Blog Getting started How to Buy Crypto Using Your Coin Balance (crypto Credit)

How to Buy Crypto Using Your Coin Balance (crypto Credit)

date April 22, 2020 time 4 min read 1129 views

Crypto Credit is our shiny new credit facility for margin traders.

You get the best prices and interest rates, and all trading and withdrawals are free. Best of all, you’re not locked into any exchange, freeing up new opportunities for trade. 

So how does it all work?

I’ve gone through a Crypto Credit loan for you below. You’ll find screenshots and instructions for each step. Please note that the actual screens might look a little different as we update and improve the UI.

When you’re ready to start, log into your MyConstant account, and then follow the instructions about the best way to buy crypto below… 

Step #1 Create your Crypto Credit order

To start, head to our Crypto Credit page. 

Then enter the details for your order:

The cryptocurrency and amount you want to buy online

There are currently 5 different cryptocurrencies to choose from, but we’re adding more soon. 

Your chosen collateral

You can borrow against 70+ cryptocurrencies. To create your order, please make sure you have sufficient collateral in your coin balance (you can’t create the order without it).

To deposit into your coin balance, follow these steps:

Accounts > Coin balance > Collateral > scroll down to find your crypto > click Deposit.

Interest rate and term

This defaults to the market rate to guarantee a match, currently 7% APR. Choose a higher rate if you want to match even faster. 

You’ll then see how much USD you’re going to borrow to buy your chosen crypto online. 

In the example below, we’re buying Binance Coin (BNB) using Augur (REP) as collateral. 

Then click Borrow now

You can then check your order has joined the matching queue from your account page (see below).

Step #2 Wait to be matched

As soon as you click Borrow now, we’ll start looking for an investor to match you with. 

When it says “Matched” that means we’ve found your an investor and will proceed to buy your chosen cryptocurrency. You’ll see the word “pending” until this step completes (see below). It should take no longer than 30 minutes to match, buy, and then deliver your chosen cryptocurrency. undefined

Step #3 Withdraw your chosen cryptocurrency

Once bought, your chosen crypto goes straight into your coin balance. You can then withdraw it to your wallet of choice. undefined

ImportantDepending on the final USD price, you might receive a little less of your chosen cryptocurrency. We always try to buy the amount specified in your order but crypto prices are volatile and it’s not always possible. You’ll receive any difference from the sale straight into your MyConstant account (in USD).undefined

Step #4 Repay your loan

You can repay your loan at anytime before your term is up. If you repay before 75% of the loan term is due, you only pay 50% of the interest due on the remainder of the term. Otherwise, you pay the full amount due. 

You can repay in the following ways:

  • Deposit and pay using USD.
  • Deposit and pay using USD-backed stablecoins.
  • Use the cryptocurrency you’ve already escrowed as collateral. 

How you repay is up to you. In the example below, we’re repaying using the Augur we put down as collateral for the loan.undefined

And that’s all steps for how to buy crypto!

You can also create Crypto Credit orders using Pro Lending – just click the Crypto Credit tab (see below).undefined

Best of luck with your trading strategies. In the meantime, if you have any questions, please get in touch. 

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Chris Roper

Chris Roper

Communications Manager

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