A lot of people have been saying that instead of selling your crypto, you should use it as collateral for a loan and just borrow against it.

The thing is, these two actions have opposite implications in terms of your exposure to the price of your crypto! https://twitter.com/MatchedMayhem/status/1365057739521728519

It's December 17th 2017. This is the price chart for Bitcoin. You were smart and you have like 10 bitcoin - now worth $200k!

You are smart. You will never sell, always hodl.

But you want to get that new car.

Solution? Take a loan out against your bitcoin! 20% should be safe enough now. Bitcoin is mature, we're past the era of huge dumps.

So, now you have your Bitcoin locked up and as long as it stays above $4k, you can just enjoy that free $40,000 whilst bitcoin appreciates and wipes out your debt!

Those losers who sold LMAO

Then we get the bear market. Your bitcoin is liquidated in November 2018.

Oh well, at least you didn't sell any.

Yes, this is terrible timing, but the market hype cycle will work against you when you take out loans against your crypto.

The best time to take out a loan against crypto will also be the best time to buy it.

The worst time to take out a loan will be the best time to sell your crypto!

And even worse, at that point in time you will feel compelled to compete with the people who are taking some profits into fiat and buying lambos.