It is now possible to get Australian dollars (AUD) fiat loans using your crypto as collateral.
How it Works in Simple Terms
1) You send your Bitcoin to the loans company;
2) they send you dollars (about 60% of the value of the Bitcoin);
3) They hold your Bitcoin for you securely;
4) You pay them 1.5-3.0% interest per month (either in Bitcoin or dollars);
5) Whenever you want your Bitcoin back you pay back the loan in dollars and they transfer back your Bitcoin to you.
Bitcoin Dealers Crypto Loans Overview
- First and only company in Australia offering loans against Bitcoin/Crypto
- Loans available to anybody that holds crypto to be used as collateral
- Minimum loan $1,000 maximum loan $800,000
- Receive money in less than 1 hour
- No credit checks
- No locked in contracts
- Interest only loans (you pay once per month the interest)
- Loan fees start from 1.5% per month
Bitcoin Loan Example
Let’s say 1 Bitcoin is worth $10,000, we can lend you up to $6,000. If the price of Bitcoin drops to $7,058 (85% LVR) you will receive a margin call. A Margin call means that the liquidation price is getting close and you should to top up your collateral so there is still a sufficient margin. You can top it up with crypto or fiat.
If you don’t top up the collateral, and the price drops to around $6,315 (95% LVR) we then sell the coins in Kraken,Bitstamp or a similar major exchange. The transaction will be recorded and we will return the balance to you. The balance is calculated by adding the principal owing plus any outstanding interest and then deduct it from the price that the coin was sold for.
If the price of Bitcoin was to go up to $15,000, you can then request for more funds, in this case an extra $3,000.
How Is Your Crypto Stored?
Your crypto is stored in cold storage, however, if the price of the crypto drops and you get a margin call, the coins will get sent to an exchange account in the event we need to liquidate the position. To avoid the coins getting sold, simply top up the collateral if the margin call is becoming close. Collateral can be added in money or crypto.
Go to the Crypto Loans section of their website or Visit one of our offices below (no appointment needed)
For any questions please contact the Bitcoin Dealers by phone 1800 628 831 or email [email protected]
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