How to Borrow Bitcoin on CoinRabbit Platform

Bitcoin’s massive adoption as a means of exchange has seen its value continue to rise over the years. After long being shunned by traditional financial firms and institutional investors, Bitcoin and other cryptos such as Ethereum seem to increasingly enter the mainstream market as a payment vehicle and an asset. Even so, there has been the development of products surrounding Bitcoin and other cryptocurrencies creating different investment options.

A notable Bitcoin product that has been causing ripples in the crypto space is Bitcoin loans. Bitcoin functions like many traditional financial assets meaning that it’s possible to obtain a BTC loan against Bitcoin holdings as collateral. Several platforms allow users to borrow loans against their Bitcoin holding as collateral. CoinRabbit is one of the leading Bitcoin loan providers allowing users to seamlessly borrow USDT for their Bitcoin and Ethereum holdings as collateral. Here’s a detailed guide on how you can borrow an instant Bitcoin loan on CoinRabbit.

How to Get a Bitcoin Loan Instantly?

The process of getting an instant Bitcoin loan is relatively straightforward. In borrowing a Bitcoin loan, you repay it with interest for the agreed period. Depending on the lender, you can either repay in installments with some fees on top or repay at once.

To instantly get a Bitcoin loan, you will be required to create an account with a lending platform. You’ll then be required to verify your details before you can proceed to borrow. Simply enter the amount you wish to borrow, the loan period, and the desired interest rate. The lending process is often completed instantly. However, in the case of P2P Bitcoin lending platforms, the process is only completed only after an offer is available. If not, the borrower will need to wait for offers to review them and then accept the best offer to get a Bitcoin loan.

When applying for a Bitcoin loan, you don’t need to have a credit history since Bitcoin transactions occur without a third party. Therefore, you can easily get a Bitcoin loan without having to submit your credit score or rating. However, before taking a lender loan, it’s essential to do a thorough check on the lender and then compare the loan terms, such as the interest rates on loans from different lenders.

What is a Bitcoin Loan?

To understand Bitcoin loans, you first need to understand Bitcoin. Essentially, Bitcoin is a peer-to-peer currency and payment network invented in 2008 by Satoshi Nakamoto. It’s an entirely virtual and decentralized digital currency that can be bought, sold, or exchanged directly without a central authority or an intermediary such as a bank.

With a Bitcoin loan, a borrower typically offers their Bitcoins as collateral and receives a loan in cash (either fiat or stablecoins). The lender holds the BTC as the collateral and charges interest on the BTC loan. Bitcoin loan platforms work as either peer-to-peer platforms/decentralized finance (DeFi) connecting Bitcoin-investing borrowers with cash lenders directly or provide loans directly to Bitcoin investors.

You don’t have to be entirely a borrower to use a Bitcoin loan platform. You can be an investor, lend out money to other Bitcoin investors, hold their Bitcoin as collateral, and earn interest in the borrowers’ loans.

Reasons to Get a Bitcoin Loan

Bitcoin loans online offer a quick, safe, and efficient means of obtaining finances without necessarily having a good credit score or being creditworthy. Instant Bitcoin loans are quite flexible and are beneficial to both the lender and borrower. The borrower earns cash liquidity fast and with minimal complexities involved, while the lender earns a passive income stream from the borrowers’ interest payments.

Bitcoin loans online come in handy in a tricky financial situation where long-term BTC investors may be reluctant to liquidate their cryptocurrency digital assets while at the same time requiring money urgently for short-term needs such as medical emergencies, investment opportunities, etc.

Some benefits of a Bitcoin loan include:

  1. Quick turnaround time. Bitcoin lending platforms such as CoinRabbit have a quick loan turnaround time meaning that users borrow Bitcoin online once they’re verified on the platform
  2. The loan comes with no strings attached. Unlike other forms of traditional loans such as a mortgage, auto loan, or business loan, online Bitcoin loans can be used on anything. This offers lenders real benefits.
  3. Minimal requirement. With Bitcoin loans, you don’t have to present loads of paperwork thanks to minimal qualification criteria.

However, you’ll have to present some documentation such as government-issued ID, utility bills, email verification, etc., to enhance your “trust score.” Note that credit scores don’t matter when obtaining an online Bitcoin loan.

Why Not Take Out a Bitcoin Loan

While online Bitcoin loans are helpful in financial distress, there are some reasons you should avoid taking the loan. For a start, Bitcoin is volatile, meaning that the market prices fluctuate rapidly due to various factors. This means that the value of Bitcoin you’ve put up as collateral could either rise or fall, multiplying the amount you can lose if you default on the loan if the value goes up. On the contrary, if Bitcoin’s market value tumbles, some lenders could ask Bitcoin borrowers to add more collateral to achieve the loan’s original ratio. Failure to this could be met with hefty financial penalties.

Lending Bitcoin online also puts lenders at risk considering that there have been rising cases of borrowers defaulting on their Bitcoin loans. Even more, lenders tend to ask for more collateral and charge higher interest rates putting borrowers in a difficult financial position. Additionally, Bitcoin borrowers are charged a commission and other fees for using the lending platform, translating to higher financial costs. If you’re seeking to borrow BTC, some reasons not to consider the loans include:

  1. Lack of regulation
  2. High default rate
  3. Volatility
  4. Excessive interest rates

Nonetheless, some BTC lending platforms such as CoinRabbit makes it easy to borrow Bitcoin instantly by charging low-interest rates, implementing fee-free and transparent repayments with low-interest rates, and providing 24/7 live support. For lenders, the platform prevents loss due to defaults by protecting and insuring borrowers BTC used as collateral. If you’re wondering how to borrow a Bitcoin loan on CoinRabbit, read the next section. 

How to Borrow Bitcoin (BTC) on CoinRabbit Platform?

CoinRabbit is the best platform to borrow BTC loans, thanks to the many benefits it offers. The platform provides fast Bitcoin loans without complex credit checks, monthly payments, and maximum loan sizes. On the platform, BTC loans are processed in under 10 minutes, with borrowers getting the loan in USDT-a stablecoin. Most importantly, the platform reduces lending risk by securing collateral using a highly trusted service, i.e., ChangeNOW.

Borrowing a BTC loan on CoinRabbit is a straightforward process and takes less than 5 minutes. Below are steps to borrow a Bitcoin loan using CoinRabbit.

  1. Sign up or Log in to CoinRabbit and choose the amount of Bitcoin as collateral
  2. Confirm your phone number and set your USDT address where you’d like the loan to be issued
  3. Send the Bitcoin collateral amount that you choose to the provided address.
  4. Wait for the loan to be processed. After the collateral is received and everything is right, you’ll receive the BTC loan instantly.
  5. After receiving the loan amount in USDT, you can convert it to whatever currency you want and utilize the loan as you like.

After taking the loan, you can get back your collateral anytime by repaying the entire loan. That is the initial amount of your loan + 5% annual interest + a small processing fee.

Wrapping Up

Bitcoin’s increased mainstream adoption has seen the development of financial products surrounding it. One such product is online Bitcoin loans which enable borrowers to get instant cash on their Bitcoins holding as collateral. Bitcoin loans also enable lenders to earn passive income by charging interest on the loans. If you’re seeking BTC loans, CoinRabbit is the best platform for instant BTC loans. It offers plenty of benefits, including no monthly payments, low minimum loan amounts, low-interest rates, and collateral repayment at the initial rate preventing the effects of volatility.