If we tell you, that if you use crypto as collateral, then you can easily get the loan. This means you can do so whenever you need to, without having to sell your BTC. It is entirely possible to do so now that you can borrow money through bitcoin loans. Taking a loan with a traditional bank has become very fast, easy-going and low-cost. I am going to share with you the best bitcoin loan sites in this article. So that allows you to borrow money by offering crypto as protection with a refund. If you want to learn everything there is to know about bitcoin trading, go to Bitcoin Prime .
What is a Bitcoin (BTC) Loan?
Bitcoin has begun to transform the financial services and banking industry in a big way. A bitcoin loan is a type of financing product, as it enables a lot of people involved with bitcoin to get backed instant loans.
Which is the best bitcoin loan and traditional bank loan?
Comparing bitcoin loans and traditional loans, you can borrow money in both and then pay it back in the form of interest. This is a loan that you can repay in monthly instalments, but you can also choose to make a one-time payment to repay your loan. However, here is the similarity between the two ends.
If we talk about these two, then loans differ in many ways:
- When it comes to bitcoin loans, it offers a low-interest rate.
- On the other hand, if we talk about credit score, then it does not matter much, it is because some loan sites are associated with bitcoin which does not care about your credit score. In this, you are approved as long as you have enough bitcoins for KYC and the process to enter it.
- Third, with bitcoin-backed loans, you can get the cash in your bank account within 1 to 2 seconds. You will have to wait for some time to get the loan taken by the bank. On the other hand, if you want quick money, then taking a loan from the bank will not be a viable option for you. The loan application sent by you may get rejected even after waiting for weeks or months.
YouHodler is a European Union and Swiss-based digital currency platform. With which you can earn a better interest rate and you are also allowed to borrow money against crypto deposits. With YouHodler you can access money faster without having to sell your investments for a loan. You can deposit any of 20 coins into your YouHodler account as collateral and also receive cash in USD, USDT, EUR, or BTC.
Celsius Network is considered to be a fairly reputable BTC lending platform. You will be able to earn the interest you want on crypto with the crypto platform. Also, you do not have to pay any fee for this, that is, you are also allowed to take the loan against it with zero fees. This network allows you to borrow stablecoins, fiat USD, etc. for cash loans using different collateral currencies:
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Ripple (XRP)
- Litecoin (LTC)
- Ethereum (ETH)
- Tether Gold (XAUT)
Your crypto funds are stored in one place. BitGo is reckoned one of the most assured alternatives for crypto storage. You would love to hear that BitGo is widely believed to be the safest for crypto assets.
If you live in the US i.e. you are a US citizen, then you should sign up with BlockFi as it is accepted for users from US states. BlockFi is a leading company in the field of crypto with which USD is provided as a loan. Getting a fiat loan through BlockFi is quite simple as well as the process is quite straightforward. You can deposit bitcoin, litecoin and ether as collateral. In return, you will be given USD through BlockFi.