Pages:
Author

Topic: Borrow fiat with your Bitcoin and never sell - page 2. (Read 1174 times)

hero member
Activity: 2912
Merit: 541
Leading Crypto Sports Betting & Casino Platform
snip~
Indeed, there will be about 4 years before the crypto moves into a bullish season. But in those 4 years, there will be ups and downs that will frequently happen so you can profit from trading. That is why you should be able to analyze well before starting to trade to make a profit. It may be difficult at first but if you keep learning to analyze, you will be able to trade well. What you have to think about is how you pay off the loan money, especially if you don't have an income every month.

Say borrowing money has to be repaid every month while borrowing to trade crypto is quite risky when you are not a really reliable trader. I don't recommend borrowing money to trade crypto, because I personally experienced it. An experience where I have done both options, namely borrow to trade crypto and borrow to invest. But if there is no interest on the loan, then you are not required to pay per month then you can invest. However, are there institutions that lend money without interest? certainly not !! because the borrowed money must continue to flow. Unless you borrow money from a rich relative and he doesn't demand you pay monthly.

I dare say that because of experiencing both options as I said. As a result, I borrowed about $1000 from my brother to buy Bitcoin ($6100) if I'm not mistaken in 2020 in March and it didn't take 4 years to release it because one year later it was bullish at around $58000. Again that doesn't mean it's effective for everyone, it's just that if you have enough money in savings to buy a few sats then never borrow.
Indeed it is a risky action but it will return to the respective traders because if a trader already wants to try to focus on the crypto market and borrow some money, he will continue to work hard to achieve it. Before borrowing, you should consider it because it relates to many things. Don't let you get into trouble later when the time for payment arrives.

You are lucky if after you borrow from someone else, the price of bitcoin can increase dramatically and of course, you will get a big profit so you can return everything at once. But not many people can be like you because I met some friends who made the mistake of borrowing money to invest in crypto or to trade but weren't looking for more info on how to do it properly.
full member
Activity: 630
Merit: 102
In situations like this, there is always some risk involved, and if you borrow fiat dollars as security for this, you will have to pay interest on the borrowed dollars. Platforms for financing are virtually astounding right now. In addition to being centralized and in control of your money, this business also has the potential to file for bankruptcy at any time, meaning the owner could depart at any time without warning. When the time comes, your Bitcoin will be destroyed, there is no chance for you to use the Bitcoin provided as collateral, and it is lost forever. Therefore, give these things some thought before you do them to avoid regret.
sr. member
Activity: 2436
Merit: 455
Instead borrowing fiat from a bank, or a loan shark, with a high interest, why not just wait for the bull run and sell half of your Bitcoin in the next ATH and use that to invest in properties, I guess that's much better than lending because if the bearish season will be like the past one, it's gonna take some years before it gets bullish again.
hero member
Activity: 2128
Merit: 655
Leading Crypto Sports Betting & Casino Platform
I don’t have enough Bitcoin (yet) to borrow for anything significant, but this is my ultimate plan. When I get enough Bitcoin, I would borrow no more than half its worth (in case the price drops), and then I would still have Bitcoin along with whatever property I buy with the borrowed money.

This seems like a smarter move than to sell the Bitcoin for fiat money. If I sell, then I have to pay capital gains tax. When the cash is borrowed, there is no tax. Since I still have the Bitcoin, then I will gain when the price rises. If I only have fiat, the “price” will always go down because of inflation.

I hope Bitcoin will eventually replace the fiat system, but until then, the market for cash favors borrowers over savers. This seems like a win-win situation.

Does anyone else plan on doing this?
As the market condition is very dip form the all time high, borrowing is a good decision if needed. Since the OP is saying that he doesn't have to pay any tax or anything extra. In that case you can borrow. But always thinking positively, borrowing or increasing investments can sometimes lead to major disasters.
sr. member
Activity: 1330
Merit: 257
DGbet.fun - Crypto Sportsbook
I don't get you. Based on what I understood you're planning to borrow fiat once you've got enough bitcoin. Does this mean you're planning to borrow money placing bitcoin as the collateral. For borrowed money you need to pay regular interest.

Maybe this can turn to be effective, if the borrowed money is invested on something that brings you regular income.

