Features of loans in cryptocurrency

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The cryptocurrency market opens up a lot of opportunities for investors. Loans in bitcoins seem absurd to many, as companies issuing them do not provide any government guarantees. In addition, the asset rate can sag or grow at any time, which is why you will have to pay significantly more in dollars or rubles. Despite the large number of pitfalls, the Bitcoin lending service is gaining popularity around the world. In this article, we will understand the intricacies of cryptocurrency loans and highlight the best projects related to the option.
How does bitcoin lending work?
Since 2018, financial companies have begun actively introducing a ban on the use of credit cards for the purchase of digital assets. The Bank of America and JPMorgan Chase were the first to take the appropriate decision, after which Toronto-Dominion Bank and many others joined. Clients received information about the ban in advance, but this did not save the financial giants from criticism. During the period when banks refused such operations, the cryptocurrency market was in a difficult situation, as the phase of its devaluation began after reaching maximums at the end of 2017. Now the industry looks more stable, and the volatility of most assets shows minimal values. Against the backdrop of this trend, the issuance of loans in Bitcoin and other cryptocurrencies began to gain popularity. There are several reasons for the rust relevance of this type of loans:
Minimum interest rates.A large number of traders who are convenient to receive funds directly in cryptocurrency, rather than spend time converting fiat.Simplicity of requirements to borrowers. Many users who were denied by banks were able to get loans in cryptocurrency.

There is another similar type of lending, but in this case, the client receives a loan in fiat, and cryptocurrencies serve as a guarantee for him. This is very convenient during periods of drawdowns in the value of assets, since the user can not only lose money on commissions, but also get a profit.
Where to get a loan in bitcoins
In Russia, services for obtaining loans in cryptocurrency do not yet have sufficient popularity due to the absence of laws that could support the industry. Lending in digital assets is more affordable for residents of the United States and Europe. It is worth noting that foreign services may not even approve a loan application just because it is requested by a Russian resident. You also need to remember that the client provides the resource with personal data, as when signing an agreement with the bank, which is why it is worth approaching the choice of the lender responsibly. There are even special portals that collect the rating of the best cryptocurrency loan services.
Cryptocurrency Loan Projects

The cryptocurrency lending industry also has its own unique credit history, in which the rating of a particular client is prescribed. Some scammers manage to raise indicators on small loans, after which they receive funds and simply disappear. As a rule, they are immediately entered into the database, but the proceedings, as a rule, do not lead to anything. The only court hearing incident that ended in a credit institution victory occurred in the United States. Then the borrower, who received a loan of $ 10 thousand in bitcoins, not only returned them forcibly, but also paid a fine in the prescribed amount.
Bitbond
This platform was originally focused exclusively on the German market, but later entered the international arena. It works on the principle of P2P lending. The service appeared in 2013, and now its users are approximately 1.2 million customers. Only in 2016, the company managed to obtain a license from the German financial regulator. Experienced users note that the credit service has a convenient interface and does not require the provision of unnecessary information. The application review process takes only a few hours. After that, you can get cryptocurrency to your wallet or transfer it directly to the exchanger to withdraw fiat.
BTCPOP

The platform also works on a P2P lending system. On it, investors themselves can issue loans to legal entities and individuals. The portal differs from analogues by the presence of its own “rules of the game”, requiring complete verification of the user. Also on the platform are several tools for finding investors. In fact, the owners of the cryptocurrency simply transfer it to work, which allows assets not to stagnate, but to multiply even during periods of devaluation or strong correction. The service is distinguished by a very professional administration and a support service that answers questions around the clock. There are several options for withdrawing funds from the platform, including direct transfers to wallets or bank cards, but in fiat equivalent at the current rate.

What you need to get a loan in bitcoins

To get a loan in bitcoins, it is enough to go through a number of procedures that are also present in the process of issuing a loan by an ordinary bank. In fact, Person2Person technology is not a loan, since the funds come directly from the investor. The service itself does not have equity, but acts as an intermediary. Accordingly, in order to get a loan in bitcoins, you do not need to meet high requirements. Because of this, clients who are denied regular banks turn to such financial services. Cryptocurrency lending services most often work according to the following scheme:
Verification The client must complete a full registration and fill out a profile by uploading his photo, links to all social networks, data from a passport, screenshots of a document, bank statements and much more. Only after checking the information, the service can issue a loan. Some even require you to provide a snapshot of a bank card to which funds will be transferred when choosing a fiat service.Agreement on loan conditions. After registration, the client signs a contract that states the conditions for the return of funds, terms, commission fees for withdrawal, rates and much more.Risk sharing. To reduce risks, services often use a collective lending scheme. This means that a loan is issued by several investors at once. This approach makes it possible to significantly reduce the risks for borrowers.
Will banks and MFIs give out loans in bitcoins in the future
Prospects for the development of cryptocurrency lending so far look vague due to a number of factors. First of all, the sphere is significantly hindered by the lack of legislative norms that could give companies and their clients guarantees that investors will not be left without investments in the event of a bankruptcy of the service. It is possible that in the future the situation will change, but for now, cryptocurrency lending remains the “underground” of the financial system.
Why do not develop lending services in bitconins
The main reason for the lack of development of cryptocurrency lending services in Russia is the lack of the legal status of bitcoin and other digital assets. The United States and Europe in this case are superior to the Russian Federation, as they control the industry and support similar companies. At the same time, over the past year, many controversial projects have appeared, including Gram and Libra, which is why the attitude towards cryptocurrencies in the States and the EU has changed. One can only hope that the world community will keep up to date and develop promising industries.

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