Loans in the crypto industry from Bitfinex
The digital currency is becoming more and more versatile. Today, coins are used in a wide variety of areas. From classic money transfers to completely atypical industries. For example, today, thanks to the efforts of specialists from Bitfinex, the industry has become aware of the planning of cryptocurrency loans. The exchange employees were engaged in the creation of a credit system that is completely built on the Blockchain. This is a fundamentally new concept that definitely needs a detailed description. We will deal with it. So let’s get started.
Details of the project
The new platform was named “Borrow”, which is symbolic. The platform is all about peer-to-peer loans that will enable aspiring entrepreneurs to find their place in the digital industry. This technical solution looks at the lending process in a new way. The loan system now runs through the use of digital funds as a guarantor for a loan. As you know, obtaining a loan requires certain guarantees. It is important for the company to know that the borrower will return the issued funds with interest. Users can now independently choose which currency they want to secure their own loan from Bitfinex representatives.
The collateral can be digital silver, that is, Ethereum and the first coin, that is, Bitcoin. Credit arrives to the borrower in US dollars or Tether assets (USDT). Which is pegged to the US dollar rate. To receive funds, users can choose between fixed rates or variable rates. The latter got the name Flash Return Rate. The user immediately receives information about the final loan amount.
The interest is influenced by the amount of cryptocurrency in the collateral, the loan amount, the annual and daily rate for the user. You must transfer part of the funds or the full amount to the margin wallet. To return the money within the specified time frame. Thus, the value of the rate is reduced. Consequently, the process of refunding money in the new system does not differ much from classical lending. However, innovative functionality gains many inherent benefits. Which we discuss in the next section.
Who will benefit from Bitfinex digital loans?
The cryptoindustry regularly hosts various events, such as the traders’ contest. Which we discussed in the last article. Winners can receive huge sums or earn them through painstaking work. And now it is not at all necessary to exchange funds for classic dollars. Bitcoin and Ethereum can be used to borrow without losing money on fees. Now the money earned will become capital that will help you get additional funds and start implementing your own ideas.
That is why digital loans are suitable for novice developers, miners and traders. In general, for everyone who wants to develop in the vastness of the cryptoindustry and does not yet have sufficient savings. It is a large company. That enjoys a reputation as a reliable and responsible enterprise. Therefore, the company is guaranteed to issue the amount. And help everyone who wants to develop independently using the Blockchain.
So now you know that Bitfinex is ready to foster proactive beginners in the crypto industry. It remains only to independently form an opinion about this project. And, possibly, start using the company’s services. The main thing is to follow the current events of the cryptoindustry. Stay up to date with the news of the world of technology and Blockchain with us. We publish only high-quality and interesting material. Thanks for attention. Good luck!