Stressful Lesson Learned
BLUF: Do not be dumb like me. A couple of months ago, I decided to be a degen and throw my entire BTC bag into Coinbase’s Bitcoin-backed loan service, even though I knew the risks and history of their freezing accounts shenanigans and how bad of an idea crypto loans are. My goal was to use the money, make some profits, pay off the loan, roll profits for more BTC, move back into cold storage. At the time there was no indication that wasn’t allowed. After a few months, I got a message saying that funds from the loan can’t be used for trading. Panic set in. I immediately started my exit plan. To complicate the issue further, I staked the other coins I bought as the staking APY covered the loan APY with a little room for profit. The problem was that there was a multi-day unstaking period. So I had to wait almost a week stressing about what they would do. Finally, the coins were unstaked, I sold for a nice profit and rolled into more BTC, I paid off the loan, got my BTC back into my account. Now it was time for more stress as the past horror stories of not letting withdrawals go through. I did a small test to my Trezor, that worked, then tried to push the entire balance through. Bam!, got a security alert and the transaction was delayed. More panic. After about an hour the transaction went through and is now in my cold storage. Even though I was able to increase my BTC bag by 10% it was not worth the stress. 10/10 Do not recommend. Lesson learned. submitted by /u/tipofspearbuttofjoke [link] [comments]
BLUF: Do not be dumb like me.
A couple of months ago, I decided to be a degen and throw my entire BTC bag into Coinbase’s Bitcoin-backed loan service, even though I knew the risks and history of their freezing accounts shenanigans and how bad of an idea crypto loans are. My goal was to use the money, make some profits, pay off the loan, roll profits for more BTC, move back into cold storage. At the time there was no indication that wasn’t allowed. After a few months, I got a message saying that funds from the loan can’t be used for trading. Panic set in. I immediately started my exit plan. To complicate the issue further, I staked the other coins I bought as the staking APY covered the loan APY with a little room for profit. The problem was that there was a multi-day unstaking period. So I had to wait almost a week stressing about what they would do. Finally, the coins were unstaked, I sold for a nice profit and rolled into more BTC, I paid off the loan, got my BTC back into my account. Now it was time for more stress as the past horror stories of not letting withdrawals go through. I did a small test to my Trezor, that worked, then tried to push the entire balance through. Bam!, got a security alert and the transaction was delayed. More panic. After about an hour the transaction went through and is now in my cold storage. Even though I was able to increase my BTC bag by 10% it was not worth the stress. 10/10 Do not recommend. Lesson learned.
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