If you are wondering if can I get a loan to buy bitcoin, you need to read more about the issue. Those who had time to buy cryptocurrency before the last rise in price went into large profits (for example, Tesla, whose BTC reached $3 billion after reaching $64 thousand per unit). Experts predict at least a return to the previous high by the end of the year. Be that as it may, it is logical that there is always interest in the asset.
The easiest way to buy bitcoin on the WhiteBIT exchange is to use the instant exchange service. If you do not have any cryptocurrency in your cryptocurrency wallet: you need to put USD, or EUR on the main balance, then transfer funds to the trading one. After that, buy the asset. The operation is carried out instantly.
If the wallet has another cryptocurrency: transfer funds from the main to the trading balance and select the digital asset you have in your account to buy. So, three easy low-risk ways to invest and make money on bitcoin with Europe’s leading cryptocurrency exchange, WhiteBIT.
Collateral Loan
But how to borrow ethereum? A secured cryptocurrency loan involves lending money to a borrower based on the value they provide. The value, in this case, is cryptocurrency. Before the deadline, the borrower must repay in full the loan funds and the interest accrued during that time, otherwise, he loses his collateral.
Due to the volatility of digital currency values, the collateral rises and falls in value, so the loan amount is fixed in traditional money. If the BTC exchange rate goes up over the loan period, the borrower makes a profit on the return of their collateral. The loan itself is usually available in fiat or crypto.
Loan terms (LTV coefficient, repayment terms, interest rates, possible terms, etc.) are set by platforms that provide such services; they also arrange the safe keeping of funds – either in their accounts or in the form of independent smart contracts. If the platform is organized as p2p, the terms are not set by the management but by the lenders and the borrowers themselves in a contractual process between them.
As for the required documents, if the platform does not hold funds and collateral, passport details are usually not required. Otherwise, there is a KYC procedure, which is verification by ID, and in some cases, still the address of residence.
SMART-stacking versus bank deposit in dollars
The first easy way to make money on bitcoin is to leave it on deposit. This service is already offered by some of the best cryptocurrency exchanges. Here it is important to choose a provider that is competitive with both traditional financial institutions and other exchanges. At WhiteBIT, this service is called SMART-stacking and is highly competitive with both banks and other crypto platforms for several reasons:
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High deposit interest. The market offers anywhere from 5% APR on bitcoin. But WhiteBIT provides a 28% rate.
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Competitiveness to banks. Traditional financial institutions offer 1.5% to 11.25% for 12 months for a dollar deposit. Accordingly, $1,000 will only bring in $15 to $125. Translated into bitcoin, that amount would bring $280 if left at interest on WhiteBIT.
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Timing, rate, and profitability. You can deposit to the bank for seven days. At the stock exchange – from ten. In this case, there is a profit from investing in cryptocurrency, it does not make sense in the bank.
P2P-platform Biterest
Biterest is a marketplace of credit ads, and anyone can leave an application for funds secured by cryptocurrency. All payments are made directly between the lender and the borrower, while Biterest only monitors the arrangements.
Features of the site:
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The interest rate is set by the creator of the ad, usually 12-15% per annum.
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Payment methods are also chosen individually by the lender.
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Supported ways of receiving money – PayPal, bank cards, cryptocurrency wallets, etc. All transfers are made directly. Cryptocurrency transfers are considered the fastest and most convenient way with minimal fees. They also have no restrictions, unlike many fiat methods.
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The lender sets transaction limits in dollars, for example, from 50 to 20,000 USD, and repayment terms (minimum and maximum).
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The pledge is calculated based on the current BTC to USD trading rate at the time the application is created. The amount will be the greater the discount the borrower specifies.
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The pledge is stored on the Multisig address with no third-party access.
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No personal information other than email is required.
If the Bitcoin exchange rate goes down, the total value of the collateral also goes down. When it drops to nearly the amount the borrower owes the lender, a margin call occurs. The deal closes, and the lender gains access to the collateral. The risk of a margin call depends on the discount specified by the borrower. It is recommended to set it at a minimum of 30%.
Crypto platform: Coinloan
CoinLoan is fully focused on further improving its already best-in-class user experience. The company recently introduced a new affiliate program. It is as simple, and profitable as possible and offers lifetime bonuses for those who want to increase their profits even more.
CoinLoan features:
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You can exchange, sell or buy cryptocurrency on a cryptocurrency exchange.
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You can deposit funds into your interest-bearing account and start earning.
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There is a loan of cryptocurrency or fiat by getting an instant loan.
Crypto-platform: Blockfi
American platform BlockFi also offers several cryptocurrency financial management tools – interest-bearing accounts and low-cost loans secured by cryptocurrency.
Features of the site:
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Interest rate from 4.5% per annum.
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BTC, ETH, and LTC are used as collateral.
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You can get funds to a bank account or a cryptocurrency wallet (in the form of stablecoins).
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Minimum loan amount is $5000, and the maximum amount is unlimited.
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The deposit is calculated based on the requested credit amount.
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Although BlockFi does not check credit history, the loan is only available after passing KYC/AML verification.
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The loan can be repaid early.
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Funds are deposited into the account within 90 minutes.
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Recommended loan-to-value of collateral (LTV) ratio is 50%.
Trading
Trading is also worth mentioning. WhiteBIT has unique orders that further ensure its users against losses. They are easy to use and are called Conditional Market / Limit. For both of them, there is an obligatory additional condition that insures against losses – a pair guide.
Conditional Market: choose a pair to trade. Say BTC/USDT. Specify how much USDT you want to spend (including commission) to buy. Then specify a pair for correlation, for example, ETH/BTC, and a condition – buying will be executed only if the Ether is worth more or less than a certain amount of BTC. As soon as the condition is fulfilled, the purchase is made at the current market price.
Conditional Limit: the same pairs. Here the exchange allows setting two conditions – the lead pair and the limit price. When the condition on the Guide pair is reached, the second condition is taken into account – the request must fall into the cup when the bitcoin price in USDT reaches a certain value.
Conclusion
CoinLoan will be the best choice for those who have decided to engage in crypto investing. To buy CoinLoan, you need a non-custodial wallet such as Coinbase Wallet. Coinbase Wallet is available as a mobile app and browser extension.