What to do? \ stacker news ~AskSN

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I kinda fell for this borrow-fiat-against-your-bitcoin narrative. And I can tell you – at the beginning it was awesome – you feel like a kinda invincible genius. Then I quickly became greedy and spent a lot more than I would have otherwise. I ended up locking 1 BTC to remain on 50% LTV, which is a substantial amount of my stack. Let’s say, less than 50% of the stack, but double-digit % for sure. When my locked bitcoin stopped being “just” 0.x it was like a cold shower, like wtf am I doing. And of course, as all bad things happen at the same time, I suddenly got into multiple bad situations that cost me 15 mil sats, and the invoice is due end of August. Now I have basically 2 options: 1. Increase LTV by 0.3 to get 0.15 in fiat to pay the invoice 2. Just spend 0.15 for the invoice

I’m hesitating between those two, as on one hand I still don’t wanna sell my BTC, but on the other hand I don’t want to lock another 0.3 BTC, as 1 BTC is already 1 BTC too much to keep locked.

So I’m asking stackers: what would you do in this situation?

And yes, I understand it was kinda stupid, especially if price drops now another 20–30%…

Thanks for your attention to this matter.

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143 sats \ 3 replies \ @guerratotal 9h

Pay off the debt directly with 0.15 BTC. Yes, it hurts to part with it, but it's much less risky than locking up even more of your stack and ending up busting if the price drops.

What you need now isn't to be more creative with the debt, but to cut that rope before it strangles you. You'll ensure that the remaining 0.85 BTC remains yours and free, with no risk of liquidation.

In other words, it's better to lose a finger than risk your whole arm. Bitcoin is for the long term; don't let a short-term play take it all away from you.

This is my humble opinion. I'm sure you can get more BTC later.

73 sats \ 1 reply \ @nkmg1c_ventures 7h

Pay off the debt directly with 0.15 BTC. Yes, it hurts to part with it, but it's much less risky than locking up even more of your stack and ending up busting if the price drops.

I was going to say this, keep your LTV as low as you can so you can withstand market swings. Also bear in mind your cost-basis, because if you're selling at a profit you incur taxes

21 sats \ 0 replies \ @guerratotal 7h

Yes, it is important too, taxes and so on depend on where you live.

0 sats \ 0 replies \ @Msd0457890 4h

I think you are absolutely right and that is what you should do my friend @ anónimo

50 sats \ 0 replies \ @justin_shocknet 7h

ETF margin ratio is only 30% and margin rates are <%6 on RH, so you should try to at least roll out of that other scam costing 2X

Gains tax is your biggest problem here, if you sell .15 you get a tax bill on your gains, but if you borrow you pay juice and add leverage risk

I'd say pay your expense with the leverage to avoid tax and put any new fiat into ETF first to rebuild your price exposure... Then borrow against the ETF to buy back your real coin to lower the juice and liquidation risk

172 sats \ 0 replies \ @realBitcoinDog 5h

You messed around and found out

Get out of the loan

0 sats \ 0 replies \ @LibertasBR 1h

From what little I understood of what you wrote, it doesn't seem like you have any bitcoin.

Are you paying some company to hold "your" bitcoins with the promise that in the future they will become more yours?

0 sats \ 0 replies \ @OT 5h

It's a tough one...

I still think the bull run hasn't really got started yet. But to risk too much of your stack is not wise. Sometimes it's just better to take the L. Or try and find a way to borrow from the fiat world to pay back this loan. That will give you more time.