Have you ever needed something that you thought would add value to you, but there is no way to get it? It can be really frustrating especially when you find yourself in such a helpless scenario without any solution.
Many traders who need a crypto loan find themselves in such situations. Sometimes traders need loans to take advantage of a trading opportunity or to save a leveraged trade that is close to liquidation. A solution to this problem are BINANCE CRYPTO LOANS .
What is Binance Crypto Loans?
Binance Crypto Loan is a financial service that helps users of the Binance platform meet their short-term liquidity needs by providing them with crypto loans.
Why do we use crypto loans?
- Crypto loans can be used unless leveraged traders are close to liquidation and require more margin to be added to their positions.
- It can also help traders with limited funds add to their trading funds while using theirs HODL crypto as collateral.
- Crypto loans can serve as a necessary help for traders who are owners of crypto projects who do not want to sell, but still want to trade and get turnover.
Take for example:
A Binancian who HODL BTC needs a working loan to trade and earn turnover, but he only has 1 BTC in his portfolio and doesn't want to sell. What can he do? He can borrow from Binance to trade and use his 1 BTC as collateral to take it back after the loan is repaid. Binance approves the loan for him on agreed terms, so his needs are met.
How to use crypto loans.
Note that the crypto loan can be used for any transaction, it can even be downloaded if the user wants to use the crypto funds possibly for a project outside of Binance as long as the loan is repaid on time. On leveraged loans can be used for tracing or other Binance Win options.
If the received loan is liquidated, a liquidation fee of 2% is charged of the total amount borrowed. Accepted loans attract a minimum hourly rate of 0.00000001 BUSD based on the contract for loan and the interest rate is 3x after the expiry of the loan repayment period.
Borrowed loans are renewed if the previous loan is paid before expiry. The outstanding loans are overdue after 72 hours from expiry and are closed for repayment.
How do I get loans?
Follow these simple steps:
- Go to home,
- Click on Finance (on desktop) or Earn (in the app),
- Click on Crypto Loans (loan),
- Select the asset you want to borrow, and enter the amount,
- Select the collateral asset and enter the collateral amount,
- Choose a loan term from 7 to 180 days,
- Then confirm the amount borrowed, collateral, interest, repayment and click Start Borrowing Now,
- Confirm all information in the order confirmation popup that appears,
- Carefully read and agree to the service agreement Binance Loans and click on Confirm ,
- Once confirmed, the collateral is transferred to the account on loan and the amount on the loan is received in the spot account .
How do I repay loans taken?
Follow these simple steps:
- Go to home,
- Click on Finance (on desktop) or Earn (in the app),
- Click on Crypto Loans (current loans),
- Click on Redemption or Repayment with collateral, if you want to repay a secured loan,
- Enter the repayment amount or choose a repayment ratio,
- Review the data for correct and click confirm payment ,
- A confirmation message appears that the payment was successfully processed.
Binance Crypto loans can be repaid at any time before the loan expires or during the loan expiration period or within the 72-hour grace period after the expiration period. After repayment of the loan, the collateral is received back in the spot account.
Do you feed cryptocurrency and want to take advantage of Binance crypto loan to earn passive income?
Here's how to get started with these simple steps:
First you will have to create a verified Binance account, by clicking here , and then finish the process on KYC .
If you already have a KYCed Binance account with which you are currently trading crypto; just go to https://www.binance.com/en/loan?ref=18705620 and follow the steps highlighted in this article to Yes get a crypto loan and don't forget to pay off your loan on time.
The thoughts in this article are obviously my personal opinion and should not be taken as financial advice.
If you need more details or an answer to any question you may have about using the Binance Crypto loans ; just open frequently asked questions via https://www.binance.com/en/support/faq/360041278132.
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