Accessing liquidity without selling crypto has become a practical need rather than a niche strategy. Market volatility, long holding horizons, and tax considerations often make liquidation inefficient. This is where crypto-backed borrowing comes in. Clapp solves this problem with a credit line model that prioritizes flexibility and cost control. Rather than issuing a fixed loan upfront, it allows users to unlock liquidity only when they actually need it. This guide explains how the Clapp credit line works and how it compares to a traditional crypto loan. What Clapp Offers Clapp provides a standby crypto credit line backed by digital assets. Users deposit crypto as collateral and receive a credit limit based on loan-to-value ratios. Funds can be withdrawn at any time, repaid freely, and reused later. The key point is that borrowing is optional. You can open a credit line and leave it unused until liquidity is required. Credit Line Instead of a Lump-Sum Loan Most crypto loans follow a familiar structure: collateral in, full loan amount out, interest starts immediately. This works when the exact amount is known and needed upfront. Clapp follows a different approach. You receive access to capital, not a forced disbursement. Interest applies only to the amount withdrawn. Any unused portion of the credit line carries a 0% APR. This keeps borrowing costs aligned with actual usage rather than theoretical needs. No Repayment Schedule Clapp does not impose fixed repayment dates or minimum payments. You can: Repay partially or in full Keep the balance open Restore available credit instantly after repayment This structure fits users whose cash needs fluctuate or who want to time repayments around market conditions rather than calendar deadlines. Multi-Collateral Support One of Clapp’s practical strengths is its multi-collateral system. Users can combine up to 19 cryptocurrencies into a single collateral pool. Instead of relying on one asset, diversified portfolios can be used more efficiently to unlock liquidity. For holders with BTC, ETH, SOL, and other assets, this often results in a higher credit limit and more balanced risk management. Instant Liquidity Through the Clapp Wallet All borrowing activity is handled through Clapp Wallet . Withdrawals in USDT, USDC, or EUR are available instantly and around the clock. Collateral management, repayments, and credit monitoring happen in real time. There are no approval queues or waiting periods once the credit line is active, which makes the product usable during fast market moves. How to Get a Crypto Loan on Clapp Opening a credit line follows a simple process: Create a Clapp account Deposit supported crypto assets Receive a credit limit based on collateral value Withdraw funds when liquidity is needed Repay on your own schedule There is no obligation to borrow once the credit line is open. Final Thoughts Clapp frames crypto borrowing as an access tool rather than a commitment. By combining a revolving credit line, low interest on used funds, multi-collateral support, and no deposit fees, it offers a practical way to unlock liquidity while staying exposed to the market. For users who value flexibility and cost efficiency over fixed loan structures, the Clapp credit line fits naturally into a long-term crypto strategy. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
