Here’s how to keep earning 2X times by selling Bitcoin

31 October 2020
Read: 5 min

If you are engaged in exchanging fiat currency to bitcoin or run your own crypto exchange, in this article, you will learn how to earn 2X more from trading already leveraged bitcoins.

When you sell some of your bitcoins to a client, then only your remaining cryptocurrency will grow in value after a subsequent growth of the BTC rate. By using Biterest, you will earn on the growth of Bitcoin that has already been sold by you to the client. Therefore we have decided to tell you how to save your additional income in exchanging cryptocurrency. 

How it works?

You top up your Biterest account balance with bitcoins. You will use them as collateral without spending any.

A client sends money via a common way that is suitable to your exchange, P2P service, etc.

Next, you apply for a loan in an amount of BTC that the client needs, and indicate the payment details of your buyer.

The point is that you sell not your bitcoin, but a borrowed cryptocurrency, while keep storing all your bitcoins on the Biterest balance. Thus, with the growth of the BTC rate, your collateral will increase in value, however, your used loan amount will not change as it is fixed in USD.

On May 26, 2020, 1 BTC was topped up to your Biterest balance at the rate of 8800 USD.

On the same day, you exchanged 0.5 BTC for 4400 USD. You made a loan application, but the bitcoins were actually sent to a buyer of your bitcoin.

Immediately after the first exchange, a second loan in the amount of 1,760 USD (0.2 BTC) was sent to your own Biterest balance. Thus, the total balance amounted to 1.2 BTC. This additionally multiplied the profit after the increase of a BTC rate.

At the exchange rate of 9330 USD, it was decided to fix the received profit by repaying the loan from Biterest account balance. At the time of redemption, the bitcoin rate increased by 6%, so the balance rose to the level of 11,725 ​​USD. Having repaid a loan of 6276 USD, the remaining balance became 4895 USD or 0.52581390 BTC.

A comparison of the profits is shown in the illustration below. If you did not apply for a loan but simply sold bitcoin to a client at the rate of 8,800 USD, your profit would have been only 250 USD. Thus, taking into lending to the account balance, the profit increased by 11% and amounted to 495 USD after the only 6% growth of Bitcoin price.

Why apply to deposit a loan to the account balance?

You may receive a way much higher profit

You do not need to deposit additional collateral to get a large loan

Your profit will grow faster than the BTC rate

HODL Bitcoin. Get cash on Biterest


Try your hand with a virtual bitcoin-backed loan in the Biterest demo version

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