Bybit Crypto Loans offer high LTV compared to other platforms. At Bybit, you can borrow up to 100% of the value of your crypto assets.
Essential Guide for Bybit Loan
In recent years, the popularity of cryptocurrencies has continued to rise, giving birth to a new type of financial product – cryptocurrency loan.
The advantage of this type of loan product is that it can be borrowed as you use it, with ultra-low interest rates and no credit check required.
Before applying for a loan on the Bybit platform, let’s take a look at the information about Bybit’s loan.
What is Bybit collateral loan?
Bybit Collateral loan is a secured loan service that provides users with funds to meet short-term liquidity needs. You can borrow funds through this service without having to sell your crypto holdings.
Tokens such as BTC, ETH, and XRP, as well as stablecoins such as USDT and USDC, can be borrowed simply by staking crypto assets and paying a certain amount of interest.
Typically, the borrowed amount is a percentage of the value of the crypto loan, a ratio also known as the collateralization ratio (LTV).
After borrowing an asset, you must repay it within the loan term, which can vary from 7 days to 180 days.
After full repayment, the system will return your collateralized cryptocurrency assets.
It is worth noting that if the value of the collateralized cryptocurrency assets falls, you may need to top up the collateral assets; if you are overdue, the loan can trigger automatic repayments or liquidate your assets.
Go to Bybit’s Official Website
Why choose Bybit to loan?
Flexibility and convenience: Borrow as you go, with flexible terms ranging from 7 days to 180 days.
Prepayment: Repay anytime before the due date without penalty. After the repayment is completed, the system will charge interest based on the actual borrowing hours.
High Loan rate: Compared with other platforms, Bybit loan provides an ultra-high loan rate, and can borrow funds equivalent to the cryptocurrency loan at most.
Ultra-low interest rates: Compared to other platforms, Bybit collateralized loan offers ultra-low interest rates, allowing you to borrow funds at hourly rates as low as 0.0002%.
The system calculates interest on an hourly basis.
Discretion: Free use of borrowed crypto assets within the Bybit ecosystem.
The borrowed funds can be used for various transactions and services on the Bybit platform, such as spot transactions, derivatives transactions, and loan of wealth management products. You can also withdraw and use borrowed funds outside the Bybit platform.
What uses does Bybit loan support?
Funds borrowed through loans are at your disposal, usually without any restrictions from the lender, similar to personal loans.
Leveraged trading: Reduce the risk of leveraged trading by borrowing currency. You can use borrowed assets to increase margin and avoid liquidation of leveraged positions.
Increase investment principal: increase investment in Bybit wealth management products through loans.
You can invest your borrowed assets in the risk-free Bybit savings product, and you can also stake in the Launchpool project to earn new token rewards.
Liquidity mining: Borrowed assets in the DeFi market to earn fixed or floating returns. In other words, you can use DeFi protocols to loan cryptocurrencies and earn up to 100% annualized returns.
Raise Funds Without Selling Assets: Increase cash flow without selling existing crypto assets.
Bybit allows you to loan and borrow with crypto assets as collateral, allowing you to borrow funds without having to sell promising cryptocurrencies.
With Bybit loan to borrow money, you can borrow with a loan rate of up to 100%, and use the borrowed funds to purchase the latest spot assets on the Bybit platform.
Go to Bybit’s Official Website
What are the risks of collateral loan?
The loan is affected by the price fluctuation of the underlying currency. If the LTV increases, the loaned assets need to be supplemented. Additionally, lenders may liquidate your assets if you are past due or fail to add collateral in the event of a significant increase in LTV.
Loan can come with a higher risk of cybercrime, hacking or bankruptcy, as cryptocurrency lenders are far less regulated than traditional banks.
If you suffer a loss of funds due to a security breach, you may not be able to receive compensation. Therefore, when providing information about cryptocurrency accounts, it is critical to ensure that the lender is safe and trustworthy.
Bybit is the most trusted cryptocurrency exchange in the world, and Bybit is very proud of the security of user assets in all aspects.
Bybit has been investing heavily in security, using multiple mechanisms such as HD cold wallet storage system, data encryption and platform suspicious activity monitoring to protect user assets.
How to apply for loan on Bybit platform?
To make a loan, you must stake supported cryptocurrencies. Check out Bybit’s FAQ article for supported tokens.
The specific loan process is as follows:
- Go to the Bybit and loan page.
- Select the loan currency.
- Next, enter the loan amount. The system will automatically calculate the required collateral assets.
- Select the “Loan Period”, tick to agree to the “Loan Terms Agreement”, and then click “Borrow Now”.
- Finally, click ” Confirm ” to confirm the relevant details, and everything is easy!
You have successfully completed the loan.
Please check Bybit official website or contact the customer support with regard to the latest information and more accurate details.
Bybit official website is here.
Please click "Introduction of Bybit", if you want to know the details and the company information of Bybit.
Comment by Hans
April 24, 2024
as I am trading here various assets, for me it's the most important feature. i mean, flexibility in tradable markets. i alternate trading styles, meaning that sometimes I trad...