Bitcoin Forum

Local lenders offer pretty cheap rates. Credit unions, etc.

Are there  advantages when it comes to loans here?

If you need a loan in fiat then you should not borrow here. It's very risky due to the volatility of exchange rates. But if you need e.g. some Bitcoins temporarily and you have some ETH that you don't want to sell right now - that's when you can use a collateral-backed loan here.

Ty.

Nexo offers 8% per year allows any time termination with 0 penalties. Only interest accrued has to be paid.

Many exchanges offer margin trading.

People with 0 KYC send fake selfies with a fake document to Nexo or similar.

And here?

I'm pretty sure sending fake selfies and documents is illegal. People who want to do things legally while still maintaining their privacy might do it here.

The go for them. Why bother asking here?

You may have forgotten that loansharks in real life have their own debt collection agents who are none less that retired army vets and bouncers. You dont want to get beaten by that crew in the middle of the road extorting the money when you are late for your repayment. Its the reason why loansharks were considered to be a part of the mafia at one time.

Compared to that, ask a non collateral loan here and you manage to acquire it by any method, you can just run away when you wish and rarely you have anybody chasing you or gunning you down.
Like I said, no debt collection goons running after you on being late. But for those honest borrowers this is agood method fo pawn their altcoins to get bitcoin as loan and use that to trade and make a profit and complete the loan payment.

That's a valid question and the reason is that people offer collaterals in the form of altcoins like ethereum, litecoin and we know how volatile crypto can be, so for example, if there is a bull run then the price of the alt coins will give one great returns because of lower prices, like if you have invested in a coin of $0.01 and if it goes to 0.03$, voila you get 3x profits, so why would you want to sell alt coins for meeting your emergency need and lose potential profit? That's the reason of alt-coin collateral, so your alt coins are also safe and you can have future profits as well as you meet your demand of urgent need using a loan.

If they do this, then obviously they get the benefit and pleasure from it ..

Sometimes collateral you have (like accounts) may not be accepted on other platforms.

Yes... it does seem a bit counter-intuitive right? If you have $100 worth of ETH... why would you need a $100 loan of BTC, right? ???

Well, as others have hinted at, sometimes... you need BTC, but all you have are ETH or ERC-20 tokens... perhaps the service or goods you want to purchase only accept BTC and you don't want to go through the hassle of selling ETH/ERC-20 tokens, then buying BTC then paying the service provider and all the fees for the various transactions... or maybe you just don't have the time and need it urgently as trading ERC-20 tokens can take a while if their is low liquidity... ETH is probably easier if you're willing to accept the margin loss for using "instant" exchanges etc.

Borrowing here should really be a "last resort", as opposed to being your first port of call... unless it's for relatively low amounts or when you urgently need some crypto to cover something and you have suitable collateral to cover it.

The risks carried by lenders in the crypto space generally far outweigh traditional real world lenders... you can't size up an individual by looking at them, and it's difficult to get a feel by talking to them via PM/IM etc... essentially it is very difficult to know anything for certain about them. In a lot of instances, you can't even be sure where they live... or if you'll be able to track them down should anything go wrong.

It is quite obvious that people take these loans in the bear market but not only.
All cryptocurrencies lost a lot of value during the last 2 years and people don't want to sell them at these prices.
It is better to take a loan and give your ERC 20 tokens, ETH or any other crypto as collateral in such circumstances.

There are also many other reasons that members take crypto loans on this forum, especially small amounts for a short amount of time.
Many members are enrolled in signature campaigns and earn money in many other ways on the forum.
Sometimes they need a few Satoshis until next week, so they take a loan.

Loans in the bull market are already explained:

Assume someone has tokens in his wallet but he doesn't want to sell them right now as the price for that token can soar any time. So, he can go with the loan here with an option to keep them for longer and sell later.
If the price of that token goes below the liquidity lever lender can sell the token and get his money back. If not, the borrower gets his tokens back and sell them later.