How to get loan with your crypto?

Imagine having the power to unlock the value of your cryptocurrency assets without selling them. Need funds for a new venture or an investment opportunity? Crypto borrowing allows you to leverage your crypto holdings to secure a loan. But it’s not just about access to funds. It’s about financial freedom, flexibility, and control. With crypto borrowing, you’re not bound by traditional banking hours or lengthy approval processes. The world of finance is at your fingertips, anytime, anywhere. However, with this power comes responsibility. Crypto borrowing also involves risks, and it’s essential to understand these before you begin. Ready to take the leap into the future of finance? Let’s dive in together!

How It Works:

Borrowing Cryptocurrency:

Borrowers can stake their cryptocurrencies as collateral to borrow other cryptocurrencies. The lending platform usually requires overcollateralization, which means borrowers can only borrow up to a certain percentage of the deposited collateral.

Interest Rates and Loan Terms:

The interest rates and loan terms can vary by platform. Some platforms offer traditional loans with predetermined term lengths, while others offer a line of credit.

Risk Management:

Crypto loans are inherently risky because if the price of the collateral cryptocurrency drops significantly, the borrower may face a margin call. If the borrower is unable to repay the loan, the lender has the right to sell the collateral to recover their losses.

How to use loan on bithermes

1. Log in to your Bithermes account:

You’ll need to have an account with Bithermes.

2. Navigate to the Loan section:

Once you’re logged in, look for the Earn section on top of the page and select loan.

3. Specify the asset you wish to borrow:

On the loan page, you’ll be prompted to specify which asset you want to borrow. Bithermes only supports USDT for borrowing

4. Specify the amount you want to borrow:

Next, you’ll need to specify how much of the asset you want to borrow.

5. Choose your collateral:

You’ll also need to choose which asset you want to use as collateral. Bithermes accepts BTC and ETH as collateral.

6. Choose the loan period:

After specifying the assets to borrow and use as collateral, choose the loan period amongst the available options.

7. Review and confirm:

Before finalizing the loan, make sure to review all the details. Check the interest rate, repayment terms, and make sure you understand the risks involved. Liquidation LTV or margin call on Bithermes is 75%, this means when (the order loan value plus accumulated interest value)/ (the collateral crypto value) >= 75% the system will automatically liquidate your collateral crypto to repay the loan