Did you know you can get crypto-backed loans? Well, you can now get fiat loans while using your crypto coins as collateral. When crypto coins were being launched to the public market, nobody ever thought we would get to a point where they could be used as collateral.
Bitcoin, the first crypto coin,was launched back in 2009. It was created by a guy named Satoshi Nakamoto alongside other blockchain developers. The idea behind developing Bitcoin was to create a decentralized digital currency.
One problem people have with fiat currencies such as the Euro and USD is that the government controls them. Bitcoin was designed to scrap this issue. No entity controls crypto coins. In addition, the government cannot track how you use your crypto coins.
If you own a few crypto coins, you can use them to get fiat loans with instant withdrawals. As mentioned before, the value of Bitcoin and other altcoins isn’t controlled by any government or bank.
Second, crypto coins are digital coins and can be used to pay for online services or products from anywhere. Transactions involving crypto coins are pretty fast and cost less. That is why most online businesses are now accepting payments in BTC or Ethereum.
The third benefit is that Bitcoin and some altcoins such as Ethereum are built on secure blockchain technologies. This means that the transactions are encrypted and anonymous from other people. Bitcoin is also one of the most popular crypto coins worldwide.
Getting a Crypto Loan
Some crypto wallets such as YouHodler allow users to access loans while placing their crypto as collateral. To access this type of loan, all need is a YouHodler account and a BTC (Bitcoin) balance in your wallet. Then, you can use the borrowed fiat currency to do whatever you want.
You can also get a bitcoin loan and place your altcoins as collateral. For example YouHodler offers btc loan backed by altcoins. This kind of loan is an excellent option for people who own altcoins but would like to buy bitcoin without trading their altcoins.
There are plenty of things you can do with the fiat loan. For one, you can use it to buy bitcoin or altcoins of your choice and trade them for extra revenue. Secondly, you can withdraw from your wallet to your bank account.
Crypto-backed loans have opened a new channel of investment for crypto coin owners. You can use your BTC to get quick fiat loans. As mentioned earlier, you can choose what you want to do with your fiat loan.
If you’re looking to invest in more BTC, taking a loan and placing the bitcoin in your wallet as collateral can be a wise idea. This means you don’t have to leverage your altcoins if you have any. The loan rates are pretty competitive and worth every penny.
You can research more about the process of applying for BTC-backed loans. Also, make sure that you understand the terms and conditions before applying for and accepting the loan.