Coinbase Users Now Can Use Bitcoin as Collateral for Loans up to $1Million

  • November 3, 2021
  • 22 Views

Coinbase is the leading cryptocurrency force in America. The exchange is fully regulated and licensed to support all U.S. states except Hawaii.

In addition to offering services, ranging from cryptocurrency investing to a wallet for retail investors as well as its own U.S. dollar stablecoin.

Coinbase now allows Bitcoin holders to borrow fiat currency by using their Bitcoin as collateral.

Coinbase Expands Bitcoin Functionality

In the beginning, the US exchange only supported Bitcoin. Over time, it has been adding cryptocurrencies that fit its decentralized criteria. The growing list of the supported cryptocurrencies includes Ethereum, Litecoin, Bitcoin Cash, XRP, and many others.

As cryptocurrency has gained popularity as the most modern financial sector, it is attracting more and more investors who are looking for new potentials or creating passive income. Bitcoin is still the largest crypto in the industry.

New Ways to Use Bitcoin

If Bitcoin holders previously had to accept taxable gains or losses when selling their Bitcoin, these troubles are now a thing of the past!

When needing money for an urgent expense like medical bills and car repair costs, users can borrow money from Coinbase to get money instead of selling Bitcoin and creating taxable gains or losses.

The borrowed money then will be immediately sent to PayPal or transferred through ACH to borrowers’ bank accounts. Moreover, the amount of the loan can be up to 40% of the value of the owned Bitcoin. A Bitcoin holder can borrow up to $1,000,000 with the program.

Borrowers aren’t charged any fees or credit checks, but a low 8% Annual Percentage Rate (APR) and the minimum payment per month US $10 applies to the loan. There is a flexible pay-off schedule and no prepayment or late fees.

Coinbase is well-known as a highly liquid and secure exchange. The Bitcoin that is entrusted to the exchange is securely stored and never used for other purposes.

The new program is available to residents in US states including AK, AR, AZ, CA, FL, ID, IL, NC, NE, NH, NJ, NY, OH, OR, TN, TX, UT, VA, WA, and WY.

To learn more about this great new program from Coinbase – just click right here!

The post Coinbase Users Now Can Use Bitcoin as Collateral for Loans up to $1Million appeared first on Blockonomi.

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