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RE: Is it Time to Mortgage your Bitcoins?

in #money7 years ago

Well from my experience "trading on margin" in the US equities market; I love your idea on paper. Since it is going to be a long-term hold you need to very closely consider the cost of the margin over X, Y and Z timeframes as well as being SUPER conservative with the amount of leverage you use.

When trading in and out you have less exposure to major drops or corrections, when holding long-term one must be prepared for the "outlier" actually happening.

In the end, great idea. Just run the numbers to make sure your margin costs aren't eating to highly into your holdings if BTC doesn't move the way you expect. Keep that leverage low, trust me from experience.

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It depends on if I use the spot markets or the futures market. There are no funding rate fees if I keep flipping the futures every 3 months :)

if you're convince on this

This will work for me

I say do it - what you think is always right ;)

it's not a bad thought - go ahead sink your teeth on the cake - ya aint the only one doin that anyway

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