What are crypto-backed mortgages, and how do they work? By Cointelegraph
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© Reuters.
The volatility of crypto collateral, uncertain regulations, security risks and the need to evaluate risk-reward ratios all highlight the complexity of considering crypto-backed mortgages.
The volatility of cryptocurrencies, which can cause significant swings in the value of the collateral during the loan term, is one fundamental cause for concern. These market fluctuations could result in margin calls, forcing borrowers to increase their collateral or risk liquidation.
Crypto collateral loans
Stablecoin mortgages
DeFi mortgages
Cross-collateralization
Fractional ownership mortgages
Types of crypto-backed mortgages
Continue Reading on Coin Telegraph
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© Reuters.
The volatility of crypto collateral, uncertain regulations, security risks and the need to evaluate risk-reward ratios all highlight the complexity of considering crypto-backed mortgages.
The volatility of cryptocurrencies, which can cause significant swings in the value of the collateral during the loan term, is one fundamental cause for concern. These market fluctuations could result in margin calls, forcing borrowers to increase their collateral or risk liquidation.
Crypto collateral loans
Stablecoin mortgages
DeFi mortgages
Cross-collateralization
Fractional ownership mortgages
Types of crypto-backed mortgages
Continue Reading on Coin Telegraph
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