May 07, 2024
Beginners Guide to LTV Ratio In Crypto Lending?
The loan-to-value (LTV) ratio is a financial metric used by lenders to assess the risk of giving a loan based on the value of the collateral provided by the borrower. It's calculated by dividing the loan amount by the value of the collateral and then multiplying it by 100 to get a percentage....
May 06, 2024
Crypto Loans | Borrow and Repay at Any Time
Crypto loans empower borrowers to manage their repayment schedules dynamically. They can make repayments at any time, in any amount, without being bound by fixed installment schedules. This flexibility allows borrowers to optimise their cash flow, repay loans early to minimize interest costs...
May 03, 2024
What is Overcollateralization in Crypto Lending?
Overcollateralization is a fundamental crypto lending principle, whereby borrowers pledge more collateral than the value of the loan they seek. In other words, the collateral provided by the borrower exceeds the amount of the loan, creating a buffer or cushion for the lender...
Apr 23, 2024
5 Major Cryptocurrency Loan Risks and How to Manage Them
Cryptocurrencies exhibit extreme price volatility, with values that can fluctuate wildly within short periods. Borrowers using crypto as collateral may face margin calls if the market price plunges, requiring them to add more collateral to maintain the loan's value...
Apr 18, 2024
How To Choose The Best Collateral From Your Holdings To Secure Crypto Loans
Lenders typically favour highly liquid assets as collateral to ensure that they can swiftly liquidate them in the event of default, minimizing potential losses. When assessing the liquidity of potential collateral, consider factors such as trading volume, market depth, and exchange availability....
Apr 04, 2024
What is Loan-To-Value (LTV) Ratio In Crypto Lending?
It represents the ratio of the loan amount to the value of the collateral provided to secure the loan. For example, if a borrower pledges $10,000 worth of Bitcoin as collateral and receives a loan of $7,000, the LTV ratio would be 70%....
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