KuCoin Lending and Borrowing Tutorial Step-By-Step guide for beginners

Hi there, in this article, we’re going to take a closer look at crypto lending on the Cue Coin Cryptocurrency Exchange. I’m going to walk you through exactly how to lend out your cryptocurrency to earn daily interest on your crypto and also how to borrow cryptocurrency from other Cue Coin users. So let’s not waste any time and get started right away. So let’s not look at the lending feature of Kucoin which is the possibility to lend out your cryptocurrency to other Kukon users in exchange for a daily interest rate on your funds. Or you can also be on the other side and borrow cryptocurrency from other Kukon users and pay a certain amount of interest per day.

Now when we go to finance right here and click on Crypto Lending, then we get to the lending market of Cucoin. So right now we are on the lending tab which is the feature of lending out our cryptocurrency for interest. So the first thing that we have to do here if you want to lend out something is to decide on what coin we want to lend out. So currently the highest interest rates that I’ve seen here are definitely for US dollar tether. So when we click on US dollar tether here, we can see we get an annualized interest rate of around 31%.

Now the interest is paid out daily but on average if you calculate this out for the entire year it’s going to be currently 31% which is very crazy when you compare it to what banks are currently offering. Now when you go to Bitcoin for example, the interest rates are a lot lower to 2.92% per year and then it’s very different for different kinds of cryptocurrencies. So Ethereum Litecoin and 9.12%, it’s also not bad. Let’s check out Cardano. It’s 4.1% currently.

So lets for example lend out some US dollar tether to get a very good interest rate. So first I’m going to choose US dollar tether right here and then I’m going to go to this window and type in the amount I want to lend out. Currently, I have sitting around 70 $1 tether in my main account on Cue Coin. Make sure if you want to lend out cryptocurrency that is actually in your main account and not like in your trading account or your pool axe account. So let’s say I want to just lend out $30 of those $71 and then I can decide on the terms.

So this just decides when you will get your money back. So I’m just going to choose seven days right here and then you can decide on or you can offer a specific interest rate. I’m just going to use the optimal rate that they give me right here which is what currently is available in the market, what people are currently paying for borrowing US dollar tether. So then all I have to do here is click on Lend us dollar tether. Here I can see a confirmation so I’m going to lend out 30 US dollar tether daily interest rate of zero point 78 and the terms are seven days.

So after seven days, I will get back my $30 and I will also get zero points $16. So $0.16 is an interest payment after those seven days. So I’m just going to click on confirm here and then my offer will join the market right here and let’s see do I have some open orders? When we scroll down here you can see the order book of your account so let’s click on unsettled. These are $200 that I’ve lent out yesterday to kind of test everything out.

So you can see here unsettled just means that you haven’t gotten your money back yet. So here currently I have lent out somebody $187. Currently, I have already earned zero point 1658 US dollar tethering interest and this is the daily interest rate that I’m getting and this was on the 21 May. I’m going to get back my $187 and the same thing here with $13 then on settled. These are the ones that are already gone through, these are the lendings that you have already gotten back.

Now let’s go back to open orders. This is the new order that I have just put in and nobody has taken my offer yet so nobody is paying me interest yet. So you can always cancel this again and maybe reduce the interest rate a little bit to be able to get somebody borrowing your US dollar tether. Now another cool thing you can do here is to simply use the auto lend feature right here because when you use the autoland feature you don’t always have to come back in here and lend out all the money that they have already paid back to you. What this will do is automatically lend out your cryptocurrency that is sitting around in your main account of cue coin.

So here I can turn on autoland for US dollar tether and then here you can type in a reserved amount which means that this is the amount that you don’t want to lend out. So currently I have 270 $1 tether which is the one that I have sitting around in my main account and also the $200 that I’m lending out currently. So let’s say I always want to have a 50 US dollar tether in my account that I’m not willing to lend out. Then I can again decide on the term. So I’m willing to lend it out for seven days, for 14 days, and 28 days.

That’s all fine for me. And then I can decide on the daily interest rate, or basically, I can decide on the minimum daily interest rate. And then the system will give the priority interest rate, which it will just try to find somebody at a very good rate. It will try to get the best rate for me, but it can’t tell me what rate I’m going to get because the market changes. So let’s say I’m willing to get a minimum of 0.1% interest per day.

So I can now click on Enable Auto Lend and then it will automatically lend out my US dollar tether at a minimum of 0.1% data interest rate but it’s probably going to be higher because the current market rate is higher than 0.1% can just click on confirm and then it’s automatically lending out my US dollar tether. I can again just disable auto-lend and then after every lending has been paid back it will just not keep lending out my US dollar tether right here. So let’s now also look at how we can borrow cryptocurrency from other bitcoin users. So to do that we go to the borrowed tab right here on the top and that will change us to the borrow feature. So the first thing we have to do to borrow a certain cryptocurrency is to fund our account with that specific cryptocurrency.

So if I want to borrow some US dollar tether for trading for example, then I have to fund my margin account with US dollar tether. Now I currently have a 45.42 US dollar tether in my margin account and probably for you, it’s going to say zero if you haven’t transferred over anything. So all you have to do here is click on Transfer and then transfer over the US dollar tether from your main account into your margin account. So I’m going to transfer over 50 US dollar tether. Just type in 50, click on confirm and now you can see I have 95.42 and here the maximum amount I can borrow is 858 US dollar tether because they have to keep a certain debt ratio.

So now let’s say I want to borrow only like $50 tether so here I can type in the amount. Also, I can do it with other coins so I can borrow Bitcoin or Ethereum and so on. But in this example, I’m just going to use a US dollar tether. So I’m going to type in 50 US dollar tether right here. The daily interest rate.

I can just take one from the market right here. So I’m going to click on this interest rate that somebody’s offering. So there are currently just 50,000 US dollar tethers for zero point 81% per day. So let’s say I’m going to take this and let’s say I want to pay it back after seven days. So then I’m going to click on borrow US dollar tether.

All right, you have borrowed 50 US dollar tether. It’s that easy. I have now a 145 US dollar tether in my margin account that I can now use for margin trading. Now the cool thing with borrowing here is that you don’t have to wait for those seven days to run out until you pay back your loan. So if you don’t want to pay interest anymore for the money you borrowed and you don’t need the money anymore, you can repay it at any time and you don’t have to pay the interest for the other days that have to pass until the term is finished.

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