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Andy Larkin
Andy Larkin

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Crypto Loans: What You Need to Know Before Borrowing

Crypto loans have become a popular solution for users who need quick access to funds without selling their digital assets. But how do they work, and which platform is right for you?

πŸ” Types of Crypto Loans
Secured Loans: You provide crypto as collateral. If its value drops, it may be liquidated. But in return, you get lower interest rates.

Unsecured Loans: No collateral, but higher rates due to risk.

Fixed-Rate Loans: You know your interest upfront β€” no surprises.

Variable-Rate Loans: Rates change with the market β€” can be risky but potentially cheaper.

Short-Term vs. Long-Term: Choose depending on whether you need quick liquidity or long-term funding.

βš™οΈ Why Use Crypto Loans?
Fast and easy β€” no paperwork, no credit check.

Use funds for anything β€” trading, investing, etc.

Lower interest than traditional loans (2–11%).

Available for a wide range of crypto assets.

But β€” and this is important β€” market volatility and platform risks (especially on CEX/DEX) can lead to liquidation or loss if you’re not careful.

πŸ” Which Platform to Choose?
Here are some top choices and what they offer:

Binance – Daily interest from 0.025%, early repayment allowed, high security.

WhiteBIT – Unlimited loan term, flexible collateral, fixed rates, high protection.

OKX – Fixed & flexible loans, VIP-based limits, wide asset support.

Coinbase – BTC-only loans up to $100k USDC, interest via Morpho.

Bybit – Supports many cryptos, hourly interest on flexible loans, no auto repayment.

πŸ’‘ Tip: Always check fees, interest, collateral requirements, and repayment rules before borrowing.

πŸ›‘οΈ How to Stay Safe?
Monitor the market.

Use stop-loss tools.

Only borrow what you can repay.

Diversify investments.

Keep liquid assets in reserve.

For a more detailed here

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