Investors are discovering new ways to put their Bitcoin (CRYPTO: BTC) holdings to use as the cryptocurrency becomes more widely accepted in the financial world. One such option is to use Bitcoin as collateral to secure a loan.

As Bitcoin continues to move forward, there is a growing desire among holders to access the asset's liquidity without having to sell it. However, investors interested in obtaining a Bitcoin-backed loan will quickly realize that there are significant differences compared to traditional loans. 

Here's a detailed overview of what these loans entail to help investors make more informed decisions about Bitcoin-backed loans and the various options available.

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Source Fool.com