Bitcoin backed loans

[leonair]

Hey guys. I don't want to sell my btc, but I need some money for my family vacation. I looked around several DeFi platforms where I can lock wrapped BTC and get stablecoins, also looked to companies like SALT and Unchained. I don't like 2 things: high interest rate and liquidations. Anyone took BTC backed loans? What is your experience?

First of all I want to say that even though investing with bitcoins can make huge pockets, it will never guarantee you the percentage of profit you will get over time.  And the price of Bitcoin will not only go up, it can also go down.  So of course you have to be at a risk if you invest in other cryptocurrencies including Bitcoin. But in the meantime if you hold on to your bitcoins and meet your loan needs it will be much more risky for you. So I will not suggest you. You can sell your bitcoins for your emergency needs and later buy bitcoins again as per your ability.

[avikz]

Hey guys. I don't want to sell my btc, but I need some money for my family vacation. I looked around several DeFi platforms where I can lock wrapped BTC and get stablecoins, also looked to companies like SALT and Unchained. I don't like 2 things: high interest rate and liquidations. Anyone took BTC backed loans? What is your experience?

There are such products available in the market but I have never used it ever. The only reason is the high interest rate. So if I take loan from my local bank, the interest rate is lower. That's why crypto backed loans never appealed to me.

There is a website called Sovryn which claims to lend bitcoin at zero interest rate. But as I have never used such services, I can't vouch. Do your own research.

[Cryptomultiplier]

Hey guys. I don't want to sell my btc, but I need some money for my family vacation. I looked around several DeFi platforms where I can lock wrapped BTC and get stablecoins, also looked to companies like SALT and Unchained. I don't like 2 things: high interest rate and liquidations. Anyone took BTC backed loans? What is your experience?

There are such products available in the market but I have never used it ever. The only reason is the high interest rate. So if I take loan from my local bank, the interest rate is lower. That's why crypto backed loans never appealed to me.

There is a website called Sovryn which claims to lend bitcoin at zero interest rate. But as I have never used such services, I can't vouch. Do your own research.

It's a must for personal research because many of us have never used the loan service on many exchanges yet, perhaps due to high interest rates and the fact that one's account or wallet can be tempered with upon failure to redeem the loan after the grace period.
Even with the local fiat banks, taking out loans comes with heavy interest rates that if one ain't careful, can't be paid back. The loan service options for BTC will only serve those with a certain amount of BTC in their HODLings and those who constantly receive payments for transaction and services via cryptocurrency.

[Ale88]

Hey guys. I don't want to sell my btc, but I need some money for my family vacation. I looked around several DeFi platforms where I can lock wrapped BTC and get stablecoins, also looked to companies like SALT and Unchained. I don't like 2 things: high interest rate and liquidations. Anyone took BTC backed loans? What is your experience?

I had never took loans using bitcoin as collateral mainly because in the past bitcoin used to be way more volatile than today, so that means the risks were way higher. And probably I wouldn't do it today either anyway. Just one thing: you want to take a loan to go on holiday with your family? Of course that's your business but I would never take a loan for something like that, if you can't afford going on holiday you simply don't go, it's not an emergency. But again, your money, your life, your decision.

[Oasisman]

Hey guys. I don't want to sell my btc, but I need some money for my family vacation. I looked around several DeFi platforms where I can lock wrapped BTC and get stablecoins, also looked to companies like SALT and Unchained. I don't like 2 things: high interest rate and liquidations. Anyone took BTC backed loans? What is your experience?

Honestly, you are not in the right path with your investment journey. First, the reason why you want to get your bitcoin involved into a loan is not really important. Secondly, you should have savings or any funds for emergency purposes that could also be used to such occasions like family vacations. And third, you are risking your bitcoin to a DeFi platform with wrapped bitcoin.
Well, if you really wanna do it, I advise to just look for someone who can get you the money and make that bitcoin you have as a collateral or go look for a bank that could offer you loans without involving your bitcoin, because you're just gonna pay it anyway in fiat, right?

[Velemir Sava]

Well, if you really wanna do it, I advise to just look for someone who can get you the money and make that bitcoin you have as a collateral or go look for a bank that could offer you loans without involving your bitcoin, because you're just gonna pay it anyway in fiat, right?

The answer choice is wise because selling BTC is the same as selling the most valuable asset for a while. If you want to try a little more, there will definitely be someone willing to help where the potential for payment is there.

