Bitfinex now offers Bitcoin (BTC) and Ether (ETH) loans
The Bitfinex exchange now allows its users to take out personal loans in cryptomoney via a new dedicated service, Bitfinex Borrow. Verified users can obtain loans in Bitcoin (BTC), Ether (ETH) and many other cryptosystems.
The Bitfinex platform now offers its users the possibility to take out loans in cryptomoney. This service by Bitcoin Revolution scam is offered via Bitfinex Borrow, a P2P platform that allows users to borrow funds from others using their cryptographic or fiat currencies as collateral.
Access to Bitfinex Borrow is restricted to users whose identity has been verified. The higher the level of verification, the greater the borrowing options.
There are a number of different cryptomasks available, as listed below:
- Bitcoin (BTC)
- Ether (ETH)
- Tether (USDT)
- Litecoin (LTC)
- Polkadot (DOT)
For the main cryptocurrency, the BTC, borrowers can pledge US dollars, euros, Japanese yen and even Tether (USDT) as collateral. For an ETH loan, only US dollars are currently accepted as collateral.
As far as loan-to-value ratios are concerned, borrowers will be able to obtain loans in BTC corresponding to a maximum of 80% of the value of their assets in dollars, euros or USDT. For the yen, the loan-to-value ratio will not exceed 70%. For ether loans, the percentage will be up to 80% of the funds deposited as collateral.
The Annual Percentage Rate of Charge (APR) on loans is particularly attractive and more advantageous than on other platforms. Bitfinex charges an annual interest rate of around 3.75% for BTC loans and around 1.22% for ETH loans.
The most advantageous rates are charged on DOT and EOS loans, which are only 0.1% and 0.01% at the time of writing, respectively.
What is the Bitfinex Borrow interface like?
For its new service, Bitfinex has made things as simple as possible. For example, let’s simulate borrowing 0.25 BTC on the platform.
In the capture below, Bitfinex tells me that I must first deposit 5,488 euros to borrow 0.25 BTC. A loan can be taken out over a period of 2 to 120 days.
For a 50-day loan, the daily interest rate here is 0.010270%. I would therefore have to repay the equivalent of 0.25128 BTC to the platform at term.
With Bitfinex Borrow, you can choose between a variable or fixed rate loan. The interest charged for a variable rate loan changes throughout the term of the loan. It fluctuates according to supply and demand. The interest charged for a fixed-rate loan is fixed for the entire term of the loan and is not subject to the slightest variation.
If you are interested in the Bitfinex loan service, please read its terms and conditions carefully beforehand. Please also note that this does not fall within the scope of decentralised finance (DeFi), as Bitfinex is a fully centralised platform.