Which cryptocurrencies can be used as collateral?
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Most current offerings are limited to major, relatively stable assets. Typically, only Bitcoin and USDC are accepted.
This is because lenders prioritize liquidity, transparency, and lower volatility (in the case of stablecoins). More speculative or smaller-cap tokens are generally excluded due to higher risk and regulatory uncertainty.
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nothing like turning your down payment into collateral that can disappear if things go wrong