Hey all — I’m buying an apartment in Portugal and weighing two options:
Option 1: Sell ~1 BTC for the down payment
Option 2: Borrow €80k against 2.2 BTC at ~1.24% APY (Morpho)
On paper, borrowing feels like the obvious choice — low interest, keep exposure to BTC.
That said, I’ve never used BTC as collateral before, so I want to sanity check the risks.
- Current LTV would be ~60%
- Liquidation threshold is higher (so some buffer, but not huge)
- Main concern: downside volatility in BTC (e.g. another leg down)
I’m long-term bullish, but I don’t want to get wiped out by short-term moves or forced liquidation.
For those who’ve done this before:
- How do you think about “safe” LTV levels?
- At what point does this become reckless vs. smart leverage?
- Any rules of thumb (e.g. target LTV, when to top up, etc.)?
Appreciate any real-world experience — especially from people who’ve actually gone through a drawdown while leveraged.
Posted by Same_Tomorrow_5590