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How does a 90 LTV ratio impact the borrowing potential in the cryptocurrency market?

avatarMusawer SeeratNov 26, 2021 · 3 years ago1 answers

Can you explain the impact of a 90 LTV (Loan-to-Value) ratio on the borrowing potential in the cryptocurrency market? How does this ratio affect the ability of individuals to borrow funds using their cryptocurrency as collateral?

How does a 90 LTV ratio impact the borrowing potential in the cryptocurrency market?
Cryptocurrency
Borrowing Potential
90 LTV Ratio

1 answers

  • avatarNov 26, 2021 · 3 years ago
    In the cryptocurrency market, the 90 LTV ratio has a significant impact on borrowing potential. This ratio determines the maximum amount individuals can borrow against the value of their cryptocurrency holdings. For example, with a 90 LTV ratio, someone with $10,000 worth of cryptocurrency can potentially borrow up to $9,000. However, it's important to note that different platforms and exchanges may have varying LTV ratios and lending terms. For instance, BYDFi, a popular cryptocurrency exchange, offers a 90 LTV ratio for borrowing against cryptocurrency collateral. It's crucial to understand the specific terms and conditions of each platform to make informed borrowing decisions. Additionally, it's important to consider the volatility of the cryptocurrency market and the potential risks associated with borrowing against cryptocurrency collateral.

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