I would like to put some additional details.

Let's say I bought 1 BTC at $8k, and I am selling it for $10k.
My profit is $2k.
I have the option to declare $2k profit and pay taxes, or use it as collateral for a loan.

So let's say I have to pay 35% taxes for the $2k profit.
If I can take a 1-year loan for 19% APR, it would be better to take a loan, correct?

jaocoincrypto18
I am not sure you are right.
My profits and lender's profits may be different, I see no reason to pay my taxes to the lender as you describe.

audaciousbeing
I agree with that. I suppose, it's profitable to take a loan for 1-year to pay it back only if the BTC price goes up.