Binance Lending - a great opportunity for investors or a replay with Bitconnect?

Binance is introducing a new product, and this time the stock market will offer users a loan platform - Binance Lending. Naturally, the matter goes to Fr. loans in cryptocurrencies, except that they will not be provided by any financial institution, and owners of digital assets.

Binance Lending is a new way to earn on cryptocurrencies

New project implemented by Binance assumes that holders cryptocurrencyIncluding Binance Coin, Ethereum Classic and Tether they will be able to grant loans to them, thus earning interest.

During the first two trial weeks of the project, the participating currencies will receive a higher interest rate, i.e. BNB - 15 percent,  ETC - 10 percent, a USDT - 7 percent

The interest will be paid immediately after the end of the loan period. The interest rate on the offer in the future will depend on how it works on the market.

Also check: The Binance Exchange - a beginner's guide

What is Binance Lending based on?

The holder of one of cryptocurrencywho is interested in multiplying their funds must first subscribe to one of the products on the platform.

At the time of purchase, the user not only recovers frozen funds, but can also pay interest accrued on account of entrusting them Binance Lending.

The undisputed advantages of the new platform are certain profit (each of the products has an interest rate guarantee) and ease of movement on it - its operation is almost intuitive.

threats

Binance Lending seems to be a highly attractive offer, mainly due to the possibility of achieving quick and easy earnings.

Not all industry observers, however, approach the new idea with enthusiasm.

Tempting users with fixed interest rates is not only not a common practice, but it can also turn out to be quite risky.

Concerns are also associated with the unpleasant experience of loans Bitconnecton which investors, as promised by the creators of the platform, were to reach up to 40 percent. profits.

In practice, such goals are rather impossible to achieve, which is well known to every experienced investor. Ultimately, the platform was closed, leaving a great disgust in the environment of similar solutions.

Also check: Free Training. Cryptocurrencies - how to start and survive? A course for everyone. Similar courses are offered even for several thousand zlotys!