Before we ge started on the blog we would like to show you some updated bitcoin loaning companies;
It takes a couple of hours to fly thousands of miles, a click of a buttonto send a piece of information, andthe opening of an app to see the faces of your loved ones in real-time.
How fast and furious the 21st century has become with the advent of some exhilarating inventions!
But still, there are areas of daily life which continue to exist at sloth-like speeds- things like taking out a loan from a bank…
Taking loans from a bank is a cumbersome and tiring process for borrowers. In this modern (and otherwise fast) world, it typically takes 45-60 days under ideal conditions for a loan to reach borrower’s account.
That’s IF you’re approved for a loan- getting approved includes having a good credit rating, a necessary history of bank statements, identity verification, collateral, etc.
All of these things take a lot of time.
There are also lenders in this picture, who need returns on their investments and deposits. But, in this scenario of economic upheaval where interest rates are too low or even negative, good returns are pretty hard to come by.
From now on, borrowers will get loans funded in 2 hours to 7 days.
Lenders will get good returns.
Isn’t that incredible!?!?!
How Does Bitcoin Loan Work?
Bitcoin has revolutionized the capital lending markets which have stayed stagnant for decades.
Bitcoin has made everyone their own individual banks for lending and borrowing.
Let me explain…
With Bitcoin, you can borrow and lend almost instantaneously without unnecessary friction from banks and government regulations.
You can crowdsource your loans from lenders around the world powered by a Bitcoin economy by choosing an interest rate which you can actually afford.
There is no processing fee charged to the borrower or lender for this.
Through this system, lenders get profitable interest rates and borrowers can borrow cheap loans. It happens in a hassle-free manner through peer-to-peer lending which leverages Bitcoin technology to make everything fast and cheap.
This would not be possible in conventional banking which is slow and expensive.
How Can You Get A Bitcoin Loan?
Typically all P2P lending platforms follow the below process:
Step 1- Register on Binance. and complete the verification process.
Click on Earn > Crypto loans
On this platform, you can take secured loan against BTC or ETH.
You can define the loan term, and the page will also show you the LTV, Margin call, daily interest rate, and total interest amount based on your tenure.
You can borrow two stable coin on Binance at this moment:
Click on “Start borrowing now” and within seconds you will be able to use your loan amount for your trading or other usage.
Similarly, most of the other Bitcoin loan platforms work in the same fashion. Different platforms will offer different arrangements (highlighted below).
Go through their verification process:
Identity Verification (any government-issued ID)
Social Media Verification \
Seller Account Verification (eBay, Amazon)
Step 2- Choose the right type of loan based on lending rates decided by the platform or as agreed with the lender directly.
Step 3- Get approval in as little as a few hours and receive your funds (from anywhere in the world)!
Best Markets For Bitcoin Lending And Borrowing:
This is another peer-to-peer lending platform which uses cryptocurrencies.
It based out of Germany for small-medium enterprises (SMEs) and entrepreneurs. Registered, approved, and regulated by the German government, it advocates borrowing and lending across borders.
Nexo offers instant crypto credit lines with no credit checks. You can instantly deposit supported crypto fund and take a loan against it. Due to high volatility, they have different LTV (Loan to value) ratio. At the time of updating this guide, this is the LTV ratio for different coins:
Stablecoins = ~90%
BTC/ETH = ~50%
XRP = ~40%
LTC = ~35%
BNB = ~30%
XLM = ~17%
NEXO = ~15%
That means, if you deposit BTC worth $1000 in today’s rate, you can instantly get a loan of $500 (50%). You can withdraw these funds directly to your bank account or you can take the loan in the form of Stable coins. The custodial assets are insured for $100M and more than 200,000 users are part of the Nexo ecosystem.
Nexo also has a dividend-paying asset-backed security token with utility features called Nexo. If you are using Nexo, getting Nexo for your loan re-payment helps you save a significant amount of money. Also, if you hold your coins on Nexo (They also have a mobile app with zero withdrawal fees), you earn interest on it.
If you use Nexo token as collateral or repay the loan in Nexo token, users get a 50% discount.
3. Celcius Network
Celsius let you quickly grab cash or stablecoin based loan against your BTC, ETH, XRP, BTG, and BCH. Their interest rate is one of the lowest and they are the only few companies listed here which offers a mobile app. Getting started is easy and all you need to do is, create an account by clicking here.
Once done, you need to complete the KYC before you can make a deposit in cryptos and take a loan against it. They also have a security token with utility features called CEL. You can use CEL to repay your loan and get another discount of 25%.
The minimum loan amount is $3000
No termination fees, no prepayment fees, no transaction fees
Your annual interest rate depends upon the amount you are taking as a loan. Overall, Celsius is one popular platform to take loan against your crypto holding.
This is the world’s first P2P (peer-to-peer) bank based out of the U.K.
They sanction loans almost instantly for entrepreneurs and small businesses around the world by using the Bitcoin payment network. They store their customer’s coins in offline storage known as cold wallets.
They offer 5% to account holders just for saving bitcoins in their accounts, simultaneously merging contemporary banking with the modern P2P banking ideology.
Conclusion: Best Bitcoin Lending Sites (Bitcoin P2P Loans)
At the time of writing this post, the above-mentioned players are involved in Bitcoin lending and borrowing
So you may be thinking… where is the opportunity for me as a Bitcoin investor or as a Bitcoin borrower?