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Using BTC backed loan to Cover Expenses While I stack more btc. Does this make sense?
What’s up y’all, I’ve been thinking through a strategy and wanted to throw it out there to see if it actually makes sense long-term. I’m extremely disciplined with my finances — not trying to flip anything or take on dumb risk — but I want to keep growing my BTC stack without having to sell what I already have. ⸻ My Setup: • Monthly income: ~$11,000 • Monthly expenses: ~$2,000 • Credit score: ~790 • Main goal: Keep stacking Bitcoin consistently while still covering all my financial responsibilities. ⸻ The Idea: I’m thinking about taking out a $10K Bitcoin-backed loan (using something like Unchained or strike), mainly to give me some flexibility. Here’s how I’d use it: • Let the $10K loan cover my expenses for the next few months. • Meanwhile, with my $11K/month income, I’ll: • Continue paying my normal living expenses (~$2K/month) • Use part of my income to pay off the BTC-backed loan • And DCA the rest straight into more BTC So I’m not using the loan to gamble or invest in anything else — I’m just trying to stretch my cash flow in a way that helps me build a bigger BTC position over time without having to sell what I already hold. ⸻ Why I’m Even Considering It: • No taxable event from selling BTC • I still benefit from upside if BTC runs during the loan term • I’ve got steady income to handle monthly payments • I’d borrow at a safe LTV (probably 20–25%) to avoid liquidation risk • I’d still be stacking each month with income — just in a more optimized way ⸻ The Other Option: With my credit score, I could easily get a personal loan at like 6–7% interest — which is a lot lower than most BTC-backed loans (usually around 12%). So the other side of me is thinking maybe I just go that route and leave my BTC untouched. ⸻ So my question is: Does this strategy actually make sense long-term, or am I overthinking it? I’m not looking for fast flips — just trying to be smart about leveraging what I have while continuing to stack over time. Would love to hear from anyone who’s done something similar or thought this through. Thanks in advance
What’s up y’all,
I’ve been thinking through a strategy and wanted to throw it out there to see if it actually makes sense long-term. I’m extremely disciplined with my finances — not trying to flip anything or take on dumb risk — but I want to keep growing my BTC stack without having to sell what I already have.
⸻
My Setup: • Monthly income: ~$11,000 • Monthly expenses: ~$2,000 • Credit score: ~790 • Main goal: Keep stacking Bitcoin consistently while still covering all my financial responsibilities.
⸻
The Idea:
I’m thinking about taking out a $10K Bitcoin-backed loan (using something like Unchained or strike), mainly to give me some flexibility.
Here’s how I’d use it: • Let the $10K loan cover my expenses for the next few months. • Meanwhile, with my $11K/month income, I’ll: • Continue paying my normal living expenses (~$2K/month) • Use part of my income to pay off the BTC-backed loan • And DCA the rest straight into more BTC
So I’m not using the loan to gamble or invest in anything else — I’m just trying to stretch my cash flow in a way that helps me build a bigger BTC position over time without having to sell what I already hold.
⸻
Why I’m Even Considering It: • No taxable event from selling BTC • I still benefit from upside if BTC runs during the loan term • I’ve got steady income to handle monthly payments • I’d borrow at a safe LTV (probably 20–25%) to avoid liquidation risk • I’d still be stacking each month with income — just in a more optimized way
⸻
The Other Option:
With my credit score, I could easily get a personal loan at like 6–7% interest — which is a lot lower than most BTC-backed loans (usually around 12%). So the other side of me is thinking maybe I just go that route and leave my BTC untouched.
⸻
So my question is:
Does this strategy actually make sense long-term, or am I overthinking it? I’m not looking for fast flips — just trying to be smart about leveraging what I have while continuing to stack over time.
Would love to hear from anyone who’s done something similar or thought this through.
Thanks in advance
