Crypto Loans: How to Borrow Against Your Assets with Peridot’s Cross-Chain Platform

Crypto loans let you borrow money by using your cryptocurrency as collateral. You lock your crypto in a smart contract and receive a loan, usually in stablecoins or other digital assets, without selling your holdings.

Borrowing allows you to access liquidity while keeping your crypto investments intact. This helps you avoid taxable events from selling and maintain exposure to potential market gains.

Overcollateralization means you need to deposit more crypto value than the amount you borrow to protect lenders. This reduces risk but also requires careful management to avoid liquidation if your collateral value drops.

Peridot allows you to borrow across multiple blockchains through one platform. It manages collateral and risk automatically, making the borrowing process faster, secure, and less complex.

The main risk is liquidation if your collateral value falls below a required threshold. It’s important to monitor your loan-to-value ratio and be prepared to add more collateral or repay part of the loan to avoid losing your assets.

No, Peridot provides step-by-step guidance to help users easily borrow against their crypto. The platform uses smart contracts to automate and secure the loan process, making it accessible even for beginners.