If you’re looking for instant cash, selling your crypto is always an option. However, of course, this isn’t ideal for most hodlers, as the last thing you want to do is flog off all your hard earned crypto.
Bitcoin loans allow you to avoid selling and have had crypto loans put in place for those who want to borrow money and use their Bitcoin or Ether as collateral.
So, to make it simple, a crypto loan is a borrow of money in a temporary exchange for your crypto.
How does a crypto loan work?
After both the borrower and the lender agree on a loan amount, interest rates and duration period. Your crypto lender will transfer your agreed amount to your bank account, and they will hold your crypto in a secure address until you make your last payment, to which your collateral will be released to your address.
- Apply for an instant crypto loan, get a decision on the same day.
- Send your BTC or ETH to your lender’s address, your cash will be transferred directly to your bank account.
- Make monthly payments in cash, or crypto.
How do I get a crypto loan?
Showing you are a reliable borrower and having a good credit score will most definitely help your situation and increased your chances of being approved when it comes to borrowing USD. Some lenders even allow you to apply for a crypto loan, without it influencing your credit score, whether you are approved, or not.
What’s the difference between a crypto loan, and a regular loan?
Both crypto loans, and regular loans offer the same principle in the sense that you are borrowing an asset, that you must pay back. Crypto loans allow you to borrow liquidity and use your digital assets as collateral to secure your loan. This allows you to save on your cryptocurrency tax, as you are borrowing as opposed to selling.
Who should I get a crypto loan from?
When it comes to financial relationships, trust is key for each party. Different Bitcoin lenders offer different benefits, check out Blockfi for the best rates on the market currently. So, doing your research, and finding a crypto lender with the best rates, flexible structures and the highest security in the blockchain space is worth your time. Many are now making use of significant blockchain marketing resources to reach into the crypto community.
Why should I get a crypto loan?
If you’re in financial distress, or simply need more money to purchase valuable assets such as a real estate property, a new car, or holiday for the family, you may consider selling all your hard earned crypto. However, with the potential value of cryptocurrencies being uncovered daily, this may not be the smartest move to make. Crypto loans allow you to keep all your digital assets, in temporary exchange for liquidity.