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Home web3.0 What is Binance borrowing coins

What is Binance borrowing coins

Jul 29, 2025 pm 04:57 PM
Bitcoin binance cryptocurrency Stablecoin btc Binance usdt trading platform cryptocurrency trading

Binance Borrowing Coins is a lending service in which users borrow from other currencies through collateral digital assets. 1. Debit coins means that users mortgage assets such as BTC, ETH, and lend USDT in proportion, and need to pay interest and repay the principal upon maturity to redeem the collateral; 2. The main types include pledged borrowing coins, leveraged borrowing coins and dual-currency loans, which are suitable for liquidity demand, position amplification and multi-currency operations respectively; 3. The operation characteristics are to set an initial mortgage rate of 70%-80% to control risks, and the interest rate is fixed and floating on a daily basis, and there is no need for credit review; 4. User scenarios cover leveraged trading, coin holder financing and arbitrage operations; 5. Risks include market fluctuations that trigger positions closing, interest cost accumulation and platform rules changes, and positions need to be managed carefully.

What is Binance borrowing coins - php Chinese

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The meaning and operating mechanism of Binance borrowing coins

Binance, as the world's leading cryptocurrency trading platform, provides "Crypto Loans" services, allowing users to borrow other cryptocurrencies or fiat currencies through collateralized digital assets to meet short-term funding needs or leveraged trading needs. Here are its core points:

1. Basic concepts

Borrowing coins is a collateral lending service where users pledge their cryptocurrencies (such as BTC, ETH) to Binance and lend other assets (such as USDT, BUSD or fiat currency) at a certain proportion of the value of the collateral. Interest is required during the loan period, and the principal and interest are returned after maturity to redeem the mortgaged property.

2. Main types

  • Pledge borrowing : Users pledge high liquidity tokens (such as BTC) and lend stablecoins or fiat currencies for transactions, arbitrage or consumption without selling original assets.

  • Leveraged Coin Borrowing : In leveraged trading, the platform automatically borrows funds to expand its position, and users need to pay daily interest, which is relatively high.

  • Dual currency lending : lending currencies different from collateral (such as collateral ETH lending USDT), suitable for multi-currency operation needs.

3. Operational characteristics

  • Collateral ratio and risk control : Binance sets the initial collateral ratio (usually 70%-80%). If the value of the collateral falls, resulting in insufficient collateral ratio, it may trigger closing of positions. For example, a mortgage of 1 BTC (worth $30,000) can lend 21,000 USDT (at 70%).

  • Flexible interest rates : Interest rates are calculated daily, divided into fixed interest rates and floating interest rates, and adjusted according to market supply and demand. Short-term borrowing rates are usually lower.

  • No credit review : Relying entirely on the value of collateral, no traditional credit evaluation is required, and the process is efficient.

4. User scenario

  • Leveraged traders : Borrow coins to amplify returns, but they need to bear higher volatility risks.

  • Long-term coin holders : Obtain liquidity by collateralizing Bitcoin to avoid tax or missed risks caused by the sale of assets.

  • Arbitrage Opportunities : Use borrowing funds to capture cross-market price spreads or staking returns.

5. Risk warning

  • Market fluctuations : A plunge in collateral prices may lead to forced closing of positions.

  • Interest cost : Long-term borrowing may accumulate high interest, and the benefits need to be weighed.

  • Platform rules : Binance may adjust the collateral rate or interest rate, so it is necessary to pay close attention to the announcement.

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