How to Borrow Against Crypto

What is Borrowing Against Crypto?

Borrowing against crypto allows investors to secure loans by using their cryptocurrency assets — such as Bitcoin (BTC), Ethereum (ETH), or USDC — as collateral. This approach provides liquidity without requiring the sale of assets, preserving potential future gains.

How Crypto-Backed Borrowing Works

1. Choose collateral: Confirm that the lender accepts your asset and region.
2. Select an LTV: Lower LTV generally leaves more room before a margin call or liquidation.
3. Review total cost: Compare APR, origination fees, repayment terms, and withdrawal costs.
4. Transfer collateral: Verify the address, network, custody terms, and funding timeline before sending funds.
5. Monitor the loan: Track collateral value and know how to add collateral or repay if the LTV rises.

Which Crypto Assets Can I Use as Collateral?

Bitcoin (BTC) is the most widely accepted collateral — nearly every platform on this page accepts it. Ethereum (ETH) and Solana (SOL) are also widely supported. Some platforms accept a broader basket including XRP, Litecoin, DOGE, and stablecoins. Use the coin selector above to filter by your specific asset.

Why Borrow Against Crypto?

• Avoid an immediate sale: The transaction uses the asset as collateral rather than selling it.
• Retain market exposure: You remain economically exposed to collateral price changes while it secures the loan.
• Collateral-based underwriting: Approval commonly depends on collateral, identity checks, and jurisdiction rather than only a credit score.
• Flexible proceeds: Payout options and permitted uses vary by lender and location.

Risks to Consider

• Liquidation: If collateral value falls enough, the lender may sell it to reduce or repay the loan. There is no universally safe LTV; compare each lender's thresholds.
• Platform risk: CeFi platforms hold your crypto. Research custody arrangements before depositing large amounts.
• Total borrowing cost: APR, origination fees, term, and repayment rules can materially change the effective cost.

How does borrowing against crypto work?

You pledge supported crypto, receive cash or stablecoins up to the lender's LTV limit, and repay according to the loan agreement. The lender returns remaining collateral after repayment, subject to its custody, fee, and withdrawal terms.

What causes a crypto loan liquidation?

A falling collateral price can push the loan above its maintenance or liquidation threshold. The lender may require more collateral or a partial repayment, then sell collateral if the threshold is breached.

Collateral and platform data checked at build time. Confirm current eligibility and terms directly with the lender. This guide is informational and is not tax, legal, or financial advice.