Crypto Lending
Taking loans with crypto collateral — get USD without selling BTC.
Crypto lending allows cryptocurrency owners to take fiat loans using crypto as collateral — without selling holdings and without credit checks.
How it works: 1. Deposit BTC as collateral (e.g. $10,000) 2. Borrow up to LTV% in USD/stablecoin (e.g. 50% = $5,000) 3. Use $5,000 for whatever you want (without selling BTC) 4. Repay loan with interest 5. Receive BTC back
LTV (Loan-to-Value):
•Conservative: 30–50% LTV (lower liquidation risk)
•Aggressive: 60–70% LTV (closer to liquidation threshold)
Platforms:
•DeFi: Aave, Compound, MakerDAO CDP
•CeFi (caution!): Nexo, Ledn (others failed in 2022)
Liquidation risk:
•If BTC falls and LTV rises above threshold (e.g. 80%)
•Protocol automatically sells collateral to repay debt
•Add collateral or repay part of debt before LTV threshold falls
Usage:
•Take USD for expenses without taxable event (didn't sell BTC)
•Leverage for buying more crypto (risky)
•Paying bills in bear market without selling