Borrowing on Binance is known as Binance Loans, where users can get crypto loans using their digital assets as collateral. Here are the steps and how loans work on Binance:
1. Borrowing Requirements:
You must have a verified account on the Binance platform.
You need to put up some digital assets as collateral for the loan, and you can choose the currencies you want to use as collateral from the list of available currencies.
2. Steps to borrow from Binance:
Access the Loans page: Go to the Loans section via the main menu of the Binance platform.
Select currencies: Select the currency you want to borrow and the currencies you will put as collateral.
Loan Term: There are specific loan terms, such as 7, 14, 30, 90, and even 180 days. The interest rate varies depending on the loan term.
Interest Rate: You have to pay interest on the loan, and the interest is calculated according to the selected currency and the loan term.
3. Loan repayment:
The loan plus interest must be repaid before the end of the specified term. If repayment is not made on time, you may be required to pay additional fees or Binance may sell part of the collateral to settle the loan.
4. Use cases:
Binance Loans can be used for margin trading, or to obtain liquidity without having to sell digital assets.
Note:
Borrowing from Binance carries risks due to the volatility of cryptocurrency prices, and you should be aware that collateral may be liquidated if its value drops significantly.
Important Note: Make sure to review Binance's borrowing terms and conditions before making any decisions.
