Anyone use this service to get loans for bitcoin, please comment your experience below. #asknostr #ledn #bitcoin #btc
#loans #plebs
Discussion
Proof of work?
I got rekt trying a B2X at the top last cycle. I added collateral and could have kept it going financially but it felt more like gambling and worrying so I let it liquidate.
Glad because it was a long bear market in hindsight and I'm not sure if it would roll over year by year (for a fee) like it does today.
But now it feels like the corn that got away.
It's an emotional rollercoaster and an expensive mistake.
Did you use Ledn?
I think after the 21st the market things change for the better
With Ledn you can do $500 loans
I like this to start less chance of getting rekt.
Also i wont do bigger loans until bitcoin =1mil or more
Sounds like you're waiting for the top to get most of your loan. There's only down from there for 4ish years after.
Whatever you do, have enough collateral for a 80% drop plus consider that the fees and interest is always dropping your LTV and then be prepared to deposit that collateral as you start with 50% LTV which protects for up to <40% drop in price (I think).
Good news is I guess you don't need to worry too much about rehypothecation, so you just need to focus on your own risk management.
80% drop means you need a 5x to recover.
Numbers and percentages are always misleading. Unit bias is real.
-80% down = +400% up. Or is it +500%?
Whatever, just be craeful.
Likewise, 5x increase followed by a 80% drop = no profits.
Its mad to get your head around how smaller numbers can wipe out bigger looking numbers. It just isn't intuitive.
As Big Barry said; paraphrasing
Better to get your loan in at a lower, 3-year Bitcoin price average, say $60k, than to try to get a high $ value when Bitcoin is at ~$200k
If you do that, you got enough extra Bitcoin to cover when we fall from $200k to $58k? Which would be ~4.5X the amount of Bitcoin you used as collateral? If so then by all means feel free. But if not, don't take the risk
Most places like Ledn, Unchained, etc have;
- minimum limits (unchain now needs at least 3 coin before they speak with you)
- certain corporate structures (no individual loans)
- maximum LTV (up to 40%, with imo is risky if doing at the top)
You can check out Lava for small amounts, but it comes at a cost
I can do the math
I want to know if people use
Ledn and what the experince was like.
Btw I think I didn't answer your question... Yes I used ledn.
I haven’t personally but I’ve heard good things about it. Heard the founder on a reputable Bitcoin podcast, I think you are good.
Don’t do it. Wait for strike to release theirs soon
nostr:nprofile1qqsvf646uxlreajhhsv9tms9u6w7nuzeedaqty38z69cpwyhv89ufcqpzamhxue69uhhyetvv9ujucm4wfex2mn59en8j6gpzemhxue69uhhyetvv9ujuurjd9kkzmpwdejhgqg5waehxw309aex2mrp0yhxgctdw4eju6t0t25cfd when will strike offer loans?
He keeps saying “soon” on his podcast. Prob Q1 2025
Mallers hinted they would on the Money Matters podcast a couple weeks ago. US customers can already pay bills with sats. I started doing this since I'm all in(aside from a little change in my car🤣)
Celsius offered this too
no. don't do it
"Backed by Crypto" is a 🚩.
Unchained is better because you have some assurance against rehypothication, but the counterparty risk is too great vs. the reward in my opinion.
I can't see risking my sats, even with a reputable company like unchained for a loan with a double-digit interest rate.
I tool a 15k loan with a 10% interest rate backed by nothing to buy a new Air Conditioner.
Why risk 40k sats for a 15k loan with an 11% interest rate?
If it's because your credit sucks, realize that it sucks because you are more likely to get liquidated.
Giving up custody, hmmmmmm, i'd pass! no shade to their business, just don't feel comfortable with the trade off
I’m waiting for something like this: https://peoplesreserve.com