Yes. But hey, if you believe crypto is only going to ever goes up, as many crypto believers do, it makes a lot of sense to borrow against your coins rather than selling and facing a capital gains tax charge.
Borrow $90K against $100K worth of Bitcoin. Buy $90K more crypto, borrow $81K agains that, buy $81K worth more crypto. Rinse, repeat. Before you know it, you have 10:1 leverage and all your crypto is held with Nexo, or whatever shadey platform you're using that automates this.
Oh, and all this crypto being bought on leverage of course increases the volatility and pumps the price.
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Yes. But hey, if you believe crypto is only going to ever goes up, as many crypto believers do, it makes a lot of sense to borrow against your coins rather than selling and facing a capital gains tax charge.
Borrow $90K against $100K worth of Bitcoin. Buy $90K more crypto, borrow $81K agains that, buy $81K worth more crypto. Rinse, repeat. Before you know it, you have 10:1 leverage and all your crypto is held with Nexo, or whatever shadey platform you're using that automates this.
Oh, and all this crypto being bought on leverage of course increases the volatility and pumps the price.