nothing i said disagrees with your argument. i'm just saying that timing is important, bitcoin bull markets are a bad time to lend it out, you would be better selling it little at a time during those periods.
Discussion
Better selling it? So I can pay cap gains tax and then buy it back at higher prices?
Good way to stay poor.
Yup, a good way to have funâŚ.
timing the market is not strikeâs job. weâre not here to speculate on bitcoinâs price or advise people on when to borrow or sell. weâre here to provide tools and optionality for people to make their own decisions. if someone believes bitcoin will appreciate and wants to maintain exposure without selling, they can now choose to borrow. if theyâd rather sell, thatâs their call too, we can help with that. weâre not in the business of telling people what to do with their bitcoin. we just giving them options to improve bitcoinâs utility for the world
Timing is important. It seems like you know when the bull run is coming. Will you please let me know when the bull and bears will arrive?
2 quick items to think of.
1. When you sell bitcoin you only get fiat in return.
-plus pay taxes. That is great!
2. When you take a loan on bitcoin you
-keep the original bitcoin amount just use it as collateral,
-pay a small portion of the balance and interest,
-plus get fiat to use the fiat.
-pay no taxes.
If that isnât winning⌠I donât know what is.
I guess not everyone runs their life like a business. Some run it as a consumer.
People can make their own decisions, we are all big boys with big boy pants.
Stop derailing the original conversation about the jewish connections with this left curve nonsense
I'm curious if you know what happens if there's a significant drawdown. Does one need to add more collateral to avoid partial liquidation? Guessing so, but never seen it addressed
Yeah typically the lender wants you to maintain a certain LTV (typically ~50%) if that goes up they will probably ask you to add more collateral and when a threshold is met and no additional collateral is added they liquidate the collateral to protect the loan
Thanks, thought it was strange hadn't heard it addressed. Grace periods etc., don't really know how it all works. Prob worth educating people more about that imo
Yeah, itâs a pretty standard practice similar to trading on margin and needing to keep the margin maintenance at a certain level to avoid getting a margin call.
I imagine the user interface walks you through this when you take out a loan
Yes margin call at 70% LTV with 24 hrs to bring collateral up to 60% and 80% causes liquidation. Itâs a bad idea.