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NGRAVE The first end-to-end security solution to manage your crypto.
Crypto-Backed Lending Guide 2025: Borrow Against Bitcoin & Digital Assets
Your 10‑minute read on how crypto‑backed lending (a.k.a. crypto lending) unlocks cash without selling your coins, while keeping them safe in a hardware wallet.
- Article Quick Links:
- What Is Crypto‑Backed Lending?
- 7 Key Benefits
- Case Study
- Risks & Considerations
- Crypto Lending vs. Traditional Lending
- Borrower Best Practices
- 2025 Market Landscape
- FAQ
- Conclusion
- Important Disclaimer
| # | Benefit | Why It Matters |
|---|---|---|
| 1 | Access liquidity without selling | Preserve upside potential & defer capital‑gains tax events |
| 2 | Rapid approval (minutes) | Automated smart contracts, 24/7 funding |
| 3 | No credit score needed | Collateral, not creditworthiness, secures the loan |
| 4 | Competitive rates | Secured loans often 5-12% APR, lower than credit-card cash advances |
| 5 | Flexible repayment | Many platforms allow interest-only or early repayment with no penalty |
| 6 | Diversification tool | Unlock cash for expenses or investments without shrinking crypto stack |
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| Feature | Crypto-Backed Lending | Traditional Lending |
|---|---|---|
| Credit Check | ❌ None | ✅ Required |
| Approval Time | Minutes to hours | Days to weeks |
| Collateral | Bitcoin, ETH, etc. | Property, vehicles, etc. |
| Interest Rates | 5-15% | 3-25% |
| Access Hours | 24/7 | Business hours |
| Liquidation Driver | Market volatility | Payment default |
| Regulation | Emerging (MiCA, US state NMLS) | Established |
FAQ
- Who can take out Arch’s crypto-backed loan?
- What collateral is accepted to take out Arch’s crypto-backed loan?
- What is the interest rate of Arch’s crypto-backed loan?
- What is the maximum and minimum term for Arch’s crypto-backed loan?
- Which fees apply to Arch’s crypto-backed loan?
- What are the liquidation and margin call thresholds? Can I top up the collateral?
- Where does Arch store the crypto assets used as collateral for its crypto-backed loans?
Article Quick Links:
- What Is Crypto‑Backed Lending?
- 7 Key Benefits
- Case Study
- Risks & Considerations
- Crypto Lending vs. Traditional Lending
- Borrower Best Practices
- 2025 Market Landscape
- FAQ
- Conclusion
- Important Disclaimer
The first end-to-end security solution to manage your crypto.
NGRAVE
NGRAVE is a digital asset security company and the creator of the world’s most secure cryptocurrency wallet, NGRAVE ZERO. NGRAVE ZERO was developed in collaboration with a world-renowned team of cryptography and security experts.
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