In case you missed it, Bybit Crypto Loans is ready and raring to go!
To help you maximize your opportunities in this market, we've got some tips on how you can best use our new tool to up your Derivatives trading game.
But first, what are Crypto Loans?
Bybit Crypto Loans is a financial service that provides you with funds to meet your short-term liquidity needs. It allows you to obtain funds by borrowing without selling your crypto holdings. Instead, you can use your crypto assets as collateral and pay interest, in exchange for other coins such as BTC, ETH or XRP, as well as stablecoins such as USDT, USDC, and so on.
Benefits of Crypto Loans
Wide Variety of Collateral and Borrowable Assets: Take your pick from our selection of collateral and borrowable assets – there's bound to be one that floats your boat.
Early Repayment: You can repay any time prior to the due date with no penalty fees. Once you return the loan amount, we'll only charge an interest fee based on the number of hours borrowed.
Low Interest Rates: Enjoy competitive interest rates. With Bybit Crypto Loans, you can borrow funds with hourly interest rates as low as 0.0002%. Interest is calculated at an hourly rate.
Use Funds Anywhere: Use your borrowed crypto anywhere in the Bybit ecosystem. Loans can be used to perform trades or take advantage of services on Bybit, such as Spot trading, Derivatives trading, and staking in Earn products.
You can also withdraw the borrowed funds to use them outside of Bybit!
Boost Your Derivatives Trades
It's not surprising for a trader to hold Spot and Derivatives positions at the same time. But what happens if your Derivatives position is underwater, there's insufficient margin, and you do not wish to give up on your Spot position to top up your margin?
The answer: Crypto Loans!
You simply have to pledge your Spot assets as collateral to obtain more crypto (in whichever currency your margin is based in), and transfer it to your Derivatives account to ensure you're back at a comfortable margin level!
Take Trader Alice for example, who's holding a long position on BTCUSDT Perpetual contract and an ETH position on Spot.
When the price of BTCUSDT falls and she finds herself short of margin, she can pledge her ETH assets to borrow USDT. Next, she can transfer the borrowed USDT to her Derivatives account to top up her margin and avoid liquidation.
When the price of BTCUSDT rises back up, she can transfer USDT from her Derivatives account to her Spot account to return the loan and pay back interest.
It's that simple.
Interested? Try it out today.
Learn more about Crypto Loans here.
Source: Bybit Blog
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