Like a house, car or other investment, cryptocurrency can serve as collateral for crypto loans. Crypto loans have the benefit of low interest rates and same-day funding without any credit check or sending bank information. A crypto loan is a type of secured loan, similar to an auto loan, in which you pledge an asset to secure financing. In this case, cryptocurrency is the asset offered to a lender in exchange for cash that will be paid back in installments. If a customer fails to repay the loan, the lender will give a warning “margin call” or liquidate or cash out the cryptocurrency.