Why I Never Sell My Bitcoin (I Do This Instead)
In a Nutshell
Instead of selling Bitcoin for cash—which triggers taxes and misses upside potential—borrow against it at low loan-to-value ratios (e.g., 20% LTV on $50k collateral for $10k loan at 12.9% APR via Nexo), keeping your position intact while accessing liquidity. Earn yield on idle crypto through Nexo's flexible or fixed-term savings, but prioritize self-custody to avoid custodial risks like hacks or platform failures (e.g., Celsius/BlockFi). Borrow conservatively to prevent liquidation if prices drop, and only move necessary amounts to platforms—Bitcoin belongs in your control.
These notes were generated by AI and may contain inaccuracies.
How much crypto are you sitting on right now that is just sitting there? Bitcoin for example, you bought it. You believe in it long term. You are not selling. But it's earning zero. It's collecting digital dust. The premise of this video is buying, holding, and borrowing against Bitcoin. Personally believe in self-custody. Bitcoin belongs in a wallet you control with keys only you hold. That's the entire point of owning Bitcoin. It's a bearer asset. Base position is not changing. Most people have crypto sitting on an exchange or in a wallet earning nothing. Price action has been boring. Tools exist to put that crypto to work. Sponsored by Nexo. Walk through two tools with real numbers and risks clearly. No hype, just the math and honest breakdown.
Opportunity cost of holding crypto: cash in high yield savings account earns 3-4% annually, risk-free return. Bitcoin, Ethereum, or stablecoins earn 0%. Holding $50,000 worth of Bitcoin for a year doing nothing is potentially $2,000 in interest never collected.
When needing cash, people sell stocks or crypto. Feels obvious, but run the full math. Bought Bitcoin at $30,000. Needed $10,000 cash, sold a portion. Two months later, Bitcoin at $60,000. Out of that position, paying double to get back in. Triggers taxable event. If held more than a year, long-term capital gains tax at 15-20% depending on income bracket. Lost upside from $30k to $60k and paid taxes. Happened to many in late 2023.
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