Hello Steemit ! It's Dorine.
In cryptoworld, there is a fondamental motto to respect. Do not invest more than you are able to lose. Prices are volatile. We must remain cautious.
Want to know one of the reasons I love BitShares? Well ... it's simple : SELF LOAN 0% ! By owning BitShares (token BTS), you have the opportunity to borrow BitUsd, BitCNY or BitEUR for an unlimited period, at no cost and at any time !
In other words: a Zero-Cost Credit that can be used freely.
You want to buy more Steem Power or another cryptocurrency with a loan that you will payback later ? Well, it's not a dream ! It's real !
Credit and Stable Coin
Are you planning on getting a loan from bank ? Banks charge borrowers a higher interest rate than they pay depositors so they can profit. On the other hand, zero-interest loans can quickly become a traumatic experience when a borrower does not read the loan terms and conditions with a full understanding.
Thanks to Dan Larimer (the creator of Steem and EOS), the Bitshares Decentralized Exchange is given out loan with 0 interest rate. All you need to have : an amount of BTS in your BitShares account. That's the magic of the DEX !
BitShares : it's more than a cryptocurrency...
BitShares is a cryptocurrency. But it's also a decentralized exchange, and a personnal bank. We can exchange all kinds of tokens including Stable Coins or SmartCoin.
A SmartCoin is a cryptocurrency whose value is pegged to that of another asset, such as the US Dollar or Euro. SmartCoins always have 100% or more of their value backed by the BitShares core currency, BTS. This feature is the real stroke of genius of Dan Larimer. SmartCoins are a powerful tool for everyone from speculators to traders, merchants and savers.
For example, BitUSD combines the advantages of blockchain (decentralization, fast transactions and low-fee) with the stability of the dollar. In this sense, it is an ideal cryptocurrency.
Interest-Free Loan BitUSD !
SmartCoins implement a concept of a collateralized loan and offer it directly on the blockchain.To borrow BitUSD and if you have bitshares (BTS), all you have to do is to lock them as collateral. You will need to lock in at least 200% of the value of your BTS credit. If the BTS costs $0.10, you will have to lock 200 BitShares to borrow $ 10. However, it is recommended to increase this ratio to further secure your loan. A ratio of 5 or 6 gives you more security. In fact, keep in mind that the prices of cryptos are very volative. The value of your guarantee can actually decrease due to price volatility !
Imagine that that the BTS / USD exchange rate drops sharply. Your 200 BTS no longer cover 200% of the value of your credit. And you will be forced to sell at a bad rate.
Do not be too greedy !
This risk of margin-call is the counterpart of this excellent service. I advise you to always lock up at least 5x or 6x times the value of your loan. Be smart. You have to be protected from any crazy dip.
You can pay back your loan at your conveniance. There is no interest, no hidden fees, no repayment schedule.
That's it. You can borrow money for free. Can you find this kind of opportunity anywhere else ? Of course not...
So here it was a little trick that I wanted to share with you and one of the features that make 'BitShares' remains for me a cryptocurrency with very very high potential.
Kiss.
Dorine Clay
PS : Sorry if my english is not perfect, i'm french...
