I call this tool Binance Micro Loan.

CN
Phyrex
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1 hour ago

I call this tool Binance small loan. I studied it carefully, and this lending method is quite interesting. The biggest advantage is that it won't lead to liquidation. Although only 50% of the capital can be borrowed, not being liquidated in the first month can withstand some potential large fluctuations.

In other words, the best way is to use a bitcoin:native valued at 2,000 dollars to borrow, where you can borrow up to the limit of 1,000 dollars, and you don't have to worry about the 2,000 dollars of Bitcoin dropping in value within a month.

However, Binance also specifies a 0.5% handling fee, which is deducted in advance, so the actual amount received is 995 dollars. Liquidation will happen after 30 days of overdue or if the collateral rate reaches 91% after the overdue begins.

In summary, it's suitable for those who hold Bitcoin and need to flip some money for living expenses, rent, etc., and they can pay it back when they receive their salary the next month. However, if used for an all-in strategy or leveraging, caution is still advised.


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