Invest in Crypto, with…Crypto?

TL;DR

• Bitget just launched the ‘​Crypto Loan Program​’ which takes into account your crypto holdings, then, based on their own historical data, they calculate the ‘Loan to Value’ (LTV) ratio (the maximum a user can get a loan for, based on their current crypto holdings).

• The aim here for users is to put your money into something that outpaces the interest rate.

• From Bitget’s perspective, they make money each time a trade is made, so they’re winning either way - in fact, they’re double winning - more trades are made on the platform, and they keep the interest.

Full Story

At first, the latest ​press release​ from centralized exchange (CEX), Bitget, seems a bit confusing.

Get a loan to invest in crypto, using your own crypto as collateral??

But ​Kevin the Intern​ looked into it further, and it’s actually pretty smart.

Here’s how it works:

Bitget is the largest CEX in the world.

Being the biggest, means you’ve got some seeerious data to work with.

They just launched the ‘​Crypto Loan Program​’ which takes into account your crypto holdings, then, based on their own historical data, they calculate the ‘Loan to Value’ (LTV) ratio.

(The maximum a user can get a loan for, based on their current crypto holdings).

Then, in an instant, users can get access to that money, to invest in other crypto projects through Bitget.

As with all loans, there’s an interest rate that goes with it.

So the aim here for users is to put your money into something that outpaces the interest rate.

From Bitget’s perspective, they make money each time a trade is made, so they’re winning either way - in fact, they’re double winning - more trades are made on the platform, and they keep the interest.

Here’s our take:

We’re not professional investors, and we don’t provide professional investing advice…

In a ​bull market​, this could be extra lucrative for everyone.

In a ​bear market​, it seems this could be dangerous for investors, with no real downside for the platform.

This is an interesting concept, and we’re all for new lending models (provided they’re safe).

Just be sure to DYOR before jumping into this one!