what is bitcoin Loan

[darewaller]

For newbies, they HAVE to give a collateral while asking for a loan without which they will only get a negative trust for TRYING. Now a days Collateral mostly accepted in the form of alt currencies.

Collateral depends on the users. You can find many lenders who have their active threads in the lending section and they may accept or reject your loan request depending on the value of the collateral and the amount you want as a loan.

[1714652119]

1714652119

[Jet Cash]

Granting a loan is like accepting an uncovered short trade from somebody. The collateral should reflect the possible future increase in the price of Bitcoin.
For example - I borrow 5 Bitcoins, and I provide 5 Bitcoin's worth of feral collateral. If the price halves, then I can buy 10 Bitcoin, and pay back the 5 BTC loan. I can keep the 5 BTC profit. If the price doubles, then I can keep the original 5 BTC, and let the lender claim the collateral. Once again, I've made a profit equal to the price of the original 5 BTC.