One Step Closer to Never Having to Sell Your Bitcoin | by Bitcoin Basics | The Capital | Jan, 2025
Everything YOU need to know about Coinbase’s New Bitcoin Backed Loans.
In a groundbreaking move for the cryptocurrency sector, Coinbase has introduced a novel financial product aimed at providing liquidity to Bitcoin holders without the need for them to part with their digital assets. This new Bitcoin-backed loan service is not just another feature; it represents a significant shift in how investors can leverage their cryptocurrency for real-world financial needs. Let’s dissect this product to understand its mechanics, benefits, risks, and potential implications for the broader crypto ecosystem.
Coinbase’s Bitcoin-backed loan product allows users to borrow against their Bitcoin holdings.
Why you need to care: Having the option to borrow against your bitcoin is an important financial tool you can use to ensure you never sell your bitcoin.
Need to put a downpayment on a house? Borrow against your bitcoin, pay off the loan over time. At the end, you will have both the house, and your bitcoin.
Here are the key aspects:
- Interest Rate: The interest rate floats at around 10%, which means it can vary based on market conditions. This dynamic interest approach could…