Yes, if I need something, I would borrow the money instead of selling the Bitcoin to purchase it. Michael Saylor talks about this. If I have to pay 5% interest, but Bitcoin’s price raises over 5% a year, then I would be making money. If I sell the Bitcoin for fiat, then inflation will eat up that money. This is apparently what everyone from Elon Musk to Donald Trump does. They don’t actually have any money. They just have property, and borrow against the property because the property is more valuable than the cash.

maybe I'm one who is not the same as you, I'd better sell my bitcoins if I need money, especially since I'm just a casual worker, I save bitcoins for savings if I need money, compared to borrowing money with 5% interest, it's better if i release my btc, than i have to have debt and plus 5% bonus
hero member
Activity: 1666
Merit: 453
If you ask me OP I think you didn’t think this through. Let’s say I follow your instructions and decide to borrow Fiat using Bitcoin and at the point of be running the process bitcoin is 20k dollars and that’s I get 20k dollars Fiat. Let’s say at the time of repayment bitcoin goes up to to 30k how would the transaction be, and if who I borrowed the money from is knowledgeable about crypto-currency then it would be a major problem.
^ I think you did not understand as OP said, the BTC here is just collateral, whatever happens to the price still the BTC is the collateral.
Probably the point is, while BTC is at a low price or you know that your BTC will grow more in the future, instead of selling it directly to exchange, just use it as your collateral and borrow fiat which is fiat amount will remain the same as what you borrowed.
However, the problem here is where you will find a service that allows BTC as collateral and make sure it should be trusted.

That is the real question, whether the person who will lend OP fiat will agree to accept Bitcoin as collateral. Maybe, if the lender has an idea for bitcoin and believes in it, he will agree without hesitation.

But if the lender does not have enough knowledge about this, he will likely have second thoughts or he may not lend because he is hesitant about the bitcoin collateral.
sr. member
Activity: 1246
Merit: 262
I think it all depends on market conditions and your own wealth distribution. There are  men who made millions, from Bitcoin and there are men who invested at highs and sold at lower, because they could not stand the ups and downs. Borrowing money when the market is going to stay cool is a good idea. One can again take back their Bitcoin when the bull run starts...
Borrowing money when bitcoin still drop is good ideas but have another risk when using fund from loan to invest in cryptocurrency, some time out our controlling when bitcoin have another dip price after investing in lower price, need to find new way how to pay borrowing money used for investing in bitcoin. If have ability with lower loan interest I think worth used for investing from borrowing money but can't guarantee with your profit always.

Great opportunity looking on bitcoin still drop right now used borrowing money for investing in bitcoin, maybe one or two months later when bitcoin going up can pay borrowing as soon possible and not to be greedy used all borrowing money re investing again in bitcoin after reaching profit.
full member
Activity: 2142
Merit: 183
I think it’s best if you decide to sell a small part of your coin and use that, so you don’t lose and you can still make profit. Borrowing isn’t a good idea, no matter what, but each to their own.
Borrowing money from other parties is only more suitable for those whose profession as entrepreneurs are so that they can calculate their own profit for each month after deducting the installments that must be paid to the borrower. So this is definitely not suitable for those who do not have a particular business or company to turn their money through the products they produce.
Quite right. An interest-bearing loan or credit can be successfully used by businessmen when they have a regular income, but there are temporary difficulties in obtaining and distributing them. In other cases, the risk of loan default increases. This risk is multiplied if there is a cryptocurrency in this scheme, because no one can plan its price movements in advance. In addition, betting on the constant rise in the price of bitcoin is simply unreasonable. No one can know what will happen to the price of bitcoin in the next few years. In any case, such a risk is not for me.
sr. member
Activity: 903
Merit: 391
I think it’s best if you decide to sell a small part of your coin and use that, so you don’t lose and you can still make profit. Borrowing isn’t a good idea, no matter what, but each to their own.
Borrowing money from other parties is only more suitable for those whose profession as entrepreneurs are so that they can calculate their own profit for each month after deducting the installments that must be paid to the borrower. So this is definitely not suitable for those who do not have a particular business or company to turn their money through the products they produce.
sr. member
Activity: 2030
Merit: 356
September 30, 2022, 11:55:09 PM
#81
Also remember that once you borrow fiat, you are giving the lender opportunity to make way much money using your collateral (Bitcoin) on top of charging you very high interest rates. If anything goes wrong and you default the loan, your valuable Bitcoins are gone.

I would rather sell a small portion of my bitcoins for survival, while I keep the rest for the future.



