Collateralization

Home / Glossary / Collateralization

Collateralization

What is Collateralization?

When borrowers use assets to guarantee a loan, this is known as collateralization. Margin traders use collateralized loans to purchase securities and then repay the loan with the trade’s profits. Bitcoin owners can avoid having to sell their Bitcoin by using it as collateral for loans in fiat currency.

Related:

My Newsletter

Sign Up For Updates & Newsletters

Email: