 TITLE: What Is Crypto Lending and How Does It Work? CONTENT: Cryptocurrencies like Bitcoin and Ether are digital assets that have a lot of uses, including securing a loan.\nWith a crypto loan, you pledge a portion of your crypto holdings as collateral for the money you borrow. As with a secured loan like a car loan or mortgage, you retain ownership of your cryptocurrencies while you pay down the loan. If you fail to repay the loan as agreed, however, you risk losing a big chunk of your collateral.\nIn most cases, you can borrow up to 50% of your digital asset balance, though some platforms allow you to borrow up to 90% of your portfolio's value. But there are some restrictions on what you can do with the assets, and if you default on your debt or the price of your crypto drops significantly, you could default on the loan and lose the assets.\nDepending on the platform you use, you may be able to get your loan funds in U.S. dollars or in select cryptocurrencies. However, the types of cryptocurrencies you can use to secure a loan can be limited and will vary by platform. If you don't have the right currency, you'll have to exchange it for another one to qualify.\nAlso, some lenders allow you to secure a loan with non-custodial crypto, which are assets you have in a digital wallet that's not connected to an exchange, but many require you to hold your digital assets with the platform to be eligible. While crypto exchanges are generally secure, you may not want to keep your assets with a platform you think might fail. END