Borrow USD against BTC collateral @ low interest?

[eddie13]

Any good options for this?

[1714986629]

1714986629

[1714986629]

1714986629

[1714986629]

1714986629

[1714986629]

1714986629

[shasan]

Any good options for this?

what is your offer

[eddie13]

Idk.. 200% collateral, around 6% apy, less than 1 year..??

But what about when the IRS asks questions?
“Borrowed it from some anonymous guy on the internet.. Fuck off..” ??
Any experience in this? Or I was kinda thinking more recommendations for an institution..

[TryNinja]

You could take a look at Celsius[1].

The minimum loan amount is $500 and you pay 7.95% APR for 50% LTV (or 5.67% if you pay with their CEL token). 33% LTV is 3.95% (2.77% in CEL) and 25% LTV is 1% (0.70% in CEL).

[1] https://celsius.network/borrow-dollars-using-crypto-as-collateral/

edit:

You don't need to say that you borrowed, you can say that you sold them.

Don't you pay taxes if you "sell", which is why people like to borrow against their crypto?

[condoras]

Idk.. 200% collateral, around 6% apy, less than 1 year..??

But what about when the IRS asks questions?
“Borrowed it from some anonymous guy on the internet.. Fuck off..” ??
Any experience in this? Or I was kinda thinking more recommendations for an institution..

You don't need to say that you borrowed, you can say that you sold them. Price isn't arguable, you can sell them even for $1...
And just to be clear, you want to borrow USD by giving BTC as collateral? Can you also specify the amount that you want?

[eddie13]

Idk.. 200% collateral, around 6% apy, less than 1 year..??

But what about when the IRS asks questions?
“Borrowed it from some anonymous guy on the internet.. Fuck off..” ??
Any experience in this? Or I was kinda thinking more recommendations for an institution..

You don't need to say that you borrowed, you can say that you sold them. Price isn't arguable, you can sell them even for $1...
And just to be clear, you want to borrow USD by giving BTC as collateral? Can you also specify the amount that you want?

Yeah, borrow USD against BTC..
I’m paying my debts down hard right now.. Left a relationship with most of my assets but unfortunately also most of the debts and don’t want to sell things to settle it.. Trying to clear it up and need to buy another car soonish so wanting to clean up my credit balances to possibly take out my first ever car loan..

I’m way above water debt to asset ratio wise but it’s not like my assets are in nice reportable mutual funds..

I’m not sure what I want to do with the amount yet, because I have a bunch of it on 0% for the next year and a half, but it still looks not so great and makes me feel shitty..

It would be enough to probably make banks/IRS blink twice..
Kind of embarrassing really

Celsius looks like a possibility..
Or just don’t, but it could help a little..

[magneto]

Idk.. 200% collateral, around 6% apy, less than 1 year..??

But what about when the IRS asks questions?
“Borrowed it from some anonymous guy on the internet.. Fuck off..” ??
Any experience in this? Or I was kinda thinking more recommendations for an institution..

You don't need to say that you borrowed, you can say that you sold them. Price isn't arguable, you can sell them even for $1...
And just to be clear, you want to borrow USD by giving BTC as collateral? Can you also specify the amount that you want?

I doubt that would help the tax situation. Disposing assets for OP would likely incur CGT whilst borrowing against collateral would not, or at least less since you are not technically selling the asset (not a tax advisor so take this with a grain of salt).


Not sure about Celsius, heard of them but never used them. Your main concern would probably be the counterparty risk that they somehow go under and your collateral becomes irrecoverable.

Another option you could have is getting a loan on Bitcointalk that doesn't deal in actual USD at all - lender can simply lock in the value of your loan in USD and BTC is a transactional vehicle. The tax implications would probably change in this case as well so make sure you DYOR.

[DireWolfM14]

It would be enough to probably make banks/IRS blink twice..

This might be reason enough to think twice about this plan.  Deposits of $10k or more have to be reported to the IRS.  The bank also has to report regular or intermittent deposits (not related to obvious employment) that may equal $10k or more per year.  If you need more than that, I would research the ramifications thoroughly.  You may end up having to pay taxes on whatever you borrow, and for non-employment income Federal and State (if any) taxes could cost you 30 to 40%.

[jbdee]

Idk.. 200% collateral, around 6% apy, less than 1 year..??

But what about when the IRS asks questions?
“Borrowed it from some anonymous guy on the internet.. Fuck off..” ??
Any experience in this? Or I was kinda thinking more recommendations for an institution..

How much USD do you want? Are USDC/USDT/PAX fine?

[eddie13]

I guess I’m getting shipped out till February so I think I’ll think about it again after that..
That might also fix the majority of it anyway, and won’t need a car for a while longer..

That Celsius sounds pretty cool but how much can one actually trust them..