Crypto borrowing is a widespread function proposed on large crypto exchanges for trading.
The list of coins that can be borrowed depends on the platform you pick. Of course, BTC is the most common coin for lending due to its high liquidity.
A Bitcoin loan is a borrowing arrangement that allows individuals or businesses to acquire funds using Bitcoin, which is a decentralized digital currency. In this setup, BTC acts as the guarantee for the loan.
Here’s a general overview of how it operates: Borrowers who own Bitcoin can deposit their Bitcoin holdings with a lending service or an individual lender. Depending on the value of the deposited Bitcoin, they can receive a loan in Bitcoin or another asset. The borrower usually commits to repaying the loan sum along with any accumulated interest within a specified timeframe.
In this article, we will explain how to borrow Bitcoin instantly using the WhiteBIT exchange.
What Assets Can I Lend on WhiteBIT?
There are over 20 assets available for borrowing on WhiteBIT, here are some of them:
- AVAX
- DOT
- MATIC
- USDC
- DOGE
- USDT
- XRP
- EOS
- SOL
- LINK
- BTC
- XLM
- ETH.
The WhiteBIT Token (WBT) holds the potential to be utilized as collateral when seeking a loan, although it cannot be lent directly. Likewise, national currencies cannot be employed as loan assets. However, there remains the alternative of converting digital coins into their corresponding national currencies. The collateral encompasses the total value of assets within the Collateral Balance, along with any active margin and futures positions that exhibit a positive Profit and Loss (P&L) value. It should be emphasized that fiat assets are not considered eligible collateral for loans.
How It Works
You are presented with the opportunity to borrow crypto on WhiteBIT for different time periods and make use of them for trading, transfers, and withdrawals. Here are the basic requirements:
- To make use of the pledged funds, it is necessary to have coins in the Collateral Balance.
- Once your crypto has been transferred from the Collateral Balance, the loan will be obtained.
- The calculation of fees begins immediately from the moment of initiation.
- You have the freedom to utilize the coins in your balance as long as the margin fraction ensures the loan.
- To repay the loan, you need to return the borrowed coins along with an accompanying fee back to the Collateral Balance.
Check out the WhiteBIT official site and blog for more information about lending programs. The blog gives comprehensive information on lending crypto and helps you pick the right asset for it.
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