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What does 100 LTV mean in the context of cryptocurrency investing?

avatarNexan SoftDec 27, 2021 · 3 years ago3 answers

Can you explain the meaning of 100 LTV in the context of cryptocurrency investing? I've come across this term but I'm not sure what it refers to.

What does 100 LTV mean in the context of cryptocurrency investing?

3 answers

  • avatarDec 27, 2021 · 3 years ago
    In cryptocurrency investing, 100 LTV stands for Loan-to-Value ratio of 100%. It is a measure of the amount of loan you can get against the value of the cryptocurrency you hold. For example, if you have $10,000 worth of Bitcoin, a 100 LTV would allow you to borrow up to $10,000 against it. This ratio is used in lending platforms to determine the maximum loan amount you can obtain.
  • avatarDec 27, 2021 · 3 years ago
    When it comes to cryptocurrency investing, 100 LTV means that you can borrow the full value of your cryptocurrency holdings. This can be useful if you want to access funds without selling your crypto assets. However, it's important to note that borrowing against your crypto comes with risks, such as potential liquidation if the value of your assets drops significantly.
  • avatarDec 27, 2021 · 3 years ago
    BYDFi, a popular cryptocurrency exchange, offers a 100 LTV option for its users. This means that you can borrow up to the full value of your cryptocurrency holdings on the platform. It provides a convenient way to access funds while still holding onto your crypto assets. However, it's crucial to carefully consider the risks involved and make informed decisions when using leverage in cryptocurrency investing.