Last year, Binance launched the cryptocurrency lending feature, and as usual on the Arab Bitcoin website, we are aware of everything related to encrypted digital currencies and blockchain projects, so we have already touched upon the news of the launch of the new feature from Binance:

Binance launches cryptocurrency lending with annual interest

Binance recently released a guide and explanation to help users earn cryptocurrency using Binance Lending.

The feature launched by Binance allows merchants and traders to earn passive income through the process of lending their cryptocurrency and thus obtain profits for the purpose of considering the performance of the market.

Read:Bitcoin miners ramp up selling pressure, coinciding with the largest exodus of miners in history

The Binance Lending feature allows its users to increase their holdings by accumulating interest on their loaned funds.

Meaning, when users lend their coins to margin traders on the platform, they will be paid interest in exchange for borrowing their money.

Binance’s lending feature supports a variety of cryptocurrencies including Bitcoin, Ethereum, Tether, (BUSD)…

Binance Lending offers two types of lending projects:

• Fixed deposit.
• Flexible deposit.

The former secures funds for a specified period of time and interest.

The second allows users to withdraw funds at any time and interest rates change over time.

Since users have the flexibility to withdraw their funds, the interest rates on flexible deposits are lower, and in more detail:

Fixed Deposits:

Fixed deposit lending is a better fit for long-term investors who are committed to saving their cryptocurrency.

With this approach, one can easily gain benefits.

However, when a user engages in this type of lending, their cryptocurrency will not be available for a certain period on the lending date.

If one engages in this type of lending and urgently needs access to their funds, part of it can be converted into flexible deposits.

Read:Grayscale now has $10 billion worth of Ethereum under its management

The fixed deposit lending period is either 14 or 30 days.

Flexible Deposits:

Flexible deposits provide the user with the ability to subscribe to them to earn interest and redeem it at any time and time.

However, the interest rates are lower compared to fixed deposits due to the flexibility they offer.

When one shares their funds in a Flexible Deposit, they will be locked on that day, which means that they will not receive interest and will not be available for withdrawal until the next day.

To redeem it, one can choose a standard or express refund, the latter will allow a refund immediately, but the user will have no interest on that day (refund boom).

For a standard refund, the funds will be unlocked on the next day and the user will take the interest before the start of the refund.

As noted by Binance:

Interest on Flexi Deposit Products is distributed daily.

Read:Crypto company “Q9 Capital” wins regulatory approval from Dubai authorities to provide virtual asset services

Please note that Flexi Deposit products are closed for subscription from 23:00 and 50 minutes to 00 and 10 minutes.

Subscription quotas are reset during this time.

As such, if the lending product’s daily quota is full, your best bet is to try to get it early the next day.

Recently Binance announced that it has doubled the withdrawal fee of Ethereum (ETH), which crypto traders were not happy with.

note: In the teachings of the Islamic religion, offering a loan and obtaining interest from it may have a legitimate suspicion, so please consult with the specialists before taking it.

Read also:

Guide to the Lending and Loan System in the Crypto Market

Binance adds BUSD cryptocurrency to its lending program with up to 10% interest