Over the years, cryptocurrency loans have become extremely popular. While these have become popular, they surely have changed a lot. Hence, the instant bitcoin loan providers have played an important role in enhancing the impact. You can no longer stick to the general method of taking a loan. Taking a bitcoin loan is extremely confusing and requires you to stay focused.
There are several bitcoin loan providers who have played an important role in bringing the change. You can check out the market and find the best instant bitcoin loan providers.
What is a bitcoin loan?
Bitcoin isn’t only a type of currency but also a valuable storage. Hence, it is used as a collateral for loans too.
A bitcoin loan is very similar to the traditional loan procedure. It isn’t your general method of loans because there is no involvement of money but only hard credit checks. Moreover, the interest rate in a bitcoin loan is the same for everyone.
Opting for a bitcoin loan doesn’t put the risk on the lender but the borrower. This is usually because the borrower needs to put in more bitcoin for the repayment of the loan and also the interest payments.
Instant Bitcoin Loan with Collateral
Getting a bitcoin loan is pretty easy even if you’ve never received a bitcoin loan. You need to have a bitcoin balance and an account in any of the major lending platforms.
If you have borrowed any crypto funds earlier, you can transform them into bitcoin or altcoins to get the leverage using the lending platform.
You can use bitcoin to leverage the portfolio and get maximum protection. The leverage will however depend on the market conditions. Apart from bitcoin, there are several other crypto loan options such as DASH loan and Ethereum loan that can cater to your needs.
Best Bitcoin Collateral Lending Platforms
2020 has been a disruptive year with everyone facing some kind of trouble or the other. The cryptocurrency market was one of the most affected areas especially due to the COVID-19 breakout.
However, it’s only in recent times that the fate of bitcoin is changing. Earlier in August, Bitcoin saw a massive rise from $3600 to $12000. While the global economy is still struggling to be back on track, the pandemic has caused massive damage, but cryptocurrency like Bitcoin happens to be one of your most valuable assets.
Bitcoin investors should be very careful about the investments they make. Being careful and considerate will leverage the lending process and earn more interest. Bitcoin and crypto tracing is easy but not as much as they sound to be.
Bitcoin lending percentage is comparatively higher than other loans and thus stays on the competitive edge. Over the years, bitcoin lending interest rate has varied significantly, with many platforms offering annual percentage yield (APY).
Most of these bitcoin loan lending platforms provide assets, with collateral and thus, are referred to as crypto-backed loans. If you are planning to invest in bitcoins, you need to get your hands on the right products.
Here are some of the prominent bitcoin collateral lending platforms
BlockFi Crypto Lending
BlockFi is considered to be one of the best Bitcoin lending platforms by many. The platform was launched by Zac Prince and Flori Marquez in 2017. Ever since the company was established, it has been able to raise more than $20 million from firms.
BlockFi is the only platform to offer crypto deposit accounts with compound interest. Hence, the crypto deposit account is sent back to the original pool which grows and keeps compounding. In recent times, BlockFi lending platform has cryptocurrency worth more than $50 million deposited by the users who further receive interests.
How to apply?
You can easily open an account on BlockFi and allow you get involved in blockchain lending.
- Visit the BlockFi website
- Check the “Earn Interest” or “Get Started” Option
- Enter your email and password
- You will receive a verification code
- Click on the deposit option and make the initial deposit
- Provide your details and upload all necessary documents
Fees
BlockFi has reasonable pricing compared to their levels of reputation and professionalism. The platform offers the option to provide one free withdrawal each month.
Pros
- Earn interest as per your choice
- No minimum requirement for earning interest
- Provides compound interest per month
- Easily trade at zero cost between different cryptocurrency
Cons
- Withdrawal charges are high
- Interest rates may often vary
BlockFi is undoubtedly one of the best lending platforms that make it easy for you to reach out to the audience. They are constantly working towards improving their services which is why it is making Bitcoin lending easier than others.
Lending Through Celsius Network
Celsius Network is a recently launched Bitcoin loan platform. It was found in 2018 by Alex Mashinsky. This Blockchain-based platform has been offering a wide range of options to the crypto holders. Over the years, the platform has been able to garner around 5000 members. In 2018 itself, it earned its position in the Forbes’ Top 10 Companies to Watch for in 2018 list. The list described that this company might disrupt the traditional banking sector and bring a change.
How to Apply
- You can either download the mobile app to sign up to get maximum benefits
- Then, you need to fill in all the relevant information as required by the platform.
