Here's a little DeFi tip to investing that I happened to stumble across, but has changed the game completely. Usually, the first concern to buying crypto is the fiat in your bank account you will lose, but, what if I told you it doesn't have to be this way?

Yes, that's right, you could manage your risk to both get the immediate cash that you used to buy crypto back into your bank account, as well as limit the downside so you don't have to worry about 'blowing up' your account (going broke).

How?

Sounds idealistic, sure, but works like a charm using the DeFi concept of collateral lending. You see, when you buy crypto, let's say BTC or USDT off certain providers, not only do they pay some money back into your bank account, you have the option to withdraw funds into another exchange or wallet.

This LTV (Loan-to-value) ratio can be as high as 90% like on my favourite provider for this service, Nexo.

What is especially great about Nexo is that you can use this service for an APY of 0% (making this service totally free), if you hold some portion of your portfolio in Nexo tokens (in itself, they have great upside potential).

Example:

I'm not kidding, here's how I used this to my advantage:

• Let's say I want to buy $1000 of BTC
• I will go to Nexo
• Then I will simply purchase that amount, in Bitcoin, to be held in my Nexo wallet
• Now I have collateral and am owed money back into my bank account whilst still owning the $1000 of BTC
• I exercise a 50% LTV, to get $500 back into my bank account
• The result? I now own both the $1000 in BTC as well as $500 in my bank account

What are the benefits? Is there a catch?

Well I now am only 50% as poor in fiat, whilst just as rich in BTC.

That means that if the value of BTC plummets to the point the collateral gets used up, I have only lost the $500 they did not pay me.

I still own the $500 they did and no one can take it away from me. Meanwhile, if the value of BTC goes up, I can pay off the collateral through in-portfolio gains whilst never being poor in terms of dispensable cash.

But I love risk.

How I use it?

Everyone just about knows that HODLing is one of the most risk-free strategies, but perhaps also loses its lure to the highly rewarding but highly risky leverage trading.

And I love leverage trading. 

What I would then do is take the $500 that I have been paid out, deposit it into Binance or another CEX which allows margin trading to maximise rewards from my initial $1000 investment.

Remember not only will I have a $1000 HODL portfolio after this, but also a $500 on Binance Margin Trading.

Ultimately you can be very, very smart about the way you invest.

For more tips, do follow me.

To earn $25 in free BTC and enter a $50,000 reward pool (Reward instantly unlocked but withdrawable on holding $100 for 30 days):

https://nexo.io/ref/haxveoayib?src=ios-link

Oh! And remember you are always owed real fiat for that $100 so you'll get $90 back (and the rewards) during those 30 days.

Free money? We love it. We also love the Publish0x community.