Bitcoin loan is a real help in business
Bitcoin loan is a real help in business

The cryptocurrency claims to be on equal footing with the fiat money, therefore it is gradually becoming not only a payment tool: many are interested in such an opportunity as bitcoin loan. Does it make sense to be bound with debt in relation to virtual coins? How to get such a loan, and who issues it? The concept, conditions, advantages and risks of cryptocurrency credits are interesting to readers of our blog.

Table of content:

How does it work and who needs it?

The credit in the cryptocurrency is no different from the traditional one. The financial scenario is the same, but instead of banks you need to go to a special platform, the participants of which conclude such transactions on the most favorable terms. One side is an investor who has free funds and is in search of interesting offers. The other side is a borrower planning to develop a project and urgently needed funds.

Do you remember how long it took to wait for the approval of the loan? Sometimes the waiting period can be a month or even more. Bank clerks had been studying the information for a long time, assessing the credit rating, documents, etc. Another unpleasant companion of traditional loans is a high percentage, because of which it was not profitable to take loans for many.

With bitcoin each user can create a personal bank, thanks to the principle of decentralization. Some borrowers use a virtual asset in order to purchase goods or pay for training. But these are isolated cases. Digital currency, taken on credit, is often used to pay for cloud mining. This is the fastest way to return a loan with interest and earn.

Loan application step by step

The first step to obtaining a loan is registration on the platform. After the account is created, verification is required. At this stage, all the dreams of anonymity will have to be forgotten, since the identity card, social network accounts, income verification and other personal and financial information are necessary. The profile of the borrower must be ideal. All early obligations must be met. For those who act as creditors, all this will be very important.

The application should be submitted immediately on several sites, so that you can choose the most attractive offer from the creditors. If the amount that you need can not be lent by anyone, then it's a good idea to collect it from several applications. Lenders are looking for their own benefits, and it is a timely return of funds and a good interest. The borrower must take care of his reputation. The rating depends on the credit history, the number of successful transactions and reviews.

So, you have decided on the amount. The application for the platform will be approved and published after having downloaded:

  • Passport scans and taxpayer ID
  • Revenue inquiries for the certain period
  • Bind a bank card to the account

The loan application specifies the amount, term and desired interest. It should always keep it in mind that, for those with a low rating, platforms limit the number of transactions. For those creditors who work simultaneously with several resources, experts advise to automate the process, i.e. to consider applications not in person, but with the help of a special bot.

The best sites for Bitcoin loan

Bitbond

This site is one of the most reliable, popular and oldest peer-to-peer platforms on the web. The service was opened by Radoslav Albrecht in 2013. The resource is in Germany, and its services are available in more than 120 countries. Over the entire period of work, more than 1,700 loans were issued.

BTC POP

This service is one of the first platforms for lending to small businesses. Many startups around the world have received support from BTCPOP. Low interest rates and high reliability of storage facilities, including cold storage of bitcoins, attract investors and borrowers all over the world.

BTC Jam

The organization appeared a couple of years ago. The site has the convenient functionality and provides the interface in different languages. As already mentioned above, this site attaches great importance to the rating of participants. The more it is, the higher the chances of working with serious amounts.

LoanBase

LoanBase is an English-speaking site, has standard functionality and sets general demands for bidders. The ID documents as a passport, an actual place of residence information, the certificate from the workplace are required. Rates range from 7 to 10%.

Pure Central

The resource is attracted by the fact that its software works to reduce fraudulent transactions. The user has the right to change the interest rate for the accuracy of personal data. Since 2016, the resource allows not only to take bitcoin loan, but also to place deposits for additional income.

Important information for creditors

Refunds are of primary interest to creditors. What are the guarantees in this regard?

Already at the first stage of studying the borrower’s account, the creditor estimates the reputation, as the level of reliability is formed on the basis of the rating and provided personal information (documents, references, etc.). At the exact time the borrowed amount, but already with interest, should go to the creditor’s wallet. What if it does not happen? The information about a borrower in the form of pages of social networks is immediately given to a creditor. The administration of the site sends an email to the client about the need to pay off the debt. If this requirement is not met, then full access to the borrower's data is opened for the legal recourse.

Are there other ways to protect you from scams? Such an opportunity exists and it is in insurance against non-return. To do this, you need to sign a contract with an insurance company and rest easy. The extreme measure is collector companies, but before you cooperate with one of them, you need to make sure of the validity of its actions; otherwise there is a risk of dealing with criminals. In order not to get to the need to contact collectors, before trusting money to someone, carefully check all the information about the borrower.

Conclusion

Get or provide a bitcoin loan is quite possible, and for this purpose there are more and more specialized services are being created. If you are an absolute beginner in this matter, it is better to ask more experienced users to help you. Some information on thematic forums will also be useful for you in this case. Favorable conditions are your first goal, and for borrowers it is still very important to win the reputation of a reliable and open partner.


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