If you're exploring the possibility of using Crypto on Credit to trade with greater volume and flexibility, you likely have some important questions. Whether you're new to leveraged trading or expanding your strategy, understanding how collateral, borrowing limits, interest rates, and risk management work is essential. This guide breaks down everything you need to know in a clear, structured way—so you can make informed decisions with confidence.
What Is Crypto on Credit?
Crypto on Credit is a financial service that allows users to borrow digital assets or fiat currency (like PHP) to increase their trading power. By using collateral from your existing holdings, you can access additional funds and open larger trading positions—potentially amplifying your returns.
This feature is powered through a partnership between Coins.ph and BPC Lending Incorporated, ensuring regulated and secure credit facilitation for eligible users.
👉 Discover how leveraged trading can boost your strategy today.
How Do You Apply for Crypto on Credit?
Getting started with Crypto on Credit is straightforward:
- Log in to your Coins website account.
- Navigate to the Credit tab.
- Select the asset you'd like to borrow (e.g., BTC, ETH, PHP).
- Transfer funds from your Spot Wallet to your Credit Wallet as collateral.
When you first use the service, your Credit Wallet starts empty. You must deposit collateral before any borrowing can occur.
Note: Only users who have completed ID and Selfie Verification are eligible as of January 24, 2025.
Understanding Your Wallets: Spot vs. Credit
It’s crucial to understand how your funds are organized:
- Spot Wallet: Holds your personal funds—both cryptocurrency and Philippine pesos. This is where you begin when funding your trades.
- Credit Wallet: A dedicated wallet for borrowed assets and collateral. It separates your own capital from leveraged positions.
Once you transfer funds into the Credit Wallet as collateral, they are locked until the loan is repaid.
How to Increase Your Credit Limit
Your initial credit limit may be low—or even zero if you're a first-time user. To increase it:
- Click the Increase Credit button.
- Transfer additional funds from your Spot Wallet to your Credit Wallet.
There's no fixed cap—you can grow your limit based on the amount of collateral you provide and your account’s risk profile.
Why Is My Credit Limit Showing 0.00?
A 0.00 credit limit is normal for new users because no collateral has been deposited yet. The system calculates your available credit based on transferred collateral.
✅ Solution: Deposit funds into your Credit Wallet via the Increase Credit function.
Can You Borrow More Than Your Collateral?
Yes. The amount you can borrow isn't strictly tied to a 1:1 ratio with your collateral. Depending on the asset type and market conditions, you may be able to borrow more or less than the value of your deposited collateral.
However, this affects your Risk Rate, which must stay above 10% to avoid liquidation.
What Happens to My Collateral?
Let’s say you deposit PHP 10,000 as collateral and borrow up to your maximum credit limit. Here's what happens:
- Collateral Transfer: Your PHP 10,000 moves from the Spot Wallet to the Credit Wallet.
- Collateral Lock: It remains locked while the loan is active.
- Collateral Return: Once you repay the full loan amount plus accrued interest, the remaining balance (if any) is released back to your Credit Wallet—and can then be moved to your Spot Wallet.
⚠️ If you fail to repay or your Risk Rate drops too low, partial or full liquidation may occur.
Will I Get My Full Collateral Back?
You’ll receive your full collateral only if:
- The loan is fully repaid.
- There are no outstanding fees or interest.
- No forced liquidation occurred due to market volatility.
Market movements can impact asset values. If the value of your borrowed assets declines significantly, part of your collateral may be used to cover losses.
How Is Interest Calculated?
Interest accrues hourly from the moment funds are disbursed to your Credit Wallet.
Current Interest Rates:
- Bitcoin-collateralized loans: 0.008% per hour
- PHP-collateralized loans: 0.005% per hour
- New tokens (ETH, SOL, XRP): 0.003% per hour
💡 Limited-Time Promo: PHP loans are offered at 0.001% per hour until February 28, 2025. Some new tokens may qualify for 0% interest for a limited period.
Interest compounds hourly, so timely repayment helps minimize costs.
How Do You Repay the Loan?
You have two simple options:
- Direct Repay: Use available funds in your Credit Wallet.
- Transfer & Repay: Move funds from your Spot Wallet directly toward repayment.
There are no fixed installments or due dates, but ongoing interest means it's best to repay promptly.
How Do You Trade With Borrowed Funds?
To start trading:
- Go to the Trade panel under the Credit tab.
- Choose from supported trading pairs (e.g., BTC/PHP, ETH/PHP).
- Execute long or short positions using borrowed capital.
All trades occur within the Credit Wallet environment—funds cannot be withdrawn directly.
👉 See how top traders leverage credit for smarter entries and exits.
Can You Withdraw Borrowed Funds?
No. Loaned assets cannot be transferred to your Spot Wallet or external accounts. They exist solely for trading purposes within the Credit Wallet.
However, profits from successful trades can be transferred back to your Spot Wallet and then:
- Cashed out as PHP
- Withdrawn as cryptocurrency
Just ensure your Risk Rate remains healthy during transfers.
What Is Liquidation Risk?
Your liquidation rate reflects how close your position is to forced closure. If your collateral value falls below required thresholds (Risk Rate ≤ 10%), the system may automatically liquidate part of your position to cover liabilities.
Monitoring this rate in real time is key to avoiding unexpected losses.
Available Assets for Borrowing
Supported assets include:
- Bitcoin (BTC)
- Ethereum (ETH)
- Solana (SOL)
- XRP
- Philippine Peso (PHP)
Check the official list regularly for updates on newly added tokens.
Where Can You Access This Service?
Crypto on Credit is available only on the Coins website for transactions. However, you can monitor balances and activity through the Coins app.
Frequently Asked Questions (FAQs)
Q: Do I need enhanced verification to use Crypto on Credit?
A: As of January 24, 2025, users with basic ID and Selfie Verification can access the service—no enhanced tier required.
Q: Are there fixed repayment terms?
A: No. There are no monthly installments or due dates. Interest accumulates hourly, so early repayment reduces total cost.
Q: Can I lose more than my initial collateral?
A: No. Your liability is limited to the amount of collateral you deposit. Forced liquidation prevents negative balances.
Q: How does transferring funds affect my Risk Rate?
A: Moving funds out of your Credit Wallet reduces available collateral, increasing your Risk Rate. Always check your status before transferring.
Q: Is my collateral safe from market crashes?
A: While your collateral is secure under normal conditions, extreme price drops may trigger partial liquidation to maintain solvency.
Q: Can I use borrowed crypto outside the platform?
A: No. Borrowed assets are restricted to trading within the Credit Wallet and cannot be withdrawn or sent externally.
👉 Maximize your trading potential—explore advanced credit tools now.
By understanding how Crypto on Credit works—from collateral mechanics to interest accrual and risk thresholds—you position yourself for smarter, more strategic trading. Always assess market conditions and manage leverage responsibly to protect your capital and optimize returns.