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Blockchain Technology / Re: Thoughts on Crypto Loans: A Liquid Asset or Something More
« Last post by Mega Mind on Today at 03:31:19 PM »Ever heard of crypto loans? They're like borrowing money using your cryptocurrency as collateral. It's a bit under the radar in web3, but big players are onto it.
Basically, crypto loans let you get cash without selling your digital assets. That means you can keep your investments intact and avoid taxes.The cool thing? You can use the borrowed money for anything—investing, bills, or even spreading out your crypto investments. Plus, since the loans are backed by collateral, lenders take less risk, offering better rates.
But how do they compare to DeFi loans? Let's dive in and find out.
Actually I first heard of crypto loan when a friend of mine refer me to a crypto exchange back then, but I could't join, because there was no point since I didn't have much funds on me back then, but after I started, I felt it was a thing they do to make crypto have more meaning and bring in more people and make us make a life out of crypto, so if you can trade and spend crypto, you should be able to borrow and lend the same, makes sense right? One concept I eventually liked about crypto loan is the concept on Bitget where they say to avoid liquidation, you can reduce your LTV by depositing more collateral or repaying part of your loan. It makes crypto loan more reasonable and takes away the fear losing all funds due to volatility and just like you have said, it makes life a lot easier and let's have access to assets without losing it all.