Coins.ph has introduced "Crypto on Credit," a feature that allows users to trade with borrowed capital, potentially increasing trading volumes and maximizing gains. Learn how to trade with borrowed assets on Coins.ph while managing associated risks.
Prerequisites for Trading with Borrowed Assets
Before you start, make sure you meet the requirements and follow the prerequisites on applying for Crypto on Credit here.
Getting Started with Credit Trading
Platform Access
- Use the Coins.ph website (transactions not available on Coins.ph app)
- Navigate to the Credit tab
- Ensure your Credit Wallet is properly funded
Available Trading Pairs
- Currently supports trading of the following assets.
Step-by-Step Guide: Trading with Borrowed Assets
1. Navigate to the Credit Tab: On the Coins.ph website, go to the Credit tab (transactions currently not available on Coins app).
2. Choose Your Desired Trading Pair: Under the Trade tab, select from the Crypto on Credit pairs available in the drop-down menu.
3. Select Your Trading Strategy:
- Buy: Buy crypto for PHP to hold.
- Sell: Sell your crypto to increase your PHP holdings.
- Go Long: Borrow PHP with Credit, and then use it to buy crypto on the Trade page.
- Go Short: Borrow crypto with Credit, sell it on the Trade page. This strategy is used if you expect crypto prices to drop.
4. Input Your Trade Amount: Enter the amount you want to Buy or Sell.
Ensure it meets the minimum (at least 0.0001) and maximum buy or sell requirements. If you want to trade an amount higher than the maximum limit, split your trades into smaller amounts.
5. Trade More with Credit (Optional): To trade at higher volumes, increase your Credit Wallet balance by clicking the Increase credit button or switching to the Credit tab to receive funds from your Spot wallet.
6. Confirm Order: If satisfied with the price and quantity of your trade, hit Buy or Sell on the Order Confirmation pop up. Your balance should now be available on your Credit wallet.
Important Considerations
- Trading Platform: Trading with Crypto on Credit can only be done on the Coins website.
- Available Assets: Currently, you can borrow the following assets. ETH will be available by February, and SOL will be added in the future.
- Interest Rate: Be aware of the hourly interest rate added to your total loan. There's a limited-time offer of 0.001% interest on PHP loans until February 28, 2025, and on borrowed ETH, XRP and SOL at 0% interest.
- Liquidation Rate: Ensure your Liquidity Rate stays above the 10% threshold to avoid forced liquidation.
- Risk Rate: Transferring balances from your Credit wallet may affect your Risk Rate (= Credit Wallet assets/ Total Liabilities).