Have you thought about taking a crypto-backed loan?
I have personally used Bitcoin as collateral when taking out a crypto-backed loan with success, but one must be very careful about how one does it.
Key tips:
- I did so when we were at the end of the bear market and already beginning the next bull run (this is a key timing step for lending one's bitcoin). For example, I lent my Bitcoin as collateral around the $9k price range.
- If you lend toward the top of a bull run, or during a bear market, you are much more likely to get liquidated.
- Perhaps most important, I kept my LTV (loan-to-value) below 20% at all times. In fact, below 10% once bitcoin's price shot up. A low LTV means that even in the worst crash bitcoin has ever seen, you will still be safe. I'd say that's below 30% LTV.
- Make sure the platform you lend on is extremely credible, audited and has a long track record of good security practices. Make sure the team is legitimate.
Doing so, this allowed me to invest in another amazing investment opportunity without selling my crypto. My investment was a non-crypto investment in order to diversify my risks across different asset classes (rather than using one's loan to invest in more crypto, which in my opinion can be riskier).
Used wisely and strategically (not greedily), one can leverage crypto to one's benefit with minimal risk and huge upside.
I am not recommending you go out and do this unless you know what you're doing and understand crypto markets' maximum volatility (historically) as well as proper timing and safe LTVs vs reckless LTVs.
Hope this helps. Have fun and be safe with your crypto. Remember, there are only 21 million bitcoin and if you lose yours, then someone else will have them.
