To issue a loan in the crypto industry, the trader’s cryptocurrency is used as collateral. Note that for the duration of the crypto loan, until you repay the debt, your coins are “frozen”: they cannot be sold or transacted with them. Cryptocredit wins compared to banking lending systems. And there are several reasons for this: lower interest rates, quick processing, and no background or income checks.
More details here: https://okrain.net.ua/novosti/yak-vzyaty-kryptokredyt-pryklad-oformlennya-na-kryptobirzhi-whitebit/