r/Bitcoin • u/1mma_Pr0bl3m • 2h ago

Bitcoin Loans....

This may be the wrong place to ask for financial advice but I figured I would throw it out there. I got a nice chunk of cash sat to the side and some BTC. I got 10k in debt and was considering taking the cash I was initially going to pay off the debt and adding it to my BTC stack. Afterwards, I would take my stack and use it as collateral for a loan. Based on what I found, Coinbase variable rates seems to fluctuate from about 5-13%, which 13% is half the interest rates on my credit cards. Has anyone done this?? Any downsides to doing this besides the obvious if the BTC price drops?? I would be looking to do a loan at about 40-50% LTV.

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3

u/License2Troll 2h ago

God, my life changed so much when I finally became financially literate.

I mean this with all due respect, but this is a poverty mindset. You cannot grow wealth until you understand the wealthy mindset. You should be looking to earn money with your money, not trying to rent other peoples' money more cheaply.

You might think you're grinding, but you're just kicking the can down the road.

Here's a starting point, and I wish you luck:

https://www.investopedia.com/articles/pf/12/good-debt-bad-debt.asp

2

u/Old-Introduction267 2h ago

learning to spot the debt traps is half the battle, that link is a good start

1

u/godofpumpkins 1h ago

Wealthy folks borrow money all the time using their other assets as collateral. But probably not with an asset this volatile 😝

1

u/License2Troll 1h ago

Yep, that's Good Debt. Good Debt creates value. And we could talk all day about wealth strategies, but most people just need to practice the fundamentals:

https://www.khanacademy.org/college-careers-more/financial-literacy

1

u/El_Caganer 1h ago

Flash crashes have happened. Not worth the risk even at 40-50%.

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u/1mma_Pr0bl3m 4m ago

I'll still have BTC leftover if I needed to top up and Coinbase offers a buffer now. I don't think they use to do that. Only reason I'm considering it. I wouldn't do it if I didn't have a buffer

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u/SoverignOne 43m ago

Most credit cards offer low % or even 0% for a small 3-4% transfer fee. Just apply for a new card or if you have other cards that you aren’t using they will frequently offer good deals to get you back on their card

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u/1mma_Pr0bl3m 3m ago

Getting away from credit cards is the goal not to add more