Bitcoin Forum

I am curious to see if and how the community here manages their Bitcoin holdings. This post concerns mainly the investors, not holders.
I think the majority of you hold Bitcoin to benefit from asset appreciation. e.g. You buy at $10,000 and hope to double or triple in the shortest amount possible.

My question is if you found any ways to leverage your Bitcoin while you hold it?
examples:
- Taking a collateralized loan - Where would you invest this loan? A business, real estate, etc.
- Putting it into a interest account.
- Lending it.

Leverage the bitcoin to buy more bitcoin on a leveraged exchange

Keep it lower leverage and safer from liquidation - 2x or 3x

No matter what is the multiplier, Leverage trading is the most risky choice to leverage BTC while holding because there's a possibility that you will loss a part or all your position unlike lending or staked it into liquidity pool. But this suggestion too is the most powerful way to maximize profit on holding BTC IF you are too good and lucky on trading. It's very hard to predict exactly the outcome of BTC on short timeframe because its price can be easily affected by the news just like what happened recently to Bitmex.

Using leverage on exchanges is a good way to make a return if you know how to stick to a strategy and be consistent. Let's not forget that traders/investors can use less than 1x leverage. If you have $10500 worth of Bitcoin, nobody says you can't buy $150 worth of BTC ;) There are other fees involved involved in futures like funding, but one should know the instrument he's trading.

@Coin_trader I wouldn't say leverage trading is the riskiest choice. It is only if you trade with leverage.

It is more beneficial to hold your bitcoins for a long period of time and at the end encash if you are looking to make profits. Leverage gives your power to someone else which could turn out to be really harmful if you choose bad service.

At the same time most of the famous exchanges can even  fall down at once due to government regulations and even problems. We have seen over the years.

I would never leverage my coins.
Rather hold for as long as I can.

At the same time trading is an art which is hard to learn but at the same time if done correctly with experience it can actually get you on a beneficial track.


Agreed !! You never know for sure if you are going to get it back!!!! Plus you cannot sell them if the price is too high !! You will have to wait and at the end feel bad.

Keep your freedom!
Trade!
HODL!

It's a bad idea to take loan on your investment. It's a trick adopted by the banks to make profit even out of your interest! So I would personally prefer to keep them in an interest account without taking a collateral.

However, it's very very hard to find a reliable bitcoin interest account unless and until there is a reputable company behind it! We have many Defi protocols available in the market though but no one knows when they will be closing down their business, really!

If your question is about the benefits I get from a Bitcoin invest loan, the main thing I do first is: 'return the loan base first'.

Then I just chose the first investment method with triple profits.
First, my profit is divided into three parts of the investment.
• 40% I invested back in Bitcoin.
• 40% I invest in real estate, and the last.
• 20% more, I invest in coins that have the best value in the crypto market.

That's what I do, if the profit I get from the loan holding Bitcoin, when I get triple profit.

All those things are done in a centralized way, and unlike with traditional finance, it's way more riskier with Bitcoin, because those services aren't fully regulated and due to the nature of Bitcoin it's easier for them to pull exit scams. Since the risk is higher, it's not that lucrative to invest your Bitcoin.

I have not borrowed from Nexo yet but I always take a look to see how their line of credit works. It strikes me because I can borrow without selling my crypto. Nexo has a line of credit from $ 10 to $ 2 million. I would try with small amounts to test if it meets my expectations.

https://nexo.io/borrow (https://nexo.io/borrow)

I use them for daily transactions, as I think that the usage is what will push its adoption to where we have a better monetary system than the fiat one.

This bears a higher risk than the typical holding. I'll choose to hold it than to put it there. And taking a loan? I don't mind thinking of it because it's just going to add me stress thinking of paying it. Besides, I can have it at the same time without sacrificing the bitcoin that I have.
Real estate and establishing are ideal things for someone like me but I just can't exchange my bitcoin for those, I'd be happy to have all of them.

Holding BTC is a very risky action itself. Rather than lending or leverage trading my Bitcoins and transforming it into an even larger risk than I assume through hodling, I prefer to simplify my actions, lower my risks and still benefit from it.

Over years of trading Bitcoin, I have found that the more you're rushing the profits, the higher your chances of screwing up are. Hodling is risky anyway - you could literally have a 50% portfolio value drop over a day of trading if the circumstances allow such dumps to take place. I did feel tempted every now and then to lend my BTC or do leverage trading, but I know that whenever I was tempted to do something to rush a profit intake, I ended up losing more than I could've afforded.

I've been lending a small amount for our local folks. It's not that lucrative but still earns.

I've read something about DeFi Apps which allows you to earn interest in btc but your bitcoins needs to be tokenized first (i.e. renBTC, wBTC, hBTC). It's probably the same protocols @avikz is talking about. If you're not comfortable with centralized lending/interest platforms but fine with "converting" it to another type of asset thru DeFi apps for it to earn more, then that's probably something you need to look at.

