I just made a little digging to find out which platform offered the best service, and decided to go with Bitbond, after I noticed they had been featured in Lend Academy. They specialise in bitcoin loans for small businesses. This is a p2p lending sector that is growing fast and one that I find particularly attractive.
A loan listing on Bitbond
Since the borrowers on Bitbond are primarily small ecommerce businesses, their borrowers are entrepreneurs who have connected several social media and eCommerce accounts.
I particularly like that I can check out the eBay shops of borrowers, as I tend to trust large amounts of positive customer feedback more than the number of friends on facebook, or Twitter followers a borrower might have. At the same time this is information that you can not find on any of the conventional p2p lending platforms as far as I know.
So what do you need to know about Bitbond
The first thing you notice when you sign up for Bitbond is the slick and easy to navigate interface. All the information you need is presented in a clean, easily digestible way. Below, I have included a screenshot of their loan listings page.
Here you can see the amount requested by the borrower, the country of residence, the interest rates, the credit rating, the terms and denomination of the loans.
This last point is worth explaining in a little more detail here. The denomination of the request determines the base currency of the loan. If the loan is denominated in dollars (green dollar sign in the CCY column) all values are calculated in USD. Thus, if the price of bitcoin should fluctuate, the repayment value and the returns investors make will remain unaffected.
The top three loan listings are coloured beige, and I have no idea why. The terms of the loan can range from 6 weeks to 5 years.
Coupled with higher interest rates commanded by borrowers from around the world, this provides some pretty attractive prospective returns for me as an investor, but more on that later in this Bitbond review.
Another feature I found helpful was the ability of investors and borrowers to communicate via the comments section of the loan listings pages.
This feature allows you to gauge your prospective investment before lending him/her your bitcoin. For me, getting to know the people I invest in is a crucial part of my investment strategy.
This is how you get started with bitcoin lending
Besides signing up, the only thing you need to get started is to buy some bitcoin. There are multiple platforms where you can do this. One that I find super easy to use is Coinbase Once you have purchased your first bitcoins, you can send them to Bitbond.
The deposit gets credited in roughly 30 minutes which highlights one of the many advantages of bitcoin as a payment network. Transactions are quick and at the same incur negligible fees. That’s all you need to do and you’re ready to make your first investment in a bitcoin loan.
Getting to know the borrowers
The first thing I did after registering (took less than 2 minutes) was check out the borrowers I might be interested in. I particularly liked the layout of the individual loan listings pages. Below I have provided a screenshot of one of them.
Here I can check the accounts the borrower has connected, where he is located, the size of his salary, and what the purpose of the loan is.
In this case, the borrower is from Quebec who earns a significant wage, has impressive eBay seller feedback and a solid loan history. Thus, I decided to invest. Not much at first of course, but just a little bit to test the waters.
Here’s a short video explaining how to invest in a Bitbond loan: