Now that cryptocurrencies are mainstream, it’s not surprising to see crypto lending. Simply put, you borrow money and use crypto assets as collateral. This may change the world of loans forever, even if you don’t have any cryptos!
First, we’ll talk more about crypto loans, such as the available options. Then, we’ll compare them to regular loans and explore their benefits and risks. You’ll see that you don’t need cryptocurrencies to engage in crypto lending!
Every day, cryptocurrency and blockchain technology is changing more aspects of our lives. Learn how decentralized finance (DeFi) is changing this with crypto lending! This includes how we borrow funds for products and services.
What is a crypto loan?
They’re available at DeFi platforms or crypto exchanges. Unlike regular loans or credit cards, they won’t need your credit score. Instead, they will only check your loan-to-value (LTV) ratio.
They will compare the number of crypto coins you have. This will determine the amount you may borrow. Most DeFi lending platforms require a 50% LTV ratio.
Let’s say you have some bitcoin, and you need cash for around $90,000. At the time of