How do you leverage the power of your Bitcoins?

[ChrisPop]

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.

[psylence]

Leverage the bitcoin to buy more bitcoin on a leveraged exchange

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

[Coin_trader]

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.

[ChrisPop]

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.

[fiulpro]

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.

No matter what is the multiplier, Leverage trading is the most risky choice

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!

[avikz]

- Taking a collateralized loan - Where would you invest this loan? A business, real estate, etc.
- Putting it into a interest account.
- Lending it.

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!

[YOSHIE]

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.

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.

[hatshepsut93]

- Taking a collateralized loan - Where would you invest this loan? A business, real estate, etc.
- Putting it into a interest account.
- Lending it.

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.

[verita1]

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

[claire_lovely]

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.

[blockman]

- Putting it into a interest account.

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.

[20kevin20]

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.

[Bttzed03]

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.

[cryptoaddictchie]

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.

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.

[davis196]

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.

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.

[Fundamentals Of]

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.

[Beparanf]

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.

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.

[ChrisPop]

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.

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.

[hd49728]

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.

[joniboini]

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.