What is Binance Lending Program? Flexible & Fixed Deposits
Binance lending platform is a, lend & earn program started by Binance. Under this program, customers can earn interest on their cryptocurrencies by lending them to Binance for a certain period.
On 29th August 2019, Binance makes it’s Crypto Lending Program available to the customers. Initial 14 days fixed lending period starts from 29th August to September 11, interest for this period will be released on September 11. A subscription cap of 200,000 BNB, 20,000 ETC, and 5 million USDT are there for the initial period.
The Binance lending platform is still very new and we can expect a few changes to come as we move forward. Something which makes it more interesting for the investors is the assurance offered by Binance for the security of assets. Binance being the largest cryptocurrency exchange makes this program a lot more trustworthy.
Binance flexible deposits
Flexible deposits are those programs where you can withdraw your savings in case of a requirement. Binance flexible deposits are a kind of savings account for your cryptocurrency. Customers can earn interest on their crypto holdings by investing in flexible deposits. Currently, BNB, BTC & BUSD are available for flexible deposits but this will change as the cryptocurrency lending program starts developing. Interest rates vary between cryptocurrencies.
The biggest advantage with flexible deposits is the flexibility it offers of redeeming your funds. Customers can anytime redeem their funds and they will be available in their wallet the next working day.
Binance fixed deposits
Binance fixed deposits are an attractive plan for crypto holders which offers high-interest rates ranging from 6%-15%. Subscribers have to lend their crypto for a fixed period and they can earn higher interest. Binance fixed deposit is available on several cryptocurrencies. Response to this program has been overwhelming as all the fixed deposit plans are sold out at the time of writing of this article.
Fear of Bitconnect
Bitconnect was launched in 2016 and they worked on a business model of lending cryptocurrency. They made wild claims of offering up to 2000 times profit on investment. It went to an all-time high of $463 but was not able to keep it up for long. After facing operational challenges their exchange got shut down and the price dropped below $1. Thousands of people lost millions and this all looked like a Ponzi scheme. The Bitconnect story has made it difficult for investors to believe in lending platforms.
How Binance lending program works?
When you look at the Binance lending program it has a lot to offer for the customers but nothing much for Binance, Is it so? The answer is NO.
Binance is lending all these coins from you because they have recently launched Binance margin trading. Margin trading is highly volatile and offers higher chances of wins and losses. To fulfill the requirement for margin trading, Binance requires a large stack of coins. The best place to get this lend for Binance is its customers. So Binance has well calculated and planned this program for success.
Honest Review – Binance lending program
Binance lending program is a good opportunity for crypto holders who are not doing much with their crypto to earn some interest over their holdings. If you are planning to stick with your crypto there is nothing wrong to lend it and earn some profit. I think this lending platform has made the whole crypto market more interesting for investors.
Register with Binance Exchange today and start Lending your Crypto to earn Interest