Borrowing against Bitcoin is nothing new. Over the past decade, this market has moved away from fixed-term loans and toward open-ended credit lines, and the way holders reach cash has shifted with it. Here are the basics of lending and savvy borrowing.
Summary
- Crypto lending allows holders to access fiat or stablecoins without selling their Bitcoin or other digital assets, preserving their exposure to potential price gains.
- Unlike fixed term loans, crypto credit lines have no set maturity date and allow borrowers to access funds repeatedly as they repay outstanding balances.
- Centralized lenders typically handle custody and identity verification, while decentralized protocols…
