A licensed Japanese cryptocurrency exchange, Bitbank, has set up a program to borrow bitcoin and other cryptocurrencies from its members.
The exchange seeks to borrow as little as 1bitcoin or more. Formally, only 1bitcoin could be borrowed, but consequently Bitbank plans to add other cryptocurrencies like Bitcoin cash, Ripple, Ethereum and Litcoin. In a statement the company explains:
“Virtual currency lending is a service that allows customers to enter virtual currency lending transactions with Bitbank and receive up to 5% virtual currency per year… When we reach the expiry date of one year, we will reimburse by adding the specified usage fee to the virtual currency lent by customers in the month of offering.”
To venture into this program, prospective customers will have to open an account with Bitbank. Lending bitcoin to Bitbank is a healthy way to earn more money with bitcoin as risk of volatility is eliminated. Unlike other cryptocurrency exchanges, Bitbank accepts as low as 1btc which is good news for cryptocurrency investors.