The fee is 0.5% it has been that since the time they launch it and it's 0.5% as we speak. It has never been 1%!



And if you had used your own money, you would have made $10. And if you had not made any trade, you would have earned zero!
Also, move the profit rate to 3% and things change drastically!

I would never use Binance for this, but the points you make against them are hardly even worth considering for most of the potential customer base.

It looks like aid, but what they’re doing is nothing more than trapping people who are in need of money. Their offer might seem really appealing, with low fees and 30 days without liquidation. But when you have trouble paying, they can take advantage of that opportunity to liquidate your Bitcoin – they can profit from the situation while you still get charged service fees for the whole process. Even if you’re able to pay off the loan, they can still make money from the service fees. In the end, they’re the ones who benefit from everything, while you bear all the risk.

Oh, thanks, bro, for sharing it here, actually the fee is 1% but only for the first month it is 0.5%.
Potential customer base, don't think, but they will still do it even for $10 profile, you say. They can even risk their bitcoin here with 1% collateral to make $5. 0.5% of $2k will be $5 and taking all this risk to make $5. Hmm, I don't know why people think like this but maybe it can work for them. I only said, don't use this money for trading, because the chances of making money are nowhere near equal to losing but hey, it's not my money on the line.

First of all, it is not advisible to keep the Bitcoin you intend to hold for the long term in a centralized exchange. Secondly, using Bitcoin as collateral for loan doesn't make much sense to me. In other words you are putting your at risk just to access money that you may able to get through other means.

Thirdly, I know there must be a collateral requirement, now what if Bitcoin price drop significantly and you are unable to meet the collateral requirement? Or don't you think you may end up losing the Bitcoin you intended to hold for years? I don't know for others, as for me I can't used my Bitcoin as a collateral for loan in a centralized exchange.

I agree. There is probably more to it than just a 0.5% fee. Nothing is really free, especially when a centralized exchange is holding your BTC as collateral. If Bitcoin drops hard, you can also get liquidated and lose your coins. Personally, I'd rather keep my BTC in a private wallet than use it as collateral for a loan. Bitcoin is supposed to give you financial freedom, not make you more dependent on centralized exchanges. Just my two sats.

As like always, we often discourage storing funds in the exchanges. There are many reasons why I don’t like to store funds in exchanges, even on Binance. I have learned a costly lesson about freezing funds, although later I successfully recovered funds and withdrew everything.

However, I took a loan from the trusted lender on the forum, although not through Bitcoin. But it’s hard for me to use some other platform to use my Bitcoin as collateral. Where even I can’t store my Bitcoin, there shouldn’t be Bitcoin as collateral as well. But it seems lending business becomes more popular.

Well, in my own perspective, I see anything bad in using the bitcoin as collateral requirement, but when there's higher interest percentages it seems misused and very dangerous,because even when there is a little drops percent of the bitcoin price,it  can actually liquidate and leads to bitcoin losses. So the biggest risks is performing it in an exchange with all your bitcoin you've been stacking for long-term period, that's why some wiser investors do separate their bitcoin holdings and decide to risks only affordable one, some people actually do it just to avoid selling thier bitcoin. In essence, when you buy bitcoin at $40k and now it about $100k, instead of sell like $20k, they decide to borrow the $20k worth of bitcoin due to some countries taxes on thier profits being made, so they borrow the $20k and leave their bitcoin holdings untouched, if they pay like 20 percent intrest on the $20k loan, which is $4k annually. Then if they have the believe that the bitcoin will move up higher than 20 percents which is not certain, they have pay off the 20 percent interests and then leave thier bitcoin keep growing just to avoid losing of the bitcoin future growths. So borrowing with small percentage lesser the liquidation risk, but being greedy enough and loan higher can just to have more money is a bigger risks.

I puzzle when loan is fully backed with collateral which poses some risk beyond measure, if my reason og loan is to secure my asset or investment in Bitcoin, as well may also losses it if my condition to loan is not met what is the benefits of the loan as all primary element is lossing asset, the psychological impact of evaluating and thinking how to meet up the loan alone is Avery big issue, loan is good when the condition is lesser than the asset to be lose, that while it's very essential to have some high level of preparedness when carryout some investment as not all investment need loan, it's unwise to keep your Bitcoin going for loan also losses your asset which may be equivalent to the preserve that leads to taken of loan, that is while taken if loan must be properly evaluated and weigh the options that seem best before going into it.

Firstly, keeping bitcoins in centralized exchanges has a greater risk of losing them because they have enough ways to freeze accounts or funds. Never take this risk and keep your coins under your own control. Having a loan from a centralized exchange has also never been ideal because there are enough risks and consequences for doing this.

Always have your emergency funds for any need, and never do this; if anyone needs it, he can sell bitcoins and use this money for anything. Bitcoin is surely having enough benefits with good long-term savings, but people also need to have their preparation before entering into this because it's always having enough volatility; it also has a naturally unpredictable movement, so never do anything that increases your problems instead of giving you good results in the long run.