What is the impact of LTV loans on cryptocurrency investments?
Avanthika RajMay 17, 2022 · 3 years ago1 answers
How do LTV loans affect cryptocurrency investments and what are the potential consequences for investors?
1 answers
- May 17, 2022 · 3 years agoAt 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.
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