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Crypto Loans

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It looks like the days of simply sitting and watching your Bitcoins or other cryptocurrencies rise and fall in your wallet are over. Cryptocurrency loans are allowing cryptocurrency holders to take advantage of their cryptos by placing them as collateral for cash loans.

Most cryptocurrency holders that follow the market realize that now is not the time to sell their cryptos, with Bitcoin projecting a price of $30,000 to $50,000 per Bitcoin over the next 3 to 5 years, now is not the right time to sell.

Thousands of crypto holders around the world are taking secured loans against their cryptocurrencies and it seems to be working out well for them.

How it works, using an example from one of the top lending companies Central Bank of Cryptocurrency you can see how the loan process works.

  • Complete the online application form
  • https://www.centralbankofcrypto.org/bitcoin-loan-i1/
  • Verify your account by uploading a valid *pictured government issued form of Identification *the form of identification you submit must include a photograph of you.
  • Within 24 hours our Loan Department will confirm if your loan application has been approved or declined.
  • If your loan application is approved, CBC will issue you an account number along with instructions of where to send your cryptocurrencies you intend to use as collateral.
  • When CBC receives your collateral, the same day (this service is not available on Sundays) your cash loan will be paid out in the method you have agreed on with the CBC Loan Department, i.e. bank transfer or a money transfer service like MoneyGram. *Notice some bank transfers can take up to 3 to 5 business days to be in your account, depending on the country you are in and your bank.
  • Once you have paid in full your principle and interest back to CBC, the cryptocurrencies you used as collateral will be sent back to you in full.

One of the most important factors is, when you pay back your loan in full principle & interest then your collateral (the cryptocurrency you used as collateral) is sent back to you in full.

So, what happens if Bitcoin doubled in price? Do you still get your full Bitcoin back? Yes, your collateral has nothing to do with the price of the coin, if you placed one full bitcoin as collateral then you will get your full Bitcoin back regardless of the price when your loan agreement has been paid in full.

What to look out for: Some organizations charge a high interest rate, make sure you deal with a company that offers different loan terms, short-term like 3 to 6 month, medium-term 12 to 18 months and long-term 24 months.

Make sure the company you deal with offer an APR meaning annual interest rate, avoid companies that charge a high month rate, those companies are more of a payday loan.

The average interest should range for short-term loans 15% APR and long-term 8% APR.

Here is a good example of an interest only loan for $10,000 over 12 month and the repayment terms:

  • $10,000 Desired Loan
  • 65% LTV
  • $15,384.62 Collateral Value
  • 12 Month Duration
  • 10% Interest
  • Interest Only Payments
  • 1) You transfer CBC your Cryptocurrency coins worth $15,385.62, we hold them securely for 12 months.
  • 2) 65% LTV on $15,384.62 collateral means you will receive the $10,000 as desired for this loan.
  • 3) The total interest over the 12 months you will have to pay will be $1,000 – (10% of the $10,000 loan).
  • 4) This $1,000 payment will be split into monthly payments of $83.33, and the last month’s payment will be $10,083.33 (Interest Only).
  • 5) The total you will have to pay back is $11,000 – ($10,000 Loan + $1000 Interest).
  • 6) Once we receive your last payment, we will send you your initial Cryptocurrency investment back to you.

Loans can be used for numerous purposes there are no restrictions on how you spend your loan money and there are normally no credit checks because you are using collateral to secure your loan.

Below you will find some links to known loan providers. Don’t let your cryptocurrencies sit in your wallet and do nothing, put your crypto assets to work for you.

Crypto loan comparisons

  Central Bank Of Cryptocurrency (CBC) Nexo Unchained Capital
(Business Loans)
Loan Using Your Bitcoin
Loan Using Your Ethereum
Loan Using Your Litecoin SOON  Subject To Request
Loan Using Your Bitcoin Cash SOON Subject To Request
Loan Using Your ERC20 Tokens Subject To Request SOON Subject To Request
Loan Using Other Cryptos On Request Subject To Request
Loan Value To Received Collateral (LTV) 65% ~50% 50%
Loan Duration (Months) 3 – 24 1 -24 3 – 60
Loan Interest %s 8% – 15% 16% 12% -18%
Receive Back All Of Your Crypto Uncertain *
Price Fluctuations Affect Loan *
No Hidden Fees ?
First 30 Days Interest Free?
Transfer Money To Bank Account?
Transfer Money Via Other Methods? ?
Credit Card For Instant Transfer? SOON
No Account Sign Up Barrier

CBC minimum Loan amount $250

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To be honest at the moment all my friends have loans and it's sad. I had no choice when I needed the money, I couldn't borrow from anyone. Well that I accidentally found this page and left a request. I was called back and the same day I received the necessary amount. It helped me to solve problems.

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I think that taking a loan is the last option to choose in any situation. If you have some other options, it will be better to go with them. I mean, if you need a new smartphone for example and don't have enough money, loan is not the only option. You can search for an online catalogue on https://www.cataloguesforbadcredit.co.uk/ or borrow the money from your friends. That will be much better than going to a bank or using a payday loan lending service.

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