If you are not ready to part with decentralized money, at a time when prices are relatively low, but need some fiat cash to cover costs in times of crisis, crypto-backed loans are a working solution. A number of platforms offer this type of service and their popularity is growing among cryptocurrency enthusiasts who are intent on hodling.
Also read: If You Don’t Trust Yourself, These Crypto Vaults Will Help You Hodl Safely
Borrow Fiat Money With Crypto-Backed Loans
Various providers allow you to borrow against your crypto. Blockfi, a wealth management platform for crypto investors, extends loans in U.S. dollars backed by three cryptocurrencies, BTC, ETH and LTC. Use its calculator to enter an amount you’d like to get, minimum $5,000, and calculate the required collateral. To receive $10,000, for instance, you’ll have to deposit 3.53 BTC at the time of writing, based on a 50% loan to value ratio (LTV). To receive an individual offer, you must create a Blockfi account.
On the backdrop of the troubles facing the traditional…