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Borrowing against BTC to buy ALTs strategy?

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by COINS NEWS 32 Views

Currently my portfolio is around 58% BTC, which I would like to bring down a bit and get some more ALTs with higher growth potential. However, I really don't want to sell my BTC now when we are likely looking at pretty solid growth over the next 12-18 months.

So rather than selling my BTC I'm considering making a loan against it on Binance and then buying some top 10 Alts for that loan so I can get the growth in both BTC and also get some more Altcoin exposure. I would keep a low LTV (loan to value ratio) of around 50% so even if BTC should pull back to like 25k I would still be ok and wouldn't be forced to sell.

Obviously this is a more risky strategy than just selling the BTC and buying ALTs but given where we are now in the cycle I still believe the risk is relatively low as long as I use the loan to buy a good selection of Top ALTs and not blow it on chasing meme and moon coins.

What are your thoughts on this strategy? Anything I have missed or any other considerations I should take into account? Thanks.

submitted by /u/VagabondingHeart
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