What is Bitcoin?
Bitcoin is a popular digital currency that has a store value. This currency has the utility to use it as an asset to get loans. Bitcoin works as collateral to issue loans from the bank. The borrower has the choice to select the period for payback as monthly installments or at once. It depends upon the terms and conditions of the agreement.
A cryptocurrency is a digital form of money that keeps your transactions secure, and you can use a digital wallet to purchase goods and services with it.
How does lending work with Bitcoins?
The loan purpose might include anything such as buying a house, investing in the business, or paying off debts.
Looking for a reliable Bitcoin lending website or need a crypto loan? Opt for a crypto loan from cryptocurrency platforms. While banks take days to process loan requests, cryptocurrency loans only take a few hours.
Just like other loans, in cryptocurrency loans also borrowers need to pay interest to the lenders. The platforms offering crypto loans, however, do not impose any hidden charges or exchange fees if users lend or borrow with cryptocurrencies. These crypto loan providers provide loans across the world with reasonable interest rates. You simply need some necessary cryptocurrencies like Bitcoin to start the lending process. Now we shall discuss more about Crypto & Bitcoin Loans and list out the top 5 Bitcoin and cryptocurrency lending websites:
Established in 2017 by Michael Arrington, founder of TechCrunch, Nexo has a wide customer base of more than 2,00,000 customers. The platform accepts over 45 fiat currencies.
Nexo has become very popular due to its competitive and innovative approach towards its customers. It provides the facility to withdraw money at any stage of the agreement. It is quite unusual that a lender can earn daily interest. But Nexo offers an attractive interest rate of 8% to the lenders. The Nexo wallets are supported by BitGo.
One important point to remember is that lenders can use BTC and ETH only while using the Nexo platform.
BlockFi is yet another prominent cryptocurrency website. Zac Prince and Flori Marquez founded this platform for lending. It has generated around $20 million since its inception and continues to do so.
In the BlockFi platform, lenders can get a 3.3% interest rate on ETH and 6.2% on BTC. It can be deposited under 100 ETH and 10 BTC. BlockFi works with no deposit limits, therefore, has been able to grab more attention than other sites. The rate of interest is 4.5% for the borrowers. All crypto assets have the security guarantee of Gemini (an insurance firm).
BlockFi is based on digressive rates; the rate gets down as the deposits increase. The interest rates apply to BTC, ETH, and GUSD.
Celsius Network was founded Alex Mashinsky and became operational in 2018. The firm was listed among the top leading companies of 2018 by Forbes.
Celsius Network allows deposits in multiple cryptocurrencies like BTC and ETH. It does not charge any extra amount or penalties for termination, withdrawal, and transactions. The Celsius wallet has a multi-signature feature and is supported by BitGo. The insurance value is $100,000,00. This network has no deposit limit and lenders can withdraw their funds whenever they want. The attractive feature of the Celsius Network is that it comes with weekly payouts. However, one important point to note is that the Celsius Network works as a mobile app only.
Headquartered in Germany, Bitbond was established in 2013 by Radoslav Albrecht. It now provides services to 120 nations and has around 9M users. This platform has a simple interface with a P2P system that has raised 1.4M Euros so far. A user needs to create an account and go through the quick and easy verification process to get started. Receiving the support of German Supervisory Authority BaFin in October 2016 has added to Bitbond’s credibility as an authentic platform.
ETHLend is a P2P decentralized lending system for smart contracts. Here, the contract is within the borrowers and lenders without any intermediaries.
ETHlend currently offers only collateral loans and has plans to expand its product offerings by introducing unsecured loans soon. As this is likely to create a risk for the lenders, the company has started rewarding borrowers with credit scores. If the borrower repays the loan successfully, he will be rewarded with scores that can be availed in his future loans.
The crypto industry is replete with a wide array of lenders, so much so that it sometimes becomes mind-boggling to choose among them. The snippets about the top 5 Bitcoin and cryptocurrency lending websites can be very helpful in choosing the most appropriate lending platform as per your needs.