Bitcoin Lending

Taking out a loan in Bitcoin without a bank as a middleman: this has recently become possible. Tradespeople, the self-employed and freelancers in particular benefit from this type of lending, as banks link the granting of loans to representatives of this professional group to high demands.

In the year 2016 with the citizen of Berlin start up Bitbond the first Bitcoin credit mediator received the permission of the financial supervision BaFin. At investorsea you learn how to successfully trade crypto currencies.

Credit for Bitcoin

It’s probably not a good idea to take out a loan to buy Bitcoins, but when you absolutely want to, there are loans over 1000€ for example Auxmoney or Smava.

Intermediary platforms such as Bitbond provide a virtual marketplace where credit seekers and lenders are brought together. Interested parties specify a deadline by which a certain loan amount must be reached. If at least 60 percent of the loan amount is available at the end of the period, a loan agreement is concluded.

The disbursement of the loan amount takes place in the crypto currency Bitcoin. The borrower must worry itself about the conversion into another currency such as euro, dollar or British pound. The user accounts are managed via the provider’s servers and payments are processed via the Bitcoin block chain.

Different credit models

For a credit transaction to be concluded, potential lenders must deposit Bitcoins with the brokerage platform. These are then distributed to the credit seekers on the basis of the criteria mentioned in the previous paragraph.

Those taking out a loan can choose between different maturity models and the currency in which the loan is to be denominated. It should be noted that with a pure Bitcoin loan, the entire fluctuation range of the digital currency comes into play. Although Bitcoins has always recorded high increases in value in the recent past, the crypto currency is susceptible to fluctuation.

Price swings upwards and downwards are comparatively frequent. You can also have the value of the loan determined in US dollars. In this case, both the disbursement of the loan amount and the repayment and interest are calculated in the Bitcoin equivalent. The interest payments and the repayment of the instalments to the lenders are handled by the brokerage platform. Read more about it at

High interest rates for Bitcoin loans

Bitcoin credits have so far primarily been used by self-employed people and merchants who operate their own shops on eBay or Amazon. Since each borrower receives its own credit rating from the Bitbond brokerage platform, interested parties must disclose the sales figures, for example. In addition, the provider demands reading rights for merchant accounts. This information is used to determine the individual interest rate.

The majority of interest rates are in the double-digit range, and in some cases interest rates of 9 percent are offered for a Bitcoin loan. In the event of payment delays, the brokerage platform takes over the dunning process and commissions a collection agency should a borrower fail to meet his payment obligations.


  1. Basically, the business model of online credit brokerage is not new.
  2. Providers such as Auxmoney and Smava have been operating successfully on the market for years and have established themselves as a platform for credit brokerage.
  3. Contrary to these credit platforms the banks remain outside with a Bitcoin credit.
  4. The financial institutions are not integrated into the switching process.
  5. The fact that the financial supervision BaFin gave a license to the operators of the platform Bitbond to the operators underlines the increasing meaning of Bitcoins in the daily life.
  6. In the meantime numerous products and services can be paid with the crypto currency.