Strategic Arbitrage Using Bitget Crypto Loans: How To Maximise Your Bitget PoolX Locking

In this second article of our series, we will explore a smart strategy to maximise your returns using Bitget Crypto Loans in combination with Bitget PoolX. By borrowing assets via Bitget Crypto Loans, you can increase the liquidity you commit to PoolX locking pools for enhanced investment potential without having to convert back and forth between your available assets and the required assets.

What Is Bitget Crypto Loans?

Bitget Crypto Loans is a user-friendly borrowing platform that allows traders to unlock additional capital without having to liquidate their cryptocurrency assets. It’s designed to help users improve their liquidity, participate in market opportunities, and diversify their portfolios. With Bitget Crypto Loans, traders can keep their assets secure and, simultaneously, take advantage of the borrowed funds for investments or trading in emerging markets.

The platform offers a variety of loan products to suit different financial strategies: a Flexible Loan with floating interest rates, a 7-Day Fixed Rate Loan for shorter-term plans, a 30-Day Fixed Rate Loan for longer borrowing periods, and a Key Account Loan for custom loan solutions. This flexibility ensures that traders can manage their borrowing efficiently while maintaining their original collateral.

To access Bitget Crypto Loans directly from your mobile devices, please check our latest guide here: Bitget Earn Guide (2024 APP Version)

What Is Bitget PoolX?

Bitget PoolX offers an excellent locking platform where users can continuously generate passive income by locking their crypto assets or providing liquidity. With the flexibility to lock across different pools, users can earn rewards such as locking bonuses, governance tokens, or interest, depending on their chosen pool. Bitget PoolX’s diverse and ever-evolving range of locking options ensures that users can benefit from opportunities throughout the year and adapt to market conditions without interrupting their main portfolio. This makes Bitget PoolX an optimal solution for short-term gains, long-term passive income, and consistent reward generation. Its integration with Bitget’s wider ecosystem, including crypto loans, enhances liquidity options and boosts locking potential.

How To Use Bitget Crypto Loan For Bitget PoolX Arbitrage

You can use Bitget Crypto Loans to borrow additional assets, which can then be locked in Bitget PoolX. The goal is to maximise your returns by locking more than you otherwise could with borrowed funds as additional liquidity.

Borrow assets using Bitget Crypto Loans:

1. Start by collateralising your existing crypto assets like Bitcoin to borrow additional funds via Bitget Crypto Loans. With these loans, you can unlock extra liquidity in not only stablecoins but also other crypto, such as Ethểum, which you can then deploy for locking on Bitget PoolX.

Lock borrowed funds into Bitget PoolX:

2. Once you've secured your borrowed assets, lock them in Bitget PoolX to earn passive income. PoolX offers a variety of locking pools, each with different returns, so you can select the option that best suits your risk tolerance and expected reward. The borrowed funds allow you to increase your locked assets beyond what you could originally invest, amplifying your potential rewards and bonuses.

Earn locking rewards:

3. As your assets are locked, you start to earn rewards in the form of interest, governance tokens, or other locking bonuses, depending on the pool you choose. The rewards you earn accumulate over the locking period, increasing your returns thanks to the additional liquidity provided by your loan.

Repay the loan and keep the profits:

4. After receiving your locking rewards, use a portion of the rewards to repay your Bitget Crypto Loan, including the interest accrued. The remainder of the locking rewards is yours to keep as profit, while your original collateral remains intact. By strategically borrowing and locking, you maximise your passive income without needing to liquidate your assets.

Why This Strategy Works

Optimised capital usage:

By leveraging Bitget Crypto Loans, users can boost their liquidity and increase their locking capacity in PoolX without the need to sell their core assets. This allows traders to borrow extra funds while keeping assets like BTC or ETH intact. The borrowed crypto is then locked in PoolX, where it earns additional returns through locking rewards and airdrops. For investors who wish to boost their potential returns without selling their core portfolio, this strategy offers a smart way to optimise locking returns.

