Home Business How to Get Approved for a Bitcoin Loan

How to Get Approved for a Bitcoin Loan

September 27, 2021

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Featured image by TamimTaban on Pixabay

To lenders, a Bitcoin loan is an opportunity to earn interest. To borrowers, it is an opportunity to get cash while your Bitcoins remain intact. So, what is a Bitcoin loan? Do you know how to get a Bitcoin loan? The answers to these questions are crucial for any crypto enthusiasts who want to benefit from their digital assets.

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What Is a Bitcoin Loan?

A Bitcoin loan is where a borrower uses their crypto (in this case, BTC) to secure a loan and then pay it back with interest. The deposited BTC is used as collateral to access a loan in the form of cash or any other currency. Advanced crypto lending platforms not only give instant Bitcoin loans, but also allow the borrower to do an exchange before they withdraw if they wish.

Qualifications for a Bitcoin Loan

First, look for a reputable platform that will not just extend loans but shows you how to get a Bitcoin loan. Now that you have a preferred platform, registration or signing up with the platform is the most important qualification. Frankly, there is no way to get Bitcoin loans without an account with a certain platform.

Furthermore, the other important qualification is having collateral. However, as mentioned, BTC loans should be backed by Bitcoins as collateral. The amount you have in your account determines how much you can borrow at a time. Sometimes, it can even effect the interest rate you can get. Some platforms give up to 90% LTV, which is quite high.

Platforms that Give Bitcoin Loans

By now, you know how to get a Bitcoin loan, but you need to know where to get one at the best terms. Taking time to peruse the web to understand these platforms is highly recommended. You will realize that the following platforms loan Bitcoin to many people.

1. YouHodler

The popularity of this BTC loan platform is very high. Apart from lending, it is commonly known for crypto interest earning. So, as soon as you deposit the BTC that will act as collateral, you will start earning interest. They give Bitcoin loans to users who can withdraw immediately in fiat currencies of their choice. The LTV is 90% while the interest remains friendly throughout.

2. Binance

After growing into popularity for reliable crypto products, Binance has become of the best platforms to get BTC loans. If you don’t know how to get a Bitcoin loan on Binance, then you are in the right place. All you need is an account with Bitcoins for collateral. The LTV is anything between 65% to 83%.

3. BlockFi

This is another popular crypto loan platform that you can trust. BlockFi is undoubtedly as popular as YouHodler and Binance. With a high LTV and low interest, the platform is rapidly increasing its user base. Just like in other platforms, you need an account that is loaded with Bitcoins to be used as collateral. The good thing is that your deposited coins will earn interest.

Final Thoughts

Anyone who does know how to get a Bitcoin loan is now in a better position to secure one after reading the insights we have shared above. Get a platform and register to qualify for free Bitcoin loans from any of the above platforms. But as you do this, it is good to have a strategy of how the repayment will be made.