Trade loans with the Kucoin exchange.
Table of Contents
- Introduction to Kucoin
- General information about Kucoin
- Trading loans and earning passive income with KuCoin Lending
Many people ask me, and rightly so, what is the purpose of borrowing and putting an amount I have as collateral? In other words, if I already have the amount, why borrow it? The reason is simple, in platforms like Kucoin the amount I put in guarantee I can place it in replanting, also if the market conditions are positive invest the borrowed money to make trading, make trading, I will be making money with the acquired liabilities, On the other hand other users instead of keeping balance in some cryptocurrency, can place them as a lender and earn interest on loan commissions. Lenders are guaranteed their investment as the collateral amounts to apply for the loan already cover the balance borrowed
What I do want to guarantee is how easy it is in Kucoin to lend money or apply for loans, if we compare it with traditional banking where applying for loans in a whole process with a lot of requirements, the difference is overwhelming because of how simple it is as we will describe in the section loans in Kucoin.
Since its foundation I have been following up the platform, Kucoin was founded in 2017, initially operated from Hong Khong, currently it is based in more than 18 countries around the world with presence in South and Central America, Arab Emirates, India, Europe and Asian countries, This is why it supports more than 51 fiat currencies, in this cryptocurrency exchange platform you can find more than 617 cryptocurrencies and operate with more than 1156 pairs, it has a high volume of capital which gives it a great liquidity, which is why it is among the 3 best and most reliable cryptocurrency exchange worldwide. Personally I have been trading for more than 3 years with this exchange and I can attest to how reliable and secure it is, I always recommend trading with more than one exchange and that for reasons of covering the largest number of cryptocurrencies, in my case I keep two exchanges as primary and Kucoin is one of them. Its interface is very friendly and anyone can join without much effort.
In its platform you have the features available in the major exchanges, trading with the necessary tools, lending, staking, configuring boots and more, commissions to operate among the lowest, Last year the prestigious Forbes magazine ranked it as one of the leading cryptocurrency exchange and many call it "the exchange of people".
Earlier this year the company that evaluates financial products called The Ascent awarded it as the best cryptocurrency application.
Its KCS Token has maintained this year a steady growth, we note data taken from Coingecko,
That gives us a reason to invest or keep this cryptocurrency and even more when in Kucoin you get a bonus for keeping KCS.
Of course, to trade with Kucoin you must have a registered account, if you don't have one yet here is my referral link so you can register very easily.
Something important to comment is the benefits offered by the Kucoin platform when you sign up with the referral system, ranging from discounts on commissions to direct bonuses, many benefits.
I consider it appropriate to see how easy it is to operate on the Kucoin platform, from the moment you enter the main page.
There are two main accounts, the main account from which you can make deposits and withdrawals, the other is the trading account from which you can trade cryptocurrencies
If you choose to make a deposit, you can do so with Fiat money or cryptocurrency.
Deposits in cryptos are very easy, select the cryptocurrency
To move from one account to another, it could be to a main account, market, margin or futures account.
Once you are in the trading account, you can trade, indicating the cryptocurrency and the pair to trade.
Once you have selected the pair, you only have to indicate the amount either to buy or sell, if you want the instant transaction indicate market
As we clarified in our introduction there are two figures within the Kucoin platform, Lenders who place funds to lend cryptoassets to other users, charging interest for it, and borrowers who ask for loans by putting funds as collateral to cover the amount borrowed, the idea is that the borrower invests at its choice with the amount borrowed, I made the operation or investment and as soon as possible repay the amount borrowed, all this happens under the supervision of the Kucoin platform, the idea is to obtain quick liabilities from a capital in own cryptocurrencies that I do not want to touch, only put as collateral and make investments with the liabilities obtained, but how does this work in Kucoin?
In the general page of Kucoin select Earn and then select CryptoLending.
Another way to enter the main account,
Either way you will log in to the account page for loans.
There you will find 3 options, lend, my loans and borrow.
Personally to minimize possible losses, I recommend lending money in stable currencies and likewise if I am going to borrow money as well, the main reason is that if the market is volatile there may be losses if I do not operate with stable currency.
1 Let's describe how the process to lend cryptocurrency works
When selecting to lend,
The process is very simple, The amount to lend and the amount must be available in the main account, if you have it in the trading account remember how it is transferred to the main account as we stated above,
Finally you select lend and confirm, ready, you have placed a loan order and it will be in the history waiting for a user to accept it, it is that easy to lend crypto on the Kucoin platform, and earn money for it, it is worth mentioning for those who prefer to keep a cryptocurrency, the option to lend is great for them, since apart from keeping the currency, they also earn commissions for lending it.
Once the term is over, our amount will be available again in the main account, along with the interest earned.
An important option is that if I choose the auto loan option, at the end of a loan I will place another one with the same conditions as the one I finished, that is very good, however I must clarify that this option will keep the rate I had already applied and if at that moment other users have lowered the rates, my loan order applied automatically will not be accepted by other users, in general I should not place a very high daily rate because my loan order will be hardly accepted. And the idea is to keep lending my cryptos to keep earning interest. Anyway, in the part where I indicate the rate, the optimal market rate is available as a help.
At any time if you want you can cancel a loan order that has not been taken by any user and create another one with new conditions.
2 How to order a loan
When requesting the loan option you will be shown the screen to request a loan.
As we can see the process is very simple and uncomplicated. Just select the borrowing days, then the daily rate you are willing to pay and the amount requested, the borrowed amount will be available in your margin account. The amount can be transferred to any other account according to your plans with the amount borrowed.
Before requesting a loan you must have in the margin account the amount to be placed as collateral, equivalent to the amount you will borrow, if you don't have it just select transfer and that's it.
Undoubtedly we see that applying for a loan on the Kucoin platform in very simple, and a way to obtain liabilities with cryptocurrencies or assets that I do not need but I want to keep, I must recommend that when applying for a loan make the planned investment and immediately once obtained the profit for it proceed to pay the amount borrowed, remember that you pay interest for hours.
On the other hand as for the confidence and security of Kucoin selects to operate loans, you can have total security as they are operating with an exchange located among the top 3, many recognitions in this year 2022.
If you want to complement and have a broader knowledge on the subject here are some official links of the Kucoin platform