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What is the impact of LTV loans on cryptocurrency investments?

avatarT DorjsambuuDec 16, 2021 · 3 years ago1 answers

How do LTV loans affect cryptocurrency investments and what are the potential consequences for investors?

What is the impact of LTV loans on cryptocurrency investments?

1 answers

  • avatarDec 16, 2021 · 3 years ago
    At BYDFi, we understand the impact of LTV loans on cryptocurrency investments. LTV loans can provide investors with a way to access liquidity without selling their digital assets. This can be particularly useful for long-term investors who believe in the potential of their cryptocurrencies but need funds for other purposes. However, it's important to note that LTV loans come with risks. If the value of the collateral drops significantly, investors may face margin calls or even the liquidation of their assets. It's crucial for investors to carefully assess their risk tolerance and to have a plan in place to manage potential downside risks when using LTV loans.