Bull Run Ready: The Low-Risk Strategy to Multiply Your $EGLD
The Secret of Binance Loans — How to Make Money with Crypto Without Taking More Money Out of Your Pocket
A super simple yet effective strategy to grow your crypto portfolio exposure using Binance Loans, all without needing to put in any extra cash and with reduced risks. Sounds good, right? But first, let’s quickly see what Binance Loans are and how they work.
Binance Loans is a feature provided by Binance that allows you to borrow funds using your existing assets as collateral. In other words, you use your crypto (for example, EGLD) as collateral and receive stablecoins (USDC), which you can then use to make other investments, return to the market, or, as I recommend below, take all necessary precautions to come out in profit. It’s a fantastic way to leverage your assets without having to sell them, and the even better part is that you can adjust the collateral to minimize the risk of liquidation. Plus, interest is calculated daily, meaning you can repay the loan at any time without penalties.
Now, let’s be real — nothing comes without a little risk. If the value of your assets drops below a certain threshold, you could lose your collateral through liquidation. However, by using the strategy outlined below, this risk is significantly reduced and easily manageable. The key is to monitor the price and adjust the Loan-to-Value (LTV) ratio when necessary.
Now for the interesting part — why apply this strategy using EGLD? At the moment, EGLD is in an accumulation phase, meaning its price is about -95% off its all-time high (ATH). This is an excellent time to accumulate as much EGLD as possible, as the market is showing signs of recovery. If the price breaks above the EMA100 on the daily chart (as it last did on October 23, 2023, when it jumped to $78), EGLD could become bullish again. So, what do we do? We use Binance Loans to maximize profit and protect our investment.
Let’s walk through this strategy step by step, so you fully understand how to apply it without significant risks.
Imagine you have 1000 EGLD in your wallet. Sure, you could leave them there and wait for the price to rise. But why not put them to work? The recommendation is to use only 75% of those 1000 EGLD (750 EGLD) on Binance Loans, and here’s why. The 75% rule applies regardless of the amount:
· With 10 EGLD available, use only 7.5 EGLD.
· With 50 EGLD available, use only 37.5 EGLD.
· With 100 EGLD available, use only 75 EGLD.
Step 1: Access the Binance Loans module as follows:
- If the Loans module does not appear on the Binance homepage, go to the search bar and type “Loans” → click on “Loans Functions.”
The Binance Loans homepage will open after performing any of these actions; click on Start Borrowing.
Step 2: Borrow USDC using the 750 EGLD as collateral. At this point, the initial LTV is 78%, and the liquidation price is set at $23. Don’t worry — we’ll reduce this risk in the next steps. In the page now displayed, modify 1000SATS to USDC and BNB to EGLD:
Once adjusted, add 750 EGLD in the Collateral Amount field as explained above. The corresponding USDC value will be automatically calculated by the system.
Step 3: With the USDC obtained, head to the spot market and convert the USDC to USDT. A standard, quick, and efficient move to proceed to the next step.
Step 4: Using the converted USDT, buy more EGLD. In this example, you get approximately 585.21 additional EGLD, bringing your total to 834.62 EGLD when combined with the 250 EGLD you initially set aside from the 1000 EGLD capital.
Step 5: Return to Binance Loans and add this newly purchased EGLD + the initial 250 EGLD as collateral to Adjust LTV. This is where the magic happens! The LTV drops to 37%, and the liquidation price decreases to $10.92, meaning the risk of liquidation is now extremely low.
Step 6: If EGLD’s price starts to rise and you’re in profit, you can use the collateral to repay the loan and interest. And if you want to be super safe, you can continue to adjust the LTV to ensure you never come close to the liquidation price.
Simple, right? This strategy allows you to accumulate more EGLD without putting in extra money and with a very low risk of liquidation. Essentially, you’re leveraging your assets to maximize your gains. And with careful price monitoring, all risks can be easily managed.
Another major advantage is the flexibility of interest. It’s calculated daily, giving you the freedom to repay the loan whenever you want, without penalties. This gives you full control over your investments and allows you to react quickly to market changes.
Now, let’s look at the potential profit. If you have 1000 EGLD at a price of $75, they would be worth $75,000. By using the strategy described, you end up with 1584 EGLD (including the collateral and EGLD purchased). At the same price of $75, this would be worth $118,800. If we subtract the annual interest (let’s assume 20% applied to the borrowed amount of $15,749), the total interest cost would be approximately $18,898. So, your net profit would be $99,902, which means an additional gain of around $24,902 compared to leaving your EGLD idle.
Now for the best part: the liquidation risk. If EGLD’s price drops to $10.92, you might lose your collateral. But don’t forget — with this strategy, we’ve ensured that the liquidation price is -60% below the current price. As long as you monitor the market and adjust the LTV when necessary, the risk is minimized.
In conclusion, Binance Loans is a fantastic tool to increase your exposure to valuable assets like EGLD without taking on major risks. The key to success lies in careful LTV management and constant market monitoring. This strategy will help you accumulate more, boost your profit, and ensure you stay safe, even in volatile markets.
Disclaimer: This is not financial advice. Always do your own research (DYOR) and stay informed before making any investment decisions. More discussions on this topic on Telegram: @MultiversXTrader_Ro [RO] or @egld_trader [EN].