As for collateral, of course it is very strong because it can be withdrawn at any time and anywhere, only if the borrower believes in it. If it is true that it is a friend or close relative, I am sure it will be lent without any collateral, as long as there is a history and profile of the borrower.

[xiver88]

Thank you guys for your replies and advice. 3 things I have learnt after reading all replies:
1. Nobody in this forum ever used loans backed by BTC and never wanted to.
2. My investment strategy is bad, because I believe too much in BTC and don't have savings for 3-5 months that can cover my emergency needs.
3. I shouldn't do vacation if I don't have spare funds.

That's pretty fare. I take it. Thank you, but I don't believe nobody ever used loans backed by crypto in this forum, please reach out...

[cr1776]

Thank you guys for your replies and advice. 3 things I have learnt after reading all replies:
1. Nobody in this forum ever used loans backed by BTC and never wanted to.
2. My investment strategy is bad, because I believe too much in BTC and don't have savings for 3-5 months that can cover my emergency needs.
3. I shouldn't do vacation if I don't have spare funds.

That's pretty fare. I take it. Thank you, but I don't believe nobody ever used loans backed by crypto in this forum, please reach out...

#3 is critical if you want to remain in bitcoin.  There were plenty of people who did similar things. Coinbase used to offer it for example, and another place is ending it shortly although I am not sure which one.  The key is that if you don't have the private keys, you don't have the coins so I'd advise against it and that is why I never did it.

[Smartvirus]

I looked around several DeFi platforms where I can lock wrapped BTC and get stablecoins, also looked to companies like SALT and Unchained.

I haven’t been really into the loan taking thing but, it would be interesting to know how some of these processes go and so,

When you talk about wrapped BTC loans, you mean like, a system in which, you would have like a multi sig with the company in question, where by your BTC eventually serves as a collateral but, not one that would be taken after a period but rather, one that would propel you to pay and get full custody of your coin. Also, you get to pay interest on what you got from the loaned USDT, I got that right, did I?

If am anything close to your intuition, I would say,
If the vacation isn’t absolutely necessary as I feel it isn’t, given that the funds to sponsor the time isn’t readily available and in most cases, you don’t know what your going to meet on your time out, unforeseen circumstances, you might as well let it slide for the time being.

[GbitG]

Hey guys. I don't want to sell my btc, but I need some money for my family vacation. I looked around several DeFi platforms where I can lock wrapped BTC and get stablecoins, also looked to companies like SALT and Unchained. I don't like 2 things: high interest rate and liquidations. Anyone took BTC backed loans? What is your experience?

Hmm, that's silly mate !
I never experienced a bitcoin-backed loan. But To be honest for Mee it's unusual to take a loan as collateral of Bitcoin. Because there is no one who can be trusted as collateral for Bitcoin, that is, no one is able to give you a complete guarantee that your Bitcoin is safe, even if there are no exchanges. Everyone is well acquainted with the fact that no one can keep your Bitcoin safe except yourself. However, even if a loan is agreed upon, it is not completely certain that he will return your Bitcoin tomorrow. 
 
So I don't like it for myself to hold my Bitcoin in someone else's hands. I can't put myself at risk for a loan. My opinion is that the OP should exchange some BTC of his Bitcoin for fiats and enjoy his family vacation and take the idea of a Bitcoin backed loan from his heart because you should give his Bitcoin to other hands and You are putting yourself at risk by giving it to others.

[Volimack]

I have never gone for this loan it seems very bad to me as far as I know. It is better not to take a bitcoin backed loan. It would be a good idea to sell some if I already have bitcoins. Here there will be no worry of repaying the loan and there will be no need to pay interest. If something goes wrong while taking a loan, there will be no possibility of getting back the bitcoins, so I will never take such a big risk.

[MusaMohamed]

Hey guys. I don't want to sell my btc, but I need some money for my family vacation. I looked around several DeFi platforms where I can lock wrapped BTC and get stablecoins, also looked to companies like SALT and Unchained.

You go from Bitcoin to a token Wrapped BTC, that is not Bitcoin.

With this first step, you no longer own any bitcoin, but own a token which can has value pegged to bitcoin price but can be zero if its peg losses like a bad stable coin UST depegs in 2022.

