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How Does Crypto Lending Work? Collateral, LTV & Tax Rules

Featured · Crypto Lending

How Does Crypto Lending Work? Collateral, LTV & Tax Rules

Learn how crypto lending works: how collateral and LTV ratios are set, what triggers a margin call, how taxes apply, and which risks US borrowers often miss.

Evan Patel

Bitcoin Collateral Loan helps US borrowers understand loans secured by cryptocurrency. Our editorial team breaks down loan-to-value mechanics, liquidation triggers, platform custody models and IRS treatment, using primary sources and verified figures. No yield promises, no token shilling: factual information for a decision this consequential.

All guides

All guides

Topics

Bitcoin Loans 8 Crypto Lending 4 DeFi Lending Risk & Security Taxes

Editorial team

Sourced against US regulators, not lender marketing

Every guide is checked against primary US sources before it goes live: CFPB consumer-lending publications, IRS digital-asset guidance, and SEC filings. When a platform changes its terms, we date the update and note what moved.

Each figure we publish carries a dated, named source; anything we cannot verify against a primary document is left out rather than estimated.

Evan PatelEvan Patel Personal Finance Writer · 13 published guides Nicole ChenNicole Chen Tax Specialist · 2 published guides
Editorial team See our editorial principles → About us
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Federal sources first
We ground our explanations in CFPB, IRS, and SEC material rather than platform promises or affiliate copy.
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Tax stance sourced
Statements on how a crypto loan is treated trace back to current IRS digital-asset guidance, not a forum's interpretation.
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Not FDIC or SIPC insured
Crypto-backed loans carry no FDIC or SIPC protection: if a platform fails, your deposited collateral is at risk, and we say so plainly.