More crypto holders are choosing to borrow against their holdings rather than sell them outright. The shift is driven by tax considerations, long-term conviction in their assets, and a growing appetite for liquidity without giving up upside.

A crypto-backed loan works by pledging cryptocurrency as collateral in exchange for a cash loan, typically in EUR or USD. The lender applies a Loan-to-Value (LTV) ratio, which determines how much can be borrowed relative to the value of the collateral.

At Crypto-Bond, every request goes through a straightforward review process: applicants submit their desired loan amount, proposed collateral and duration through our online form, and our team responds with a personalised offer within 24 to 48 business hours.

As with any collateralised product, market volatility matters. A sharp drop in the value of the pledged asset can trigger a margin call, requiring the borrower to add collateral or repay part of the loan. Transparent communication throughout the loan term is central to how we manage this risk together with our clients.