A crypto loan refers to a type of loan that is secured by cryptocurrency as collateral. In a crypto loan, borrowers can use their cryptocurrency holdings as collateral to obtain a loan in another cryptocurrency. Crypto loans provide borrowers with the flexibility to access liquidity without selling their crypto holdings, allowing them to benefit from potential price appreciation. These loans typically involve terms such as loan-to-value (LTV) ratios, interest rates, and liquidation thresholds based on the value of the collateral.
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