On Binance, stake BNB to participate in #币安钱包 exclusive TGE airdrop events. However, everyone hopes to avoid potential risks brought by BNB price fluctuations while gaining these benefits. This article will introduce a hedging strategy that combines the leveraged borrowing function to help you earn new coins while staking BNB, effectively avoiding price risks.
Understand the core strategy: Leveraged borrowing for hedging
The core idea of this strategy is to use leveraged borrowing to obtain BNB, participate in the TGE of the Web3 wallet ecosystem, while minimizing your capital risk. This approach allows you to obtain participation qualifications without purchasing BNB, only incurring short-term borrowing interest costs.
Detailed operational steps
1. Prepare collateral and transfer to the leverage account
You need to prepare collateral for the loan, such as USDT, BTC, etc. To ensure safety, it is recommended to use stablecoins (like USDT) as collateral to avoid price fluctuations of the collateral itself.
Log into your Binance account and go to the 'Trading' -> 'Leverage' page.
Click 'Transfer' to transfer your collateral (such as USDT) from the spot wallet to the cross margin or isolated margin account.
2. Borrow BNB and transfer to the spot account
Based on the amount of BNB you wish to participate in the TGE, use the leverage function to borrow an equal amount of BNB.
On the leveraged trading page, select the 'Borrow' mode.
Choose BNB as the borrowed currency.
Enter the amount of BNB you want to borrow. The system will display the maximum borrowable amount based on the value of your collateral. Please note that to maintain a healthy leverage ratio, it is recommended not to borrow the full amount.
Confirm the loan, and the BNB you borrowed will enter your leveraged account.
After completing the loan, click 'Transfer' again to transfer the borrowed BNB from the 'Leverage Account' to the 'Spot Account'.
3. Transfer BNB to Web3 wallet and participate in TGE
Now, you can withdraw BNB from the spot account to your Web3 wallet (such as MetaMask, Trust Wallet, etc.).
In the Binance App or web version, go to 'Assets' -> 'Spot Account'.
Find BNB and click 'Withdraw'.
Select the BNB chain (BSC), enter your Web3 wallet address, and confirm the withdrawal after entering the amount.
Use these BNB in your Web3 wallet to participate in the TGE staking activities of the target project.
4. Repay after the TGE ends
When the TGE event ends, you can transfer BNB from your Web3 wallet back to Binance at any time.
Withdraw BNB from your Web3 wallet back to your Binance spot account.
Find BNB in the spot account, click 'Transfer', and transfer it to the 'Leverage Account'.
On the leveraged trading page, click 'Repayment'.
Select BNB, enter the amount you borrowed, and click confirm.
Important tips and risk warnings
Interest cost: Leveraged borrowing requires paying interest. You need to assess whether the gains from mining new coins can cover the borrowing interest.
Manage risk: Leveraged trading has liquidation risk. If the price of BNB rises significantly and you do not add margin in time, your hedge position may be forcibly liquidated.
Transaction fees: During the process of selling and repurchasing BNB, you need to pay transaction fees.
This tutorial is only an operational guide and does not constitute any investment advice. Leveraged trading and hedging strategies are complex financial operations, please proceed with caution after fully understanding and assessing the risks.
