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 . Top Bitcoin and Crypto Lending Platforms, Rated and. As a leading US-based cryptocurrency lending platform, BlockFi currently offers the highest returns on Bitcoin lending in a secure and trusted manner. With support for Bitcoin, Ether and stablecoins like .
Btc lending platformsTop 5 Crypto Lending Platforms - How To Get an Instant Crypto Loan
However, seeing as Bitcoin lending is still a relatively new trend, we recommend approaching lending with caution. When possible, we encourage users to seek options to purchase insurance on their Bitcoin lending through platforms like Nexus Mutual.
Bitcoin does not support smart contracts. This means in order for lending to occur, it must either be using a smart-contracting protocol like Ethereum or done in a legacy fashion on a case-by-case fashion like BlockFi. All of the platforms mentioned above also allow users to borrow Bitcoin given they meet the relative criteria for each individual provider. In order to take out a loan in Bitcoin, users commonly have to deposit collateral as to ensure their loan it protected from default.
This question is highly variable for each individual. As we mentioned throughout, lending Bitcoin introduces an element of risk that is mitigated when custodying your own assets.
While the returns on Bitcoin lending are quite attractive, we only recommend lending Bitcoin if you could stomach the complete loss of those assets in a catastrophic event. Skip to content. Earnings 0. Can I trust lending providers with my Bitcoin? Why are there no DeFi lending platforms native to Bitcoin? Can I borrow Bitcoin too? Should I lend my unused Bitcoin? Lend Borrow. Blockfi is not FDIC insured, but Gemini — their wallet provider and de-facto coin holder— has a strong track record for security.
Through their other product called bitcoin loan no collateral, they enable borrowers to hold their digital assets while accessing necessary funds. The platform is very innovative with their products and a line of credit on recurring basis for indefinite time period is very popular.
Being a bitcoin loan no credit check, the platform uses a straightforward application process for all kinds of borrowers with fast approval process.
Once you are approved for a loan on YouHolder, you can make an instant withdrawal via your credit card or through a crypto withdrawal. However, a stain on their reputation was a database leak from July when crypto loans platform left millions of records containing private financial data from thousands of users exposed online, researchers found.
Just like all other crypto lending platforms, it requires no credit check and approvals are very fast, almost instantaneous. Rates for both borrowers and lenders are very attractive and depend on the coin and amount you use for the loan or collateral. For borrowers, rates start at 4. The more collateral crypto you use, the lower your interest rate. The only thing you need to do is to send them to your Celsius Network wallet and approve them for lending. Nexo is, if not the best, surely on of the best Bitcoin lending sites in the industry.
Nexo also offers a credit line that is provided when you deposit collateral on the its sites, and you are paying interest only on the credit you used. Just like with other similar bitcoin lending sites, Nexo requires no credit checks and approvals are automated and very fast. You can put up collateral in 25 different coins and borrow in one of the 45 different fiat currencies.
Nexo does require KYC process and they use an industry-leading provider, Onfido to automate that process. BTCPOP is not only lending site but it offers a comprehensive P2P banking experience as it offers instant loans, investment pools, collateral tied loans and P2P exchange. A struggle that many have faced ever since money became a thing is the opportunity cost of holding it.
Having fiat money in cash and holding it in your possession is all good and well, but this causes you a certain implied loss. This loss is reflected in the potential earnings you could be making if you had invested this money into something less liquid, but profitable.
With lending, an individual is given the ability to negate the opportunity cost of holding cash in the following way: lender will borrow his money to the borrower, who will guarantee that the money will be returned after a certain period of time, with interest.
The opportunity costs problem lends pun intended itself to the world of cryptocurrency quite well. This is where cryptocurrency lending comes into play. Individuals can loan out their crypto holdings on the market to other individuals who, for one reason or the other, want to hold cryptocurrency at that time.
The process is similar to regular lending: you loan your cryptocurrency with a certain interest rate attached to it and determine the details of debt amortization mostly related to whether the money will be paid back immediately or in rates and how these rates will be structured. Ultimately the lender engages in this activity to collect the interest and thus avoid the opportunity cost that comes with his cryptocurrency sitting in a wallet.
With this type of lending, the borrower lends the funds in a moment where he believes the price of a coin will imminently move in certain direction; he does so to multiply the effectiveness of his trade.
He will lend those funds through an exchange that supports margin trading, and will return them with interest after a set amount of days.
It is a type of collateralized loaning where traders borrow money on the exchange to either short or long cryptocurrency usually Bitcoin , expecting its price to go either down or up in the near future. Collaterals some will ask for crypto; other might accept items that are easily liquidated or even value your reputation and borrow limits vary from platform to platform.
Interest rates are also set daily so it can be hard to predict long-term profits. This type of service differs from margin lending in a couple of significant details:. Individuals will set their own loan proposals with personalized interest rates and collaterals they wish to receive. Borrowers will then scour the market and if a suitable loan proposal is found, a deal will be made.
Overall this type of lending is suitable for the long term game, when the markets are highly volatile and margin trading is exceptionally risky. It also has a built-in chat system where users can discuss any topic that comes to their mind.
These are loans which you borrow in fiat terms but pay out and return in Bitcoin. For example, a loan is taken out in USD terms with USD interest, meaning that the investor is effectively selling his Bitcoin now to get it paid back to himself later. This type of lending is usually a good choice for crypto-holding people looking for temporary fiat injections, or even for those looking to minimize their risk.
Typically the community recommends the platform called Bitbond for these types of loans. Bitbond is a peer-to-peer, reputation based entity which is often used by SMEs and entrepreneurs. Members will be required to provide they are credit worthy and will also have to link their reputation-based accounts like e-bay or social media.
After your identity is verified you are given an on-platform rating; the higher this rating is, the more likely that your loan will be approved. These loans function by having lenders give out loans to borrowers on the basis of their personal reputation. Borrower can earn reputation either by owning large amounts of collateral or by having a good repayment history on the platform or on some other platform like ebay.
This type of loan is suitable for those who are looking to cash in on their pristine online reputation, but can sometimes come with high interest rates. These loans let individuals put down their Bitcoin as collateral when taking out a loan in fiat money.
Services such as SALT are the best place to get one of these loans. SALT is a platform that utilizes a native cryptocurrency in its operations: users are required to purchase SALT tokens with their Bitcoin to earn the right to receive fiat in return. Bitcoin ecosystem keeps expanding and new verticals are spawning by day.
Crypto loans with no credit check and instant approval are surely here to stay — new providers will enter the game and raise the bar for the incumbents.
As of now, these 5 we listed in this article are legit and proven platforms that offer acceptable interest rates and insure your deposits in case of a security breach and loss of funds. Almost all bitcoin lending sites operate on the collateral model — you need to put up crypto in order to get a loan in fiat currency. Criteria vary from lender to lender but, generally speaking, if your an adult and have enough crypto for a collateral, you are eligible for a crypto loan. CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses.
None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner.