# What is a Bitcoin-backed loan?

> A Bitcoinbacked loan is a type of secured loan where your Bitcoin serves as collateral Unlike traditional loans that require extensive credit checks this loa

Source: https://customersupport.xapo.com/en_us/what-is-a-bitcoin-backed-loan-HJIxoPd0

Last updated: 2024-11-06T12:51:18.075Z

A BTC collateral loan is a type of secured loan where your Bitcoin serves as collateral. As this is a crypto loan, and unlike traditional loans, this loan type offers a simple and efficient way to borrow cash by using your Bitcoin as collateral.

With a Bitcoin-backed loan, you can access US Dollars without selling your Bitcoin.