus debit card also converts cryptocurrency into Fiat. The card can be topped up with all of the major cryptocurrencies and you can directly withdraw Fiat money from any ATM around the world. You can also use the card to pay for goods and services, which is possible without the merchant even accepting the cryptocurrency as the debit card automatically converts cryptocurrency into Fiat currency.
The minimum profit a user can expect is The interest rate can be decided by the lender, but it should be between 0. Nebeus ensures that the market variations in the price of the cryptocurrency does not impact the loan, thus all of the refunds and repayments are made in Bitcoin. This fee is charged only after the loan has been fully repaid and the customer has been notified of the same via email.
This Debit card by Nebeus bridges the huge gap between digital currency and accessibility. It does so by offering the very simple conversion of the cryptocurrency into the Fiat currency which is widely used by everyone around the world.
The process of acquiring a Bitcoin in itself has become a major industry. There are various ways for you to get a few Bitcoins of your own. You can either buy them from an exchange service which you think is good enough to cite a reasonable exchange rate, or you could buy a cryptocurrency mining rig for yourself. As listed above, some websites are also known for btc lending. These heavyweight machines are pretty heavy on energy consumption and are also somewhat difficult to manage since they end up making a lot of noise when switched on.
As a result, a lot of people consider them a hassle and shy away from actually buying one. If you do manage to get it though, there are chances that you will end up making some good money for yourself since a few models of these miners are highly efficient and productive. Furthermore, there is another lesser used form of acquiring Bitcoins that not many people are aware of.
You can always score a few coins by playing Bitcoin earning games on the Internet. These games are carefully and specially designed to be fun and creative and also let you earn Bitcoins in the process. Your email address will not be published. BitBond 2.