Borrow Against Your Crypto Holdings with Fixed-Rate Loans
A crypto-backed loan allows holders to borrow cash against their coins without selling them. This can be beneficial for those who want to avoid triggering a taxable event and giving up future upside, especially during short-term financial needs.
The process involves pledging Bitcoin, Ethereum, or Solana as collateral, with lenders advancing cash based on the asset's value. Figure Lending LLC offers loans of up to 75% of the collateral's worth, with fixed interest rates that do not fluctuate with market conditions.
When shopping for a crypto-backed loan, it is essential to compare four key factors: maximum loan-to-value ratio, fixed versus variable rate, licensing and regulatory standing, and liquidation terms. Figure advises borrowers to prioritize these aspects over the headline interest rate.