Obtaining a bitcoin-backed loan is similar to obtaining a traditional collateralized loan. With a traditional loan, you normally pledge a personal asset, like your primary residence or small business, as collateral in order to receive funds. If you can’t repay the loan according to the agreed-upon terms, the lender has the right to repossess the assets you’ve pledged as collateral.
With a bitcoin-backed loan, you pledge your crypto holdings as collateral for the capital. There are several key benefits to obtaining this kind of financing. For one, it lets you maintain the potential upside of your crypto investment. If you’re like many crypto investors, you believe the investment will appreciate over the long term. By obtaining bitcoin loans, you don’t have to liquidate your bitcoin assets. Instead, your investment can remain intact and you’ll benefit from potential appreciation.
If the loan remains healthy (based on the LTV loan-to-value ratio) over the course of the term and the loan balance is fully repaid, any crypto collateral is returned. Plus, you may be able to realize tax benefits. As always, be sure to seek independent legal and tax advice. This is not the sale of a securities product or securites.
Non Purpose Bitcoin Loan
You can increase your wealth without selling your crypto by using your bitcoin-backed loan to invest in a variety of different financial goals like:
Essentially the only issue bitcoin users have is whether they can make a major purchase like buying a home or car with their bitcoin. As of now it seems complicated since mortgage lenders do not except bitcoin yet and Tesla just started accepting bitcoin for payment. The best possible solution is using a bitcoin-backed loan to secure cash towards that major purchase.
Sign up for a bitcoin loan today and do more with your crypto!