Biterest provides the P2P platform to receive crypto-backed loans (secured with Bitcoin). Since the platform acts as a connecting mechanism between the borrower and the lender, the primary goal is to provide the most convenient way of money transferring between the users. If you choose a suitable way to receive funds, your money will be at you just in a couple of minutes after the collateral is provided.
What is the difference between to get a bitcoin loan and receive a loan secured with bitcoin?
Please note that Biterest does not contribute to the receiving of a cryptocurrency loan. All the deals on Biterest are made solely for the purpose of receiving a loan secured with bitcoin in order to provide the borrower with an opportunity to save his cryptocurrency for the future.
Why are cryptocurrencies used as loan transfer methods?
We tried to find the perfect way to transfer fiat funds, but cryptocurrencies turned out to be the best way of money transfer. The SWIFT international transfer system is morally obsolete, the transfer between banks goes on up to 5 business days, and the commission of payment service providers, which were supposed to solve these problems, reaches 10%. In addition, even the largest global online transfer service PayPal is not available in all the countries: for example, users can only send money, but they cannot receive it.
Furthermore, each of the traditional money transfer services has different limits and restrictions on the amount of transferring, receiving, withdrawing, and storing. The limits directly depend on the status of the user in the system. Often, in order to pass the verification or raise the status in the system, the user needs to come to the nearest service department. It has turned out that the user does not have the opportunity to open the webpage and instantly transfer money. In order to reduce the risk of a loan cancellation due to inconsistencies in transfer methods between users, we have decided to use cryptocurrencies.
The above-given problems of existing payment systems led to the emergence of Bitcoin so that the result was expected. Cryptocurrencies give our users not only complete security and anonymity in making transactions but also provides them with:
• low commissions;
• sending money within a few minutes;
• absence of restrictions on the amount of a transaction;
•anonymity in transactions, etc.
All you need to send your funds to a Bitcoin address is any device with access to the Internet. At the same time, users do not provide any personal data to third parties, therefore, the likelihood of freezing your personal assets with the subsequent need to prove their origin is absent.
The currency of all the deals on Biterest is the US dollar, so the loan amount and the repayment amount(loan body and interest accrued amounts) are fixed in dollars at the beginning of the deal. Before termination of the loan, the borrower must return the dollar equivalent of the repayment amount. The initial amount of cryptocurrency received from the lender doesn't matter. Otherwise, the terms of a deal are completely identical to the conditions of fiat transactions.
Double profit of using bitcoin as a transfer method on Biterest
The borrower can either spend bitcoin, exchange it to the fiat currencies in a convenient way or keep hodling bitcoin. As a result of an increasing bitcoin rate, they receive income not only from the growth of the collateral value but also wins on the difference between the initially received amount and the repayment amount. The repayment amounts of all the loans are fixed in USD. Thus, if the lender provides a loan of $1,200 at a BTC rate of $6,000, the amount to be transferred is 0.2 BTC. The borrower must return $1,250, but, at the time of loan repayment, the BTC rate is $10,000. Then, the refund amount is 0.125 BTC. Due to the increase in the BTC rate from $6,000 to $10,000, the amount of repayment decreases by 0.075 BTC.
If you are not ready to sell your cryptocurrency for an unprofitable price and do not want to lose extra income during a long upward rally, apply for a crypto-backed loan on Biterest. Get cash secured with your bitcoins instead of selling your crypto assets.Tweet