A lot of crypto backed loans, where they will give you fiat for crypto, are actually over collateralized. So for example, if you want a $10,000 loan, you have to deposit $20,000 worth of crypto. That actually makes the loans quite safe, and if the price of crypto falls, you will lose your crypto unless you deposit more collateral.
A lot of crypto backed loans, where they will give you fiat for crypto, are actually over collateralized. So for example, if you want a $10,000 loan, you have to deposit $20,000 worth of crypto. That actually makes the loans quite safe, and if the price of crypto falls, you will lose your crypto unless you deposit more collateral.