Earn Bitcoin Bonus from Lending Interest

Bitcoin lending is a kind of credit provision in the digital currency sphere. The process is similar to banking. However, there are several attractive and unique features.

First of all, BTC is decentralized. The owner can be even your neighbor. So, you deal with particular people or group of people, and not with entire companies.

Secondly, if you want to obtain a traditional loan, you will need to fill out papers, present proof of income and other documents. In other words, all this unpleasant paperwork is required. Borrowing the cryptocurrency allows you to get rid of all these things.

Thirdly, you can easily become a bank yourself, sure, if you have enough coins. This is a way to increase your capital because of the interest income that you receive from the repaid loan.

Common Approaches to Get Bitcoin Bonus

Bitcoin lending itself has 3 variations. They are Peer-to-Peer and direct crediting, and Bitcoin Banking. Each of them has pros and cons, so we’ve described in our bonus bitcoin review below.bitcoin bonus via lending websites

Direct Lending

Direct lending means you distribute a loan to somebody you know personally. You are sure that this person will reliably repay this sum to you. You set the conditions at your discretion – the number of coins, the duration of the contract, and the interest %.

The problem is that, as a rule, there are not so many friends/acquaintances who are especially interested in your terms. And what will you do if you are a geek? Thus, you need more clients to successfully realize your plans.

Peer to Peer

This variant offers you a broader spectrum of potential clients. There are lending-oriented websites which publish lists of offers and requests. Thus, there are a lot more chances for you, comparing with direct crediting.

Moreover, these Internet sites serve as dating agencies, creating relations between borrowers and investors. The funder receives a higher yield compared to the rates in traditional banking institutions. This is reached due to the absence of significant fees and paperwork while delivering Bitcoins.

A borrower, for his part, can obtain a more beneficial loan with a lower interest percentage. The contract duration varies from two months to five years.

Bitcoin Banking

Bitcoin banking works the same as traditional. There are many Internet sites that accept deposits from investors. These websites set permanent interest rates. In case of a person-to-person scheme, you can have lots of borrowers at once. But in case of depositing in virtual Bank, you deal with only a single loaner.

Reputable Bitcoin Lending Sites And Their Bonus %

It is time to present the most popular and fair peer-to-peer websites for BTC lending.

  • BTCJam is one of the best in the industry. More precisely, it was one of the best services. Now it closes. Customers can continue to repay their credits until the first of July 2018. Currently, it is impossible to make new investments and issue new loans.
  • Bitbond operates in more than 120 countries and has a strong customer base of over 73,000 individuals. By making investments, you can receive an annual return of about 13%. The loan terms vary from 6 weeks to 5 years.
  • Loanbase platform is focused on Latin America market. Currently, it provides services to over 12,000 borrowers and lenders. The average contract time varies from 7 weeks to 9 months. The Interest percentage can be up to 75%.

Loans on BTC Exchanges

bitcoin lending bonusExchanges are a residence of cryptocurrency traders. They keep a check on Bitcoin rate, then buy it cheaply and wait for course upswing. Then they sell it and thereby earn their living.

Some of these websites allow customers to lend out Bitcoins or any other virtual cash. They propose reasonable interest rates around 7-10% annually. It is more secure compared to the investments in BTC banking.

The explanation is that a platform operates all the payouts on its own and offers margin accounts specifically for borrowers. Thus, they cannot withdraw the funds from their balance only on a whim.

Risks And Lending Scammers

Cryptocurrency lending implicates certain risks. They originate from the essence of Bitcoin as anonymous independent virtual cash. And they strengthen in a situation when lots of scammers are seeking for easy money. Many websites work as if nothing bad happens, but suddenly they vanish with all the customers’ deposits.

Avoid those Bitcoin banks which offer you high returns, for instance, daily 1-5% of your investment. They set up short terms like 100 days. It means 500% at the end. That is impossible; you will never get that amount.

Speaking of the person-to-person system, you may also follow several tips. We strongly advise you to drop your capital into little parts for many borrowers. It is not just for the purpose of accumulating more returns. It is the way to secure yourself against high losses caused by irresponsible loaners.