In 2024, Bitget introduced an innovative service known as Bitget Crypto Loans. This feature allows users to borrow cryptocurrencies by using their existing crypto assets as collateral.
Designed to help investors expand and strengthen their portfolios, this service adapts to the fast-changing crypto market. To enhance flexibility, Bitget has now launched an improved option called Flexible Crypto Loans.
Bitget’s Flexible Crypto Loans stand out due to their adaptable repayment options, variable interest rates, and an added benefit—your collateral can generate passive income.
This means you can boost your liquidity while taking advantage of new market opportunities like never before.
Understanding the Difference Between Fixed and Flexible Loans
Common Features of Both Loan Types:
- Hourly Interest Calculation: Interest is calculated every hour, making it easy to track your borrowing costs in real time.
- No Penalty for Early Repayment: You can repay your loan whenever you choose without facing any penalties.
- Collateral Adjustments: You can increase or reduce your collateral anytime to manage your risk.
- Flexible Repayment Options: Repayment can be made using either the borrowed cryptocurrency or the collateral.
Key Differences:
1. Maturity Date:
- Fixed Loan: Comes with a fixed maturity date. If the loan is not repaid on time, a 200% per-hour late fee applies.
- Flexible Loan: No maturity date and no late fees, allowing greater financial flexibility.
2. Interest Rate:
- Fixed Loan: The interest rate remains the same throughout the loan period, providing stability.
- Flexible Loan: The interest rate varies based on market demand and supply, updating every hour.
3. Collateral Management:
- Fixed Loan: The collateral is kept in a dedicated account and does not generate any earnings.
- Flexible Loan: The collateral is automatically subscribed to Bitget’s earning products, allowing you to earn passive income while borrowing.
How to Get Started with Bitget’s Flexible Loans
1. Borrowing Cryptocurrency
Step 1: Access the Loan Section
- Visit the Bitget homepage and navigate to Earn > Crypto Loans.
Step 2: Select Loan Terms
- Choose the cryptocurrency you want to borrow and click Borrow.
- Select Flexible Loan from the loan term menu.
- Enter the loan amount and collateral type. The system will display the annualized interest rate and estimated hourly interest.
- Once you confirm the details, click Confirm to finalize the process.
Important Notes:
- Each loan request is processed as a separate order. If you borrow USDT with BTC as collateral and borrow again an hour later, these will be treated as two different loan orders.
- A single account can have up to 10 active flexible loan orders at any given time.
- Ensure that you have enough collateral in your spot account before requesting a loan.
- Once your loan is approved, the system automatically moves your collateral to a separate account and subscribes it to earning products, providing you with additional income.
- Collateral Release:
- Upon repayment, your collateral is returned to your spot account.
- If you adjust the Loan-to-Value (LTV) ratio, some collateral may be released accordingly.
2. Managing Your Loan Orders
Step 1: Viewing Active Loans
- Navigate to the Loan page and click on Ongoing Loans.
- Here, you can track your active loans and view hourly interest details.
Step 2: Checking Loan History
- To view past loan transactions, click History at the top of the Loan page.
- You can also check detailed loan data, including available loan currencies, collateral types, and interest rate trends.
3. Simple Loan Repayment Process
- Go to the Ongoing Loans page.
- Click Repayment, enter the amount you want to pay back, and click Confirm.
Repayment Guidelines:
- Interest is paid first, followed by the principal amount.
- Partial repayment is allowed, meaning you can pay back a portion of the loan while continuing to accrue interest on the remaining balance.
Two Repayment Methods:
- Standard Repayment: Uses your available balance of the borrowed cryptocurrency to clear the debt.
- Minimum Repayment Amount: 5 USDT
- Maximum Repayment Amount: Up to your total outstanding debt
- Collateral Repayment: Uses your collateral to repay the borrowed amount by converting it into the borrowed currency.
- Minimum Repayment Amount: 10 USDT
- Maximum Repayment Amount: Up to your total collateral or outstanding debt
4. Adjusting Collateral Ratio (LTV)
If you want to adjust your collateral ratio, go to Ongoing Loans and click Adjust LTV.
- Adding Collateral: Reduces your LTV ratio and is deducted from your available spot account balance.
- Withdrawing Collateral: If the collateral ratio is lower than the initial ratio, you can withdraw the excess collateral.
Risk Management:
- Collateral Ratio (LTV) Calculation:
- LTV = Total Loan Value ÷ Total Collateral Value
- The system updates this ratio every second.
- Margin Call Level:
- If the collateral ratio reaches this level, you’ll receive a warning to add more collateral.
- Liquidation Level:
- If your collateral ratio falls below the liquidation level, your collateral will be liquidated automatically.
Why Choose Bitget’s Flexible Loans?
Bitget’s Flexible Crypto Loans provide a powerful way to manage your investments without sacrificing liquidity. They offer no fixed repayment deadlines, adjustable interest rates, and income generation from collateral—making them an ideal choice for modern investors.
Whether you’re looking to maximize your assets or navigate the unpredictable crypto market with confidence, Bitget’s Flexible Loans give you the tools to succeed. Explore Bitget Flexible Loans today and take your investment strategy to the next level!
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