FAQs
1. Are NFT-backed loans safe?
Yes, but they come with risks like fluctuating NFT values and lack of regulations. Ensure you choose reputable platforms.
2. Can I borrow against any NFT?
Not all NFTs qualify. Only high-value, verifiable NFTs with strong market demand are accepted.
3. What happens if I default on the loan?
If you fail to repay the loan, the lender takes ownership of your NFT.
4. How is the interest rate determined?
Interest rates vary based on the NFT’s value, market demand, and platform terms.
5. What are the tax implications?
Tax laws for NFT transactions are still evolving. Consult a financial advisor for clarity.
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