Actually I cant do much about my bitcoin to increase its aside from the value it is given on particular time. So I am converting my bitcoin to some useful tokens that can gain some more profits by farming other tokens that can be sell. I like bitcoin but the rate of what I can earn from other coin is much more profitable. I do hold some bitcoin though for long term but majority of my asset is on altcoins that are staked or at farm.

I also sell some of my btc with my peers that are interested with a good rate offering them a good price instead of incurring thirdparty app.

I've never used BTC as a collateral for loans,because I don't know which altcoin to buy and where to invest the funds from the loan.
The only "crypto interest account" feature I've heard is the Blockchain.com 12% annual interest option.I might use this option one day.Maybe I should take a look at services like Nexo.
I don't lend my Bitcoins,because it seems too risky to me and I don't want altcoins as a collateral.

That Bitcoin in itself is already enough power. That means you are not totally under the broken fiat and banking systems. That means you have a real money which you really own. That is enough for me.

I am not investing my Bitcoin. I am just keeping them in my wallet mostly for long term. There are so many possibilities if you want to invest them or earn from them. There is the possibility that you will not get repaid if you lend them, that you will be a victim of an exit scam if you invest them in a third party, that you will not earn positive interest, etc.

Though it will leverage in adoption but will mean somehow some loss if not managed carefully, I do sell or use it in actual transactions or as payment in some bills only when the price is high though there were time I use it when needed. I do trading with BTC sometimes along with other alts too. Adoption of the community is really needed may it be in trading or in doing actual transactions but we should know when its best to use it.

The risk is certainly higher than in traditional finance, but the rewards are proportional IMO. Although the big Bitcoin lending services out there (at least one of them) are not properly regulated, they do have licenses from multiple financial authorities so they can operate. Nevertheless, risk management is a must in this space.

I would like to use leverage for a type of order leverage, not for a type of account leverage.

With the later one (account leverage), I use all my fund in the margin portion to leverage it and if that portion is liquidated, I will lose most of the portion.

With the first one (order leverage), if the order is liquidated, I only lose the amount of that order. It often is small portion of my account balance.

I see it is a method to manage risk of leverage tradings.

I never touch my Bitcoin stacks. I'd rather buy regularly and DCA instead of playing around with my small amount of investment. I'd probably take a loan if there is no other option and use my stack as collateral, but I never plan to do it. If you want to play around with leverage, collateral, and stuff like that, you probably want to use Ethereum.

In bitcoin always the best thing for now is to have it in Hodl mode! But of course according to many high-profile financial advisers like Robert Kiyosaki, real estate investing is best.

This would go into the mere matter of diversification, at the moment it is better to have FIAT money and acquire Bitcoin, because at any moment the investment of $ 10k can easily become $ 015k, $ 18k, $ 20k and more.

Aren't holders long-term investors? Sure, it might be about a 2x or something like this goal, but with Bitcoin it can take a really long time, so it still counts as holding, I think. And IMO, every holder should have a realistic goal in mind, or otherwise one never benefits from the investment which doesn't make any sense. All the things you've mentioned are very risky, so I would not try any of those. Instead of an interest account, one could hodl a proof of stake currency. And with BTC volatility interest rate cannot be considered significant (Bitcoin can easily move 10% in a week, so why care about 10% in a year?).

I wouldn't do it because for me Bitcoin is already a pretty volatile investment so I wouldn't add another risky business on top of it. Taking a loan with my bitcoins as a collateral would limit my possibilities regarding my main investment. Of course it could be even more profitable in the long run so I won't say it's not tempting, but with the amount of money I have in BTC right now, I'm good.

We can do many things to increase the bitcoin amount, such as trading and lending. That is what I did to have more bitcoin. I know that I can not always get a profit in bitcoin in trading because the market is not always up. But I am sure that I can profit in the next days because the market will be back at a high price. In lending, I can lend some bitcoin to the traders to get the return based on the current rate. That helps me to get more bitcoin, and I still on my way to have more bitcoin.

that's a big NO because it is a terrible idea. it is just too risky and we'd be back to the same corrupted financial system as we already have with banks. not to mention that most of those offering interest are simply scammers trying to take your bitcoin and run away.

i thought about lending bitcoin (purely P2P) but there seemed to be a lot of lenders already doing it so i never bothered.
since i view bitcoin more as a currency rather than an investment, i use it as a currency too. and just like a currency i invest it if i can, i have invested in gambling sites but that had risks so i discontinued it, and now only have investment in one gambling site that doesn't involve investors in their risk and instead give a fixed rate. i also trade shitcoins from time to time but usually during pumping seasons.