I'm 35M, married, and have two kids. We plan to buy a house this year, at least next year. Our emergency fund is separate. If I don't use my cash, I need to sell most of my BTC for the down payment.
I started holding it at around $21k. Through several rallies and drops, I didn't quit and kept building my position because I believed in its long-term value. I planned to hold until I retired.
Although feeling conflicted and sad about selling them, I would still do it and let it go because moving my wife and kids to a better neighborhood with better amenities would be worth it. That was why I started accumulating.
If I use cash, it would be less flexible, so I haven't found a balance yet. Just looking for better advice and strategies here. Thanks!
I may need to sell most of my BTC for the down payment
byu/Choice_Employee_7739 inbtc
Posted by Choice_Employee_7739
5 Comments
how about 50-50% between your cash and your BTC?
You can always build a new stack later, home stability comes first
What is your average buy price ? If you started at 21k you may have a pretty decent average, depending if you kept consistent in your purchases.
Consider to use the amount you spent for all your Bitcoin purchases and hold the premium you got on top of it. Or a 50% of your whole stack. It really depends on your situation, how much you’ve bought along the way, average price and also if you’re confortable to live with your income.
This is a very personal situation and it depends mostly on your lifestyle, income and expenses. And I do not advise you to disclosure such numbers with strangers on the internet.
Are you able to just take a loan using your bitcoin as collateral? Like what Coinbase offers.
Consider borrowing part of the FIAT against your BTC instead of selling it all — e.g. using a BTC-backed lender like Ledn or Nexo.
Personally, I’d keep the LTV well below the maximum 50% to leave enough room for BTC volatility and reduce liquidation risk. If you believe we’re somewhere near the lower end of the cycle, this could let you fund the down payment while keeping most of your BTC exposure.
Over a long time horizon, the BTC you avoid selling today could potentially repay the borrowing cost many times over before retirement.
Obviously, this adds interest, counterparty and liquidation risk, so I’d run the numbers carefully rather than maxing out the LTV.