Strategic Arbitrage Using Bitget Crypto Loans: Maximise Your Savings Strategy With Bitget Crypto Loans And Bitget Savings
In this article, we’ll dive into how you can leverage Bitget Crypto Loans not just to put your assets to work but also to create an additional savings strategy with Bitget Savings. When you borrow USDT or other assets through Bitget Crypto Loans, you can take advantage of the spread between Bitget Crypto Loans and Bitget Savings and securely maintain ownership of your assets at the same time.
What Are Bitget Crypto Loans?
Bitget Crypto Loans is the gateway for users to unlock extra liquidity from their existing crypto holdings without having to reduce their crypto exposure. Whether you hold Bitcoin (BTC), Ethereum (ETH), or other cryptos, Bitget allows you to collateralise these assets and borrow funds to explore other investment opportunities. Your collateral is also automatically subscribed to Bitget Savings, hence you will be able to earn interest on your collateral simultaneously when you secure a loan to invest or save elsewhere.
Bitget provides a variety of loan options to suit your financial goals, including Flexible Loans with variable rates, as well as 7-Day and 30-Day Fixed-Rate Loans for those seeking predictable repayment terms. High-volume traders or institutions can also benefit from the Key Account Loan option, which offers customised loan terms to suit specific investment strategies.
To access Bitget Crypto Loans directly from your mobile devices, please check our latest guide here
What Is Bitget Savings?
Bitget Savings is a flexible and efficient way to generate passive income by simply locking your assets in our savings vault. With attractive rates for a variety of tokens, including BTC, USDT, and ETH, you can earn interest on your holdings without needing to engage in complex investment strategies. Savings options include flexible terms (with which you can redeem your assets at any time) or fixed terms for more predictable, higher yields.
How To Use Bitget Crypto Loans For Double Savings Strategy
Here’s how you can use Bitget Crypto Loans to execute a double savings strategy by earning interest on both your borrowed funds and your collateral:
1. Borrow assets using Bitget Crypto Loans:
Start by using your existing crypto assets, such as Bitcoin, as collateral to borrow funds through Bitget Crypto Loans. For example, you can collateralise your BTC to borrow USDT, which can then be used for various investment options, including subscribing to Bitget Savings for some extra passive income.
2. Subscribe the borrowed funds to Bitget Savings:
Once you’ve secured the borrowed USDT, the next step is to subscribe this amount to Bitget Savings. By doing so, you’re able to earn interest on the borrowed USDT while your original BTC collateral continues to accumulate interest separately.
3. Get extra savings rewards:
With both the borrowed funds and the collateral subscribed to Bitget Savings, you effectively increase your savings potential, which helps you make decent returns without having to liquidate your assets. Your borrowed funds can significantly boost your savings potential if you detect a nice spread between the lending rate on Bitget Crypto Loans and the savings rate on Bitget Savings and act on it strategically.
4. Repay the loan and keep the profits:
After your loan duration is over, use a portion of the interest earned from Bitget Savings to repay the loan, including the interest accrued. The remaining savings are yours to keep, and your original collateral remains untouched.
Why This Strategy Works
Extra savings potential:
By borrowing through Bitget Crypto Loans, you can earn interest on both your borrowed funds and the collateral you used to secure the loan. More importantly, if you want to keep your holdings (especially stablecoin holdings) untouched, this approach not only matches your plan but also allows you to exploit good earning opportunities.
Flexible and customisable loan terms:
Bitget Crypto Loans offers a variety of options to suit your strategy, whether you’re looking for short-term or long-term loans. The flexibility of the platform ensures you can align your borrowing and repayment terms with the duration of your savings plan to maximise returns. For larger traders or institutional investors, the Key Account Loan option provides more flexible borrowing limits and collateral options. This means that even high-volume traders can take full advantage of the dual savings strategy by customising their loan terms to maximise returns on both the collateral and the borrowed funds.
Low risk with high liquidity:
One of the key advantages of this strategy is that it allows you to keep your original holdings while generating passive income on both fronts. Even if the market fluctuates, your original assets remain secure in Bitget Savings, and, at the same time, are working to earn interest for you.
Example: Savings Arbitrage
Assume you hold 163,086.87 USDT and use it as collateral to borrow 2 BTC (approximately $126,000, with BTC priced at $63,000) to take full advantage of our limited-availability 5.60% savings APR for Bitcoin. Your USDT collateral is automatically subscribed to Bitget Savings.
(1) Loan details: You choose a flexible loan with a BTC interest rate of 0.000182% per hour (equivalent to 1.59% annualised).
Interest per hour: 2 BTC × 0.000182% = 0.00000364 BTC.
Total interest after 7 days: 0.00000364 BTC × 24 hours/day × 7 days = 0.00061152 BTC.
Total repayment: 2.00061152 BTC.
(2) Savings earnings:BTC savings rate: 5.60% p.a.BTC interest after 7 days: 2 BTC × (5.60% × 7/365) = 0.00215 BTC.
(3) Profit calculation:
Total BTC earnings: 0.00215 BTC
Total loan interest to repay: 0.00061152 BTC.
Net BTC profit (= earnings - repayment): 0.00215 BTC - 0.00061152 BTC = 0.00153848 BTC (equivalent to 96.93 USDT at $63,000 BTC).
You can earn 96.93 USDT over 7 days, with minimal risk, while both the borrowed BTC and collateral USDT work to generate interest for you, and you don't have to convert USDT into BTC to earn more if you don't see these prices as a good entry point.
Conclusion
When you execute strategic arbitrage using Bitget Crypto Loans combined with Bitget Savings, your borrowed funds are working to earn you nice interest, hence you've created yourself an additional stream of income. Make sure to pay close attention to the discrepancies between Bitget Crypto Loans attractive lending rates and exclusive deals on Bitget Savings to optimise your asset holdings without selling them off. Bitget’s flexible loan terms, competitive savings rates, and seamless platform integration make this strategy ideal for holders seeking low-risk, consistent returns over time.
Disclaimer:
Please be informed that all the interest rates and information contained in the illustrations within this article are for illustrative purposes only and are not to be taken as actual representations. To access the most current and accurate details regarding interest rates and other information, kindly visit the official Bitget homepage.
The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.
