What Is Crypto Lending? – Business Insider

What Is Crypto Lending? – Business Insider

  • Crypto-backed loans are secured loans that use digital assets like bitcoin as collateral.   
  • You won’t have to undergo a credit check to qualify for a crypto-backed loan. 
  • Crypto-backed loans may also distribute funds almost instantly, unlike traditional lenders.
  • Read more of Personal Finance Insider’s loan coverage here.

Cryptocurrency has become increasingly popular over the past decade, and a new type of financial offering, crypto-backed loans, has emerged along with it. 

There are different types of cryptocurrency, like bitcoin or ethereum, which are digital forms of money. Cryptocurrency is basically a virtual asset which you can use to buy good and services, as opposed to physical money.  The blockchain, or digital ledger, keeps track of every bitcoin transaction. 

How does cryptocurrency lending work?

Crypto-backed loans are Source…