What to do? \ stacker news ~AskSN

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2160 sats \ 12 comments \ @anon 14h AskSN

I kinda fell for this borrow-fiat-against-your-bitcoin narrative. And I can tell you – at the beginning it was awesome – you feel like a kinda invincible genius. Then I quickly became greedy and spent a lot more than I would have otherwise. I ended up locking 1 BTC to remain on 50% LTV, which is a substantial amount of my stack. Let’s say, less than 50% of the stack, but double-digit % for sure. When my locked bitcoin stopped being “just” 0.x it was like a cold shower, like wtf am I doing. And of course, as all bad things happen at the same time, I suddenly got into multiple bad situations that cost me 15 mil sats, and the invoice is due end of August. Now I have basically 2 options: 1. Increase LTV by 0.3 to get 0.15 in fiat to pay the invoice 2. Just spend 0.15 for the invoice

I’m hesitating between those two, as on one hand I still don’t wanna sell my BTC, but on the other hand I don’t want to lock another 0.3 BTC, as 1 BTC is already 1 BTC too much to keep locked.

So I’m asking stackers: what would you do in this situation?

And yes, I understand it was kinda stupid, especially if price drops now another 20–30%…

Thanks for your attention to this matter.

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143 sats \ 4 replies \ @guerratotal 14h

Pay off the debt directly with 0.15 BTC. Yes, it hurts to part with it, but it's much less risky than locking up even more of your stack and ending up busting if the price drops.

What you need now isn't to be more creative with the debt, but to cut that rope before it strangles you. You'll ensure that the remaining 0.85 BTC remains yours and free, with no risk of liquidation.

In other words, it's better to lose a finger than risk your whole arm. Bitcoin is for the long term; don't let a short-term play take it all away from you.

This is my humble opinion. I'm sure you can get more BTC later.

73 sats \ 1 reply \ @nkmg1c_ventures 12h

Pay off the debt directly with 0.15 BTC. Yes, it hurts to part with it, but it's much less risky than locking up even more of your stack and ending up busting if the price drops.

I was going to say this, keep your LTV as low as you can so you can withstand market swings. Also bear in mind your cost-basis, because if you're selling at a profit you incur taxes

21 sats \ 0 replies \ @guerratotal 12h

Yes, it is important too, taxes and so on depend on where you live.

0 sats \ 0 replies \ @anon 1h

Thank you for this, appreciate it

0 sats \ 0 replies \ @Msd0457890 9h

I think you are absolutely right and that is what you should do my friend @ anónimo

50 sats \ 1 reply \ @justin_shocknet 12h

ETF margin ratio is only 30% and margin rates are <%6 on RH, so you should try to at least roll out of that other scam costing 2X

Gains tax is your biggest problem here, if you sell .15 you get a tax bill on your gains, but if you borrow you pay juice and add leverage risk

I'd say pay your expense with the leverage to avoid tax and put any new fiat into ETF first to rebuild your price exposure... Then borrow against the ETF to buy back your real coin to lower the juice and liquidation risk

0 sats \ 0 replies \ @anon 1h

That's a very interesting strategy, but fortunately I have to tax on bitcoin where I live and unfortunately I cannot by ETFs where I live, but I will try to check if I can do something similar, not sure I can borrow against any other asset though

172 sats \ 0 replies \ @realBitcoinDog 10h

You messed around and found out

Get out of the loan

0 sats \ 0 replies \ @Rezn8 2h

If you're a gambling man. You know the kind of games you enjoy. The smart move would be pay debt and focus on retrieving your locked btc. No risk no reward, great businessmen don't take risk with out great calculations & understanding sometimes a loss is a lesson

0 sats \ 0 replies \ @LibertasBR 6h

From what little I understood of what you wrote, it doesn't seem like you have any bitcoin.

Are you paying some company to hold "your" bitcoins with the promise that in the future they will become more yours?

0 sats \ 1 reply \ @OT 10h

It's a tough one...

I still think the bull run hasn't really got started yet. But to risk too much of your stack is not wise. Sometimes it's just better to take the L. Or try and find a way to borrow from the fiat world to pay back this loan. That will give you more time.

0 sats \ 0 replies \ @anon 1h

Yes, the funny part is—I’ve been in this situation before, though on a much smaller scale. Back when BTC was around 20k after the FTX crash, I had a choice: take on more exposure or close out the loan. I chose to close it, sold half of the locked BTC to clear the debt, and then Bitcoin went straight to 60k over the next 3–4 months =)

Now I feel like if I close or pay down the loan, BTC will shoot up in the short term. But if I increase the debt, I’ll end up suffering in the short term because of the volatility.