Hi BTT famz, is it a good idea to borrow against your crypto assets?
Question 1;
Why would you borrow against your crypto assets?
By borrowing against your crypto assets, you are basically handing over your assets to a third-party custodian or a centralized lender as collateral. You are putting your assets to more danger of getting mismanaged or stolen.
Is there anyone practising this right now? What are the risks involved in doing this? Is Defi borrow and lending the best way to go because I know some are centralised.
You wanna know about the dangers?
Read more about what happened in the:
1. Luna crash saga
2. Three Arrows Capital saga
3. Celsius network saga
4. Voyager Digital saga
5. FTX- Alameda Research saga
To mention but a few, all this happened in 2022,
The answer is basically right under your nose.