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Whether you are a digital asset holder or a trader, you have many options for making effective money in the cryptocurrency space. One of these ways is borrowing, and the good news; Doing it on Binance is very simple! What makes the loan so convenient is that you can reap the benefits regardless of the broad market performance.
In this article, we will discuss how Binance Lending works, the types of currencies you can borrow from, and how you can use your funds in them.
If you have a Binance account, it is quite easy for you to work on it. If not, sign up now to be a part of this new financial revolution!
A Binance loan allows you to easily grow your wealth by collecting interest on your funds. Basically, you lend your assets to the platform’s margin traders, and they pay you a profit in exchange for borrowing your funds.
Tether
Binance Coin
Ethereum
Bitcoin
There are two types of loan products, fixed deposit loans and flexible deposits. Fixed deposits mean that you share or lock your funds for a predetermined period of time. Because you have the flexibility to access your funds, the interest rates on flexible deposit products are subsequently lower.
Binance Lending works on a first-come, first-served basis, which means that anyone who shares their funds in a product will earn first. Interest is distributed daily for flexible deposits or on redemption date for fixed deposits.
Binance Lending is constantly evaluating new cryptocurrencies to support them as lending products. Binance follows strict selection criteria, but in general, legitimate products that are in high demand and provide the best value to users are supported.
How to use Binance Lending
Using Binance Loans is very easy. It won’t take you more than a few clicks!
Log in to your Binance account. If you don’t have an account, sign up in minutes.
In the top bar, click on Earn and then click on Lending; Or go to the Binance Lending page with this link.
Select the type of loan you want to use from flexible deposits or fixed deposits.
Select the product in which you want to share your digital currency and click on Subscribe. are you done!
It’s worth noting that BNB in Binance Lending products still count in calculations for Binance Launchpad. This means you can participate in Initial Exchange Offerings (IEOs) while receiving your dividends at the same time!
A fixed deposit loan product means that you share your funds for a predetermined period of time and interest. If you are a long-term investor and committed to holding your digital currency, this option is more suitable for you. Since you’re holding it for a long time, you can make a profit at the same time!
Note that if you subscribe your currency to a fixed deposit product, you will not be able to access your funds during the subscription period. However, if you’re on a subscription but really need to access your funds, you can transfer some of them to flexible deposits.
You subscribe to a fixed deposit product with a fixed amount called a lot. Each lot represents a certain amount of cryptocurrency that earns profit based on a predetermined rate. Also, to prevent a few large holders from buying the entire pool, there is a personal cap per account on how many they can buy.
Normally, the loan period is 14 or 30 days. On the subscription day, Binance Lending will deduct funds from your exchange wallet and add them to your subscription wallet for the product.
For fixed deposits, you will see the following information in the operating system:
Annualized Interest Rate: The percentage you will receive if you subscribe to this product for 12 months.
Duration: the time your funds are locked and you earn profit.
Lot Size: Amount of currency containing one lot.
Maximum Subscription: The maximum amount that a personal account can purchase from this product.
Subscription Starts: The date you can start subscribing funds for this product.
Subscription Ends: The date when the subscription period ends. Note that if the full amount is charged, the subscription period may end earlier than this date.
Value Date: The date your funds start earning.
Flexible deposits are basically your cryptocurrency savings account. You pool your funds to earn your profits with the flexibility to use them at any time. Similarly, flexible deposits have lower returns than fixed deposits.
Do, they will be locked for that day. This means that no interest accrues on that day and you cannot withdraw them until the next day at the latest. From the day after your subscription, your funds are unlocked, you earn profits and can be redeemed at any time. This is to prevent exploitation of the system.
When using, you can choose standard or express redemption. When you choose Quick Redemption, your funds will be available immediately, but interest will not be paid that day. If you choose standard redemption, your funds will be unlocked the next day and you will even receive interest for the day you redeemed.
Interest on flexible deposit products is distributed daily. Please note that flexible deposit products are closed for subscription from 23:50 to 00:10 UTC. The subscription quota is also adjusted during this period. Likewise, if the daily quota for a lending product is full, your best bet is to get it the next day.
Lending is a very simple way to earn rewards with your cryptocurrency, ideal for beginners and long-term investors. Share your funds in any of the available lending products and receive interest from the next day.