You need to mention the loan you want to take. You can either get it via stablecoin or USD. However, the platform provides Celsius Tokens (CEL) that allows you to lower the interest rates. Lastly, you need to connect the bank account, review the procedure and it’s done.
Pricing
One of the best parts about Celsius Network is that they do not charge any fees. Hence, you will not need to make any transaction fees, no deposit/withdrawal fees, no origination fees and not even termination fees. The only way through which Celsius Network makes money is by increasing the price of their CEL tokens.
Pros
- No minimum deposit
- Get benefits in the native currency
- Allows trading across multiple cryptocurrencies
Cons
- Centralized wallet
- No desktop version
Crypto.com Crypto Lending
Crypto.com or Crypto Dot Com has been offering a lot of services dealing with cryptocurrency. This is one of the best platforms that allows you to do easy payment without having to plunge into the need of getting a dollar or euro, but via cryptocurrency. This platform makes it easy to manage money.
Crypto.com contributes to facilitate the possibility and has existing cryptocurrency but also owns a cryptocurrency. Apart from cryptocurrency, you can also work using dollars and euros. This makes it easier for you to trade across crypto adoption.
How to create an account with Crypto.com?
This platform provides web-based exchange and also via app. Both the platforms have different registration procedures. You can create an account via any platform and then link them together. However, creating an account via both the platforms will give you a bonus of 50 USD.
- Visit Crypto.com website
- Enter real-time data
- You will receive a real-time link on your smartphone that will direct you to downloading the app
- Install the app and login via your credentials
- Verify the account and get going. You cannot use the app without verifying it
Pricing
You will receive rewards on signing up with Crypto.com. These real-time perks will be beneficial for you in the long run. You will receive information regarding the official website. They deduct certain fees on profits.
Bitrue
If you’re looking for a reliable and easy bitcoin collateral lending platform, then Bitrue should be on your list.
Bitrue was launched back in 2018 and ever since then, it has remained a hot-topic for discussion. It introduced the XRP base which gained significant popularity among the audience. As a result, Bitrue is one of the best platforms to use if you want to earn an instant bitcoin loan. It is responsive and accessible, with quick customer response.
You don’t need to do any document verification in the initial process. Bitrue has a mobile app that allows different options for trading. In addition, Bitrue provides the Bitrue Power Piggy which makes it easier for the customers to gain interest via the crypto platform.
It is a modest platform and can help you gain a significant amount in the long run. It’s a reliable platform but it was also prone to hacking back in 2019.
Pros
- Bitrue Power Piggy provides access to benefits
- Easy exchange
- Bonus points
- XRP base market
Cons
- Poor customer service
- Not enough service
Pricing
Bitrue charges withdrawal fees as per the blockchain conditions to suit the needs. However, there is no transaction fee.
Nexo
Nexo is a founded in 2017 by TechCrunch founder Michael Arrington. Ever since its inception, the platform is gaining continuous popularity because of its multi-function lending ability. It combines the various collateralized and LTV loans and also offers a range of P2P services. The cryptocurrency however is the main focus of the platform with Nexo Bitcoin being one of the best offerings.
The platform accepts multiple cryptocurrencies and today it serves more than 2 million customers. Moreover, it supports around 45 fiat currencies.
How to apply?
Within a few steps itself, you will be able to complete the registration process and have the account.
- Sign up for an account with Nexo
- Then, add in all relevant personal information
- To get an instant bitcoin loan, you need to fund the cryptocurrency as per your choice. (Some of the prominent cryptocurrencies, Nexo accepts are XRP, LTC, BCH, BTC, EOS, BNB, TRX and a few stablecoins)
- In the verification process, you will be taken to the “My Profile” section
- Once the loan is approved you can withdraw the funds
The lenders can provide deposit of different cryptocurrencies like collateral and you can eventually qualify for the fiat currency loan.
Pros
- Accepts LTV and collateralized loans as per cryptocurrency loans
- Provides a lot of fiat currencies
- Above-security average
- High insurance coverage
Cons
High interest rate as compared to instant bitcoin loan providers platform
Salt Lending
Salt Lending platform is one of the best platforms found in 2016 by Shaw, Owen in Denver, Colorado. This platform is the most-suitable for different organizations. Salt refers to Secured Automated Lending Technology. This next-gen crypto borrowing and lending platform provides using SALT tokens.
As the tagline goes, “Hold your assets, spend your cash” it caters to it perfectly.
How to apply?
Want to apply for a loan on SALT lending? It’s very easy.
