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Making Money in Crypto WITHOUT Selling: Top Tips Revealed

#Make money
2025-09-01 20:249 min read

Content Introduction

In this video, Louis discusses how to profit from cryptocurrency without selling assets by utilizing borrowing strategies common among crypto whales. He explores the concept of providing crypto as collateral to receive stablecoin loans, emphasizing that users can maintain ownership of their assets while leveraging them for liquidity. The video covers the process of borrowing, risk management, and highlights key factors such as loan-to-value ratios and interest rates. Louis demonstrates the practical steps to borrow against cryptocurrency on platforms like A and Camino, including wallet connection, collateral supply, and managing repayments. He emphasizes the importance of being conservative and monitoring one's positions to avoid liquidation risks, ultimately advocating for a strategic approach to crypto borrowing.

Key Information

  • The video discusses a method to make money from cryptocurrency without selling it, specifically borrowing against crypto holdings.
  • Borrowing against crypto involves providing crypto as collateral and receiving a stable coin loan while retaining ownership of the original assets.
  • The method is popular among crypto whales and involves interest accrual, but it avoids capital gains taxes in many cases since it isn't considered a sale.
  • The video explains the differences between decentralized finance (DeFi) and centralized finance (CFI) in relation to borrowing.
  • In DeFi, loans are often over-collateralized, and platforms use a loan-to-value (LTV) ratio to limit how much can be borrowed based on collateral.
  • Market volatility, smart contract risks, and changing interest rates are factors borrowers need to be aware of.
  • The importance of maintaining a healthy loan-to-value ratio and being conservative with borrowing is emphasized throughout the video.
  • The tutorial includes a step-by-step guide on how to borrow against crypto using various lending platforms, focusing on safety measures and responsible management of loans.

Timeline Analysis

Content Keywords

Crypto Borrowing

A method for making money from cryptocurrency holdings without selling them. This involves providing crypto as collateral to receive stablecoin loans, allowing users to unlock liquidity, avoid capital gains taxes, and retain ownership of their assets.

DeFi vs CFI

Discussion of Decentralized Finance (DeFi) and Centralized Finance (CFI) options for borrowing against crypto. DeFi platforms like Aave and Camino provide on-chain loans managed by smart contracts, while CFI platforms like Nexo and Binance offer familiar exchange experiences.

Collateral Management

Importance of managing collateral in crypto loans, including the need for over-collateralization to mitigate risks of liquidation. Users should regularly check their health factor and maintain a conservative loan-to-value ratio.

Liquidation Risk

The importance of avoiding liquidation by ensuring the health factor stays above a critical threshold. Users may need to repay part of the loan or add collateral as asset values fluctuate.

Interest Rates

Variable interest rates applied to crypto loans, which can change based on market demand. Users are responsible for monitoring these rates to manage repayments effectively.

Educational Content

The video emphasizes that it provides educational content and is not financial advice. Viewers are encouraged to subscribe for further tutorials on crypto and finance.

Related questions&answers

What are the benefits of borrowing against crypto?

Borrowing against crypto allows you to unlock liquidity without selling your assets, helping you maintain ownership while accessing funds for other investments or purchases.

How does the borrowing process work?

You provide crypto as collateral and receive a loan in the form of stablecoins, all while retaining ownership of your original assets.

Is borrowing against crypto considered taxable?

Many tax agencies view these loans as non-taxable since they do not involve selling the asset, but it's important to consult a tax professional as laws vary by region.

What steps should I take before borrowing?

You should understand your loan-to-value ratio, ensure you're comfortable with the associated risks, and keep an eye on market conditions before proceeding.

What should I do if my collateral value decreases?

If your collateral value drops, you can either repay part of the loan or add more collateral to maintain a healthy loan-to-value ratio.

What are some platforms to borrow against crypto?

You can use decentralized finance (DeFi) protocols like Aave or centralized finance (CeFi) platforms like Nexo or BlockFi to borrow against your crypto.

What risks are involved with borrowing against crypto?

Risks include sudden price swings in collateralized assets leading to liquidation, smart contract vulnerabilities, and variable interest rates that may increase over time.

How do I avoid liquidation?

To avoid liquidation, maintain a conservative loan-to-value ratio and keep track of the health factor of your borrowing position.

Can I use different types of collateral?

Yes, various assets can be used as collateral, including popular cryptocurrencies like Ethereum and Bitcoin, as well as stablecoins.

What happens to my collateral if I repay the loan?

Once you repay the loan in full, your collateral is returned to you, and you no longer have to worry about associated risks.

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