Cryptocurrency lending platforms work by connecting borrowers to a network of lender registered on the platform. In this case, borrowers receive their cryptocurrencies back once the borrower pays the loan. Most of the platforms have loans that are backs by assets, including real estate. Nov 20, · One of the latest trends in the Bitcoin and the greater cryptocurrency community has been the emergence of lending services. More and more platforms are being built that allow users to borrow, lend and earn interest on their cryptocurrency. 16 rows · Apr 30, · Salt Lending is one of the oldest blockchain based bitcoin lenders. It has its .
Lending bitcoin platforms20 Best Cryptocurrency Lending & Fiat Loan Blockchain Platforms To Use
Here is a look at some of the top altcoin lending platforms currently available. It has its own cryptocurrency called SALT which is used to purchase a membership to the platform, allowing users to access the loan platform.
Interest rates can be as low as 5. These folks decided to build financial products for long-term crypto-investors to get more value from their assets today and in the future. That led to the Unchained lending platform, which is unique since it allows users to maintain control of their bitcoin private keys. Using a cold storage vault and multi-sig technology, any coins stored at Unchained remain as secure as possible and completely in control of the owner.
It's important to note that the platform supports different digital tokens besides Ethereum, including Bitcoin. Loan durations through EthLend are from 0 days to 12 months. It can be used to access additional services on the platform and to receive discounts on fees and decrease collateral requirements. The target borrowers are small business, particularly online ecommerce businesses such as Shopify store owners, Amazon sellers, and eBay sellers. Loan durations of 6 weeks to 12 months are available to many countries across the globe.
The platform claims over , users. The Bitfinex margin funding market provides a secure way to earn interest on fiat and digital assets by providing funding to traders wanting to trade with leverage. Users can offer funding across a wide range of currencies and assets, at the rate and duration of their choice.
In addition to this, users can use the Auto-Renew feature to renew offers automatically upon expiry. In addition to its exchange and margin services, it also allows its traders to lend their coins to others, setting the interest rate and duration of the loan.
The feature is only available outside the U. Because the lending is being done to cover margin positions on the enchange, lenders could face more risk here, especially in volatile markets. Margin maintentence levels are quite low, exposing lenders to the threat of a default. Like other similar platforms, fiat currency is loaned against crypto collateral.
One unique feature is loans are charged no interest if the value of your collateral is lower at the conclusion of the loan than it was when the loan is taken.
One of the superior features of Nexo is instant availablity of fiat after crypto is deposited. Users also appreciate the Nexo debit card and the ability to deposit directly to a bank account. This means assets can be spent immediately. The platform works with over 20 cryptocurrencies in addition to bitcoin, and loans can be made in over 45 different fiat currencies. Borrowers can make payments in either crypto or fiat currencies and loans are available to residents of most countries worldwide.
The CoinLoan platform is available globally for both lenders and borrowers. Details of all loans are shown on the Lendingblock order book.
Built for institutional investors, Lendingblock enables hedge funds, exchanges, asset managers, traders, miners, and market makers to find liquidity, generate additional yield, facilitate arbitrage strategies, settle shorts, and capture directional views of market participants.
Lendo will expand the personal loans market while also offering members of the Lendo community network a range of additional services, such as a crypto wallet, a credit card, and a crypto trading exchange, leading to a complete cryptobanking ecosystem. Or maybe you are just not in a financially stable enough position to actually dish out extra money to buy Bitcoins? The reasons could be numerous. But the end result remains the same. And that is that you are unable to acquire Bitcoins for yourself.
If you are stuck in a similar situation, then fret not, for in this article we aim to bring a viable solution to your problems. We introduce you to Bitcoin lending platforms.
These platforms are basically loan services, except they deal in terms of Bitcoins. You simply log on to the website, create an account for yourself and once you are done with all the formalities you are all set. The entire process is highly streamlined and completely transparent. If you are feeling apprehensive and feel that you might get trapped in a vicious circle of repayment of gigantic loans which will never end, then rest assured, for a scenario like that is not at all likely to happen.
All of the following websites have been designed and conceptualized while keeping in mind customer convenience and as long as you agree to the website guidelines and stick to the payment plan, you should be completely fine.
However, there is the issue that a lot of these btc lending companies or websites are indeed somewhat shady in nature and could potentially put you in a tight spot. As long as you stick to the list w are about to curate here, you should be fine. The fact is that there are so many of such services existing in the market today that it can get difficult for the average consumer to distinguish between the good and the bad. While most of these companies are safe to use and completely legitimate, there could be some who exist solely for the purpose of duping you off your money.
These are the ones you need to steer clear from. To save you from stumbling upon any of such shady platforms, we went through all the major services out there and picked the best of the lot. These are the ones which will give you complete assurance on the quality of their services and the safety of your money. Read on. Bitbond allows both investments and loans on Bitcoins. While the company has been around for a few years now, the amount of success it has managed to gain in that time is simply amazing.
The brand has been developed to perfection and the amount of trust the customers place in their service is higher than ever before.
Apart from being a borrower, you also get to be a lender on the platform if you have the right resources. That is, in case you have a good collection of Bitcoins at your disposal, or would otherwise like to help those looking for Bitcoins, you can always sign up as a lender on the service and whenever you are matched with a borrower, you get to lend your Bitcoins to the person and even make some decent money in the process.
So irrespective of whether you are looking forward to helping people or are interested in making some quick money, you can sign up as a lender on the website. Also, there is absolutely no limit placed on the amount of money you can invest. The way the entire process works is pretty simple. Anyone with a basic knowledge of Bitcoins can opt for either of the services offered on the platform. First and foremost, as mentioned before, a match is made between the lender and the borrower.
Once a perfect match has been found, then a contract is initiated. The contract clearly lists the amount or number of Bitcoins which are being lent to the borrower. The duration of the loan can be as less as six weeks and go up all the way to six years.
Also, in order to make sure that there are no frauds happening on the system and there are no dishonest people involved, the website maintains a strict vigilance over all users. The borrowers especially need to go through an identity check by providing basic identification details and even submitting a basic financial assessment. Once they are through with all of that, they are provided with a rating.
This rating is the ultimate scale on which borrowers are judged while clearing them for loans. The higher the rating, higher will be your chances of getting cleared for a loan. After the formalities are completed, the load request may take up to 14 days to fetch some real results.
After the specified time duration is elapsed, and the loan is cleared, both the borrower and the lender receive a repayment schedule that is clearly displayed as per their convenience in their user account page on the website. While all kinds of loans can be availed on this popular service, perhaps the most popular form of Bitcoin loan that happens to dominate all other transactions on this platform is the peer-to-peer loan service.
An intuitive way of building the trust among customers for the service has been implemented by the website developers. This great mechanism involves live chat among the different members of the website itself. This live chat box is present on the home page of the website itself and allows members to discuss several aspects of the platform itself such the risks associated with lending or borrowing, other specific members on the website or any other topic under the sun.
To further ensure that the lender never feels insecure about the Bitcoins he is giving away and that the trust on the website never waivers, some loans on the website are also supported by a collateral, which makes sure that the lender always holds a guarantee against the loss of the principal amount. If you have a Paypal account and a credit card, then we recommend you to opt for XCoins for bitcoin loans.
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.