Crypto-Backed Loans Are a BAD Idea (Here's Why)

[@samsonsoturian6013]

Most of these crypto banks have ponzi like structures, with interest on loans being lower than interest on deposits.

[@bmastats6259]

how do they make money then? if interest on loans were less than on deposits they'd be underwater

[@jimpanse1638]

@@bmastats6259 thats the point. As long as there is more money coming than going out it works.

[@samsonsoturian6013]

@@bmastats6259 in a ponzi scheme it doesn't matter as you're stealing the money and skip town when you run out. But a lot of the crypto banks go all in on other exotic crypto investments, and yes this is why all crypto is highly correlated to each other.

[@---ge7tp]

Send me a ᴛᴇxᴛ ᴍsɢ ⬆️⬆️ On asset management_

[@Troll12579]

Good points, I guess don’t take out too much of a loan and keep some powder dry and you will be ok.

[@nathanwong9627]

Excellent video once again!!! Awesome explaining

[@jimmydanilo93]

@@tonyboulder. thanks for this piece of information

[@---ge7tp]

Send me a ᴛᴇxᴛ ᴍsɢ ⬆️⬆️ On asset management_

[@thebrinksf69]

What if you never take more than a 10%. LTV ?

[@ismailmaklad6566]

Chris, i just want to thank you, I’m just starting to learn about options and watched all your old videos and i feel it taught me a lot of basics I didn’t find on other channels. Also great job expanding your range and not listening to what people think you should stick to. Also i want to know how can i know before you go live on here?

[@projectfinance]

Thanks! I haven't done any live streams since last year and don't plan to do any in the near future. I'm focused on getting into a consistent upload schedule. Lots of options stuff coming!

[@julianfiller8731]

Who pays the taxes when the bank sells the calaterol

[@HefTrade]

Solid video Chris! I know the visuals take a long time to make but I think they will be valueable to viewers for understanding this topic. Also, the background music is pretty catchy too.

[@projectfinance]

Thanks Evan!

[@nitharsannadarajah9464]

Can you make video how to get loan on Binance, and eventually to explain the pros and cons on there?

[@DaC91productions]

Also, stock margin loans have lower interest rates. Bitcoin and crypto backed loans in general are still high. Not worth it if you are thinking of doing a rollover loan.

[@gutpoints]

Sir thank you for the very clear, no frills, very informative video. I will subscribe right now.

[@paulmulligan2895]

Great video Chris - you can set up an LTV calculator in excel and thus work out potential liquidation prices for your prospective loan

[@projectfinance]

Thanks Paul! Yes you can, and it's a good thing to do for those that use these loan products.

[@madeforstreets]

You are the best at explaining stuff, one should really be stupid not to understand what you say, and i don't mean that in a mean way... - Stay Blessed - 🙏❤✌ Did i spell that right 😳 I'm from Denmark 🇩🇰 give me a break 😪

[@jamess.2649]

When you need to buy anything you have to sell bitcoin and then you have capital gains. A loan could be very helpful.

[@iFlexxin]

Just be responsible and pay your shit. Should rename this "crypto loans are only a bad idea if you're irresponsible."

[@ictosok]

Thank you for the amazing educational videos. I hope to see more informative content like this from your channel and I would definitely enjoy seeing more crypto option tutorials from you bc you explain complex things in the best and most comprehensible manner. Thx again! Keep up the good work!

[@projectfinance]

I’m glad you enjoyed the video! Thanks for the comment.

[@erwinklein94]

the best video explaining the topic

[@kaaaah2003]

Thanks but at this moment, what is your portfolio LTV?

[@projectfinance]

100,000%

[@HefTrade]

@@projectfinance lol!!!

[@joemccarthy8213]

Chris - I want you to know from my heart that your channel was much more valuable to me and others when you produced content regarding the equities markets. Options, stock, etc. Your options tutorial video is priceless and I share it with several newcomers as they request information on options. You’re a gem. If you continue with the crypto path as your primary content, I believe you are losing subscribers and views. It’s indifferent to me at this point in my journey but I want you to know for your own good that your options and financial content was the real value for you. Best of luck whichever way you decide to move forward. And thank you for your knowledge and time sharing. I truly appreciate it.

[@luisdetomaso867]

I totally agree! Chris's option introduction videos are some of the best on KZbin. He's bagholding a boatload of Microstrategy LEAP calls with no stop, so I think making crypto videos has become a coping mechanism

[@projectfinance]

I get it. But the channel is my job and I’m going to do what satisfies me the most as long as it’s in the realm of markets/money. I have been doing options stuff for almost 10 years, so forgive me if I want to broaden the horizons. Also, options trading is in low volume / interest right now and making other categories of videos is a strategic business move to get exposure in other areas that are getting more views than options right now. Stay or leave, I’m going to do me and make videos I think are helpful and excite me about my work.

[@projectfinance]

The trade was my decision and I’m not getting paid to give anyone advice. Unfair to hold it against me because I’m an “options KZbinr” and therefore can do no wrong. The bitcoin videos will keep coming, so unsubscribe if you don’t want them.

[@HefTrade]

@@projectfinance Right on, Chris! If all people are here for is the knowledge that you share then they truly don't care about who you are as a person. If you guys don't like the videos and the knowledge Chis continues to offer all of his subscribers - then simply don't click on the video.

[@luisdetomaso867]

@@projectfinance Fair enough, but don't ignore the fact that your most recent options-related videos have double the views of your Bitcoin videos. KZbin is saturated with crypto "experts" but there are only a handful of solid option trading educators among whom you rank near the top

[@ikecreates]

Sounds like it’s fine as long as you plan for pull backs and potential crashes.

[@mylesg9094]

You still think it’s a bad idea?

[@projectfinance]

I think it’s a fine idea after a big drawdown and becomes a riskier idea the more price extends. In the far future as BTC vol drops it’ll be safer. NFA

[@samsonsoturian6013]

Crypto transactions are far from easy to move as it takes a lot of computing for each one. Then again, that doesn't matter as most crypto trading is done at regulated exchanges that defeat the point of crypto.

[@---ge7tp]

Send me a ᴛᴇxᴛ ᴍsɢ ⬆️⬆️ On asset management_

[@faYte0607]

Crypto mortgages will never work because its so volatile. Okly when the day to day volatility is nearly non existent will this be a possibility. No homeowner wants to monitor their LTV every single day after buying their dream home.

[@projectfinance]

In the future BTC volatility will be much lower and BTC backed loans will have lower interest rates. But that may be a decade or two away

[@faYte0607]

@projectfinance yes, eventually digital currency will become the future just as our world will become more AR (augmented reality). I just wish this trend could accelerate but I am with you that it'll take a few decades for mass adoption.

[@3EBstudio]

Becareful, this strategy doesn't apply to everyone .. another leg down

[@---ge7tp]

Send me a ᴛᴇxᴛ ᴍsɢ ⬆️⬆️ On asset management_

[@franticzenster8140]

Aged very well…

[@projectfinance]

😇 but nobody watched it :(

[@SPYSpreads]

wtf you smoking 😂 It’s not bad it’s just you need to know the timing

[@projectfinance]

Precisely sir.

[@ecosigntahiti1006]

Nice th y

[@iamtraderX]

$BSV is the real Bitcoin.

[@---ge7tp]

Send me a ᴛᴇxᴛ ᴍsɢ ⬆️⬆️ On asset management_