What Is a Bitcoin-Backed Loan? Borrowing Against BTC Explained
Summary
Bitcoin-backed loans allow cryptocurrency holders to access cash or stablecoins while keeping their digital assets. This financial mechanism involves using holdings as collateral and managing loan-to-value ratios to avoid potential liquidations without needing to sell the underlying cryptocurrency.
Bitcoin-backed loans let holders borrow cash or stablecoins without selling BTC. Here's how collateral, LTV and liquidations work.
Source: Read the full story at Decrypt
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