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Imagine you hit a corner where you need some quick cash. Maybe it’s a home repair, a sudden unexpected bill, or a great real-world opportunity. If your money is tied up in Bitcoin or Ethereum, your first instinct might be to sell off a portion to clear the expense.

Before you click that sell button, let’s talk about why that might be an expensive mistake. Selling your crypto does two things you want to avoid: it forces you to give up your future upside potential, and it creates a taxable event where you might owe the government a cut of your gains.

Instead, you can actually borrow cash directly against your existing Bitcoin or Ethereum within the app. Your crypto acts as collateral, staying safely locked up while you get cash sent right to your bank account or as a digital stablecoin. When you pay back the loan, your assets are fully unlocked.

This is an incredibly powerful financial tool, but because crypto prices move fast, it requires strict discipline. If the market takes a sudden dive, the value of your collateral goes down. If it goes down too far, you risk having some of your crypto sold off automatically to cover the loan. For this reason, you should only borrow a small fraction of what your total crypto is worth. If you keep your borrow amount conservative, you can ride out the wild market swings safely without sweating.

How to Take Out a Crypto Loan

1. Tap on your profile icon or navigate to the menu and select the Borrow or Loans section.

2. Choose the asset you want to use as collateral (such as Bitcoin).

3. Enter the amount of cash you need to borrow. The app will automatically show you the minimum amount of crypto you need to post to back it up.

4. Review the interest rate and the health indicator of your loan. Make sure your loan health stays safely in the “green” zone.

5. Select where you want the funds sent (directly to your linked bank account or as a balance in your app).

6. Agree to the terms and click Confirm to receive your funds instantly.

Tips for Success

• Keep a massive safety buffer: Never borrow the maximum amount allowed. If you have $1,000 in crypto, try to borrow no more than $300 to $400. This gives your account plenty of breathing room if prices drop overnight.

• Set up alerts: Check your notification settings to ensure you have push notifications and emails turned on for account balances so you can react quickly if the market shifts.