RE: Playing The Dangerous Loan Game
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Thanks for clearing up how it works. You mentioned UK interest rates but with Celsius, we can actually get 0% interest on loans there in the UK so I think for smaller amounts, it can work out pretty well to pay back. If you're able to pay back larger amounts then that's also a good option but to get a deposit together for a house with a short term loan might be a tall order. Will need to run some calculations but could use crypto loans to pay back mortgages quicker which is an additional incentive not to sell crypto!
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Lol I just took what the first links data gave me on UK rates, but damn 0% is stupid low lol. You could really work the system with that kind of spread. As these crypto loan platforms get better you may not even need to pay back the loan in full.
Let's say you borrowed against your BTC for 5 years and the price of BTC goes up each year your loan value gets smaller so your rate gets lower plus you paying it back with cheaper inflated fiat.
If your BTC crashes you can always post more collateral and keep it open and use those extra losses as a tax write off.
If I would leverage BTC for a loan in the future i'd want to acquire something like rental properties and just let that cash flow service all the obligations
Haha yeah you can definitely bounce your crypto off these different platforms if you can play it right!
Perhaps the time to get a long loan is during the bear market so that when you pay your loan back in the coming years, it will be ready in time for the next bull run... I'll try with small amounts first to get familiar with the process but damn, can see cashflows kicking off with rental properties on top of the crypto flows... waterfalls everywhere!
Sounds like a plan, in the bear market and also if you got a bit of collateral to spare as you collected some good interest then you can afford to mess around a bit.
If you got a good yield farming operation going then it’s great to offset your gains against that loan.
I think long term loans will only roll out once we deep into the trillion dollar market cap level
Does Leo Finance tax you?
Sorry. Not sure what you're asking here - can you elaborate?
I was asking about what the rules on the Leo Finance community might be for people not posting via Leo Finance, like me. I am on Hive Blog. I sometimes use PeakD and not the Leo Finance app.
Ummm... not sure, as far as I know, if you don't do your original post from leofinance and just use the #leofinance, you receive 90% of the rewards vs 100%. Don't know how it works for comments. You might be best asking on the leofinance posts or in their Discord
How is that even possible? It is possible if you post from their app. I don't think it is possible outside of the app because it requires some of the permissions in order to do that.
So, when log into the Leo Finance app, they may tell you and show you how it automatically reroutes some of the rewards to compensate for the taxes. The only way it would work via the Hive Blog app is if Hive Blog has the same system in place to distribute the taxes from the users to reroute to the different apps.
I'm not aware of the Hive Blog app of having that implementation. Once upon a time, some apps or all the apps did not do that outside of the particular apps at question. Note that I'm talking about apps and not merely just tags or hashtags or even community group hives. Last time I checked, I have not seen Steemit do it back a year or two ago.
In 2020, as many people moved over to the Hive Blog blockchain, I have not seen the Hive App reroute rewards to pay taxes to other apps. I will be surprised if they do that.
Sorry, I don't know. You should ask these questions to the team in their Discord to find out:
https://discord.gg/7tTTTcBjH5
Thanks.