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How does a Litecoin Loan Work?

Published 17 September, 2020


    Litecoin (LTC) was originally developed as a more payments-friendly version of Bitcoin. Unlike its predecessor, LTC tends to support a higher volume of transactions at lower fees. As a result, Litecoin is a great solution for merchants looking to accept cryptocurrency as payment.

    Sitting in the top 10 cryptocurrencies by market cap, Litecoin is one of the most popular crypto projects on the market. BlockFi is excited to offer LTC as a collateral option towards a USD loan.

    Reasons to Take a Litecoin Loan

    Taking out a LTC to USD loan using your Litecoin is an efficient and tax-effective way to use your LTC without having to sell it. For those investors holding a large amount of LTC, you may face situations where you require funding for an investment (such as real estate or diversification) or you may require a business loan. However, you don’t want to sell because you see the value of your Litecoin increasing over time. By using your crypto as collateral towards a USD loan, you can keep your crypto while funding your projects. Cool, right?

    Additionally, there are potential tax benefits to taking out a crypto-backed loan. For example, crypto-backed loans do not trigger taxable events, which can increase your tax burden. Additionally, the interest paid on the loan can be written off, helping decrease the amount of taxes you’ll pay during that tax period.

    Why Take a LTC to USD Loan with BlockFi?

    BlockFi is the largest and most affordable crypto-to-USD lender in the U.S. We service over 45 states with interest rates starting at 8%, the lowest in the industry. For many Litecoin holders, having to sell their investment is a last-case scenario.

    Clients receive all of their crypto back to their wallet of choice once the loan is paid off. That means clients keep all the potential increase in value and any forks that may occur during the loan term (as long as they are supported by our custodian). Click here to learn more about how BlockFi client collateral is stored.

    Don’t sell your crypto if you don’t have to. BlockFi clients use their funds for anything from limiting their tax exposure, to paying for home renovations, to funding the payroll of their business. There are an infinite amount of reasons why someone may need funding and BlockFi is here to help you reach those financial goals. Click here to learn more about BlockFi’s crypto-backed loans.

    How Does a BlockFi Loan Work?

    Clients can apply for a BlockFi loan in under 2 minutes. Once submitted, our team will review your application and present you with a decision and LTC loan terms within hours. From there, applicants accept the terms and send their collateral to a unique wallet address. Once we receive your collateral, we wire your USD directly into your bank account.

    From beginning to end, clients can go from application to funding in as few as 90 minutes. BlockFi prides itself on being the fastest and most affordable crypto-backed lender in the U.S. And with interest rates starting at 8%, this is a great way to reach your funding goals without having to sell. The overwhelming feedback we’ve received from our client base continues to help us offer the best lending product in the blockchain industry. Check out what our clients are saying.

    If you have any questions about BlockFi or how our loans work, please submit a support ticket HERE. We love hearing from you.

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