Borrow Bitcoins in 3 steps
When you want to borrow Bitcoins you only have to complete 3 steps. Follow them through and you will be a happy Bitcoin borrower in no time. Especially compared with the lengthy process when you go to a bank.
1. Register as a Bitbond user
Registering is the easiest step. Enter your name, your e-mail address and select a secure password. A secure password is very important because you have to treat your Bitbond account like you would treat an online banking account.
We have two-factor authentication in place but you don’t want other people to get unauthorized access to your account and see your balance. Once you completed the first registration step you receive an e-mail which asks you to confirm it. Again, this is important because your e-mail address is also your username. You will always log in to Bitbond with your e-mail address. After you have confirmed your e-mail, you’re ready for step 2.
2. Submit your personal and financial details
Basically there are two data input forms. The first asks you to submit personal details like your complete name, address, citizenship etc. The second is about your financial background. This is one is crucial to your rating because the more trustworthy and verifiable your statements are, the better your borrowing terms get. In this regard, when you want to borrow Bitcoins, a Bitcoin loan actually does have something in common with a bank loan. Your details are just as important. But you have the advantage that it’s much more convenient to do this entire process online versus going to a branch.
This is how the financial data input form looks like:
The last parts of the first step are your identity video verification and a proof of residence document.
3. Publish a Bitcoin loan request – the last step to borrow Bitcoins
When your borrower role on Bitbond is unlocked, you are ready for the third step. Log into your Bitbond account and go to ‘Get a Bitcoin loan’. You will see the following Borrow Bitcoins form.
Select over which term you would like to borrow Bitcoins and how many Bitcoins you want to borrow. Note that a 6 weeks Bitcoin loan is the shortest one. Single repayment means that you repay the entire amount at the end of the term plus interest (it’s like a zero-coupon bond). There is no payment during the lifetime of this loan. All other loans are amortizing loans.
The Bitcoin amount shown aside the term is the maximum amount you can borrow. It is your personal debt capacity. Borrow Bitcoins only to that amount, which you really need.
The third part in this form states the purpose what you want to borrow Bitcoins for. If you are not sure which category fits best, read the instructions on the right hand side. Every purpose category has its own hint.
The last part of the ‘Get a Bitcoin loan’ form is the description. Let your Bitcoin lenders know what you need the Bitcoins for. Here you have the opportunity to let your lenders know in more detail what you’re going to do with the borrowed Bitcoins.
You have a maximum of 1,000 characters for the description. However, the best thing is to be brief and to the point. The more specific you make your description, the easier it will be for lenders to decide if they want to invest Bitcoins in your project or not. Lending Bitcoins is like lending any other currency. Investors are cautions and they should be. So provide some background information. The best thing you can do is give a reference about a website of your business.
When you filled everything in, there will be a confirmation form. Check your data carefully and click on ‘Show payment schedule’ to make sure you have selected the right amount and the right term for your Bitcoin loan.
‘Get a Bitcoin loan’ confirmation before listing
When you click Publish to marketplace you made it. Bitcoin lenders can see your project under Browse listings and decide if they want to invest. In your account, you can see your auction under ‘Loans’.
Mission accomplished – what’s next
When your Bitcoin loan is funded the auction is over. Your Bitcoin loan amount is credited to your Bitcoin wallet on Bitbond. You can check it under your ‘Funds’. Also, you can see a payment schedule under ‘Loans’. This helps you to fund your account on time before a payment is due.
This is how your payment schedule can look like