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I don't get this, you'd have to be entirely crazy to do this right? Why post twice the loan value as collateral? Why not sell half of the crypto assets instead
by isoprophlex 5y ago
I don't get this, you'd have to be entirely crazy to do this right? Why post twice the loan value as collateral?
Why not sell half of the crypto assets instead? On the assumption that suddenly your crypto can go to the moon?! It might equally well lose its value...
- bombcar 5y agoExactly. You're trying to leverage for more returns.
- dfadsadsf 5y agoYou have to pay taxes if you sell. Loaning against collateral is tax minimization strategy
- isoprophlex 5y agoInteresting angle, I hadn't considered that. Thanks.