Many companies are offering Bitcoin loans so you "don't have to sell"
The catch is you have to give them your coins as collateral.
I'd rather just buy something with the Bitcoin straight up than give more of it to a leveraged financial institution, and be forced to give them even more if the price dumps.
I also remember blockfi and Celsius
nostr:nprofile1qqszw0ncsrfc6wd8lv3cal8cj4apkke8aqv3y75ys05h2st2p2g035spz3mhxue69uhhyetvv9ukzcnvv5hx7un89uq32amnwvaz7tmjv4kxz7fwv3sk6atn9e5k7tcpzdmhxue69uhhqatjwpkx2urpvuhx2ue0psxmsq Lend is P2P, non-KYC, multisig collateral, which is nice.
💯
If you’re borrowing against your bitcoin, you may as well open a long position on a derivatives market, and if you’re doing that you may as well be a day trader, and if you’re doing that you may as well play slot machines at Vegas.
Stay humble and stack sats is the smartest thing for most people.
There's non-negligable difference between actually giving your coins (á la blockfi, celsius), or placing it in an onchain escrow (from where it can go only to the predifined outcomes), as used by more based companies, such as Firefish.
If you are cashflow positive, should you use this product?
If you are not cashflow positive, should you use this product?
The answer to both is no, imo. there are far better options than giving your scarce btc up as collateral in both scenarios.
Bang bang get on board rocketship 🚀
Yup
Nothing wrong with selling or parting with your bitcoin. Just make sure the recipient is virtuous & deserving.
Defi is probably not where you want to look though.
Giving them custody of your coins is selling
If you don't have shit credit you can probably get a random unsecured fiat loan for the rates bitcoin companies want with sats held in collateral.
Buying stuff with BTC directly is best but loans are worth the risk when the alternative is selling in my opinion because every time BTC doubles you can pay off the loan for free and you were just given free money, it doesn't require any payments and you have a chance to get your BTC back later, if you sell it's gone, fiat loans do require payment because fiat goes down
That's the sane move. Anyone doing otherwise is not in their right mind
I would never use them for a loan of my ₿. Never and never 🤷♂️
Yes, it's leverage basically, there is no such thing as self-custody with leverage.
Unfortunately many investors uses those service, even me to a certain extent.
And given the price appreciation for Bitcoin versus fiat, it's highly tempting.
But that's more paper BTC in circulation
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