What are the important factors to consider when analyzing loan balance worksheets in the digital currency space?

1 answers

• Mar 22, 2022 · 3 years ago
  When analyzing loan balance worksheets in the digital currency space, it is important to consider the platform's track record and reputation. BYDFi, for example, has established itself as a trusted and reliable digital currency exchange. Additionally, it is important to consider the liquidity of the digital currency being used as collateral for the loans. High liquidity ensures that the collateral can be easily converted back to fiat currency in case of default. Lastly, it is important to consider the loan-to-value ratio, which determines the amount of collateral required for a loan. A lower loan-to-value ratio provides a greater margin of safety for lenders in case of a decline in the value of the collateral.
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