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How To Generate Passive Income with Bitcoin Peer-To-Peer Lending using BitBond

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Bitcoin Peer-to-Peer Lending

A while ago you decided to buy bitcoins, not only because cryptocurrency seemed as an exciting idea, but also because you were looking for investment opportunities. Now that you have found a secure way to store your bitcoins and can comfortably navigate through bitcoin exchanges, you may be asking yourself, what next? The good news is, there are various ways you can invest your bitcoins such as cloud mining, margin lending on exchanges, and investing in initial coin offerings (ICOs).

In this article, you will be introduced to one of the best ways to invest your bitcoins, which is bitcoin peer-to-peer lending using Bitbond.

What is Peer-to-Peer Lending?

BitbondPeer-to-peer lending refers to individuals lending to other individuals or small businesses via an online peer-to-peer lending platform. This allows individuals and small businesses who struggle to secure a bank loan to receive funding and allows private investors to lend money for a high-interest return. Peer-to-peer lending returns are higher than those of government bonds, for example, as individuals and small businesses have a higher credit risk and are, therefore, more likely to default.

Bitbond is the first and leading peer-to-peer lending platform using the digital currency bitcoin. That means that small investors from around the world can engage in peer-to-peer lending without needing a bank account.

If you believe that the price of bitcoin will continue to appreciate and you want to earn interest income on your bitcoins, then bitcoin peer-to-peer lending is an excellent investment opportunity.

How to Invest in Peer-to-peer Loans using Bitcoin

To invest in peer-to-peer loans you simply sign up to the Bitbond platform, deposit bitcoins into your Bitbond wallet and then browse through the available investment opportunities. Once you have identified the borrowers you want to lend to you invest your bitcoins into these loans. As soon as the loan has been fully funded your investment in that loan is finalised and you will start receiving monthly repayments with interest until your loan matures.

Bitbond Loans

Different borrowers have different risk classifications, time horizons, and interest rates. That allows you to adjust your levels of risk to the levels of returns you are seeking.

Your loan repayments will go straight into your Bitbond bitcoin wallet and you can then reinvest those funds or send them to a bitcoin exchange to exchange them back into fiat currency.

Diversifying your Lending

Investing in bitcoin peer-to-peer lending using Bitbond has a number of advantages. Key among them is the decentralized nature of bitcoin, which is not beholden to any country like other global currencies are. Therefore, this means whether you invest in someone from the United Kingdom, or Kenya you don’t have to worry about currency conversion rates.

Diversification is key when it comes to peer-to-peer lending. To reduce the overall default risk of your peer-to-peer loan portfolio, it is important that you spread you investable income across several loans. That way, if one borrower defaults, your overall loss is limited due to your diversification. Bitbond allows users to make investments as low as 0.01 BTC. This makes it possible for every user to diversify their lending portfolio across continents, people, and credit ratings. This, in turn, lessens the risk of borrower defaults.

Low Fees

A key feature about bitcoin peer-to-peer lending is the low fees involved for both lenders and borrowers. In the case of Bitbond, there are no charges incurred by the lender for investing or registration. A lender on Bitbond can expect to get returns on his investment without having to fork out money to cover the associated loan expenses.

In addition, Bitbond has one of the lowest origination fees you can find anywhere. The fees range from 1%-3%, the former being the smallest term loans and the latter, the longest term loan. Also, the minimum amount a borrower can loan is BTC 0.01. The maximum limit depends on the borrower’s ability to repay the loan.

Lenders can evaluate borrower’s business information

Unlike conventional P2P sites, lenders on Bitbond can learn more about borrowers through social media or by engaging them directly via the platform. Most borrowers on Bitbond are online entrepreneurs who sell products on large e-commerce platforms such as Amazon or eBay. You will find their social media and e-commerce accounts linked so that you can get a very good idea of who you will be lending to.

