Topic: I need an explanation about collaterals. (Read 927 times)
Now many alt coins in market for collateral's like Zeta,Doge,BC and Dark so you can give any one for this purpose and take loan from any reputable person
more simply
basically if you think the price will skyrocket and you sold them, that would be a huge waste of money
this way you keep your alt coin after you return the loan
or any other asset you use as collateral
basically if you think the price will skyrocket and you sold them, that would be a huge waste of money
this way you keep your alt coin after you return the loan
or any other asset you use as collateral
Normally, a collateral is something you can easily sell but you don't want to.
For example, let's say you need some Bitcoins and you have Litecoins.
But you really think LTC is going up and it will be worth much more in the near future.
Then you send your LTC as collateral, get the BTC. Then pay the BTC and get back the full amount of LTC.
For example, let's say you need some Bitcoins and you have Litecoins.
But you really think LTC is going up and it will be worth much more in the near future.
Then you send your LTC as collateral, get the BTC. Then pay the BTC and get back the full amount of LTC.
I don't know very much about lending, so I want to know what kind of collaterals do you usually use, and why don't you sell them instead of use it as a collateral. Thank you.
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