Binance is a full-steam locomotive. There doesn’t seem to be anyone or anything that can stop it, and we hope it stays that way. Today, he has unveiled new pairs to add more collaterals to Binance Loans.
Do you need some money? It does not matter if it is to make an important trade or because you have to buy some good or service, in all these cases Binance can help you. Especially at this juncture, where humanity faces the Coronavirus, which has impacted everyone’s finances.
As you read it, the world’s largest crypto exchange increasingly combines traditional banking features with its services.
First, it was the opportunity to lend your hodls to the Margin Trading platform. In these, you can earn interest as if it were a savings account. But, unlike the traditional world, the interest rate of this service is positive and can vary from 1% to 16% annually, depending on the cryptocurrency you provide.
Now, it’s time for loans or Binance Loans, and the way this new service works is extremely simple.
- First, you need, of course, an account on the crypto exchange that meets identity and security checks.
- Second, some hodl is needed, which will be called “collateral.” This works as a guarantee by Binance.
- And third, ask for the loan.
Unlike other Binance services, such as Marging trading, which lends you money, but only for trading, with Binance loans we can do whatever we want.
What do I need to request a loan?
Unlike a traditional bank, you don’t need to go to the office of the financial institution. Neither being of legal age, residing in a privileged country, having a good surname, handing over a photo in high definition … none of this. We are talking about the crypto world, it only takes one thing.
It does not matter what country you are, whether or not you have a credit history with a recognized traditional bank. You will only need an identity document, which will be used by Binance to verify your account on their platform. With this, and an Internet connection, you can access all the services of the world’s largest crypto exchange.
Isn’t the cryptoverse amazing?
What cryptocurrencies can be borrowed on the exchange?
For now, Binance is only lending two stablecoins (USDT) and Binance Dollar (BUSD). But, thanks to the fact that the loan money once accepted will be deposited in your traditional crypto wallet, you can change it to the cryptocurrency you want, as long as they are listed in Binance.
What cryptocurrencies should we have as Collaterals?
As we express, the collaterals are important, since these are the guarantee that we will not leave the crypto exchange with the money they lent us. Binance loans accept a variety of collaterals.
First, it was Bitcoin (BTC) and Ethereum (ETH). But, today they have added new pairs, such as Bitcoin Cash (BCH), Ripple (XRP) and Litecoin (LTC).
For how many days is the loan?
The world’s largest crypto exchange has tried to adjust to everyone’s needs. Binance loans range from 7, 14, 30 and up to 90. But of course, they can be paid earlier, and the interest will be calculated until that day.
Not everything is perfect, nor free. Of course there is an interest in that loan.
How is the interest rate on Binance loans calculated?
Currently, the interest rate is variable and is calculated daily with respect to the level of risk. This level of risk is calculated with respect to the level of Hodl in collaterals that you have.
An important thing is that the interest rate is compounded, therefore, each new day the interest will be calculated as if it were a new loan. Therefore, it is important to maintain a low risk level.