Bitcoin has been around for almost a decade now. However, Bitcoin’s success over the years has led to the creation of other crypto coins. Back in 2008 when Bitcoin was being launched, most people didn’t believe it would be a success. Most people didn’t believe that decentralized currencies would compete with fiat currencies.
The success of crypto coins has opened up several avenues for investors. Nowadays, you can easily apply and get bitcoin loans instantly at low interest rates. Other than applying for crypto-backed loans, investors can also trade their coins for profits.
In this guide, we will take a look at the benefits of Bitcoin. We will also share steps on how you can purchase your first crypto coins. Lastly, we will guide you on how you can apply for a crypto-backed loan.
Benefits of Investing in Bitcoin
Investing in any crypto coin or stablecoin means that you can leverage the power of blockchain technology. Stablecoins are a type of cryptocurrency whose value is pegged on a fiat currency such as the USD or Euro. Unlike crypto coins, stablecoins are protected from price volatility, so the value of stablecoins doesn’t fluctuate by huge margins.
Bitcoin is one of the most valuable crypto coins on the market. The reason why Bitcoin is highly valuable is that it has high liquidity, meaning that it can be sold easily. However, before you go ahead and borrow bitcoin online, you have to keep in mind that Bitcoin is very volatile. Its prices and value fluctuate too much, which can be quite detrimental, especially when the prices drop.
Bitcoin is a decentralized currency, meaning that it is not controlled by any entity. As such, the banks or government cannot monitor your transaction or freeze your assets. Owners have complete control over their crypto assets.
Lastly, Bitcoin is accepted in most countries. This makes it easier for users to transfer or pay for services without incurring extra fees on currency conversion. The transaction fees are quite low as compared to what banks charge when you do a global money transfer.
How to Purchase Bitcoin
Purchasing Bitcoin or any other crypto coin is very easy. You need to have some crypto coins in your wallet to borrow bitcoin instantly. There are plenty of crypto exchange platforms available that offer crypto trading services at a small fee.
You will need to sign up for an account on your preferred crypto exchange platform. Ensure that you do adequate research before signing up. Look at the transaction rates, review supported payment options, and read reviews from current users.
The sign-up process is very simple. You only need an email address and a laptop or mobile phone with an internet connection. After successfully creating an account, some platforms will ask you to verify your details before you can make any transactions. The verification process is very simple as you will only need to upload a copy of your government-issued ID or driver’s license.
Once your account has been verified, you can move ahead and add your preferred mode of payment. Most crypto exchange platforms allow users to buy Bitcoin directly from their bank accounts using either a credit or debit card.
Applying for Crypto-Backed Loans
As mentioned earlier, for you to be eligible to borrow bitcoin instantly, you will need to have a few crypto coins in your wallet. You will also need to create a pro-savings account at YouHodler. YouHodler is a crypto-exchange platform that offers crypto-backed loans. Users can also earn free interest from their crypto savings.
YouHodler offers crypto-backed loans while using your savings as the loan’s security. You can apply for a crypto loan or a fiat currency loan. As such, you don’t have to sell your crypto assets whenever you need some quick cash. The interest rates are quite low compared to what most banks charge.
If you’re planning to invest in crypto coins, you need to ensure that you do plenty of research beforehand. Keep in mind that crypto coins are quite volatile and that is very risky as you can lose quite a lot when the prices fall. However, you can still enjoy the benefits of crypto technology by investing in stablecoins, which are less risky.