Don't sell your crypto and miss out on its upside potential. Use it as collateral in exchange for USD, GBP, EUR and more.
It's possible to secure collateralized loans in Bitcoin (BTC), Ether (ETH), Litecoin (LTC), USD, GBP and many other popular currencies.
Like traditional loans, you stake an asset as collateral to secure a loan. Traditionally this asset would be something like a business or a house. With crypto loans, you stake crypto assets such as Bitcoin or Ether.
Each platform offers a different Loan-to-Value ratio which determines how much collateral you need to provide in order to secure the loan. They also vary in interest rates, minimum and maximum amounts you can borrow, the length of your loan and the security of your assets.
If you believe your crypto assets may be worth more in the future, you might not want to sell them in order to purchase a car, a house or go on a holiday. Instead, you can stake those assets and receive USD, or other currencies in exchange for an agreed interest rate.
Another major benefit of not selling your crypto assets, are potential tax savings. In many cases, a loan does not involve any taxable event, which means there are no capital gains tax to pay. It is important to check with an accountant for your specific case to see if this is applicable to you.
Occasionally you may need to sell your crypto for that holiday you want or a car you need to purchase. Unfortunately the sale of these assets can attract hefty capital gains tax. In some cases, you can avoid this scenario by using that crypto as collateral for a loan instead.
If, like many others, you believe crypto has a lot further to grow, you can avoid missing out on its upside by taking a crypto loan instead of selling it.