How’s it going? It’s Delio.
Finally, Korea’s largest crypto exchange Bithumb launched crypto lending service. Currently, Delio is officially providing Bithumb Lending service in Bithumb. Delio-Bithumb Lending service has many advantages over the general lending services.
Bithumb Lending is brought to you by Delio! Hmm-, let’s see how it’s different, shall we?
1. What is Crypto Lending?
Simply put, crypto lending is very similar to ‘collateral loan’. In other words, it is a loan of fiat or crypto using crypto as collateral.
Delio offers four different lending services on Bithumb.
- Borrowing fiat with collateral of major coins
- Borrowing major coins with collateral of major coins
- Borrowing altcoins with collateral of major coins
- Borrowing altcoins with collateral of altcoins.
Major coins refer to BTC and ETH, and altcoins refer to tokens with a market capitalization within the top 20 of the Coin Market Cap standards or have a significant level of recognition. So far, 1 and 2 are currently in service while 3 and 4 are coming soon.
2. Delio-Bithumb Lending is different from general lending?!
Delio-Bithumb Lending has big differences that sets itself apart from other existing services.
a. My Collateral Stays in My Wallet
What??? For real? Because normally, a typical lending service deposits BTC (collateral) into a lender and borrows cash. But, it’s a whole different story for Delio-Bithumb Lending. If I have BTC in your Bithumb wallet, I can apply for a loan straight ahead without transferring BTC to Bithumb or Delio.
See the difference? Delio-Bithumb Lending retains my BTC in the wallet and let me manage the collateral myself. WOW! sounds pretty safe since I get to manage my precious BTC, right?
Big thanks to Delio’s Remote Digital Asset Lock & Unlock API technology.
b. Convenient Bithumb Member Log-In
Don’t bother signing up for Delio-Bithumb service if you are already a member of Bithumb. You also have full access to the lending service as soon as you log in to Bithumb in Delio. It’s just like using Google or Facebook Log In you see often when using another service.
c. No More Bothersome KYC
Once you try KYC, many of you should agree it is such a pain in the neck. For those who already finished KYC in Bithumb are free from another go. Just shoot your desired loan amount and press ‘Complete Loan’. C’est Fini!
3. How can I make good use of Delio-Bithumb Lending?
Now let’s see how to use Delio-Bithumb Lending to the fullest, more specifically.
a. When you want to obtain more crypto and etc.!
You can enjoy full benefit of lending service when you want to secure more crypto, such as BTC, in the bull market for more profit, and compensate for the overall value of assets in the bear market.
Let’s say, the price of BTC is $10K and you want to borrow $6K. In this case, you collaterize 1 BTC for loan of either $6K in fiat or 0.6 BTC. Then, your total amount of BTC will increase by 60%, which is 1.6 BTC. Since you have more BTC, wouldn’t it make you higher profit?
How about Repayment?
Delio Lending service calculates the price based on the crypto’s fiat value in KRW (₩), NOT how much unit of crypto. Therefore, if the price per 1 BTC becomes $20K, the user just has to repay $6K, or 0.3 BTC in this case, NOT 0.6 BTC, which was the amount borrowed at the time of loan application.
Fantastic!!! After repaying all the borrowed BTC, there will still be 0.3 BTC remaining in your balance. If the price of crypto falls, you can pay back in fiat instead of crypto.
b. Need Fast Cash and Don’t Want to Sell Your Crypto!
It’s certainly a good option. Many people have come to think BTC as an asset. If you want to get cash immediately and keep BTC, try lending. You will get the cheese and dough you need.
c. Found an altcoin to invest in
You can borrow altcoin with certain crypto and use it for investment. For example, you can borrow altcoin as collateral for ETH and use it for trading or investment. It’s a great way to invest in altcoin without selling ETH.
4. Distinct Advantages of Delio-Bithumb Lending!
The following three are the summary of its advantages:
a. My Collateral is Safe
Previously, we talked about Remote Digital Asset Lock & Unlock API. I get to manage my collateral in my own wallet. I will not lose all my crypto due to the lender’s various issues and problems.
b. Inexpensive Handling Fee
Handling fee is crypto lender Delio’s operation fee — the same idea as monthly interest for collateral loans. Delio’s monthly handling fee is less than 1%. In South Korean services’ average, the annual APR is 18%.
c. Easy and Convenient Usage
When you sign up for a Bithumb member login, your loan (or crypto) will be deposited within 24 hours. Once again, there’s no need to transfer collateral to Bithumb or Delio. Handling fee is also set automatically, so you don’t have to pay them every month, since the algorithm (program) will do the job automatically until the end of contract and start auto liquidation. Already-Bithumb users obviously can skip KYC.
STEPS — Bithumb Member Log In → Loan Application → Get Loan
Piece of cake!
5. Try Bithumb Lending Service!
Now, I will go over Bithumb Lending step by step.
First, go to Bithumb (www.bithumb.com) and click on ‘Additional Service’
Do you see ‘Lending’? Click on this menu. You will see the introduction of the service, and will be able to access Delio (www.delio.io) Bithumb member loan application page.
Second, Bithumb member login and Loan Application via Delio (www.delio.io)
If you logged in using Bithumb ID in Delio, you may select your crypto and proceed your loan application. The direct url for this page without having to go through Bithumb is: http://www.delio.io/bithumb/index
Third, getting your loan within 24 hours
In special occasions like weekends and holidays, it may take a bit longer!
Did you find this article helpful in understanding Delio-Bithumb Lending?
Crypto lending is now becoming an essential service for us. The global lending market is growing in billions of dollars. There are various types of lenders such as CeFi (Centralized Finance) and DeFi (Decentralized Finance), and each service maintains different features.
You have to select your own lender just right for you!
The criteria for choosing a lender would be trust and stability!
In this regard, Delio has great advantages as it is based on global exchange-based like Bithumb, and allow users to manage their collateral through the Remote Digital Asset Lock & Unlock.
Not only Bithumb, Delio is currently expanding its services to both domestic and international exchanges.
Delio will lead the way.
Thank you for reading!
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