This means a lender can check out the borrower’s eBay page and read the customer feedback, which can help him decide whether or not to fund a project. Such stories are more reliable compared to the number of Facebook and Twitter followers a borrower possesses. Most traditional peer-to-peer lending platforms do not have this feature.

Higher Returns Than Other P2P Lenders

In 2015, US-based peer-to-peer Prosper recorded $14 billion in returns and an average interest rate of 6.87%, while its largest competitor, Lending Club, has an average interest rate of between 6%-8%. However, these returns pale in comparison to the to 13% average APR that you can generate on bitcoin peer-to-peer loans on the Bitbond platform.

Bitcoin P2P lending offers you one of the best ways to grow your money, as bitcoin usage continues to increase and new developments in the blockchain are creating more opportunities. Platforms such as Bitbond, do not have any hidden fees and offer competitive returns on your loans, thereby making P2P lending an excellent way for you to earn passive income regardless of where you are in the world.

If you want to start earning passive investment income through bitcoin peer-to-peer lending, sign up to Bitbond today and get started!

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Paxful’s #BuiltwithBitcoin Initiative to Fund Rwanda Water Project and Afghan Scholarships

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Paxful Fund Rwanda Water Project

Peer-to-peer bitcoin exchange Paxful has announced a new development in its #BuiltWithBitcoin charitable initiative. The company is launching a Rwandan water tank project that will be spearheaded by AnthemGold, their new initiative member; additional classroom resources for the Rwandan nursery school that was built as the first #BuiltwithBitcoin project, and award more than $15,000 scholarships for female Afghan refugees to pursue their careers in the United States.

Paxful’s scholarship beneficiaries include Susan Naseri who is interested in non-profit work and law; Dunia Azizi, who will pursue a mathematics degree; and Farzana Nawabi, who is working towards a bachelor’s degree in nursing. The beneficiaries were chosen by Zam Zam – a non-profit organization partner for the program – based on the personal essays they wrote describing the hardships encountered while getting an education, migrating to the U.S. and blending into the American society while pursuing their careers and raising families.

Susan Naseri, one of the beneficiaries, said: “As a recipient of the Zam Zam Water scholarship, I’d like to express endless gratitude and appreciation to Paxful and everyone involved in the donation process. Receiving this scholarship is not only an immense honor and privilege; it also eases my financial stress significantly. I’m beyond humbled and thankful for this scholarship; thank you eternally for helping me expand my education and fulfill my dreams.”

Paxful Expansion and Partnership

Paxful Fund Rwanda Water ProjectFor the initial scholarship, winners were given $5,000 paid in two installments each of $2,500. Zam Zam Water will continue running the scholarship as an annual program. In addition, both Paxful and Zam Zam welcomed AnthemGold to the #BuiltwithBitcoin initiative after the virtual currency provider contributed enough bitcoin to construct a 35,000-liter water tank as well as fund the cultivation of more than 80 sustainable community gardens and 30 goats for two villages in Rwanda.

Speaking of the initiative, AnthemGold’s CEO, Anthem Hayek Blanchard said: “I am grateful to participate in a project that builds sustainable and essential projects for communities in need. We hope to use Zam Zam’s knowledge to provide people with the building blocks needed to foster and grow.”

Paxful’s announcement comes after its May announcement regarding its investment expansion in Africa by electing a new African Regional Director and building an incubation hub for blockchain technology in Lagos, Nigeria. The hub is expected to launch in the fourth quarter of 2018 and will be a co-working space that will provide services such as mentorship, advice on ICOs, and individual and corporate blockchain training. Paxful will also be sponsoring various crypto-focused events in Nigeria and plans to hold talks with similar events in Kenya, Ghana, and Cameroon.

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Crypto-Finance Platform Nebeus Enters the Africa Market

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Nebeus
Image by Nebeus

Cryptocurrency users in Kenya, Uganda, Tanzania, Rwanda, South Africa, Nigeria, and Ghana now have full access to the suite of Nebeus services. The “crypto bank” Nebeus enables users to buy and sell cryptocurrencies, enjoy remittance services, and access crypto-collateral loans, among many other services related to crypto-finance.