I would never like this idea of putting bitcoin as a Collateral. You can make money with bitcoin by selling it at high and buying back at high, i don't like this idea  of handing over your bitcoin to someone else and getting fiat money for that. What if the lender refused to return or does a scam or something ? the bitcoins are gone forever.  Huh
hero member
Activity: 1974
Merit: 586
Free Crypto Faucet in Trustdice
September 30, 2022, 10:17:41 PM
#80
snip~
Indeed, there will be about 4 years before the crypto moves into a bullish season. But in those 4 years, there will be ups and downs that will frequently happen so you can profit from trading. That is why you should be able to analyze well before starting to trade to make a profit. It may be difficult at first but if you keep learning to analyze, you will be able to trade well. What you have to think about is how you pay off the loan money, especially if you don't have an income every month.

Say borrowing money has to be repaid every month while borrowing to trade crypto is quite risky when you are not a really reliable trader. I don't recommend borrowing money to trade crypto, because I personally experienced it. An experience where I have done both options, namely borrow to trade crypto and borrow to invest. But if there is no interest on the loan, then you are not required to pay per month then you can invest. However, are there institutions that lend money without interest? certainly not !! because the borrowed money must continue to flow. Unless you borrow money from a rich relative and he doesn't demand you pay monthly.

I dare say that because of experiencing both options as I said. As a result, I borrowed about $1000 from my brother to buy Bitcoin ($6100) if I'm not mistaken in 2020 in March and it didn't take 4 years to release it because one year later it was bullish at around $58000. Again that doesn't mean it's effective for everyone, it's just that if you have enough money in savings to buy a few sats then never borrow.
hero member
Activity: 2912
Merit: 541
Leading Crypto Sports Betting & Casino Platform
September 30, 2022, 09:16:55 PM
#79
If you can trade, maybe borrowing money is a good idea because you can use it to trade and try to make a profit so you can repay the loan later. But if you are borrowing just to buy bitcoins, you have to think about how to repay the loan because the bitcoin market is very volatile and there is no guarantee that you will make a profit when it is time to repay the loan. So you should be careful if you want to borrow money and consider the risks.
I'd say borrowing money to invest on Bitcoin is safer than borrowing money to trade because trading has more higher risk to lose your money while investment, you're only need to wait until Bitcoin cross to bullish season. Based on the history, you need to wait at least 4 years to get good profit, so if you can calculate how much the interest you will pay after 4 years and predict how much the Bitcoin price after 4 years, it will be good.

Trading you're against the market and other traders who want to make a profit, it's really hard.
Indeed, there will be about 4 years before the crypto moves into a bullish season. But in those 4 years, there will be ups and downs that will frequently happen so you can profit from trading. That is why you should be able to analyze well before starting to trade to make a profit. It may be difficult at first but if you keep learning to analyze, you will be able to trade well. What you have to think about is how you pay off the loan money, especially if you don't have an income every month.
hero member
Activity: 952
Merit: 662
September 30, 2022, 11:02:01 AM
#78
If you can trade, maybe borrowing money is a good idea because you can use it to trade and try to make a profit so you can repay the loan later. But if you are borrowing just to buy bitcoins, you have to think about how to repay the loan because the bitcoin market is very volatile and there is no guarantee that you will make a profit when it is time to repay the loan. So you should be careful if you want to borrow money and consider the risks.
I'd say borrowing money to invest on Bitcoin is safer than borrowing money to trade because trading has more higher risk to lose your money while investment, you're only need to wait until Bitcoin cross to bullish season. Based on the history, you need to wait at least 4 years to get good profit, so if you can calculate how much the interest you will pay after 4 years and predict how much the Bitcoin price after 4 years, it will be good.

Trading you're against the market and other traders who want to make a profit, it's really hard.
hero member
Activity: 2912
Merit: 541
Leading Crypto Sports Betting & Casino Platform
September 30, 2022, 10:30:19 AM
#77
I think it’s best if you decide to sell a small part of your coin and use that, so you don’t lose and you can still make profit. Borrowing isn’t a good idea, no matter what, but each to their own.
If you can trade, maybe borrowing money is a good idea because you can use it to trade and try to make a profit so you can repay the loan later. But if you are borrowing just to buy bitcoins, you have to think about how to repay the loan because the bitcoin market is very volatile and there is no guarantee that you will make a profit when it is time to repay the loan. So you should be careful if you want to borrow money and consider the risks.
hero member
Activity: 1106
Merit: 912
Not Your Keys, Not Your Bitcoin
September 30, 2022, 06:27:56 AM
#76
I think it’s best if you decide to sell a small part of your coin and use that, so you don’t lose and you can still make profit. Borrowing isn’t a good idea, no matter what, but each to their own.

