The post Are Crypto Gains Safe with Binance Loans? appeared on BitcoinEthereumNews.com.

As 2025 unfolds, the Turkish lira is under pressure, maintaining its status as one of two global currencies to weaken against the U.S. dollar. Turkey’s stability is seeing improvements, though, as the Central Bank of the Republic of Turkey (CBRT) raises interest rates. Fatih Karahan, CBRT’s President, emphasized accumulating reserves, hinting at a continued high-interest strategy to bolster dollar reserves. Is Carry Trade Strategy Worth It?Can Cryptocurrency Be a Viable Asset? Is Carry Trade Strategy Worth It? Carry trade involves borrowing in a low-interest currency to invest in a high-interest one, capitalizing on rate differentials and currency movements. This method often draws large investments for its potential lucrative returns. With the CBRT’s enticing policies, Turkey is becoming a popular destination for such investors seeking to leverage these gains. Can Cryptocurrency Be a Viable Asset? Yes, cryptocurrencies offer a fresh avenue for carry trades. Opening a Binance account could allow one to utilize Binance Loans with Ethereum (ETH) as collateral. This approach holds the prospect of income in Turkish lira through calculated trades. By placing ETH as collateral and securing a USDC loan with Binance Global, one can leverage up to 78% of their asset value at a 5.86% interest annually. However, Binance will trigger a margin call or liquidate if the loan exceeds 85% and 91% of the collateral’s value, respectively. While ETH sits as collateral, Binance’s Earn program lets investors earn 1.33% interest on their holdings. Meanwhile, users can invest the borrowed dollars in high-yield Turkish lira instruments to potentially achieve 60% annual growth. However, they must account for Turkish lira depreciation in their calculations. Consider a portfolio model: with ETH priced at $2,000 per unit, owning 50 ETH equals $100,000. Under stable conditions, one would get 1.33% interest on ETH and pay 5.86% on a $78,000 USDC loan.…

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Filed under: News - @ May 12, 2025 8:27 pm