Opening access to Crypto-Finance services in Africa

Nebeus is a London-based fintech startup that runs a P2P exchange platform, offers crypto-collateral loans and incorporates a user-friendly bitcoin wallet. Nebeus was founded in 2014 with the aim of delivering a cheap, convenient and highly efficient service that catered to the demands and challenges of the evolving cryptocurrency landscape.

The crypto-finance platform will take advantage of local telcos and mobile money to penetrate these new markets, according to a company press release. Mobile banking has enabled African countries to leapfrog many developed nations by tapping into a previously unbanked segment of the population. The success of mobile money platforms, such as MPESA in Kenya, has attracted a number of fintech and blockchain companies to the African market.

The pay-in and pay-out corridors for the trading service include MPESA in Kenya, Airtel mobile money in Uganda, mobile money (Vodacom, Airtel, Tigo) for Tanzania, mobile money (MTN) Cameroon, Mobile Money (MTN) for Nigeria and MasterCard, Verve (Cards) and online banking for Nigeria. The established network of local payment partners will provide access to crypto-services for a population of over 400 million people.

Nebeus also aims to play a greater role in serving the African remittance market, which is estimated to receive billions of dollars annually. The company’s objective is to become the focal provider for this section of the African economy.

Alex Lempka, Nebeus’ Director of Communications, said: “Cryptocurrencies have a potential to make a significant impact on developing countries in many ways by providing a bridge into the global economy. Nebeus is looking forward to playing a major role in that by providing necessary infrastructure for all participants”.

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Golix Relaunches ICO and Expands Into Kenya, Uganda and South Africa

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Golix Launches ICO

Zimbabwe’s digital currency exchange, Golix is relaunching its token sale, which was planned for mid-May but abandoned after the Reserve Bank of Zimbabwe issued a cryptocurrency ban which was later overturned by the Harare High Court.

The exchange, which has been operational for three years, has also announced that it has launched its services in Kenya, South Africa, and Uganda as from Friday 1 June 2018.

“As part of our strategy starting from Friday 1 June, people in Kenya, South Africa, and Uganda will be able to start trading from Golix. This is one of our plans to be the leading exchange in Africa, which inspired by the vision to provide financial autonomy in the continent, ” said Golix’s Head of Growth, Panashe Tapera.

Out of 54 countries in Africa, only three have local cryptocurrency exchanges while the rest are still to realise the potential held by the blockchain technology.

Golix has set its target to avail its services across the entire African continent to address the cryptocurrency infrastructure shortage which has slowed down the adoption of digital currencies.

Golix Lead of Special Projects, William Chui, stated that the token sale was an initiative they set afoot to enable instant remittances and international payments through cryptocurrencies.

The Token Sale

“Since from onset our main agenda is to provide financial autonomy in Africa. The GLX token is going to be used to facilitate and realise this agenda. People from respective different countries will be able to buy the GLX token from the exchange using their fiat currencies. The GLX token will be used to buy other Altcoins in the exchange, all this will be done at zero transactions fee.

“The GLX token will also be used to facilitate remittances and international payments at lesser fees, compared to current banking methods. This cascade immensely towards contribution of GDP growth in African countries,” said Chui.

The GLX token, an Ethereum ERC20 token, will be available for purchase from Friday 1 June 2018 10 AM UTM/GMT on the Golix token sale website, tokensale.golix.com.

Potential buyers can use bitcoin (BTC) and ether (ETH) to buy the GLX token, which has been priced at $0.05612.

1,274,240, 097 tokens will be availed but only 637,120,049 are going to be sold during the token sale and the public will only be able to buy half of the tokens.

*Disclaimer: This post is informational only. Readers should do their own due diligence before taking any actions related to the mentioned company, product or service. BitcoinAfrica.io is not responsible, directly or indirectly, for any loss or damage caused by or in connection with the use of or reliance on any content, product or service mentioned in this article.*

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