A next step is also bad, lock your Wrapped BTC token to a DeFi platform, in their staking or liquidity provider pool. You can not know that DeFi platform will stay or collapse or bankrupt like Celsius, Voyager, BlockFi, or scam exit.

I don't like 2 things: high interest rate and liquidations. Anyone took BTC backed loans? What is your experience?

Looking for high interest rate (high APY), you are taking bigger risk.

If you see you take risk with all three steps, is it still safe for you to do this?

The Trades That Triggered TerraUSD’s Collapse

Try to find a job, or second job, get money to use and hold your bitcoin, don't exchange it to Wrapped BTC and lock it anywhere.

[kamvreto]

I have never gone for this loan it seems very bad to me as far as I know. It is better not to take a bitcoin backed loan. It would be a good idea to sell some if I already have bitcoins. Here there will be no worry of repaying the loan and there will be no need to pay interest. If something goes wrong while taking a loan, there will be no possibility of getting back the bitcoins, so I will never take such a big risk.

taking a loan with bitcoin will be at risk of experiencing an increase in value every time the loan has to be paid and that is also added with interest in the form of bitcoin. But when the price of bitcoin falls it will indeed provide profits. but I prefer to borrow in Fiat because it will remain stable and there will be no increases whatsoever. some people even make loans with bitcoin and a few days later the price of bitcoin pumps and that makes us have to pay more for bitcoin if we have to rebuy bitcoin and return it.

[FinneysTrueVision]

THORChain offers 0% interest Bitcoin backed loans, with no liquidation risk, and no expiration. You can use native Bitcoin as collateral, without the need for wrappers. The collateralizaton ratio is really high, and you will need to provide twice the value of your loan amount as collateral. Currently, however, borrowing against BTC isn’t available due to having reached their cap.

Another option, would be Debifi, which also lets you use native Bitcoin as collateral. I saw a demonstration of it on the BTC Sessions YouTube channel. From what I saw, the interest rates seem to be really high. If you really need the loan, I would check it out to see if any offers with reasonable interest rates have become available.

[btc78]

It would be a good idea to sell some if I already have bitcoins. Here there will be no worry of repaying the loan and there will be no need to pay interest.

One of, if not the most unfortunate things to happen in an investor is having to sell their bitcoin due to lack of funds. It would certainly make an investor think of a mullion what ifs. There might also be a chance where he can’t immediately replenish or replace the money he had sold. With bitcoin’s price right now, I wouldn’t recommend selling because if you want to buy it might be too high or too expensive already,

[Mr.suevie]

Hey guys. I don't want to sell my btc, but I need some money for my family vacation. I looked around several DeFi platforms where I can lock wrapped BTC and get stablecoins, also looked to companies like SALT and Unchained. I don't like 2 things: high interest rate and liquidations. Anyone took BTC backed loans? What is your experience?

Am not too certain but I think the CEX binance offers some kind of loan feature where your BTC will be held and USDT will given to you with little interest too although am just saying haven't really tried it before but I assume thats how the service work. You can check it yourself or someone who is more experienced with it can shed some light.

[bettercrypto]

Hey guys. I don't want to sell my btc, but I need some money for my family vacation. I looked around several DeFi platforms where I can lock wrapped BTC and get stablecoins, also looked to companies like SALT and Unchained. I don't like 2 things: high interest rate and liquidations. Anyone took BTC backed loans? What is your experience?

Well, what you think is also good is a BTC-backed loan, which is a loan that you haven't touched or reduced the amount of bitcoin you have. As far as I know, I only see that often on DEFI platforms, and if I know anything about the CEX platform, it's only Binance; I don't know about others. 

I just don't know if you have experience with such borrowing from BTC-backed loans. Maybe you can try Blockfi and check for yourself. It's just that what they lend you depends on the size of the of the amount you have. For example, if you have Bitcoin worth 200k, they can lend you around 100k, or if you have Bitcoin worth 50k, they can lend you around 25k, and the duration until you pay it depends on them.

[Frankolala]

Most you take a loan because you want to go on a vacation with your family. There are things that we need to take loan for and not because we want to have pleasure with friend or families. Loans should be taken for very vital reasons or for investing.

You can go to the lending board on the forum and see if anyone will give you a loan. However, if you are good at paying back your loan at your bank and they find out that you don't delay in paying back your loan, then you should take the loan in fiat as you will need no collateral. If you don't always pay up your loan in your bank for long, you will not be given a loan without collateral. ll