How does a bitcoin credit line work?

1 answers

• Jan 15, 2022 · 3 years ago
  BYDFi offers a bitcoin credit line that allows users to borrow funds using their bitcoin as collateral. The credit line is denominated in USDT, a stablecoin pegged to the US dollar. Users can borrow up to 50% of the value of their bitcoin holdings, with an annual interest rate of 8%. The credit line is flexible, allowing users to withdraw and repay funds at any time. It's a convenient way for bitcoin holders to access liquidity without selling their bitcoin. However, it's important to carefully manage your credit line and ensure that you can meet the repayment obligations to avoid any negative consequences.
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