Ad Disclosure

Approval is not guaranteed and conditions apply.

British Columbia Residents: iCash offers payday loans in British Columbia (license number: 67639)

Ontario Residents: Loan amounts and repayment terms are subject to qualification requirements. The maximum allowable cost of borrowing under the payday loan agreement is $14 for every $100 advanced. On a $500 loan of 14 days, the total cost of borrowing is $70, with a total payback amount of $570 and an APR of 365%. On a loan of 62 days, the APR is 82.42%.

Manitoba Residents: To learn more about your rights as a payday loan borrower, contact the Consumer Protection Office at 1-204-945-3800 or 1-800-782-0067 or at www.manitoba.ca/cca/cpo

Nova Scotia Residents: Payday loans are High Cost Loans. The maximum allowable cost of borrowing under the payday loan agreement is 14$ per every 100$ received, which means on a 100$ loan for 14 days, the total cost of borrowing is 14$, with total payback amount of 114$ and an APR of 365.00%.

PEI Residents: Loan amounts and repayment terms are subject to qualification requirements. The maximum allowable cost of borrowing under the payday loan agreement is $14 for every $100 advanced. On a $300 loan of 14 days, the total cost of borrowing is $42, with a total payback amount of $342 and an APR of 365.00%. On a loan of 62 days, the APR is 82.42%.

The Cashback Program and Refer a Friend Program are not available in Manitoba, British Columbia and New Brunswick.

Get a free, no obligation personal loan quote with rates as low as 9.99%
Free quote with no impact to your credit

How To Secure A Loan With Cryptocurrency

Lisa
Author:
Lisa
Lisa Rennie
Senior Contributor at Loans Canada
Lisa has worked as a personal finance writer for over a decade, creating unique content to help educate Canadian consumers. Expertise:
  • Personal finance
  • Real estate
  • Mortgage financing
  • Investing
Caitlin
Reviewed By:
Caitlin
Caitlin Wood, BA
Editor-in-Chief at Loans Canada
Caitlin Wood has more than a decade of experience helping Canadian consumers learn how to take control of their finances. Expertise:
  • Personal finance
  • Consumer borrowing
  • Credit improvement
  • Debt management
📅
Updated On: March 31, 2023
iCash

The latest buzzword in the world of finance seems to be “cryptocurrency.” But what exactly is this new type of currency? And how can you use cryptocurrency in your own personal life?

Basically, cryptocurrency is a digital or virtual type of currency. It’s encrypted with cryptography for security purposes. As such, it’s difficult for cryptocurrency to be counterfeited, which is a huge benefit.

So, now that you know what cryptocurrency is, what role does it play in securing a loan?

What Is A Crypto-Backed Loan?

Given the heightened level of security of cryptocurrency, it’s easy to understand why this type of asset would be attractive to consumers and investors alike. And as cryptocurrency becomes increasingly popular, it makes sense that the conventional realm of finance would adopt it.

Essentially, a crypto-backed loan is a type of loan that allows you to access the value of your cryptocurrency without having to sell it. Traditional secured loans, backed by collateral, require borrowers to provide an asset of value to back up a loan in order to obtain funds.

With a crypto-backed loan, you don’t have to sell your cryptocurrency to get the money you need. And, rather than using your home or business as collateral, you can collateralize your crypto assets instead.

Cryptocurrency vs. Other Forms Of Security

There are a few different valuable assets that consumers use and leverage in order to secure a loan. The exact amount of collateral that consumers must provide is typically determined by the loan-to-value (LTV) ratio of the loan.

By putting up an asset of value as collateral, borrowers risk losing that asset if they ever default on their loan payments. Some of the more common assets that are used to collateralize loans include:

  • Houses
  • Cars
  • Investments
  • Business assets

With a crypto-backed loan, your cryptocurrency is used instead of these other valuable assets to back the loan.

Benefits Of A Crypto-Backed Loan

The biggest advantage of a crypto-backed loan is that there is no need to sell your cryptocurrency to receive funds. Rather than using your home, car, or business assets, you would collateralize your crypto assets instead.

This is important because you won’t lose out should your crypto assets increase in value over time. Rather than cashing them out, you can still hang on to them and benefit from their appreciation over time.

You can use your crypto-backed loan to invest in real estate, diversify your investments, and pay off your taxes or any higher-cost debt you might have.

What Can I Use My Crypto-Secured Loan For?

Like any other type of secured loan, you can use a crypto-backed loan for just about anything you like. Here are a few common things that the funds from crypto-backed loans can be used towards:

  • Home renovations
  • Car repairs
  • Extended family vacations
  • College tuition
  • Surprise expenses
  • Medical emergencies

Of course, like any other type of loan, it’s important that you only take out a loan you are financially capable of making payments. If your current financial situation will make it extremely impossible for you to make timely payments, perhaps now is not the time to apply for a crypto-backed loan or any other type of loan product.

