32 sats \ 2 replies \ @OT 7 Feb \ on: would you use your bitcoin as collateral for a loan? bitcoin
If its long term like 5 or 10 years.
I made some mistakes last cycle playing with this. Its not worth it.
what were the mistakes? if you can share.
reply
Using BTC collateral to borrow USD and buy more bitcoin.
Loans on hodlhodl and Ledn only go up to 1 year. I guess in hindsight I was influenced by Saylor. It was working well until it wasn't. At $50k I didn't think it would ever break $20k. It did and I got liquidated.
So the lesson was a good one. Lucky I didn't bet my whole stack and learned to DCA.
So for me to do this again I'd need enough collateral for a 90% drawdown and a loan that lasts for 5-10 years. Interest rates would have to come down too. Maybe 5% or so.
reply