Cryptocurrency is providing a new source for those in need of a loan, or those looking to earn interest by putting their bitcoin savings to work for them. Currently you would be lucky if a bank offered 1% annual returns on your money, but turn that into bitcoin and you can find rates up to 12% from multiple trustworthy, secure, and insured providers.
What is cryptocurrency lending?
The crypto lending sector is a relative newbie in the financial world, but it is about to expand even further with a number of big name providers set to open up and raise awareness of this service. Online lending has been around for a while now, and has been used by providers to fund customers through their products and services. The trend that's now emerging is cryptocurrency lending, so what is it exactly? Bitcoin Lending Cryptocurrency Lending (CL) has emerged in the last few months, and it has quickly become a popular way to make use of the digital currency. CL is actually a structured financial service that allows users to borrow money in the form of bitcoin.
Benefits of cryptocurrency lending...
The good thing about bitcoin lending is that, as a small percentage of the overall bitcoin market, it still represents a fraction of the number of loans available. There are also other options like cryptocurrency debit cards, where you can spend your bitcoins at stores without converting them. However, it is bitcoin that provides the greatest convenience and savings. Â Other benefits include: No signup No personal information to share Payment is immediate upon approval Payment in full within 30 days No secondary market Numerous cryptocurrencies are also available in the lending sector and you can be confident that they will hold their value when held to maturity.
How to get the best bitcoin loans...
Not only are the loans secured, they are also secured with a "proprietary algorithm that has verified, or verified, a lot of transactions on the cryptocurrency markets." While this isn't the most thrilling proposition, one that you may have heard before, it is definitely the most safe and secure money-making opportunity out there. One of the ways to get your bitcoin loan, is by asking your social media followers for a recommendation. Another way to find a loan provider is to simply browse the financial platforms of your choice like Credible and ZrCoin to find people who are looking to get a loan. To borrow the amount you want, you will need to have a thorough background check performed and credit checked.
Conclusion...
Getting interest at 12% or more will definitely encourage some people to turn their crypto savings into cash in hopes of seeing even more of a return.
Recommended Providers:
Both have solid reputations, and enough past/present users saying everything went as described on their websites. But different laws in different countries means it matters where you live...
If you're outside the US: YouHodler.
Inside the US: BlockFi.
Good luck!
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Author: Matt Miller
London News Desk
Cryptocurrency Loans / Reporter
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