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Why Is Binance Loans one of the Best Platforms for Crypto-Backed Loans?

Loan Scams

Why Is Binance Loans one of the Best Platforms for Crypto-Backed Loans?


Crypto-backed loans are a product that lets you provide your cryptocurrency as collateral to borrow assets. For example, you could provide your ETH as collateral in order to borrow USDT. You can then use the USDT for any purpose. You could buy more ETH or another cryptocurrency, deposit the USDT into a decentralized finance protocol, or do anything else you want with the borrowed USDT.

If you want access to capital, it might also be more beneficial from a tax standpoint to get a crypto-backed loan instead of selling your crypto. However, this will depend on the jurisdiction you live in.

In most cases, crypto-backed loans are over-collateralized, which means that the value of your collateral must be higher than the value of the assets you’re borrowing. This protects the lender against the highly volatile crypto markets.

Tip: Legitimate crypto lending services like Binance Loans do not offer un-collateralized or under-collateralized loans to the general public. If someone’s offering you such a loan, you should be very careful, as you might be dealing with a scam. 

High-quality crypto lending products like Binance Loans will provide you with a lot of flexibility so that you can tailor the loan to your needs. Binance’s crypto-backed lending product is distinguished by a broad range of supported cryptocurrencies, flexible terms, no penalties for early repayment, and “loans staking”, which will give you better interest rates if you use certain coins as collateral.

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