PAWNing Bitcoin Cash ($BCH) Via BlockNG

Way back I've tried crypto loan in Binance where I used my BCH as my collateral, I also want to have this feature under Bitcoin Cash blockchain and now it already happens via Blockng.money..

My crypto loan gone wrong in Binance because I tried it last year during the bull market, I don't have loan in there anymore since I already pay it before all crypto went down to where it is right now. I sold most of my shit coin in Binance to pay my loan and get back my BCH that was collaterize, that's the time I sold it to buy my own Pegaxy. Speaking of Pegaxy, uhmm let's not talk about it tssss.

PAWN feature in Blockng.money

Going back to the topic, I've read this feature when mscryptoph posted it in noise.cash that she avail loan in blockng and make her BCH as collateral. After reading it, I was interested because I already tried it and I was even happier to think I can pawn my BCH under SmartBCH project.

In blockng.money website (open in Metamask extension browser - to connect wallet) in home you can see these options, just chose PAWN. It is the feature that directs you in processing loans.

Once you click PAWN this will appear;

• Maximum collateral ratio - 75%

• Liquidation fees - 12.5%

• Borrow fee - 0.50%

• Interest - 3%

These are the things you'll consider before thinking of availing the loan, maximum collateral ratio means you can avail up to 75%, liquidation is 12.5% while the interest is 3%.. the longer you pay your loan it'll add 3% interest.

You can also chose your collateral either LAW or BCH.

This is the borrow column, just tap ADD COLLATERAL to add collateral, to add BCH as collateral you have to wrap it into WBCH you can do it in benswap.cash.

Above borrow button is the amount you can avail to loan or the limit.

Below the borrow column is the REPAY button, if you want to pay your loan just tap repay or repay all. When you pay your loan your BCH collateral will be released. You can also see the amount you put as collateral.

Pawned My BCH to loan lawUSD

I used my 0.50 BCH as my collateral so I can borrow lawUSD..

I only borrow $81.41 lawUSD and didn't max $101.26 so my liquidation price will be adjusted. I just click SAFEMAX, it's the maximum amount you can borrow which is not that near to the liquidation price.

This is my open position in Blockng pawn;

• Collateral - 0.50 WBCH

• $136.181 - value of 0.50 WBCH during the loan execution

• lawUSD borrowed - $81.832

• Liquidation price - $218.191

• lawUSD left to borrow - $20.21

My liquidation price is $218.19 per BCH, if BCH price will go down on that level my 0.50 WBCH will be liquidated. If BCH price will not bounce, I have to add my collateral just so it will not hit my liquidation price so I have to be vigilant on BCH price movements.

After my loan was executed, I hurriedly open mistswap to buy BCH. I think I bought at $279+ per BCH and I got 0.289 BCH using the loaned amount of $81.41 lawUSD.

Now, I'll be praying that BCH will pump afterwards so I can pay this loan. I cannot gain huge profit with this since the loaned amount was below $100, this is just for experiment as always to see if it can be profitable to loan crypto inorder to buy crypto as well during downtrend.

In my observation crypto market is usually up during first week of the month, while it is down during the last week of the month as well..so let's see if the cycle will be the same, if it is I can have my own strategy to utilize this feature and make profit or I'll study how the market to see what strategy will be effective in utilizing this feature.

Crypto market is still down even if it's May 1 already it's because it is still weekend end, let's see how the market behave on weekdays, until then... I'll be monitoring BCH price to secure my collateral from liquidation.

Disclaimer

None of the statement above is a financial advice, it is written base on the writer's opinion and experience. If you'd like to try pawning your BCH in blockng, you should do your own research, writer is not held liable to any of your actions and loses.

Always remember, crypto is volatile therefore it is a risky investment.

All materials provided are for entertainment and educational purposes only.

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Date Published: May 1,2022