- Coinbase APR is 8%, Nexo is 5.9%
- Coinbase max loan is $20k, Nexo is $2 million
I can see the appeal of borrowing against your bitcoin or other cryptocurrency, but I'm not sure if there's much value in borrowing $20k. If you're in a position to hold $60k bitcoin on Coinbase, do you really have a need for a 1 year bridge loan of $20k? At a rate only slightly better than a credit card?
If the $60k of bitcoin on Coinbase was bought with a loan from Nexo because you have $100k of bitcoin on Nexo, then yes lol.
Wrap that bitcoin in RenVM to use it on the Ethereum blockchain, maybe some renBTC liquidity pool is earning you more, or sell it on Mooniswap for something else that is earning more. YAM/yCRV staking anyone?
not all of us need that. make your own decisions.
others want to know whats possible.
Interest payments are deductible in many circumstances, borrowing against holdings do not cause taxes from selling the holdings, and in some circumstances capital losses can be converted to net operating losses deductible against income paid in both prior and future years, practically ensuring you get your money back if properly planned. (Carrybacks were removed in the 2017 tax reform law but restored in the CARES Act.)
But I understand, calculated risks are only for people good at math.
Make your own choices