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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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Mauritius to Receive World’s First Digital Asset Custody Regulatory Framework

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Digital Asset Custody Regulatory Framework

Mauritius is set to receive the first digital asset custody regulatory framework in the world, according to an announcement by the country’s Financial Services Commission (FSC). The framework will be effective from March 1, 2019.

The Digital Asset Custody Regulatory Framework

On September 17, 2018, digital assets were recognised as an asset class for Sophisticated and Expert Investors by theFinancial Services Commission, Mauritius (FSC). This was followed by the FSC issuing a consultation paper with the intention of getting public and stakeholder feedback on the proposed Custodian Services (Digital Asset) License regulation, as BitcoinAfrica.io reported in November 2018. The license enables its holder to offer custody services for digital assets.

“In revolutionising the global FinTech ecosystem through this regulatory framework for the custody of Digital Assets, my Government reiterates its commitment to accelerating the country’s move to an age of digitally-enabled economic growth. As an African country, we look forward to fostering further innovation and bringing more prosperity to the region,” said Pravind Kumar Jugnauth, Prime Minister of the Republic of Mauritius.

The regulatory framework will make Mauritius the first jurisdiction to create a “regulated landscape for the custody of digital assets. Holders of the Custodian Services (Digital Asset) License will equally have to comply with the applicable framework for AML/CFT, in line with international best practices,” the announcement read.

Support for the Regulatory Framework

Digital Asset Custody Regulatory FrameworkAccording to the FSC, the regulatory framework was created after consultations with the Organisation for Economic Cooperation and Development (OECD) on the regulation and governance of digital financial assets.

The Chief Executive of the FSC, Harvesh Seegolam, asserted: “The FSC is committed to implementing enabling frameworks which facilitate the development of the Mauritius IFC. We continue to collaborate with our international counterparts and stakeholders in introducing the appropriate regulatory mechanisms.”

The Bank of Mauritius is also in support of the regulatory framework. The bank’s governor, Yandraduth Googoolye, said: “The Bank of Mauritius is supportive of innovation in the financial services sector. Banks, depending on their respective risk appetite, are encouraged to develop business relationships with players in the Digital Assets segment.”

In light of this announcement, the custody services license regulation could create a thriving cryptoasset industry in Mauritius, which could help position the country as the go-to digital asset investment hub on the continent.

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Ghana’s SEC Mulls Over Cryptocurrency Regulation Framework

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Ghana Cryptocurrency Regulation

Ghana may soon receive a cryptocurrency regulation framework that would enable local bitcoin startups and exchanges to operate legally and without the threat of a potential regulatory crackdown.

Cryptocurrency Regulations in Ghana

According to News Ghana, the country’s financial regulator, the Securities Exchange Commission (SEC), is contemplating regulating cryptocurrencies. The commission is also considering licensing exchanges dealing with digital assets.

The news comes at the backdrop of the increasing number of fraudulent “crypto” investment schemes in the West African nation. Last year, over 100,000 Ghanaian investors were reportedly victims of a crypto investment scam called Global Coin Community Help (GCCH), which saw the investors lose 135 million Ghanaian Cedi.

The SEC Deputy Director General, Paul Ababio, said: “[…] Desist from dealing with these crypto entities. […] When you choose to go there you are on your own. We have adopted a wide range of changes on it and we are still doing our research and gathering information. We welcome any input that people might have to help us formulate a view on how we should deal with it in Ghana.”

The State of Cryptocurrencies in Ghana

GhanaLike many central banks in Africa, the Bank of Ghana has warned citizens against investing or transacting in cryptocurrencies due to the risk involved.

Frances Van-Hein Sackey, the Secretary to the Bank of Ghana, in response to the GCCH scam, wrote in a statement: “Anyone who does business with these entities does so at his or her own risk and the Bank of Ghana will not be liable for the refund of any deposit lost by a depositor.”

The current state of cryptocurrency in Ghana could, however, change if the SEC regulates the sector, according to a report by GhanaWeb. The SEC ‘Ababio said that Ghana’s Economic and Organised Crime Office (EOCO) is probing three cryptocurrency companies whose operators are currently missing in action.

“[…] It has been very preliminary and it is a new area of our work that we are going to be quite strong on as well. We will be coming out shortly with a lengthier statement and we will name some of these firms,” he stated.

