What is the collateral?How can i provide it?
It writes are there..
Collateral is something that can easily be resold to cover the loan value plus interest should the loaner default on the loan.
- The best collateral is another crypto-currency, such as Litecoin (also written as LTC). Coins must be moderately traded on multiple exchanges.
- Some digital wares such as domain names can be considered as long as the user cannot recover it.
- Small valuable items that can be shipped though the mail - i.e. gold, silver, iphones, etc.
- Large items, such as a motorcycle or guitar can be used if you live close to the person giving you the loan.
When someone wants to lend you the BTC, you send the collateral either to him (if you trust him) or to a trusted escrow and he sends the BTC to you.
