J and B Exchange

             BITCOIN AUTO LENDING EXCHANGE

                        On a basic level, bitcoin loans work like your standard term loan: It's borrowed money that you pay back plus interest and fees over a predetermined period of time. You pay it back in fixed installments depending on your loan agreement. You can also get bitcoin lines of credit and short-term bitcoin loans.

How do bitcoin loans work?

                           First, here’s how bitcoin works

                 To understand how bitcoin loans work, you’ll need to understand what bitcoin is. Basically, bitcoin is a cryptocurrency that operates entirely online. It’s decentralized, meaning no particular organization, individual or country controls it. This allows bitcoin users to make direct transactions between one another without a third party like a bank getting involved.

                     Transactions are recorded and published on an electronic ledger called a blockchain, which anyone can access. The blockchain relies on several anonymous computers  called miners  to verify the legitimacy of transactions before they join the blockchain to prevent fraud. Rather than the blockchain existing on one server, leaving it vulnerable to hackers, it’s distributed to all bitcoin users.

BITCOIN EXCHANGE

Peer-to-peer platforms:

                  The easiest way to get a bitcoin loan is through a peer-to-peer platform, J and B Exchange  that connects investors with borrowers, usually for a fee. To borrow through a bitcoin loan platform, you first need to set up an account and wait for verification.

                Bitcoin lenders don’t rely on the typical ways of judging your creditworthiness, such as your credit score or debt-to-income ratio. Instead, platforms give you a trust score — sometimes called a credit score or rating — based on how much they’re able to verify about your identity and financial history. To get a high trust score, you might need to submit extensive documentation. Once your account is verified, you typically need to select your loan type and submit your application form. You can receive loan offers in as little as a few hours and get your funds instantly once you accept.

Crypto/Bitcoin lending works:

                         The working of crypto lending is quite straightforward.

                       The borrower needs to collateralized his/her cryptocurrencies as collateral and as per the agreed rate, duration, and LTV, he/she is issued the crypto loan.For the lenders also it quite easy as they need to decide to lock-up their funds for the agreed duration of lending as per the agreed rates. This enables them to earn extra interest on their capital that they were just holding previously. Moreover, there are no rigorous KYC checks or credit history inquiries that undergo before carrying on crypto lending. This is precisely because the crypto loans are already over collateralized as well as the borrowers don’t have a single source of truth that can act as a reliable credit history source. And when it comes to Bitcoin lending, the process is similar to lending/borrowing any other cryptocurrency. But since Bitcoin is the pioneer cryptocurrency much of the crypto lending market exists around it. Plus there are better lending/borrowing rates and better LTVs available while using Bitcoin. Moreover, the custodial storage infrastructure is much robust and readily available for

               Bitcoin in comparison to other  cryptocurrencies. Now, that you know how the crypto/Bitcoin lending cycle works, it is indeed imperative to understand the working of Bitcoin/crypto lending platforms which facilitate this lending. So let’s dive into it.