How does a loan secured by cryptocurrency work?


Cryptocurrency News


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One of the most exciting advancements in the cryptocurrency industry is the ability to use their crypto holdings to borrow fiat currencies. At BlockFi, we offer secured loans using Bitcoin (BTC), Ether (ETH) or Litecoin (LTC) to obtain USD loans.

How does crypto lending work?

Well, with traditional secured loans, borrowers will bet on the asset and get paid in return. The main advantage is that you don't have to sell any assets to get this financing. With BlockFi, you don't run your home or business, you secure your crypto assets. Why is it not important to sell your cryptocurrency? Well, if you think your investment will increase in value over time, you might not want to sell it until it reaches that deadline. With BlockFi loan, you retain the full growth potential of your cryptocurrency. In addition, any forks arising during the life of your loan will be refunded to you if our custodians maintain that fork. Click here for more information on how we store your digital assets.

Another major benefit of not selling cryptocurrency: loans backed by BlockFi assets can also have positive tax breaks. For example, your loan is not related to taxable events. This means that no capital gains taxes are levied. The situation is different for everyone, and we are not tax experts. Before making financial decisions, consult with an accountant. Click here to learn more about how BlockFi can limit your tax risks.

What can I use a crypto asset loan for?

There are several options for using BlockFi loan. One of the main use cases our clients talk about is real estate investing. Whether you are buying your first home or renovating, a loan secured by cryptocurrencies is a great way to access the value of your cryptocurrency without selling. Other use cases include diversifying investments, paying taxes with cryptocurrency dollars, and paying off more expensive debts. BlockFi also has a number of business clients who turn to us for help with everything from payroll financing to expansion payments. We pride ourselves on providing this level of liquidity to foster the development of the crypto ecosystem.

How does BlockFi loan work?

It takes less than 2 minutes to apply for a BlockFi loan. Once submitted, our BlockFi team will make a decision and submit the loan conditions within a few hours. Once you have accepted and submitted the deposit, we will transfer the USD directly to your bank account. It is so simple.

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Our clients can apply and have dollars in their bank account in just 90 minutes. In addition, we have the largest lending volume in the US and interest rates starting at 8%, making us the largest, fastest, and most affordable crypto-backed lender in the US. If you are looking for a way to leverage your digital assets without having to sell, apply for a BlockFi loan today.

If you have any questions about BlockFi or how our loans work, please Top Mixers us at We are glad to hear from you.