Furthermore, Ababio revealed that some of these firms operate online and do not have a physical presence. These firms will be classified as illegally operating in the investment sector, he added.

What Could This Step by the SEC Mean for Ghana?

According to the CEO of Modulus, Richard Gardner, the move by Ghana’s SEC is commendable since regulation of the sector will provide standard rules for exchanges to operate by. He believes that this will make the industry viable while protecting consumers from exchanges that engage in market manipulation, abusive trading, and money laundering.

Gardner also noted that the public and private sectors should work together towards creating these regulations.

“The best way to regulate an industry, especially one which is so technical, is to bring together those involved in the private sector, along with those from the public policy side. Together, we can usually find a way to encourage industry growth while protecting consumers,” he said.

Regulations can have a substantial impact on the local bitcoin startup community. Hence, it will be interesting to follow these developments in the coming months as they could mean the difference between Ghana establishing itself as an African leader in the cryptocurrency space or not.

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Places in Africa Where You Can Find a Bitcoin ATM

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Places in Africa

There are currently over 4,000 Bitcoin ATMs across the globe. The majority of them are found in the United States. Africa, however, is also home to a handful of Bitcoin ATMs. In this article, you will discover the complete list of places in Africa where you can buy bitcoin with fiat currency using a Bitcoin ATM.

What Are Bitcoin ATMs?

Bitcoin ATMs function like traditional cash machines with the difference being that instead of cashing out money from your bank account, you can buy and, in some cases, sell bitcoin against local fiat currency.

Zimbabwe bitcoin atmIn 2013, Canada received the world’s first Bitcoin ATM in the Waves Coffee Shop in Vancouver. Then, the following year, the first machine in the United States was introduced at a cigar bar in New Mexico. Two months later, Coinme installed another one in Washington that came with a money transmitter license. Since then, the market for Bitcoin ATMs started to steadily grow.

Today, North America leads the pack with 71.9 percent of Bitcoin ATMs, followed by Europe with 23 percent and Asia with 2.3 percent while Australia and Africa have a meagre 1.3 and 0.1 percent respectively.

Bitcoin ATMs in Africa

In total, there are currently nine reported Bitcoin ATMs in Africa. 

South Africa

South Africa, as a leader in bitcoin adoption, is home to five cryptocurrency ATMs that are situated in Johannesburg, Pretoria, Nelspruit and Cape TownOn Average, these ATMs can dispense between a minimum to a maximum of 100  to 1 Million South African rands (ZAR). Most ATMs require identity verification if you are buying more than 5,000 rands.

Nonetheless, none of these ATMs dispenses cash as they operate only fiat-to-crypto. One bottleneck that might discourage people from using the ATMs is high fees ranging from 8 to 14 percent.

Kenya

Kenya received its first Bitcoin ATM last year in the country’s capital, Nairobi. Operated by the BitClub Network, it is also a fiat-to-crypto only ATM and a minimum of 500 Kenyan Shillings worth of bitcoin and litecoin can be purchased using the machine. 

Uganda

The Kampala Post Office hosts Uganda’s only Bitcoin ATM, which is run by KIPYA Bit2Big, a local Blockchain company. Ugandans can use the ATM to buy bitcoin, bitcoin cash and ether.

Zimbabwe

Golix, the first ever cryptocurrency exchange in Zimbabwe and one of the biggest in Africa, also runs a Bitcoin ATM.

Based in the Golix offices in Harare, this machine provides an essential service in a cash-strapped country since it allows buying and selling of bitcoin, bitcoin cash, and litecoin.

Djibouti

Somewhat surprisingly, there is also a Bitcoin ATM in Djibouti. The currently only Bitcoin ATM in the small East African country is located at Appart Hôtel Moulk.

Interestingly, the ATM’s operator, Group DOS, plans to introduce two more Bitcoin ATMs in Djibouti. Group DOS CEO, Eleyeh Issa, told BitcoinAfrica.io that two new Bitcoin ATMs will be set up in the coming weeks, one at the airport and one at a shopping mall. 

While Bitcoin ATMs tend to come with high fees, which makes them less appealing purchase option for larger investors, they do help to push adoption among smaller investors who want to get started with their first bitcoin investment.

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