Nikolas Sargeant
Bybit, the world's third most visited crypto exchange, informed the Cryptowisser team with the announcement of its Crypto Loan service, which will provide the exchange’s 10 million users access to collateralized loans and the freedom to manage their capital efficiency.
Bybit Crypto Loans
Launching Bybit’s new product will help users make more efficient use of their assets, earning extra income via passive income and trading products. Bybit first went online in 2018 and is touted as one of the best platforms for professional traders, offering a broad range of crypto products.
The new loan product will enable users to access liquidity without selling their digital assets. This service is available at smaller exchanges, such as BlockFi, though the Bybit product is unique. Rather than selling assets, users can use their cryptocurrency as collateral to borrow popular coins and tokens, the likes of bitcoin (BTC), Ethereum (ETH), and Ripple (XRP), as well as stablecoins like Tether (USDT) and USD Coin (USDC).
Bybit Crypto loans also stand out as they offer customers a range of great benefits, these include:
- Loaned funds are immediately available and can be repaid at the customers’ discretion without incurring penalties.
- Loans will be matched with excellent interest rates and even offer preferential rates.
- The product allows customers to pay back loans quickly, with just a few simple clicks.
Customers can take out loans against idle funds, allowing investors to make their capital work harder and maximize opportunity costs. The Bybit platform has various features accessible with crypto loans, such as hedging portfolios and taking out short and delta-neutral positions.
An example would be if a Bybit user doesn’t want to let go of their digital assets, they can take out a loan to perform a short-term trade. They can do this by buying a passive income product from Bybit Earn, earning a higher interest rate than the cost of a loan, or withdrawing the funds to spend elsewhere. Mainly, USDT Perpetual traders can increase their Position Margin by collateralizing their assets and borrowing USDT, which adds to their margin.
Bybit’s CEO and co-founder Ben Zhou said, "There are vast opportunities for our investors in this bear market," highlighting the value of crypto trading despite the persisting ‘crypto winter. He discussed the launch of the new product "Bybit Crypto Loans provide maximum flexibility. Savvy users can now put their stablecoin and crypto stacks to work to increase their crypto asset holdings, and take advantage of the many trading and passive income opportunities available on Bybit and beyond."
