Traditional investing and saving options such as bank deposits, real estate or stocks are no longer the most lucrative investment options available. Interest rates have plummeted to record lows, while stocks and real estate are now seen by many as too risky because of their unreasonably high levels. As a result, investors are now getting insignificant or ultimately no returns from their investments; this has left them with no option other than to explore other investment routes.
Digital currencies, more especially bitcoin, have recently become the preferred option for many because of many factors. Bitcoin is the most popular, valuable, and stable cryptocurrency and its value is not affected as much by external market pressures. This means that investors stand a significant chance of yielding huge returns from investing in crypto such as Bitcoin.
One other concept that has been recently trending is Bitcoin loans. Bitcoin can now be borrowed or lent at a very attractive interest rate. This is an amazing feat considering that Bitcoin was labeled as the currency of the dark web just a few years ago. In this article, we share a detailed guide on bitcoin loans.
BTC loans: what are they?
The rise in popularity of Bitcoin has been remarkable ever since it was first conceived. Many people have embraced it — including several prominent businesses, although they initially treated it with the utmost suspicion. People can use Bitcoin as a payment option, trade it on crypto exchanges, hold it as an investment, use it as collateral for loans.
If you need funds to trade, spend, pay taxes, or for any other financial emergency, you can consider the option of using Bitcoin to secure the much-needed funds. You can get a BTC loan on YouHodler if you have a BTC balance. Just create an account, verify your details and apply for a loan.
Why bitcoin loans
Bitcoin is not only the most popular digital currency, but its rise in value has been steady over the years. This means that if you opt to sell your bitcoins, you lose the opportunity of making potentially huge returns in the future. So instead of selling your Bitcoin holding, you can put it up as collateral so that you can benefit from any rise in value in the future.
There is a lot you can do with your borrowed crypto funds. For example, you can decide to convert the funds to bitcoins for leverage or altcoins to diversify your crypto portfolio. Alternatively, you can withdraw the borrowed funds, which will be instantly deposited into your bank or credit card account.
Top sites where you can get Bitcoin loans
YouHodler tops the list when it comes to sites where you can get crypto loans. YouHodler started issuing instant crypto loans in 2019, and ever since, their popularity has exponentially gone up because of their impeccable customer service and fantastic loan products.
When applying for a loan at YouHodler, you get funds instantly into your account either in USD, EUR, or even BTC. The interest rate charged is 5-13%, depending on your collateral. To make investors feel safe, YouHodler has created a $1 million insurance fund to protect investor assets.
Blockfi is another site you may consider when in need of a Bitcoin loan. Blockfi charges an interest rate ranging from 4.5%-9.75%, making it an even better option than banks. It also provides excellent security for investor assets in an effort to make sure investors feel safe. Funds are instantly deposited into your accounts, and borrowers are given a refinancing option. However, the number of cryptocurrencies you can trade using Blockfi is limited.