Finance2 sources

Bitcoin-Backed Loans Explained: Borrowing Without Selling BTC

  • Bitcoin-backed loans enable holders to borrow against their Bitcoin without selling it.
  • This method provides access to capital while maintaining exposure to Bitcoin's value.
  • Loans are secured by Bitcoin, and terms include collateral, loan-to-value ratio, and liquidation conditions.
  • This financial strategy offers an alternative to selling Bitcoin for immediate liquidity needs.
  • The process involves using Bitcoin as collateral to borrow cash or stablecoins.
Bitcoin-Backed Loans Explained: Borrowing Without Selling BTC | Split Angle