Will A Crypto Loan Affect My Credit?

It’s always important to make financial decisions that will not negatively affect your credit score. This important number can play a key role in your financial life and your ability to secure new credit and loan products. As such, it’s easy to understand why responsible consumers would wonder about how a crypto-backed loan would affect their credit.

Traditional Lender May Check Your Credit

Traditional lenders will typically pull credit reports on consumers who apply for loans. This helps lenders assess what type of borrower an applicant may be before deciding whether or not to approve a loan application.

When a lender pulls a credit report, the consumer’s report will be noted as having a “hard pull”. This maycause credit scores to temporarily dip. That’s why it’s not suggested that consumers apply for several loan products within a short period of time. But with crypto lenders, this situation is a bit different.

Crypto Lender May Not Check Your Credit

Generally speaking, many crypto lenders don’t pull credit reports. Given this, no “hard pulls” will be noted and therefore your credit score should remain intact. That said, it’s still important to verify this with the lender that you choose to work with if this is a concern of yours.

Check Your Own Credit

Do you want to check your own credit? CompareHub is a free online platform that lets your access your Equiafx credit score and report.

What Happens To My Cryptocurrency After I’m Approved?

It’s natural to be concerned about what will happen to your cryptocurrency if you’re approved for a crypto-backed loan. After all, it is a valuable asset that you will want to have protected.

If you work with a trustworthy and reliable lender, you can rest assured knowing that your cryptocurrency will be safely stored. That said, the security and storage will be different for every lender, so you will definitely want to ask questions about the security of your cryptocurrency with your lender.

All cryptocurrency assets are typically stored with a depository trust that has the legal and insurance requirements needed to keep cryptocurrency stored safely. Further, any increase in the value of your cryptocurrency during the length of your loan will not affect the loan.

Looking To Apply For A Secured Loan?

If you’re looking for a secured loan and are interested in your collateral options, Loans Canada can help. We can match you with the right lender who offers secured loans that work best for your needs.

Lisa Rennie avatar on Loans Canada
Lisa Rennie

Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.

More From This Author

Special Offers

More From Our Experts

https://loanscanada.ca/wp-content/uploads/2025/07/Do-payday-loan-affect-credit.png
Do Payday Loans Affect Your Credit In Canada?

By Caitlin Wood, BA
Updated on July 3, 2025

Whether or not you plan on getting a payday loan, it's important to understand how it can impact not just your finances but your credit.

https://loanscanada.ca/wp-content/uploads/2017/08/Long-term-loans-Canada.png
How To Get A Long-Term Loan In Canada

By Caitlin Wood, BA
Updated on July 3, 2025

Long term loans are loans with a payment plan of at least five years. Mortgages and even certain personal loans are considered long term.

https://loanscanada.ca/wp-content/uploads/2023/12/loan-payment.png
What Happens When I Can’t Make My Loan Payments?

By Caitlin Wood, BA
Updated on July 3, 2025

Are you missing loan payments? What happens If you can't pay your loan? Finf out what happens and what you can do.

https://loanscanada.ca/wp-content/uploads/2015/08/loans-for-low-income.png
Personal Loans For Low Income Earners

By Bryan Daly
Updated on July 2, 2025

Loans for low income. What are they and how do consumers with low income find the best options for their needs? We have the answers.

https://loanscanada.ca/wp-content/uploads/2025/06/Pay-Personal-Loan-Early.png
Paying Off A Personal Installment Loan Early: Pros And Cons

By Priyanka Correia, BComm
Updated on June 26, 2025

Can you pay off a personal loan early in Canada? Find out if paying off a personal loan early is worth it for you.

https://loanscanada.ca/wp-content/uploads/2022/03/Financing-a-Tiny-House.png
Tiny Home Mortgage In Canada

By Lisa Rennie
Updated on June 24, 2025

Thinking of buying a tiny home instead of a regular house? Find all the tiny home mortgage options in Canada.  

https://loanscanada.ca/wp-content/uploads/2018/08/Loans-with-a-cosigner.png
Types Of Loans You Can Get With A Cosigner

By Lisa Rennie
Updated on June 13, 2025

Personal loans with a cosigner are a no-brainer for borrowers with low credit or those who want to qualify for lower rates and better terms.

https://loanscanada.ca/wp-content/uploads/2018/07/Loans-with-a-guarantor.png
How To Get A Guarantor Loan In Canada

By Bryan Daly
Updated on June 12, 2025

Looking for loans with a guarantor in Canada? We have all the information you need about guarantor loans, check out this article.

Recognized As One Of Canada's Top Growing Companies

Why choose Loans Canada?

Apply Once &
Get Multiple Offers
Save Time
And Money
Get Your Free
Credit Score
Free
Service
Expert Tips
And Advice
Exclusive
Offers