Bitcoin has always been in the spotlight, and it still is. This currency attracts investors, traders, and regular users. If you are one of the first two types, then you probably prefer to hold BTC rather than immediately sell assets. But if you need Stablecoins, other tokens or fiat money right now, then a BTC loan is your best bet.
Choose a reliable crypto lending site
In order to get a guaranteed loan and not lose your assets, you need to choose a platform that you can trust. It can be either a centralized platform (CeFi) where you can borrow on more specific terms and with a bank, or decentralized platform (DeFi) where the exchange takes place between two participants. Each of these types of crypto-platforms has its own advantages, And now we will advise you a few crypto sites where you can take out a Bitcoin loan:
1. CoinRabbit. At this site you can loan crypto on favorable terms. You will have access to over 137 types of currencies that you can either pledge or borrow in. CoinRabbit is a CeFi site, which means you will always have access to your collateral and will be able to contact the site if you have any problems. You won’t have to go through a credit check or KYC when you make a loan. You can leave collateral with a flexible liquidity with an LTV of 50% to 80%, and your funds will be kept in a cold wallet. If the LTV approaches a critical value where the collateral can be written off, you will receive three warnings and can increase the amount of collateral or close the loan. Loan amounts on CoinRabbit start at $100 and are given at an annual interest rate of 10% to 18% or higher. The best part is that there’s no limit to how long you can pay back the loan. It can be a month, 2 months, a year or more. The deposit will be returned to you as soon as you pay off the loan in full.
2. YouHodler. This is another good crypto platform, where you can get any cryptocurrency at the expense of Bitcoin collateral. Just download the app or visit the website and you will be able to take the BTC loan you need. What’s great is that you can convert other digital coins to get Bitcoin.
3. Binance. This is a well-known exchange with a good reputation, where you can take a loan against Bitcoin. You can use any cryptocurrency to secure the loan and get guaranteed approval.
4. CoinLoan. This crypto platform supports not only secured cryptocurrency loans, but investing for interest too. There you can find a large number of cryptocurrencies that you can loan against Bitcoin. The site has a European license and a fairly simple process of obtaining a loan. What’s convenient — on this site you can get several loans at once.
There are many more sites where you can borrow against Bitcoin. The main thing is to check that they are safe.
Choose platforms that don’t use KYC verification
If you want to get a loan quickly, choose sites that do not use a background check. This way you can take out a loan and get approved in minutes. This option is available on both centralized sites and decentralized sites.
Remember the margin call
Leaving Bitcoin as collateral gives you the possibility of additional profit. Since the sites have flexible liquidity, you will leave a certain amount and get it back. However, the collateral on the crypto platform will be exposed to all the changes in the exchange rate, so if Bitcoin goes up, you will find yourself in a winning position. This is why it is better to borrow rather than sell Bitcoin. If the level of LTV reaches a critical value, your collateral can be written off. All lending sites warn you about this, you will only need to top up your collateral or pay off the loan.
Check the Requirements
Before you apply for the loan, you should check if the lender has any requirements that need to be met. Most lenders will require borrowers to have an existing cryptocurrency account and wallet as well as proof of income. They may also need some form of credit score. Credit scores help them determine the risk levels associated with each borrower and can impact the loan application process as well as terms and interest rates offered on loans.
In addition to these basic requirements, there may be other criteria that are required depending on the lender such as country or region restrictions, verification processes, and/ or any other conditions or qualifications for obtaining this type of loan. It is important to review all conditions before applying for a Bitcoin loan so you can make sure that you are meeting all of their expectations and terms.
Have Collateral
In order to get a bitcoin loan instantly, collateral is a must. Collateral is an asset that you offer as security against the loan. This can be real estate, liquid assets, stocks, or any other form of asset that can be used as leverage to secure the loan. Make sure to provide adequate collateral for your loan and make sure that it is able to cover the full amount of your loan request.
Furthermore, if you are not able to offer collateral for your loan, then it is not likely that you will be able to secure your loan instantly. Lenders generally require some type of proof that you do indeed have the ability and means in order to repay them. Therefore, having some form of personal or financial guarantee can definitely benefit you when trying to get a bitcoin loan instantly.
Additionally, make sure that there is not much risk associated with the type of collateral you choose. Typically lenders will require more of an investment if they consider the collateral being offered high risk such as cryptocurrencies or course coins if they consider it riskier than other forms of investments such as stocks or bonds. By offering low-risk investments as security on the loan and establishing yourself as a reliable borrower, you are more likely to gain approval from lenders faster and with less hassle than if you present yourself as a high-risk customer by having highly volatile assets like cryptocurrencies at stake on your loan agreement.
As you can see, it is not difficult to get a bitcoin loan, the main thing is to choose the right site for this. On a reliable platform, you can get a loan with favorable annual interest rates and flexible liquidity that will allow you to profit from your assets.
Nina Smith