Due to the current crypto explosion that is being experienced by economic markets everywhere, there are many people who are looking for newer ways to invest their digital assets in a safe and secure manner. This is primarily done in order to to reap good returns in a sustainable, long-term fashion.
For example, many companies have started to give loans against crypto currencies like Bitcoin, Ethereum etc. While their potential is not proven, it looks like this lending market has a bright future ahead of itself.
What Is BitBond?
In its very essence, Bitbond can be thought of as a ‘global peer-to-peer bitcoin lending platform’ that operates primarily to benefit small businesses. According to the company's official website, the primary users of this service include eBay sellers, and other small online businesses.
At this point, it is also important to mention that BitBond is governed and operated by a parent company called Bitbond GmbH. It is a German enterprise that has been in the financial sector for many years, and is known to deliver investment loans to businesses all across the globe.
According to statistical data, Bitbond facilitates loans of varying value to over 23,000 users. Not only that, borrowers can also qualify for interest rates “as low as 7.7% and origination fees that range from 1% to 3%.”
How Does BitBond Work?
Basically put, Bitbond diversifies the portfolios of all its customers by making crypto investments all across the globe. As a result of this, borrowers have to pay extremely low interest fee rates, and are able to procure large sums of funds without having to turn to banks and other similar financial institutions.
Given below, is the step by step breakdown of how the entire loan process works
- The borrower’s credit rating and history is first looked into, so as to determine whether the person will be able to return the sum within the specified period. Ratings are maintained all the way from an A to F.
- Once a rating has been assigned to a customer, borrowers are then required to pitch their project to the marketplace, and see if there are any investors who might be interested in the venture.
- All listings have a life of 14 days on the website, and if the required sum is raised before this duration, the listing is automatically removed.
- Lastly, it should also be noted that loans are only funded as long as investors put in 60% or more of the required amount. It also goes without saying that borrowers can only obtain a single loan at any given time.
What Are The Interest Rates Like?
As mentioned earlier, the rates of interest can vary depending upon the credit rating of an individual. Bitbond does not publish a range of APR rates, however through our research, we have found that the interest rates can be as low as 7.7% (as of March 2016) and as high as 25%.
In terms of the amount that can be borrowed, we can see that loans of up to $10,000 can be procured.
Why Choose Bitbond?
While there have been quite a few similar projects that have come up in the recent past, there are certain aspects of BitBond which really make it stand out. Some of these features include:
Through the use of this platform, users can diversify their investment portfolio quite substantially.
As mentioned earlier, Bitbond charges extremely competitive rates and low origination fees.
Once a loan has been approved, users have the ability to invest their funds as and when they like, without having to paying any additional transaction/ handling fee.
Easy to Obtain:
The loan application process is quite straightforward, and can be made use of by people who are new to the crypto world as well.
How Do I Sign Up For BitBond?
To avail of BitBond’s services, users can visit the official company website, and subsequently follow the outlined steps given on the web page. Once all of the basic formalities have been taken care of, users can apply for a loan. If there are any doubts or concerns that one has, users can get in touch with customer care officials either via email, or by phone (whichever is more convenient).