Coinbase Bitcoin loans permit users to take a loan in cash while collateralizing their Bitcoin. Coinbase's new Bitcoin-backed loans, which include this service, offer liquidity without the need to sell crypto assets.
Main Features:
- Immediate access to funds without selling Bitcoin
- Better interest rates than in traditional loans
- No credit checks since the loans are backed by crypto holdings
Collateralize Bitcoin – BTC is locked as collateral.
Get USD instantly – The funds are credited into an associated bank account.
Repay & recover Bitcoin – After repayment of the loan, the collateral is returned.
Who provides Bitcoin Loans?
Although Coinbase has introduced a new product known as Bitcoin-backed loans, there are other lenders such as Cantor Fitzgerald Bitcoin loans. Nevertheless, Coinbase is still a preferred option because of its ease of use.
Pros & Cons
Pros:
- Fast approval
- No credit effect
- Maintain Bitcoin exposure
Cons:
- Risk of getting liquidated if the value of Bitcoin falls
- Restricted to qualified Coinbase users