Knowing what I know now, it's embarrassing how wrong I would have been just 2 years ago if someone asked me to describe why and when someone would take a loan out, I would have answered "A loan is something you get when you desperately need cash, a last resort.
Forget everything you know, and start with a blank slate and no preconceptions
Sure, a Bitcoin/Cryptocurrency loan is a great tool to use if you need funds and do not want to sell your investment because you believe it will go up in value.
But it's how savvy investors are using them that impressed me, then I felt excitement as I realized, I can do all of these things myself.
Since the beginning, it's been mostly wealthy people taking out crypto loans!
Why would someone with money take out a loan?! There's two reasons they rarely share.
First - the money isn't taxed! That's right, in most countries (such as the US) money recieved via a loan are not taxable. So it's basically the smartest way to make a withdraw. Interest rates will typically be less than half the tax rates!
Secondly - In a bull market, they use a cryptocurrency loan, to buy more cryptocurrency! Obviously don't touch this method if you haven't had success investing in crypto already, but this is hardly new to pro investors.
Now, they're holding their position on Bitcoin, while getting the funds to invest in something else at the same time.
These are both things everyday investors can do as well.
Are Bitcoin Loans Safe?
Really, if the worst happens, crypto comes crashing down... you'll be in a better position having used it to get some if it's cash value.
But if it rises in value, you managed to make new investments with money from your Bitcoin, and in the end you still have your bitcoin, and now your new investment.
Where do you get a loan using Bitcoin (or another cryptocurrency?)
There's been a truly insane number of these services popping up, so currently we have a market of unknown and unproven companies that want you to trust them with large sums of your money, and some really great, well established services.
Currently, the team here has decided upon 2 recommendations to keep it simple, based on where you are located.
If you're outside the US: We recommend YouHodler.
Inside the US: We Recommend BlockFi.
It's time to start using these tools to YOUR advantage too!
Notes From The Author:
This is the future of finance...
I first entered the banking world here in Switzerland when my father introduced me to it at 17, a job while school was on holiday. Since then, nothing has felt as exciting as seeing what is currently being created in terms of cryptocurrency based banking that offers real solutions and services, like getting a loan.
A fascinating invention of Bitcoin is mainstream as a computerized money, yet additionally as a store of significant worth. hat is the reason Bitcoin isn't just a type of cash, but can be utilized simply like different resources like acquiring credit.
A Bitcoin credit is a customary advance that is much the same as the one offered by banks.
Clients can get cash by keeping their Bitcoins as guarantee, which must be paid back with enthusiasm over the foreordained time frame. The borrower can pay back the credit in month to month compared portions or without a moment's delay contingent upon the provisions of the understanding.
Those reasons may incorporate anything, for example, venturing to the far corners of the planet, purchasing a home, expanding a portfolio by putting resources into other resource classes, putting resources into a business, or satisfying other surprising expense obligation. Along these lines, when a client has gauged the stars and the cons of taking out a Bitcoin-sponsored advance, they can take a gander at a portion of the accompanying offering Bitcoin-supported advances. Far from the wild west, no anonymous bitcoin loans or a bitcoin loan without collateral could be expected.
Switzerland News Desk