No Need To Sell Bitcoin: Get A Crypto-Backed Loan Instead
Grand Cayman, Cayman Islands
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April 26, 2024 08:15 AM Eastern Daylight Time
By Austin DeNoce, Benzinga
Many investors trade crypto as a way to make short-term profits. However, what about those who purchase cryptocurrencies such as Bitcoin and Ether with the intention of holding them as long-term investments, anticipating future appreciation? Most people assume that these assets need to be sold to unlock their financial value. However, there is another way to access liquidity without selling valuable currencies like Bitcoin and Ether – crypto-backed loans.
Through the process of crypto-backed loans, crypto holders can use their digital assets as collateral to secure USD (or other currency) loans. This innovative approach allows individuals to maintain ownership of their cryptocurrencies while accessing liquid funds in the form of fiat or stablecoins.
Accessing Liquidity Through Crypto Loans
Crypto loans offer crypto holders a strategic avenue for liquidity without divesting their digital holdings. By using cryptocurrencies as collateral, crypto holders can secure loans that provide immediate liquidity. This liquidity can be used to further diversify investment portfolios, cover personal expenses or even support business ventures. Importantly, accessing funds in this way does not constitute a sale of the crypto assets, meaning you aren’t realizing any gains or potentially creating a taxable event. You are still allowing the crypto to potentially appreciate in value. Such financial flexibility can amplify your ability to navigate and capitalize on market opportunities without sacrificing your long-term crypto investments.
Why Choose Ledn?
Ledn stands out as a leading platform for managing and growing digital assets. It emphasizes simplicity and transparency, crucial for building trust. Ledn offers a reliable environment for crypto lending as it is backed by notable investors like Coinbase and 10T Holdings and Ledn Cayman SEZC Inc. holds regulatory approval from the Cayman Islands Monetary Authority.
For those needing liquidity, Ledn provides crypto-backed loans, which are typically available within 24 hours after approval. These loans are flexible, with no penalties for early repayment, no mandatory monthly payments and 50% loan-to-value. They support only the most liquid cryptocurrencies as collateral (e.g. BTC, ETH) and maintain high security standards. Clients can choose between their Standard and Custodied loan options depending on their risk tolerance.
Risk Management And Transparency
Ledn sets itself apart in the digital asset industry by prioritizing risk management and transparency. Ledn was the first crypto lender to introduce biannual Proof-of-Reserves attestations that allow users to verify their assets are accurately accounted for. The decision mirrors the ‘verify don’t trust’ ethos of Bitcoin to create a new standard of accountability in digital asset management. Ledn also offers a monthly open book report to break down its asset utilization and interest generation to help users understand what drives Ledn’s rates. This commitment to transparency is unparalleled by competitive platforms and ensures that clients are well-informed. In an industry that has suffered from the Celsius and BlockFi collapses, client trust must be earned. Ledn says it is the only lending platform that provides its users with all the essential information to independently confirm the status of their crypto holdings.
A New Era Of Crypto Financing
If you're in need of liquidity but don’t want to sell your assets and potentially create a taxable event, Ledn can help you through a secure and transparent lending service. It is a robust solution for anyone looking to maximize the potential of their digital assets in the evolving crypto economy.
Featured photo by Jievani Weerasinghe on Unsplash.
Ledn builds innovative financial products with a mission to make generational wealth more accessible through digital assets. The company issued Canada’s first bitcoin-backed loan in 2018 and has issued nearly $5B loans since. Ledn is proud to help clients in over 130 countries access credit and savings products to grow their digital wealth. For more information, visit ledn.io.
This post contains sponsored content. This content is for informational purposes only and is not intended to be investing or tax advice.
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