A Loan Against Bitcoin: Why It Is Profitable
Now it can't be easy for owners of digital currencies to watch prolonged decline of the market. And those who bought a crypto currency at the peak of growth especially. Well, what to do if you urgently need cash, and exchange the cryptocurrency is not very desirable. As an option is drawing a loan against digital coins.
Bitcoin is a unique investment tool that has prospects for growth and development. Many financial experts and analysts have repeatedly stated about its advantages over fiat money and its features. In 2017, the bitcoin rate reached $ 20,000, although in December its value traded around $ 1000. Profit in a year has made about 2000% to what its early holders couldn't but be glad. But with the onset of 2018, the situation has changed dramatically, and now the currency is trading at $ 6000, showing a threefold decline since its peak.
Approximately the same situation is traced in other digital assets markets. Cryptocurrencies are trading in a bearish trend, unsuccessfully trying to break it. Fortunately, many of us understand that after the recession will necessarily follow a new rally with new profits and opportunities. Therefore, if you do not want to deprive yourself of the opportunity to obtain profitable long-term investments from the storage of cryptocurrencies, one of the options for their preservation is drawing a loan against bitcoin.
Mechanism of formalizing credit loan
To date, to take such a loan will not be a problem. Many startups have already implemented this idea into reality, thereby allowing owners of cryptocurrencies to realize their own. Basically such services accept cryptocurrencies from TOP 10 of market capitalization. All that is required of the borrower is to place an order on the need for a loan with convenient conditions or to choose the most suitable one from the proposed ones. In general, the loan body is between 50% and 70% of the loan amount. At the end of the loan period, you return the debt, and in return receives its coins back. It is worth noting that back borrower will receive an amount identical to the pledged regardless of how much the exchange rate has grown or fallen. In addition, the borrower may not return the body of the loan if it is unprofitable for him if the course does not meet expectations. In this case, the coins will remain with the creditor, and the obligations will be considered extinguished.
So do not be afraid to invest your digital assets under pledge. During the bearish trend, such investments can bring not only the funds that you need, but in the future will be a good investment. Anyone who is able to improve their financial position by investing in promising trends, and cryptocurrency is one of them.