Best to sell some Bitcoin then try the risky move of using it as collateral for a loan

To borrow against Bitcoin, you have to lock it in a smart contract or give it to a custodian (like Unchained/Celsius).

We saw what happened in 2022 (FTX, Celsius, BlockFi). The custodians went bankrupt. The people who "borrowed" against their Bitcoin lost 100% of their collateral because the bank gambled it away.

The "Tax Savings" of borrowing are not worth the 100% Counterparty Risk of losing the underlying asset.

submitted by /u/birth_of_bitcoin to r/btc
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Quelle: bitcoin-en