Borrow or just sell?
If you would be forced to sell at a bad time anyway, a loan can buy flexibility. If repayment is uncertain, selling a slice is often cleaner and cheaper than risking liquidation.
Borrow Box
Borrow against your crypto instead of selling it, if the math actually works.
The pitch for crypto-backed loans is simple: keep your coins, get cash or stablecoins now, and avoid a taxable sale. The reality is that you are posting volatile collateral against a loan that can be liquidated. This box is about understanding both sides before you commit a single satoshi.
Nexo is the platform we point to here. It runs borrowing, a spend card, exchange, and earn products under one account. The headline rate is not the whole story. What matters is loan-to-value, how liquidation is triggered, which assets are accepted, and whether the product is even available where you live.
Route fit
Who This Box Is For
You need liquidity now but do not want to sell and trigger a taxable event.
You hold assets you genuinely believe in long term and would rather not part with.
You want to understand loan-to-value and liquidation before you borrow, not after.
You are weighing a crypto-backed loan against simply selling a portion of the bag.
Read the loan-to-value first
LTV decides how much you can borrow and how far the market can fall before you get margin-called. A lower starting LTV gives more breathing room when prices drop.
Treat the card and earn as extras
Spend cards and earn products can add convenience, but they each come with their own terms. Judge the borrowing product on its own before the bundle sways you.
Operator playbook
How to size a crypto-backed loan you can sleep on
A loan you can comfortably survive a 40 percent drawdown on is a tool. A maxed-out loan is a countdown timer.
- 01Decide what the cash is actually forBorrowing for a fixed, short-term need is very different from borrowing to lever up. Be honest about whether you can repay if the plan does not work out.
- 02Borrow well under the maximum LTVJust because you can borrow at the platform limit does not mean you should. A conservative LTV is the single biggest thing standing between you and a liquidation in a sell-off.
- 03Map the liquidation price before you signKnow the exact price level where your collateral starts getting sold, and ask whether you can survive a normal crypto drawdown at that level.
- 04Keep a repayment and top-up plan readyKnow how you would add collateral or repay fast if the market drops. Set alerts well above the liquidation level so you are never surprised.
Before You Click
Liquidation is the real danger
Crypto can fall hard and fast. If your collateral value drops past the threshold, the platform can sell it to cover the loan, often at the worst possible moment.
Rates and terms change
Interest rates, accepted collateral, LTV tiers, and product availability can shift over time and vary by region. Check the current terms on the platform, not a screenshot from last year.
This is not financial advice
This page is educational. A crypto-backed loan is a real financial obligation. Consider qualified advice for your own situation before borrowing against volatile assets.
Straight answers
Questions People Actually Ask
How does a crypto-backed loan actually work?+
You pledge crypto as collateral and receive a loan in cash or stablecoins against it. You keep ownership of the collateral as long as you stay within the loan-to-value limits and meet the terms. When you repay, the collateral is released.
What happens if the price of my collateral drops?+
As collateral value falls, your loan-to-value rises. If it crosses the platform's threshold, you may face a margin call or partial liquidation, where some collateral is sold to bring the loan back in line. Borrowing conservatively is how you avoid getting close to that line.
Is borrowing better than selling my crypto?+
It depends. Borrowing can avoid a taxable sale and let you keep exposure to an asset you believe in, but it adds interest cost and liquidation risk. If you are not confident you can repay or manage a drawdown, selling a portion is often the simpler, lower-risk choice.
Is Nexo available in my country?+
Availability and specific products vary by region and can change. Check Nexo's current terms and supported regions directly before assuming a product is offered where you live.
Connected routes
Build the rest of the borrowing stack
Crypto Record Keeping GuideTrack loan, interest, and collateral movements so tax season and repayment stay clean.Swap BoxMove between assets and stablecoins when you need to top up collateral or repay.Crypto Security ToolkitSecure the account holding your collateral before you park real value in it.
Run the numbers, then explore the route.
If a conservative loan-to-value and a clear repayment plan still make sense, Nexo is the borrowing route inside the box. Check the current terms and your region before you commit.