Bybit Crypto Loans enables users to borrow against crypto collateral like ETH and BTC, providing liquidity without triggering taxable events from selling holdings. The flexibility in collateral options and loan terms is competitive, and the integration within the Bybit ecosystem means borrowed funds can be deployed directly into trading or earning products. However, crypto-collateralized loans carry inherent liquidation risk during sharp market downturns -- borrowers must maintain adequate collateral ratios or face forced liquidation at unfavorable prices. Interest rates and terms should be carefully compared against competitors like Aave or centralized alternatives. The counterparty risk of lending through a centralized exchange also deserves consideration. Suitable for active traders needing short-term liquidity, but less appropriate for conservative holders who want to minimize platform exposure.

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Site: Bybit Crypto Loans (ID: 189)