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Crypto loan

A “crypto loan” is a loan that is secured by cryptocurrency assets. The borrower pledges their cryptocurrency holdings as collateral for the loan, such as Bitcoin or Ethereum. With the knowledge that if the borrower fails to repay the loan, the lender may seize the collateral, the lender lends the borrower funds in fiat money, stablecoins, or another cryptocurrency.

Borrowers who wish to access liquidity without selling their cryptocurrency holdings, which could result in capital gains taxes or missed investment opportunities, may find cryptocurrency loans to be an appealing choice. Due to less paperwork and intermediaries, crypto loans can also provide quicker approval timeframes and lower fees than conventional ones.