Borrowing against ETH surprised me in the best way. If you believe in ETH long-term like I do but still need liquidity right now, it makes a ton of sense. I didn’t want to risk any potential gains or create a taxable event, so I used а a portion of my ETH as collateral for a loan on Nexo. It’s similar to making a mortgage on your house, but with crypto, and it doesn’t involve the crazy paperwork. Holding $ETH is a conviction for me and selling now would feel like giving up on it.
With the loan, I covered some expenses, reinvested a bit, and still kept my exposure.
Plus, there are no rigid repayment schedules breathing down my neck, just pay back when I want. The whole process was fast and way less stressful than anything in traditional finance. Also feels like one of the boldest yet smartest moves I’ve made in crypto so far.
Posted by ResolutionSmall3692
2 Comments
You can also do that without trusting a central custodian. Check Aave and Morpho.
Also, be careful to not overdo it, ETH prizes sometimes drop by 50% in a week, don’t over-leverage 😉
Except when those lenders go under. Which just happened a few years ago