Quote from: JeromeTash on November 10, 2022, 09:58:52 PM

Quote from: Crypt0Gore on November 10, 2022, 05:38:53 PM

Hi BTT famz, is it a good idea to borrow against your crypto assets?

Question 1;
Why would you borrow against your crypto assets?

By borrowing against your crypto assets, you are basically handing over your assets to a third-party custodian or a centralized lender as collateral. You are putting your assets to more danger of getting mismanaged or stolen.

Quote from: Crypt0Gore on November 10, 2022, 05:38:53 PM

Is there anyone practising this right now? What are the risks involved in doing this? Is Defi borrow and lending the best way to go because I know some are centralised.

You wanna know about the dangers?

Read more about what happened in the:
1. Luna crash saga
2. Three Arrows Capital saga
3. Celsius network saga
4. Voyager Digital saga
5. FTX- Alameda Research saga

To mention but a few, all this happened in 2022,

The answer is right under your nose.

I don't like the idea myself but since few new projects are using this idea as utility then I am guessing that many investors are patronising them, I can across a new project called HIFI Finance on coinmarketcap and I am doubting why such projects keep pumping up after so many damages that they have done to investors..

My curiosity was maybe there is more to the whole thing than I knew, this is why I asked this question, I thought 🤔 I was missing out on something, thanks for your reply.