Crypto-backed loans are financial products that allow individuals to borrow money using their cryptocurrency holdings as collateral. Instead of selling their digital assets, borrowers can secure a loan by pledging a specific amount of cryptocurrency. This approach enables them to access cash while retaining ownership of their crypto assets.The process typically involves a lender assessing the value of the collateral provided. The borrower is then granted a loan that is usually a fraction of the collateral’s value, protecting the lender from market fluctuations. If the borrower fails to repay the loan, the lender can seize the collateral to recover their funds.Interest rates on these loans can vary widely, influenced by market conditions and the lender’s policies. Additionally, repayment terms are often flexible, allowing borrowers to choose their repayment schedule.Overall, crypto-backed loans offer a way for individuals to leverage their crypto holdings without selling them, facilitating access to liquidity while maintaining exposure to potential price increases in their assets.