There are tax related benefits to taking a loan (in fiat currency) using your cryptocurrency as collateral. You may also be betting that your cryptocurrency goe

There are tax related benefits to taking a loan (in fiat currency) using your cryptocurrency as collateral. You may also be betting that your cryptocurrency goes up in value at a higher rate than the interest you're paying on your loan. So if you'll end up paying less interest than the amount of taxes you'd pay by selling and the amount of appreciation you'd be missing out on, then the loan makes sense financially. Most companies that do this take custody over your collateral, and often times lend it out (pocketing some or all of the interest earned). This is called rehypothication, and is very risky. I do know that Unchained Capital is one company that let's you take a loan using your bitcoin as collateral without giving them custody of your coins nor rehypothicating them. You have a 2 of 2 multisig wallet where you hold one key and they hold one key.