The two are not a good idea, borrowing without proper calculation and selling a portion of your bitcoin is not a good idea either.
One of the major problems of Loan is Liquidation management, if you take a portion that is bigger than your collateral, you will receive a call to top it when the price is dropping and if your collateral get to a point where it can no longer settle your loan, they will be forced to close it. The best way to always use your coin as collateral for loans is when the price is pumping or take a little loan with over collaterized bitcoins, so you don't get margin calls when you are not ready to settle your debts.

Selling your coins is also not a good option, if you sell them at low prices, you may never have the opportunity to enter them again and will have to pay multiple times the initial price amount you sold. However, if you are in need of money and have no other options, please sell and solve your problems, bitcoin will not run, and you can always optin again and again.
newbie
Activity: 15
Merit: 0
September 30, 2022, 05:46:51 AM
#75
I think it’s best if you decide to sell a small part of your coin and use that, so you don’t lose and you can still make profit. Borrowing isn’t a good idea, no matter what, but each to their own.
legendary
Activity: 2534
Merit: 1338
I had to read it many times to understand what is the point of you making a loan when you already have money that you invested in bitcoin and you can use it? I have a question:

The day you took your money and decided to buy bitcoin, what was your deal with it? your goal was to buy bitcoin and make hodl and never spend that bitcoin and you die without spending the bitcoin? was that your goal? or was your goal to buy bitcoin and hodl until it increased a lot and then you spent it in the real world?

when we make an investment the objective is to make a profit and then we use that profit, and we continue to invest and then we use the profit, always keeping the principal to generate more profit. it makes no sense to make a loan when you could sell a part of your bitcoins and leave another part until you had a big increase to make more profit
The OP is trying to outsmart the system, he is trying to avoid having to sell his coins by using a loan and in this way avoid paying capital gains taxes, now it is true that some whales can do movements like this but I really do not expect that your average investors can actually do something like this, I think that it is better to keep things simple and to not try to do some fancy moves like this one, if we have to sell our coins for some reason then just sell them, because if we were to do something like this and it does not work then the repercussions will be way worse than to pay taxes on our capital gains.
hero member
Activity: 2548
Merit: 607
This is really playing with house money (gambling) and I highly advise against unless you got an equal part of that borrow in fiat.  Why?  For example, say you borrowed when BTC was $50k and then it dropped to $18k- you would have to deposit some funds so some liquidation against your BTC doesn't happen.  If you fail to do so, then some, if not all, of your BTC could be liquidated to fulfil collateral requirements.
full member
Activity: 2142
Merit: 183
I don’t have enough Bitcoin (yet) to borrow for anything significant, but this is my ultimate plan. When I get enough Bitcoin, I would borrow no more than half its worth (in case the price drops), and then I would still have Bitcoin along with whatever property I buy with the borrowed money.

This seems like a smarter move than to sell the Bitcoin for fiat money. If I sell, then I have to pay capital gains tax. When the cash is borrowed, there is no tax. Since I still have the Bitcoin, then I will gain when the price rises. If I only have fiat, the “price” will always go down because of inflation.

I hope Bitcoin will eventually replace the fiat system, but until then, the market for cash favors borrowers over savers. This seems like a win-win situation.

Does anyone else plan on doing this?
I don't think this is a good idea. I think that you, speaking of a loan, do not have an interest-free loan, but a loan that must be repaid with decent interest. In your fantasizing, the possibility of returning the borrowed money is not considered at all. And this is the most important thing in your plan. Bitcoin has a high price volatility and it is very risky to take out a loan, relying on the rising price of Bitcoin, since its growth is accompanied by periodic very low and long price drops, as at the present time.
In addition, you should not expect that bitcoin or another cryptocurrency will eventually replace fiat. This will never happen.
hero member
Activity: 1246
Merit: 534
From all I understand in your post, your talking about crypto loan. Selling my Bitcoin again...? No, I would not do that. Crypto loan is a great idea, I have not fully educate my self about this crypto loan but I know binance CEX has the feature where you can take a crypto/fiat loan and deposit another Coin, it could be BTC (your asset) as Collateral (https://www.binance.com/en/loan).
Instead of selling my Bitcoin for a cheap price, I'd rather go for the crypto loan.
The thing it was trying to explain is a cryptocurrency loan as you said but it did not put it well not if you can understand taking loan 4 BTC and convert to Fiat currency it's not really bad idea but it can fall to the head or the person you borrow the money from because Fiat currency value is not really grow like cryptocurrency kind of market appreciation. Because i noticed that cryptocurrency is the way and it value do increase every day
Pages:
Jump to: