I am looking to increase my bitcoin holdings and i am looking at taking a crypto backed loan with one of the leading platforms? i would be fine to take this loan out a few months ago but at this stage of the bull run how risky would it be ,i know a loan can be risky to begin with, but am i just playing with fire or is there a good chance it will pay off? it would be a 15000 dollar loan a 50% ltv for more information, thanks
In my opinion, you should not borrow cryptocurrency while the price increases like this. First you need to identify a few problems:
1. If you borrow at this time, interest rates will be high. So when do you pay off your debt? When you take a risk, you still accept it without regrets.
2. More importantly if you borrow Bitcoin in the meantime. If the benefits outweigh the possible risks, it's up to you to decide.