Questions? We Have Answers
Q: How do Cryptocurrency-Backed Loans Work?
If you hold cryptocurrency, you may be able to use your crypto as collateral to secure a loan. Once you repay the loan, your crypto assets are returned to you. You can read more about this question here.
Q: Which Types of Cryptocurrencies Qualify?
This varies by lender, but the most commonly accepted cryptocurrencies are Bitcoin (BTC), Litecoin (LTC), and Ethereum (ETH).
Q: Do I Need a Bank Account?
This requirement varies by lender, but if you're looking to get a loan in USD, the answer is usually yes. This is because the lender will transfer the funds directly to your bank account once approved.
Q: Are All Cryptocurrency Lenders the Same?
No. Lenders vary in the cryptocurrencies they accept, the loan types they offer, and how much they'll lend based on your crypto assets, among other things. Read our reviews to find detailed information on each of the largest lending platforms available today.
Q: How Much Can I Borrow?
The amount of fiat or crypto you can borrow depends on the amount and type of digital assets you have to collateralize. You cannot borrow an amount greater than the value of your assets, with most lenders capping the borrowed amount to 70% of your holdings. Cash loan minimums generally start around $50 and go all the way up to $1M+.
Q: How Long Does it Take to Get Approved for a Loan?
The exact time varies by lender and loan type, but many loan approvals happen within 24 hours. This may take longer depending on your location and specific loan terms.
Q: What Happens When the Value of My Assets Fluctuates?
In the event the value of your collateralized assets decreases and becomes less than the required minimum per your loan agreement, you may need to add more crypto assets to avoid a margin call.
Q: Will I Need to Undergo a Credit Check?
No. Loan values are determined and secured by the value of your blockchain assets, not your credit score.
Q: Is Your Service Free?
Yes! We do not collect any fees to help you find a cryptocurrency loan. We simply provide in-depth information on the up-and-coming crypto lending industry to help you make an informed decision. Some of the companies we highlight may pay us a commission if you decide to use their service.
Q: Are Cryptocurrency Loans Safe?
Yes. Cryptocurrency lending platforms take great security measures to ensure the safety of their customers. This generally includes industry-standard encryption, two-step verification processes, and adhering to global compliance standards.
If you don't see your question answered above, email us at info@cryptolendingadvice.com.
