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Author: Admin | 2025-04-28
Involves risks. For most borrowers, the pros outweigh the cons, especially if you repay the loan according to the lending terms. You can also use crypto loans as you wish, without any restrictions from the lender. Here are some of the pros and cons of borrowing against your cryptoassets.ProsLow-Interest Rates: Crypto loans tend to feature lower interest rates than other secured loan products. Lower rates make the debt more manageable.Based on Asset Value: The loan you receive is based on a predetermined percentage of your cryptoassets. You’ll gain access to more margin if the assets grow.Multiple Loan Currencies: Looking for how to borrow against Bitcoin? You’ll soon realize lenders accept several other cryptocurrencies, including ETH, BCH, LTC and USDT among others..No Credit Checks: Because the cryptoassets act as collateral/security, you don’t need to have an excellent credit score. You can apply for crypto loans with bad credit.Fast Funding: Leading lenders release the funds on the same day of your application if you’re eligible. No tax returns, income statements, or financial documents are necessary.Manage Taxes: You can borrow against crypto to potentially better manage taxable events associated with selling your crypto.ConsPrice Drops: If the current value of your cryptocurrency drops, you’ll need additional crypto to cover the loan.Potential Liquidation: The lender may initiate partial liquidation of your crypto asset if you fail to make payment or default.Less Oversight: Crypto lenders tend to have less oversight than banks and traditional lenders, so you must be cautious when taking a loan.Limited Access: You may not have access to your cryptocurrencies during the term of a CeFi loan.Choosing a trustworthy lender can guarantee reasonable and transparent terms if you’re looking to take a crypto-backed loan. So, spend time researching how to borrow against crypto and find the best lenders and terms. SALT Lending offers loans starting from $1,000 with APRs from 0.95% and loan terms ranging from 12 to 60 months. You’ll also pay $0 prepayment/origination fees and can borrow against Bitcoin, Ether, Bitcoin Cash, Litecoin, SALT, USDC, TUSD, and/or USDP.Sign up today to learn more about SALT Lending crypto-backed loans and how you
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