Customisable loan options:

Bitget offers a range of borrowing terms that allow users to structure their loans in line with their locking or investment strategy. With a Flexible Loan, users enjoy the benefit of variable interest rates, while the 7-day and 30-day fixed rate loans allow for more predictable borrowing costs. These different loan types can be tailored to match the duration of locking periods in PoolX, offering strategic options for both short- and long-term locking. For larger or institutional investors, the Key Account Loan option allows for more customisable loan terms, making it easier to take advantage of substantial locking opportunities.

Key Account Loan flexibility:

For significant traders or institutions, the Key Account Loan offers bespoke solutions tailored to their specific requirements. High-net-worth traders can access exclusive terms with more flexible collateral and borrowing limits, allowing them to capitalise on the most lucrative PoolX locking options. The customisation of this loan product ensures that large-scale investors can engage in locking with personalised financial support, without the restrictions of standard loan structures.

Effortless locking engagement:

With Bitget Crypto Loans, expanding your locking capacity in PoolX becomes effortless. Borrowed assets are quickly accessible and can be locked in any PoolX pool offering lucrative returns. Whether you're locking ETH or other cryptocurrencies for airdrop rewards or annual returns, PoolX allows for consistent passive income generation, which complements your overall portfolio growth. Using the borrowed assets to lock provides an additional income stream while maintaining ownership of your primary holdings.

Risk minimisation:

One of the key advantages of this strategy is risk management. By borrowing against your BTC or other collateral, you can participate in locking without being forced to liquidate your assets. Even in volatile markets, your original holdings remain safe, allowing you to earn locking rewards with minimal risk. Additionally, Bitget’s loans come with relatively low interest rates, ensuring that even modest locking returns can cover the cost of borrowing and leave room for profit.

Example: PoolX Arbitrage

Let’s assume you own 0.013 BTC (approximately $750) and want to increase your locking power in the ETH Pool on Bitget PoolX. You decide to use 0.013 BTC as collateral to borrow 0.208 ETH (because of the overcollateralisation strategy, i.e. the collaterals must be of higher value than the amount to be borrowed just in case of extreme volatility).

(1) Loan details:

You choose a 7-day fixed rate loan with an interest rate of 0.000352% per hour (equivalent to 3.08% annualised) since the Bitget PoolX event for GDV lasts 7 days. Interest per hour: 0.208 ETH × 0.000352% = 0.00000074 ETH.

Total interest after 7 days: 0.00000074 ETH x 24 hours/day × 7 days = 0.00012432 ETH.

Your total repayment: 0.20812432 ETH.

(2) Locking in Bitget PoolX:

With the borrowed 0.208 ETH, you lock it in the ETH Pool on PoolX, which offers rewards in GDV tokens. The total GDV airdrop for this pool is 281,250,000 GDV. Assuming the total ETH locked by all participants is the maximum of 15 ETH, you can calculate your GDV rewards as follows: Your share of GDV tokens: (0.208 ETH / 15 ETH) × 281,250,000 GDV = 3,900,000 GDV tokens.

(3) Profit calculation:

After repaying your loan, you are left with approximately 3,900,000 GDV tokens, which you can hold for further appreciation or sell for profit. Through this strategy, you leverage your existing BTC to increase your locking potential on Bitget PoolX and have thus generated significant passive income through airdropped GDV tokens. Don't forget that your collateral is automatically subscribed to Bitget Savings once the loan is activated, which provides an additional source of income that could offset the loan costs and even help you grow your assets without lifting a finger.

Conclusion

Using Bitget Crypto Loans for Bitget PoolX arbitrage is an effective strategy to increase locking power and generate passive income without the need to sell off your existing assets. By borrowing additional funds, locking in high-reward pools on Bitget PoolX, and receiving high-potential token airdrops, you can boost your returns while keeping your initial holdings intact. Bitget’s flexible loan terms, coupled with the continuous locking opportunities on Bitget PoolX, allow traders to optimise their capital utilisation and strengthen their wealth-building strategies effectively.

Disclaimer: 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.