3 Best Ways to Use Crypto Loans



1. Hedge against downside risk 2. Diversify into other assets such as real estate 3. Invest into crypto without being exposed to any downside (advanced and …


43 Comments

  1. 5 Important tips:

    1.Instead of 50% Loan-to-value (LTV) ratio, you can use 25% for less risk and less payable interest. But always choose a 6 month loan plan as you can simply continue a loan without fees but if you want to pay back a loan early you have to pay the interest for the whole duration.

    2. Have cash available if prices drop below near your liquidation level to either pay back the loan or buy more collateral at cheaper prices.

    3. Do not use platforms that automatically liquidate your collateral when price flashes below your liquidation level.

    4. Use a referral link for extra $40 ( here's mine: https://celsiusnetwork.app.link/1596474625 ) together with any available promo code after you signup from here: https://celsius.network/download-app

    5. Your liquidation level is actually a little bit less than exact 1:1 ratio but since you are earn money passively by keeping assets in Celsius Wallet, those almost cancel each other other out so I used simple numbers for the examples in the video. Just respond promptly to Celsius if you get an email asking to add more collateral or pay the loan and you'll have no issues.

    Other than that the strategy is pretty straight forward and doesn't need any upkeep after you take out a loan unless price doubles or almost halves.

    Ps. I had slightly wrong numbers in the example 1b (10:10 forward). Instead of getting 0.3333 Bitcoin on the dips, you are actually getting 0.3 Bitcoin so in total 1.6 Bitcoin instead of 1.6666. Other numbers are correct.

    PPs. Alchemix has been audited by Certik and are partnered with Runtime Verification on continous audits. Use the platform at your own risk.

  2. Hi, did u hear about LTX (Lattice Exchange), coming live in Q3/Q4 this year. It will bring erc-20 swaps with almost 0 fees. And it will be multi-chain DEX. Any thoughts about it? Could this be end of biggest DEXs like Uniswap, Sushiswap,….?

  3. Why not just hedge your positions with the crypto you own, rather than using it as collateral (locking it), especially if the borrowing benefit is only 50% of your collateral, plus there's still a risk of loosing your investment (a possibility) through liquidation?

  4. Get a loan secured by your crypto assets!

    The best thing about crypto loan is that you don’t need a credit history, or a bank account or a FICO score to get it.
    All you have to do is log into Crypterium Web, get approved in as little as 30 seconds, and enjoy spending your USDT with a 1% APR😉

  5. With the Celsius interest rates you can get on USDC, you're not mentioning the fact that you're no longer earning the interest on your collateral, so there's an opportunity cost there.

  6. This guy is an amateur. No wonder he gave up. Like seriously he says you earn interest on locked collateral when you do NOT earn interest on ANY of the locked collateral. He lacks an understanding of the fundamentals. Just want to clear this up. Celsius is rubbish anyway. Cannot currently take out a loan using XRP as collateral even though I can earn interst on it. Celsius is conducting in misleading and deceptive conduct since they say ALL supported coins can be used as collateral. I hate XRP haters with a passion.

  7. Crypto can sometimes having a crazy -30% wick that could get you liquidated while you are asleep! This strategy is risly

  8. Failed to mention that you'll miss out on interest payments on your crypto collateral during the loan. You also didn't mention that once you use the stable coin to purchase crypto you'll have to pay the usd loan payments each period..

  9. Something isn't making sense for me here. Your first example you take out 50% loan $60k against BTC with a value of $120k. You then suggest to buy the dip at 60k. The problem here is that when BTC reaches 60k you were already liquidated a long time ago. Because at BTC = 60k that is 100% LTV on a $60k loan.

    Your actual liquidation price is $80k.

    What am I missing?

  10. Hi Denome , miss your videos . Please have a look at Terra ecosystem – you get airdrops for new projects plus ATOM seems bullish with OSMOSIS and Galaxy Dex coming

  11. Very Interesting Ive had this type of strategy on my mind for a while. I have some questions.

    1) at about 19minutes you discuss taking a loan out in USDC, then please follow my thinking, you then get 8.8% paid in usdc, this actually makes the loan free (assuming you are chargest8.9% APR) – this seems way too good to be true ?as all you need to do is to (when you want to leave or cash out is to quit, then move thw usdc to Binance (say) and convert the usdc back to Fiat and withdraw it ??
    2) I notice your an affilate of Celcius, plase tell me honestly, are you actually doing this or are you just after the affiliate revenue ? Im in the UK, do they allow uk customers and have you had any difficulties getting you crypto or payments ?
    3) what about if you do not opt for usds and do not keep it on the platform, did you have any difficulties in getting the cash (The cash from the loan in fiat ) – they pay it direct to a bank account or does your celcius accout have a fiat wallet like say GBP or us dollars, they you simply withdraw to your own bank ?

    Its a good video and a clear strategy, but forgiove me for asking these questions as many affiliate video makers never ever use the platforms ever and ahve no actual real life experience of using them, and cant honestly explain and pitfalls or disadvanteges of the site qas they simply want the affilayte money.

    I hope your not like this and would welcome comments from other users, but the video is very good!

    Looking forward to your reply

  12. Collaterals don't get interest at Celsius. So it's not true what you explained about putting money, earning inerest and get a loan "for free".

  13. Great to have you back!!!

    Is there a bug in your tough about situation when btc drop 50% and your collateral is 60k and your loan 60k so LTV 100 and immediate liquiditation?

    Or does Celsius count your 60k usdc to collateral also?

  14. How does NEXO compare to Celsius? I think NEXO has a minimum loan period of 1 month. Is it 6 months for Celsius? NEXO recently announced a cool feature: you can swap the collateral used for a loan at any time, so basically if you think BTC will go down, you swap the BTC collateral for USD/EUR or other stable coin. So then you would remove the risk of liquidation in your example and still use the “aggresive” strategy.

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