What is the loan to value ratio calculation for cryptocurrency investments?

1 answers

• Nov 28, 2021 · 3 years ago
  The loan to value ratio calculation for cryptocurrency investments is an important factor to consider when borrowing against your cryptocurrency holdings. It helps determine the amount of loan you can get based on the value of your collateral. Different lenders may have different LTV requirements, but generally, a lower LTV ratio is preferred as it indicates a lower risk for the lender. For example, if you have $50,000 worth of Ethereum and want to borrow $25,000, the LTV ratio would be 50%. This means you are borrowing 50% of the value of your collateral. It's important to carefully consider the LTV ratio and the terms of the loan before making any decisions.
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