What is the definition of LTV in the context of cryptocurrency?

1 answers

• Mar 19, 2022 · 3 years ago
  LTV, or Loan-to-Value, is a concept widely used in the cryptocurrency lending space. It refers to the ratio between the value of a loan and the value of the collateral provided by the borrower. LTV is an important metric for lenders as it helps them assess the risk associated with lending money against digital assets. For borrowers, understanding the LTV ratio is crucial as it determines the maximum loan amount they can obtain based on the value of their collateral. Different lending platforms may have different LTV requirements, so it's important for borrowers to compare and choose the platform that offers the most favorable LTV ratio for their needs. BYDFi, a leading cryptocurrency exchange, also provides lending services with competitive LTV ratios to cater to the needs of its users.
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