There ara a lot of lending websites out there that will give you loans with bitcoin as collateral. They’ll usually pay you around 50% of the collateral value (bitcoin price at the moment). But they are going to charge you a lot of percentages (APR) for the loan and will sell your bitcoins if the price of bitcoin drops like around 40% or even less. That puts your bitcoins under a huge risk though. Not talking about the annoying verification processes that you have to go through thus giving them a lot of information about yourself.
But don’t worry! I have found a way to do the same without all that hustle.
It’s really easy to do. And might even sound too simple at first. So here we go...
Let’s say you have 1 BTC and the price of bitcoin is $10000. And let’s say you need $5000 cash. So first you just go ahead and sell 0.5 btc to an exchange of your choice (depends on the country you live) and cash it out to your bank account. So we’re done with the cash now let’s proceed to the second step. The remaining 0.5 btc is going to Bitmex (a website that lets you do leverage trading, it’s 100% anonymous and doesn’t ask you for any personal information). There you need to buy bitcoin (go long) at 2x leverage which will roughly put your liquidation price at $5000. So in this case you don’t put your bitcoins at a higher risk and don’t need to pay a lot of fees for lending.
I hope it’s clear. If not just let me know in the comments below and I’ll try to explain it to you in more details.
