The truth about borrowing against digital assets

As digital assets like Bitcoin and Ethereum become increasingly mainstream, so too does the demand for financial products that support crypto holders beyond just buying and trading. At Milo, we’ve seen first-hand how crypto-backed loans are helping our clients unlock real value—but we’ve also seen the myths that still surround them.

From liquidity misconceptions to overblown fears about volatility, we’re breaking down the most common crypto lending myths—and showing you why the reality is much more powerful.

Myth 1: You have to sell your crypto to access liquidity

This is one of the biggest misconceptions in the space.

In reality, one of the most powerful advantages of a crypto-backed loan is that you can access capital without selling your Bitcoin, Ethereum, or other digital assets. Lenders like us at Milo allow you to pledge your crypto as collateral and borrow against it—often in USD or stablecoins.

That means:

• You keep full ownership of your crypto
• You avoid capital gains taxes
• You retain the upside potential if the market rises

For crypto investors who want to buy against digital assets—whether that’s real estate, additional investments, or personal expenses—this strategy offers flexibility without compromising long-term wealth.

Myth 2: Crypto loans are only for traders and speculators

This may have been true in the early days, but it no longer reflects how crypto lending works today.

At Milo, we see borrowers from all walks of life using crypto to unlock opportunities. Whether you’re:

• A long-term holder looking to diversify into real estate through a crypto mortgage
• An entrepreneur accessing working capital without cashing out
• A global investor financing property in the U.S.

Crypto-backed loans are now used for much more than short-term speculation. They’ve become an efficient financial planning tool, allowing users to buy against Bitcoin and other assets while preserving their portfolio and maximizing growth.

We’ve even built dedicated products, like our mortgage for crypto investors, to make it possible to purchase U.S. property by leveraging crypto holdings instead of traditional bank accounts or income documentation.

Myth 3: Crypto lending platforms are unsafe

Security is a valid concern, but the assumption that crypto lending is inherently unsafe simply isn’t true anymore.

Lenders like us at Milo use institution-grade infrastructure, including:

• SOC 2 Type II certified systems
• Multi-factor authentication
• Cold storage custodians for asset protection
• Real-time monitoring and alerts for LTV management
• End-to-end encryption for sensitive data

We’ve built our platform to meet and exceed industry standards because we understand how important trust and transparency are in the crypto space.

Myth 4: Crypto volatility makes these loans too risky

Yes, crypto markets can be volatile—but that doesn’t automatically make borrowing against digital assets unsafe.

At Milo, our loans are structured with conservative loan-to-value (LTV) ratios. That means every loan is overcollateralized, and our systems monitor price movements in real-time. If your LTV rises due to market dips, you’re notified immediately, with time to add collateral or reduce your loan balance to avoid liquidation.

Volatility is managed, not ignored. We’ve helped hundreds of clients navigate this by educating them on risk thresholds and providing tools that help manage their position. Crypto collateral loans are not one-size-fits-all—they’re tailored for borrowers who understand the mechanics and want long-term upside with short-term liquidity.

Myth 5: Crypto loans are riskier than traditional loans

The truth depends on how you define risk.

Traditional loans often depend on credit scores, income verification, and country-specific financial systems. For global crypto investors, these models can be restrictive or even inaccessible.

In contrast, crypto-backed loans—especially at Milo—are fully collateralized, transparent, and automated. Our clients borrow based on the value of their digital assets, not their credit profile or employment history.

Whether it’s a personal loan for crypto holders or a crypto-backed mortgage, our goal is to provide access to funding where traditional systems fall short—without sacrificing stability or transparency.

The takeaway: Don’t let outdated crypto lending myths hold you back

The myths around crypto loans haven’t kept up with the reality. Today, crypto-backed mortgages, crypto collateral loans, and personal loans for crypto holders are changing the way people around the world access capital.

At Milo, we’re proud to help global clients leverage their digital assets to buy U.S. property, preserve long-term wealth, and take control of their financial future. If you’ve been waiting on the sidelines because of misinformation—consider this your invitation to rethink what’s possible.

The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.