- Create a Salt Account
- You will need to fund the Salt Oracle Account with the cryptocurrency of your choice. (It is one of the most effective multi-signature wallet that acts like a store for collateral and you will be able to manage the lending terms easily)
Once the loan is approved, you will get the funds in your bank account.
Pricing
If you want to know the fees of SALT platform, you should be using a Bitcoin lending calculator that is offered on the site. Various factors determine the interest, loan worth, amount of money, duration and location.
You will not need to pay any late monthly fees or withdrawal fees. You will only need to pay transaction fees for network facilitation.
Pros
- No requirement for USD conversion
- Allows using different cryptocurrencies for a loan’s collateral
- Secured client funds with cyber liability and crime insurance
- Easy to use and fun
Cons
- Small repayment windows
- High repayment rates
Salt is one of the most professional platforms to get instant bitcoin loans. The user funds are safe because of increased security.
YouHodler
YouHodler is one the most prominent Swiss-based fintech companies found in 2000, and it provides high-quality services that can manage digital managing of assets pretty easy. However, YouHodler has the reputation of being one of the best cryptocurrency lending platforms. As a borrower, you can get instant bitcoin loans by following small procedures as well. It caters to the needs and processes all the requests instantly.
How to apply?
Getting a loan via YouHodler is pretty easy.
- Visit the website and set up the account
- Verify your ID by scanning all essential documents
- Once the account is made, you can opt for deposit, and crypto loan for the preferred collateral
- You will need to wait for the loan to be approved
You can go for YouHodler’s exchange feature and convert your general account into Bitcoin, altcoins, fiat and stablecoins.
Pricing
YouHodler has three types of crypto loan packages. The interest rate is often decided via loan-to-value (LTV). Based on the number of days, you will be charged a certain amount of interest.
Pros
- Minimum loan amount is $100
- Loan-to-value ratio is around 90%
- Strong customer support
- Loans available in different formats such as cryptocurrency, stablecoins and fiat
Cons
- Long-term loan option only for high interest rates
- No service for US citizens
These cryptocurrency platforms are becoming extremely popular as more and more investors are becoming interested in it. YouHodler provides great customer service with a short-term cash flow solution.
How to get Instant Bitcoin loan?
There are several instant bitcoin loan providers. You need to create an account and then deposit some Bitcoin in your loan to get the loan approval.
Depending on the conditions, you need to create the account and get the instant Bitcoin loan. There are several requirements as well.
What documents do you need to submit?
- Provide ID proof
- Firstly, verify your address
- Secondly, verify your email
- Lastly, verify your credit card details
- Connect online payment modes
- Connect social media
- Verify the income via tax forms and invoices
What is the eligibility criteria?
- Have a high trust score
- Have a stable job where you get enough salary
- Bitcoin trading must be legal in your country
Bitcoin Loan without verification
Getting an instant bitcoin loan is not difficult. If you have an established reputation and work with a verified platform, you can easily get bitcoin. However, there is no such thing as the bitcoin loan without verification.
Many websites have been offering instant bitcoin loans but you need to verify yourself. You can’t even get a free bitcoin loan. However, you can surely get low cost loans. Bitcoin is extremely profitable, especially in the past few years. These types of loans provide low interest rates for the borrowers.
Instant bitcoin unsecured loans
There are several platforms that do provide instant bitcoin unsecured loans. CoinLoan is one of the most prominent platforms to offer instant bitcoin unsecured loans. xCoins is another platform offering unsecured Bitcoin loan services.
Nebeus – Unsecured Bitcoin Lending
Nebeus is one of the most prominent platforms with a launch year of 2014. Over the years, they have received extreme popularity because of the wide range of cryptocurrency related products and services they offer.
Some of the prominent services offered by Nebeus include online wallet, savings account, cold vault storage, and the ability to purchase and sell cryptocurrency. But, beware the company levies a daily interest of 0.01% to 3% interest on loans for a term of 12 months.
The platform provides Loan Health monitor and 72-80% loan-to-value ratio depending on the amount taken. Unlike other modes, it has flexible repayment options that can help you in the long run.
Takeaway
People who need instant bitcoin loans should register with platforms that can help you in the long run. Cryptocurrency has become one of the most reliable sources of income. So, a lot of people prefer bitcoin loans over traditional banking.
Moreover, Bitcoin is one of the most legitimate currency with a track record of no successful hacks in its decade of existence. With moving times, more and more people are focusing on crypto currency finances as compared to the traditional ones.
Just make sure if you take a loan, you repay it on time. Don’t default the loan and be liquidated.
