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Ask How to Make Money Through Lending Bitcoins

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Everyone by now knows what Bitcoin is and has some understanding of how it works. Over the last few years, Bitcoins and other forms of electronic cryptocurrency have grown in popularity. I do believe this has to do with the fact that cryptocurrency carries the same value worldwide. Furthermore, because of how this system is structured it allows peer-to-peer transactions between users without the need for a centralized authority. All you need is a Blockchain to transfer the currency from one user to another.

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Can You Take Out a Bitcoin Loan?

Yes, you can. It is a bit easier to get a loan for Bitcoins that it is to get a bank loan. That is because the currency is decentralized and doesn’t pose any government regulations.

You would be borrowing from other Bitcoin holders. You will need to use a Peer-to-Peer lending platform to apply for a Bitcoin loan. These types of platforms won’t check your credit and have their own rules for the lending of cryptocurrency. You will need to find out some documents and submit them to the lending platform. They will review the documents and give you a trust score.

How To Borrow Bitcoins

This is a 4-step process:
  • Register with the lending platform.
  • Have your KYC done.
  • Decide on how long you need the loan and how much you require.
  • After this has been completed and authorized the coins will be deposited into your wallet.
What Types of Documents Do You Need?
  • You must supply a valid government ID to prove who you are.
  • They want details of your PayPal account.
  • Like banks, they will require proof of your income and the details.
  • With Bitcoin lending, they will need to verify your social media profile.
  • They will ask for email and a credit card verification from you.
  • Here they ask you for a personal reference.
How Can You Make Money Loaning Your Bitcoins?

BTCPOP.co
is the first Bitcoin shared loan companies online. They will make loans to entrepreneurs or even new companies. You can take out a loan for 0.01 to 500 BTC. However, they also offer a person who is looking to earn more money from their Bitcoins a way to earn 5% if they deposit their coins with this company and allow them to hold onto your coins.

This company could be considered a Bitcoin Bank where you can make a deposit to your account, allows the company access of your coins, and in return, they will pay you 5% interest on your coins.

If you decide to go this way here is what you can earn or expect from this company:
  • The person who borrows the cryptocurrency is charged a 25% APR interest that uses the average daily balance method to calculate.
  • The lender will take 60% of all interest.
  • The interest charges are applied to the borrower’s account on a monthly basis.
  • As a lender, you’ll receive your payment when the borrower pays his monthly account.
  • In the end, you’ll receive 15% APR for using your cryptocurrencies and enabling this company to loan out your currency to people who want to make a loan.
Now, this sounds like a safe way to earn 15% APR on the money that you deposit with this company. They are actually borrowing your money and paying it back on a monthly basis with a 15% APR. The more the company borrows from you to lend to another person, the more you can earn by leaving your currency in the bank with this company.

Has anyone ever tried to deposit their cryptocurrency with a lending company so they can earn a 15% APR for allowing this company to use your currency?
 

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