Recently, when the storm swept and made the value of copper Binance Coin (BNB) The gradual decrease with each month indicates the regression of work IEO investment, then CZ is focusing on launching that new segment Binance Lending. So what is its mechanism, let's go Blogtienao take a look at some highlights.
What is Binance Lending?
This is the definition we got when going to lending page from Binance, understand today Binance Lending is that we lend cryptocurrencies (Currently launching 3 coins BNB, USDT , and ETC), and we will receive the annual interest paid by Binance (interest rates on the above co-operation are 15%, 10% and 7%).
Just like the model Staking or deposit at traditional banks, it's just different that we use Crypto only. So should we choose and invest here, before going in and out, let's try to learn and analyze Binance Lending first.
Reasons for the Birth of Binance Lending?
(This is just my own analysis and prediction, not that of anyone else, you should only refer, not consider it absolute)
A few months ago, I read a Binance Research article showing that Lending is an indispensable trend in the industry cryptocurrency, in the Lending photo chart, it took a very small proportion and I remember that there was not much lending back then, only when the trend Staking , and Cloud Wallet appeared, having too many people depositing coins on wallets, holding coins on the floor, leading to too many cryptocurrencies lying dormant, from which floor owners, wallet owners find ways to optimize that to benefit. as much as possible for them, Maybe that's one of the reasons Binance Lending was born.
With Binance Lending, at first, only lending BNB, USDT, ETC, I think there are quite a few brothers holding these 3 coins on Binance. Therefore, there are only 3 coins in the immediate future, but the future will probably open a lot of other coins.
With Staking projects, not everyone can spend a large amount of money to invest, how many people know the knowledge to make a pool from which to put coins into staking to get profit somewhere around 1-8% /Year. So I think this is a form of improvement that can either be called Staking evolution or maybe an inherent combination of Lending and Staking trend. It is also another investment method that you should pay attention instead of traditional savings or just hold coins and leave it.
Binance Lending Details
According to the latest announcement from Binance, In the first phase, loan products are BNB, USDT and ETC with a term of 14 days, as follows:
- Annual interest rate: BNB (15%), USDT (10%), ETC (7%).
- Registration time: From 2019/08/28 6:00 AM (UTC) to 2019/08/29 0:00 AM (UTC).
- Due to maturity: 14 days.
- Time for calculating interest: From 2019/08/29 0:00 AM (UTC) to 2019/09/10 23:59 PM (UTC).
- Interest payment period: Immediately after maturity.
- Registration form: First come first.
It can be said that this is the first testing version for investors and also for Binance, I don't know how effective, so I dare not confirm.
An important note to know: For those of you interested in Binance LaunchPad and Lending, there is no need to worry. The daily shooting balance is still included in the number of BNB you lending, so if there is 500BNB but lending 300BNB, there will still be 10 tickets to join LaunchPad.
Assessing the Advantages and Advantages of Binance Lending
- Helping investors optimize their holdings of coins (suitable for those who intend to hold for a long time)
- Both for lending and for Launchpad, it is worth considering.
- Helping individuals participating in lending, lending and lending can achieve their goals (this depends on the case, bad or good depending on the market at that time).
- Simple, easy to use, easy to use.
- Great Fluctuation Risk: Not sure 10% is already delicious. You should know that cryptocurrencies are extremely risky investments with very high amplitude. Sometimes in 1 month can fly 30%, you lend 15% per year is not necessarily good if it is year of downtrend.
- Collapse Risks, USDT Collapse: Even if you use USDT for lending, it is very likely that USDT will collapse, Binance is out on the guarantee but who knows, at that time, everyone is worried.
- It's like, of course, saving: you won't be able to withdraw it when you lend it, or you'll lose it when you need it urgently.
Basically, this is a form of investment that you should consider carefully, it will be beneficial, will be harmful depending on your ability to judge the situation, advantages and disadvantages that we have mentioned and analyzed. Detailed analysis.
Any exchange is trying to build an ecosystem for them, including Binance, because they want to retain their users, thinking this is a product in the inevitable trend to help investors. Loyalty of BNB earn more coins (coin value increase or decrease unknown). Please consider and decide, wish you success. Please pay attention to the news on the forum invest nhé