A crypto loan is a type of secured loan in which your crypto holdings are used as collateral in exchange for liquidity from a lender that you’ll pay back in installments. As long as you make your payments and pay the loan amount in full, you get your crypto back at the end of the loan term.
What is a crypto-backed loan?
A cryptocurrency-backed loan uses digital currency as collateral, similar to a securities-based loan. The basic principle works like a mortgage loan or auto loan — you pledge your crypto assets to obtain the loan and pay it off over time. You can get this type of loan through a crypto exchange or crypto lending platform.
How to get a crypto loan on the go?
Anyone can access or repay a crypto loan on the go through their mobile devices. Binance also provides the highest liquidity for most crypto assets, and it is easier to get a loan for more assets than other platforms.
What are the best cryptocurrencies for a loan?
Some lenders accept as many as 40 different cryptocurrencies as collateral, with Bitcoin and Ethereum being the most popular. Loan terms can be anywhere from seven days to a year or more. Interest rates are low compared to personal loans and credit cards, with rates starting at a range of 0%-13.9% with a lender like Nexo.
