What is bitcoin lending?

Bitcoin lending is the process of taking out a loan in fiat (USD, EUR, AUD, etc.) while putting your Bitcoin as collateral against the loan. Many people want to keep their cryptocurrencies as a long-term investment (also known as hodling ). However, they still require cash for rent, starting a business, a vacation, or a variety of other reasons.

Can a business lend cash in exchange for bitcoin as collateral?

By lending cash in exchange for bitcoin as collateral, businesses do not need any other verification; they will hold the cryptocurrency until the loan is paid back entirely, either in installments or in one lump sum at the end of the term.

How to choose a bitcoin lending platform?

Borrowers may default, and decentralized platforms can make enforcing agreements challenging. Bitcoin lending has become a popular way for investors to earn passive income. However, there are numerous platforms available. When selecting the right one, consider your needs. Also, check the variety of coins you can lend and the platform’s features.