Why there's never a bad time to get a crypto loan

In crypto, timing feels like everything. People obsess over buying the dip, selling the top, and waiting for the next move. But when it comes to crypto loans and crypto mortgages, timing the market misses the point.

These tools aren’t about price predictions; they’re about using your crypto strategically. Whether Bitcoin is down, rallying, or moving sideways, you can borrow against your holdings in a way that matches your goals, not the headlines.

Here’s how to think about borrowing in different market conditions, and why there’s never a “wrong” time to use your crypto as collateral.

Bear market borrowing

When BTC is trading low, it’s easy to hesitate. You'll need to post more collateral for the same loan amount, and at first glance, that feels like a disadvantage.

But here’s the long-term view: when you borrow during a down market, you’re locking in a position without selling. If BTC appreciates in the future, your collateral value increases—improving your loan-to-value ratio over time and giving you more room to work with. You also avoid crystallizing losses or reducing your crypto exposure when prices are temporarily suppressed.

At Milo, we let you choose your collateral ratio—2:1 if you want to maximize liquidity, or 3:1 if you prefer more buffer against a potential margin call. With the right structure, borrowing in a downturn becomes a strategic way to hold your assets while still accessing capital.

Bull market borrowing

When BTC is trading high, your collateral is worth more, which means you can access the same loan amount with less crypto. This is where our crypto mortgage shines.

Say you’ve watched your holdings grow significantly. Instead of selling and triggering a tax event, you can use that appreciated crypto to finance a property, potentially up to 100% of the purchase price, without putting cash down.

This approach allows you to diversify your portfolio into U.S. real estate while keeping your crypto intact. You're turning paper gains into a real asset, without losing upside or breaking your position.

Even if prices pull back later, you’ve already used the value to acquire something tangible. In that way, bull market borrowing isn’t about market timing, it’s about capitalizing on an opportunity before it slips away.

What about sideways markets?

Not every market is booming or crashing. Sometimes, crypto trades within a tight range for weeks or months. This is called a sideways market—where price moves are relatively stable, and there’s no clear upward or downward trend.

In these conditions, crypto loans and mortgages can still play a role. A sideways market offers consistency. You can use your crypto to unlock liquidity or diversify into real estate without worrying about immediate volatility impacting your loan-to-value ratio. It’s a steady moment to act strategically, especially if you’re planning ahead.

What about margin calls?

No matter the market cycle, margin calls are part of responsible lending. They exist to protect your position—not punish you.

With Milo’s crypto loan, you choose your own buffer. A 2:1 collateral ratio triggers a margin call if your crypto drops 25% in value. A 3:1 ratio gives you more room, with margin calls only happening after a 50% drop.

The key is this: when you understand how your collateral is structured, you can choose a loan that aligns with your risk tolerance. And if the market does move against you, you’ll have time to respond. That means adding more crypto or making a payment to rebalance the loan. We’ve never liquidated a customer’s assets because our process gives borrowers the time and tools to manage their loans intelligently.

So when’s the best time to borrow? Always

The goal of using crypto as collateral isn’t to “beat the market.” It’s to unlock liquidity in a way that fits your strategy.

The market will always fluctuate. That’s the nature of crypto. But the ability to use your holdings—without selling them—is what makes crypto loans and crypto mortgages such powerful tools.

It’s not about guessing where BTC goes next. It’s about knowing what to do with it now.

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.