What does it mean to use Altcoins as collateral like ETH or other Altcoins to get BTC loan? I mean I have 3 ETH, why should I not sell it to get the amount of BTC that I need instead of giving it to someone as collateral to get the same amount of BTC that I need? Is there any technical meaning for doing that or why is it like that?
What does it mean when you go to a bank a give them your house as collateral? You should sell it and get the money that you need/ want. But you don't want to actually sell it, right? Same with using alts as collateral. You don't want to lose them/ sell them but you want to get more...