WHEN SHAll I USE CRYPTO LOANS?
10/11/2022
By Damilola olushola
Table of contents:
- Introduction of crypto Loans
- What is Binance Loans?
- Why borrow with Binance Loans?
- When shall I use crypto loans?
- How Does Binance Loans Work
- Make your first Binance Loan
- Closing thoughts
INTRODUCTION OF CRYPTO LOANS
The fundamentals of crypto loans are pretty similar to traditional loans except for one key difference: accountability. Traditional loans use credit scores to calculate borrower risk, while crypto loans don’t require credit scores. Instead, lenders will hold a portion of your crypto assets as collateral until you repay the loan.
Let’s take a closer look at how your typical crypto loan works. Since the crypto market is volatile and riskier for lenders and borrowers, crypto loan periods are shorter—ranging from seven to 180 days—and interest is calculated hourly instead of monthly. In the next section, we’ll take a deeper dive into the pros and cons of borrowing crypto.
WHAT IS BINANCE LOANS
Binance Crypto Loans offers a wide range of loanable and collateral crypto assets with competitive interest rates. Please read carefully and agree to the Binance Loans Service Agreement before using Binance Crypto Loans.
WHY BORROW WITH BINANCE LOANS
1. Flexible terms:
We provide 7, 14, 30, 90 and 180-day loan terms. Interest is calculated based on hours borrowed.
2. Early repayment:
Repay anytime before the due date with no penalty fees. Once you return the loan amount, we’ll only charge you an interest fee based on hours borrowed.
3. Use funds anywhere:
Feel free to use your borrowed crypto anywhere on the Binance ecosystem, from trading to making payments. You can also withdraw if you want to use your funds outside Binance.
4. Loans staking:
Some of our collateral options can also be staked to generate crypto rewards and reduce loan interest fees.
WHEN SHAll I USE CRYPTO LOANS
- There are a number of ways you can utilise Binance Loans to your advantage. To start with, you can take loans to get access to immediate funds without needing to liquidate your assets. In such situations when immediate funds are needed (in an emergency situation or in order to capitalise on market opportunities), crypto loans are much preferable to traditional loans because of the speed at which funds can be acquired. In fact, BTC loans can be acquired nearly instantly.
- A crypto loan allows you access to funds which are beyond your means and you do not need to have a credit score to apply for one. As long as you have crypto-assets, you can open a loan at will and choose how you wish to borrow. With Binance Loans, you also get to enjoy added perks such as an excellent customer service, insurance for your funds, and lower interest rates.
- Also, a crypto loan can be used to receive interest on assets. You may use an asset such as BTC or ETH as collateral to acquire a loan in a stablecoin like BUSD, USDT or any other stablecoin and receive interest on your asset after repaying the loan since there’s the possibility that the collateral could be worth more than the loan itself at the time of repayment. In such a scenario, not only would the borrower have utilised the loan for meeting immediate needs, they would also get back their collateral at a higher value.
HOW DOES BINANCE LOANS WORK
If you’ve registered for a Binance account and completed identity verification, you’re ready to start borrowing on Binance Loans. Follow the instructions below on borrowing and repaying your first Binance Loan.
How to borrow:
Step 1:
Decide which asset you want to borrow and which asset you’ll use as collateral. You can choose from a vast selection of popular cryptocurrencies like BTC, ETH, BUSD and more.
Step 2:
Select how long you want to borrow. Timeframes range from seven days to 180 days.
Step 3:
Our platform will automatically determine the hourly interest rate based on your collateral amount.
Step 4:
Feel free to use your borrowed funds anywhere in or outside the Binance ecosystem!
How to repay:
Step 1:
Repay your loan via the Order Page.
Step 2:
You’ll pay the interest fee first and then the principal amount.
Please note: If you’re repaying early, interest will still be charged according to how long you borrowed (hours). You will not receive a penalty for repaying early.
MAKE YOUR FIRST BINANCE LOAN TODAY
Cryptocurrency loans are a simple and easy way to borrow extra funds. You don’t need a credit score, interest fees are lower and you can borrow up to 65% of your collateral value on Binance Loans. But remember, the crypto market is volatile, and loans come with their own set of risks. Before making a loan, ensure you have more than enough in your wallet or portfolio to cover interest fees, collateral and principal repayment.
CLOSING THOUGHTS
While it might be possible to find crypto loan providers that don’t require collateral, the chances of encountering a scam are very high. Consider using trusted service providers like Binance Loans to borrow loans at competitive rates to avoid getting your identity or assets stolen.
Click on the link below to get started
https://www.binance.com/en/loan?ref=331234001
