Binance Lending

Binance has recently launched its lending platform that works on a first-come, first-served basis. Users are able to lend their USDT, BNB, BTC as well as other 23 cryptocurrencies. 

The last batch of products was for privacy coins, DASH, XMR, and ZEC with a 3.5% annualized rate. Binance will constantly add new coins and tokens based on demand. Users have only limited time to ‘subscribe’ and a limit on how much they can lend.

Pretty much all lending products have an initial 14-day period after which the initial amount and the interest will automatically be sent to your account. Users will need to re-subscribe for the next period if they want to lend their coins again. 

The interest rate is guaranteed, which means that users will profit from it unless the value of the specific asset goes down by a lot. Binance stated that the total lending amount for each cryptocurrency is based solely on the demand of Margin Trading.

 

Not all cryptocurrencies have the same annualized rate, they will range from 3.5% up to 14% in some cases. 

How to use it

You will only need to be registered on Binance, verification is not needed to lend coins. There will be a preparation period before the lending actually starts. Users will be able to check the annualized rate, the period of lending, the maximum amount they can purchase and other specifications.

Once the user has picked the asset he wants to lend, he will need to make sure he has the balance available as pending orders do not count. Once the user clicks ‘Subscribe’ he will be prompted with another window that shows the expected value of the investment as well as the value and redemption dates. 

Everything else will happen automatically, however, if the user wants to lend for a longer period of time he will need to re-subscribe manually.

Binance has stated that the Binance lending assets will be used in cryptocurrency leveraged borrowing business on Binance.

A guaranteed interest rate of up to 14% annually is actually amazing, however, there are some risks associated with it. Of course, the rate is guaranteed but what happens when the specific asset you are lending starts to crash? Your funds are locked, you cannot sell them and the interest rate you make might be far lower than what you lost during the crash. 

That’s why it’s important to lend less volatile assets. Users can also profit from the lending service whenever they think an asset is very likely to go up in the long term as you are profiting from the percentage gained from the asset going up as well as the interest acquired.

 

Really, the only inconvenience of the Binance lending service is the fact that you can only lend an asset for 14 days. The need to re-subscribe all the time makes this a not-so-passive investment anymore as you will need to monitor it every once in a while.  

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Comments: 2
  • #1

    Binance Blog (Monday, 02 March 2020 11:36)

    Binance, the leading global cryptocurrency exchange by both trading volume and users, has today announced the first bank channel integration at Binance Global with one of the most forward-thinking banks in Turkey, Akbank. Beginning today, users will be able to instantly deposit and withdraw Turkish Lira (TRY) on Binance via desktop and the iOS App with the most competitive fees in Turkey.

    Binance continues to work with a growing list of partners to provide access to crypto around the world, striving to create more ways to purchase cryptocurrency with fiat in a fast and secure manner. For more information on buying and selling cryptocurrencies on Binance’s Fiat Gateway channel, please visit https://www.binance.com/en/buy-sell-crypto.

    “As part of our mission to continue working on increasing the freedom of money worldwide and notably in a country that is fast-adopting digital assets, we are expanding the available options to lower the barrier to entry,” said CZ (Changpeng Zhao), Binance CEO. “As the industry scales with our products and services that grow in tandem, the availability and process of investing, exchanging and trading crypto will become more and more seamless.”

    About Binance

    Binance is a blockchain ecosystem comprised of several arms to serve the greater mission of blockchain advancement and the freedom of money. Binance Exchange is the leading global cryptocurrency exchange by trading volume, with users from over 180 countries and regions. The Binance ecosystem is also comprised of Binance Labs (venture capital arm and incubator), Binance DEX (decentralized exchange feature developed on top of its native, community-driven Binance Chain blockchain), Binance Launchpad (token sale platform), Binance Academy (educational portal), Binance Research (market analysis), Binance Charity Foundation (blockchain-powered donation platform and non-profit for aiding in sustainability), Binance X (developer-focused initiative) and Trust Wallet (its official multi-coin wallet and dApps browser). For more information, visit: https://www.binance.com

  • #2

    Binance Blog (Thursday, 05 March 2020 15:38)

    Binance Adds Nigerian Naira as Its First African Currency for P2P Trading

    Binance, the leading global cryptocurrency exchange, today announced the launch of peer-to-peer (P2P) trading services for the Nigerian Naira (NGN), providing an open platform for users to trade cryptocurrencies using NGN with zero transaction fees on Binance.com or Binance mobile app.

    NGN is the first African fiat currency supported on Binance P2P platform. “We believe that Africa is a blockchain continent. We no longer need to bank the unbanked. We can empower them with cryptocurrency financial services directly. Nigeria is a vibrant innovation hub with great passion for cryptocurrencies,“ said Changpeng Zhao, CEO of Binance. “We strive to provide the easiest cryptocurrency access and best trading service for the African community, and P2P trading is a more flexible approach, giving users the freedom to choose their payment methods and counterparty in a trade.“

    The NGN integration allows users in Nigeria to directly buy and sell BTC, ETH, USDT, BNB and BUSD with other users and verified merchants on Binance P2P platform. Users can select the trades listed on P2P platform by the amount and payment methods, and access instant and secure trades with Binance’s crypto escrow service and 24x7 customer support.

    “We are also providing a unique opportunity for users to become P2P Merchants where they can post trade ads and earn money, estimated to be worth a few thousand dollars USD per month, while providing cryptocurrency access for their communities,“ said CZ.

    Users who have a reliable source of fiat and cryptocurrencies can apply now to join the program. See tutorials here to learn about P2P trading and start a trade on Binance.com or the Binance mobile app today.

    About Binance P2P

    Binance Peer-to-Peer (P2P) provides easy access to cryptocurrency through a consumer-to-consumer (C2C) or business-to-consumer (B2C) model and better trading experience for users. Visit: https://p2p.binance.com/