Bitcoin-Backed Lending: Key Opportunities and Risks

Shiva Ganesh

What Is Bitcoin-Backed Lending? – Borrowers use Bitcoin as collateral to secure loans without selling their holdings.

Financial Opportunities – Bitcoin-backed loans provide liquidity, allowing investors to access funds while retaining their assets.

Volatility Risks – Crypto price fluctuations can trigger margin calls, leading to forced liquidations.

Regulatory Uncertainty – The evolving legal landscape around crypto lending poses compliance challenges for borrowers and lenders.

Security Concerns – Custodial risks and potential fraud highlight the importance of choosing reputable lending platforms.

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