Binance Supports BCH, LTC and XRP Collaterals for Crypto Loans

Binance is adding Bitcoin Cash, Litecoin, and XRP as collateral options to borrow on its loans platform, the latest move by the largest cryptocurrency exchange to cement its dominant market position. This development also comes just as competition in the crypto lending field is heating up.

Dubbed ‘Binance Loans,’ the influential venue launched the service to allow users to leverage existing crypto assets as collateral for loans. The major venue has originally joined the ranks of other crypto exchanges offering interest-bearing crypto savings accounts in August 2019.

All Binance registered users are eligible to borrow on its loans that cover several cryptos, including BUSD and USDT. Binance Loans also supports a range of varying loan periods, with interest calculated on a daily basis, as well as the use of several coins as collateral, including BTC and ETH.

The lent coins are used in cryptocurrency leveraged borrowing business on Binance.com, which already offers margin trading.

Binance diversifies its business lines

“Binance Loans will continue to be flexible and actively provide a varying range of options for supported crypto assets, interest rates, collateral assets, and maximum loanable limits based on market conditions and our internal Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term,” the exchange said in a statement.

While loans terms range from 7 to 90 days, borrowers will be given an overdue duration of three days, during which they will be charged three times the regular interest. However, those who fail to repay their loans after the grace period expires will see their collaterals liquidated to pay off crypto debts.

The launch is another move of Binance in its bid to diversify its business lines to attract and retain users. It also comes months after it rolled out margin trading, lending and revealed plans to add futures trading on its platform.

While its staking service is still in its infancy, Binance already allows its users to earn interest on their Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term through providing loans to those interested in borrowing digital assets.