risky
Prepare 7–10 BTC as Collateral — Cap Loans at $20k/BTC
Yes — I would prepare about 7–10 BTC to use as collateral. If the price drops sharply, liquidations are our main concern, so we need sufficient margin buffer. I wouldn’t borrow more than $20,000 against each Bitcoin to avoid excessive liquidation risk.
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AI Analysis
The opinion stresses a conservative approach to using Bitcoin as collateral, highlighting the primary risk of forced liquidations if the BTC price moves down sharply. In volatile crypto markets, rapid...
AI Recommendation
Follow a conservative collateral plan by setting aside 7–10 BTC as a margin buffer when using BTC as collateral. This creates room to withstand price drops and reduces the risk of automatic liquidatio...
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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