Slowly and at its pace, Bitcoin is being adopted by countries, organizations and companies all around the world. As per recent news, it seems that the flagship crypto asset is also catching the attention of Wall Street institutions, especially after Goldman Sachs offered the first Bitcoin-backed loan.
Goldman Sachs is not the only firm to support Bitcoin as it has been reported that fellow Wall Street banks are also speeding up how they can move towards the crypto space.
This is a major milestone for the crypto king and the overall crypto space as it indicates that the prominence of digital assets is undeniable and growing constantly.
Bitcoin is undoubtedly the world’s first and most famous cryptocurrency and has an unwavering value, despite the price fluctuations. Therefore, if you are also looking to invest in BTC then make sure you know where to buy Bitcoin online safely and easily.
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Details of Goldman Sachs’ BTC-backed Loan
The Bitcoin-backed loan offered by Goldman Sachs is a major step for Wall Street institutions toward the crypto space.
A spokeswoman from Goldman specified that the popular investment bank had lent cash that was collateralized by BTC owned by a borrower. This was the first time that it has happened and was an interesting deal due to:
- Its structure
- 24-hour risk management
This loan might be a highly suitable option for people who want to borrow fiat currencies. The BTC-backed loan will allow a Bitcoin holder to borrow fiat currencies by offering the BTC they hold as collateral to the bank.
Even though this may seem like an interesting option it does have a few risks too. One of the possible risks can be caused by Bitcoin’s price volatility. If the price of the flagship digital asset drops too much, the borrower of fiat currencies may have to increase their collateral. If they do not, they can get liquidated.
Therefore, how well the BTC-backed loan will work can only be seen with time.
This loan is not the only creative initiative taken by the multinational investment bank. It now has its own in-house digital assets team and according to reports, Goldman executed its first over-the-counter (OTC) crypto transactions last month.
This was achieved in collaboration with Galaxy Digital’s trading unit.
In short, despite the volatility associated with the crypto asset, its value cannot be overlooked. Therefore, if you are also interested in buying the crypto king, make sure you opt for the best Bitcoin exchange.
What Should New Crypto Investors Know?
As mentioned above, Bitcoin is the most well-known crypto asset in the world. It is also the largest digital currency and has piqued the interest of numerous companies, organizations, firms and even individuals around the globe.
However, buying digital assets may not be as easy as one might think as there are several aspects to consider to ensure that any unnecessary risks and obstacles are avoided.
Therefore, people who are new to the crypto space and want to buy BTC should know the helpful tips mentioned below.
- Make sure you choose one of the largest Bitcoin exchanges.
- Start by investing as much as you can afford to lose.
- Keep an eye on the price movement of the digital asset and know when to invest.
If you are a beginner and want to purchase Bitcoin then you can click on SwissBorg or Kraken (U.S. citizens).
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