The concept of crypto lending has only been around for a short while, but its use is already picking up pace. Instead of selling your crypto for cash, you can now use it as collateral to take out a crypto loan. A Bitcoin loan is one of the most common forms of crypto lending where Bitcoin is used as collateral to get a loan.
One way in which crypto investors earn from crypto is by buying coins, HODLing them in your wallet, and waiting until the value of the digital currency goes up before selling. This is like leaving money in a bank account with a low-interest rate return or even none. Crypto lending is the best way to get around this, where you receive interest when you still have your crypto.
You can own millions of dollars’ worth of bitcoins, but you might still sometimes be faced with cash flow challenges. Instead of selling your assets to meet a short-term need, you can get a BTC loan using these assets. Here is what you need to know about Bitcoin loans.
Bitcoin loan explained
Cryptocurrencies tend to experience huge price volatility, which can be both to the benefit and detriment of the investor. If you own some bitcoins and speculate that the price will rise in the near future, you will find it a painful decision to have to sell your crypto when faced with liquidity challenges.
Instead, you can use a Bitcoin loan app, sign up and request a Bitcoin loan, and use your bitcoins as collateral. This way you get to keep your assets, and you will get them back in full plus an appreciated amount when you completely repay your loan.
Where can I get a bitcoin loan?
Many crypto enthusiasts want to know how to get an instant bitcoin loan and from where. Remember that you are dealing with online transactions and have to be careful with the exchange broker you use. YouHodler is one of the most reputable and the safest bitcoin loan apps you can use.
YouHodler enables you to obtain a Bitcoin loan at a very low interest rate while keeping your digital assets intact until you complete the repayment. You can also sign up with YouHodler and learn how to lend bitcoin and earn interest from it. YouHodler Bitcoin lending can earn you up to a 12.3% APY.
When did Bitcoin loans start?
The world has recently been facing a global pandemic that has dramatically affected the global economy. This has led to cuts in interest rates by banking institutions, and access to credit is also more difficult. Crypto loans have become one of the easiest ways investors can access fiat currencies without selling their crypto.
Instead of buying Bitcoin and storing it in your wallet, waiting for an opportune moment to sell, you can now use the coins to get a loan or lend it out for interest. Can you borrow Bitcoin loans if you have Bitcoin? The simple answer is yes. The most important thing to do is find a reputable crypto lender such as YouHodler, that will keep your assets safe, instantly process your loan and charge you a low interest rate.