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.
Single most underused idea: wealthy people with real estate don't sell house or commercial property for cash. Take out HELOC (home equity line of credit) or cash-out refi tax-free. Borrow against asset, keep it, access liquidity based on equity. Asset still working for them, no forced sale. Same mechanic for Bitcoin and Ethereum: put up crypto as collateral, borrow against it, keep position. Tax treatment varies, not tax advice. Asset stays on balance sheet.
Holding $50,000 Bitcoin, need $10,000 cash.
- Option 1: Sell, exit portion, trigger taxable event, miss upside if Bitcoin rises.
- Option 2: Borrow on Nexo.
- Deposit Bitcoin as collateral.
- Nexo gives credit line, borrow $10,000.
- Loan-to-value (LTV): 20% ($10k / $50k), low LTV.
Classic tier borrowing rate: 12.9% APR on $10,000 loan = $1,290 annual interest. Compare to selling and missing 50% Bitcoin rally on $10,000 position = $5,000 upside lost + taxes.
Bitcoin pledged as collateral is securely held in custody. Cannot trade it while pledged. Repay loan, get it back with any price appreciation yours. Deposit, Nexo calculates credit line, access funds in fiat or stablecoins, repay on your timeline, no fixed schedule, no early repayment penalties.
Flexible savings: daily compounding interest, no lockup, withdraw anytime. Rates subject to change, not guaranteed.
Fixed-term savings: lock for up to 12 months for higher rate. Choose based on need for flexibility vs. conviction and timeline.
Before using yield products, understand what you're giving up.
Two risks: custodial (biggest) and loan-to-value (LTV) liquidation.
Custodial Risk
Deposit Bitcoin into Nexo: transfer from your wallet to third-party custody. No longer hold private keys. Not your keys, not your coins. Counterparty risk: trust platform to be solvent, secure, not hacked, not shut down by regulators. 2022: Celsius and BlockFi collapsed, clients lost deposited crypto. Nexo different: US operations on backed custody (publicly listed, regulated), every loan fully collateralized, no unsecured lending, operating since 2018 through downturns without exposure. Still, when on platform, not in your hands. Use intentionally: move only what you need, keep rest in self-custody.
Loan-to-Value Liquidation Risk
Deposit $50,000 Bitcoin, borrow $10,000, LTV 20%. Bitcoin drops to $33,000, LTV jumps to 30%. Still owe $10,000. Nexo monitors 24/7. If LTV nears 70-80% threshold, notified: add collateral or repay part. If not, system auto-sells portion of collateral to rebalance. Borrow conservatively for cushion. Avoid max borrowing.
Bitcoin belongs in cold storage under your control. Default: self-custody. But most have crypto on exchanges doing nothing. Tools useful: earn yield or liquidity without forced sale. Deploy intentionally when math favors: borrowing cost < selling + lost upside; portion on regulated platform for defined yield period. Conscious decision, move only what needed, understand risks. Don't dump entire stack for yield.
Link to Nexo in description. For US clients: new clients deposit $5,000 in first 7 days, get 30 days Premier tier (yield up to 12%, borrowing from 2.9% APR, crypto cashback). New York residents not eligible.
For portfolio structure, liquidity strategy, financial plan: Whiteboard Finance University at wbfuniversity.com, $10/month. Example trade: 101% return, others 124%.
Not your keys, not your cheese.
Hey guys, between me and you, forget about Nexo, forget about Whiteboard Finance University. Just send me one Bitcoin and I'll send you back two. I promise.
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