In brief
- Crypto-backed loans give holders cash against their coins without selling, generally avoiding a capital-gains event.
- Figure advises borrowers to compare four things when shopping: max loan-to-value, fixed vs. variable rate, licensing, and liquidation terms.
- Licensing and liquidation protection matter more than the headline rate, says the crypto lender, and the product suits only holders comfortable with margin-call risk.
If you believe in your crypto, selling it to cover a short-term cash need is the one move you’d rather not make. Sell, and you trigger a taxable event and give up any future upside. A crypto-backed loan offers another path: borrow cash against your holdings while keeping every coin.
Here’s the mechanics. You…
