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I Keep BTC as Collateral and a Reserve Deposit During Bear Markets

I keep a portion of my Bitcoin as collateral and park another portion in a deposit, only tapping the deposit if things go badly. This preserves my margin buffer and keeps liquidity available in volatile crypto markets.

I believe this tactic works best in a bear market, when many are writing off Bitcoin and miners start switching off their rigs. In those conditions, loan interest rates are often much lower, and I expect the further downside to be limited.

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AI Analysis

The opinion outlines a risk-managed approach: split holdings between collateral and a deposit to maintain liquidity while minimizing margin/liquidation risk. In volatile crypto environments, preservin...

AI Recommendation

Keep a dedicated portion of your Bitcoin holdings as collateral to protect against margin calls, and maintain a separate deposit reserve to be used only in stress scenarios. This preserves liquidity a...

Disclaimer

The AI analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.

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