Have you ever taken out a loan against your bitcoin? I'm thinking of it.

[TrufieldICO]

I personally will not advise it. Bitcoin price fluctuates, who knows where the price will be in 12 months time. I believe taking a loan is too big a risk

[daarul50]

Do you mean using Bitcoin as a collateral for a loan? That is too risky for lenders because the price is too volatile. The lender might ask for a condition that when price suddenly drop below $6,000 USD they will liquidate to make sure they recover their capital. You can also see this as a condition in the lending section where lenders asks for alt coins as collateral but will sell rightaway when price drops.

I do not think anyone will lend bitcoin when the price is on the rise as it is today. Only people who do not think long who provide loans.

[Btcvilla]

I don't want to sell my bitcoin, especially now because it's going back up and it looks like it's just going to keep rising. I just found out that there are organizations out there that allow you to get a USD loan back by your crypto. Has anyone done it? Who do you recommend. Looking for good feedback only!

I have never dealt with anything like that. you should do something more effective. for example, investing in ico and when you get profit you can exchange it on bitcoin. as well as with trade. so, I can do it while waiting for a big bait.

[CBlock86]

Bitcoin offers unprecedented features for use as collateral in secured loans. Whether you like the idea of borrowing against bitcoin holdings or hate it, bitcoin-backed loans appear poised to play a major role in the digital economy.

Thank you! I agree. I'm not as skeptical as most on this thread. It's an asset class. People are saying the coin might fall to $6k and tank but guys... That's not going to happen. Let's be realistic. if you really thought that then you would be in the btc game.

Anyway, yea the cypto lending industry is here to stay. I'm talking to BlockFi now. They seem easiest. And, in case people are forgetting how the taxes on crypto work here, if I sell my crypto then it creates a tax event!

[CBlock86]

I just found out that there are organizations out there that allow you to get a USD loan back by your crypto.

i am willing to bet that what you call "organizations" are a bunch of scammers with a pretty website. because if you think about it no real business is going to accept a highly volatile asset as a collateral for a loan.

imagine you take a loan when price was $20k so you pay 1BTC as collateral and receive a little less than $20k. then price falls to $6k. do you think anyone in their right minds are going to pay back $20k to receive 1BTC or simple default the loan and go buy 3.33BTC instead?
now imagine a couple of borrowers do this. the "organization" is bankrupt in less than 3 months.

It's called an LTV ratio..

[Joyawan13]

I don't want to sell my bitcoin, especially now because it's going back up and it looks like it's just going to keep rising. I just found out that there are organizations out there that allow you to get a USD loan back by your crypto. Has anyone done it? Who do you recommend. Looking for good feedback only!

that's what we should do, to keep holding and storing bitcoin that we have, because now bitcoin price has started up again, but that does not mean bitcoin will not go down, of course the decline that will occur in bitcoin must exist, but at the time bitcoin price down, at that time he will raise the price again, and I'm sure bitcoin the price will be able to rise higher and will make people so surprised.

[trecore4]

Dont know, I never done any loan that way. I mean I have tried crypto for crypto but not the USD one for the crypto. there are some people who are suggesting that they have done it earlier but im not that confident about such systems and there work procedure!

Look at the market, it keeps fluctuating all the time and for loan purpose you might just need strong collateral. How can crypto work that I dont understand. I mean my counter question is to those who has already taken such loans. How they managed the collateral.

[CBlock86]

Check out the SALT platform, they are the leaders in this field: https://www.saltlending.com/

Below are a couple articles regarding their platform:

https://medium.com/trivial-co/lending-and-borrowing-on-the-blockchain-should-banks-be-scared-e0a01c857c43

https://medium.com/cryptocurrency-citizen/blockchain-review-salt-lending-win-win-loans-f96f64a37d91

Like anything else, don't get into any sort of contractual agreement without understanding the fine print, do your research.

Hope this helps!

SALT was too much for me.. the coin.. too many steps

[Flagship11]

No way in hell would I do such a thing, it kills me to see people buying crypto with credit.
Not a wise move especially if you end up selling.