How Do Crypto-Backed Loans Work?

Need cash, but do not want to sell your Bitcoin? That is the basic problem crypto-backed loans are designed to solve.Instead of selling an asset for cash, a borrower uses Bitcoin, Ether or another accepted cryptocurrency as collateral and takes out a loan against it. The attraction is straightforward: you get liquidity while keeping exposure to the asset.But that does not mean the risk of selling has disappeared.The fitting question is what happens when the value of the collateral falls while th