Alright everybody. Recently I found out I may be a part of some layoffs due to the company I work for being sold. Knowing that I began to plan a trip that I could take if I am a part of the layoffs.
While thinking of this trip the most important thing for me is to find a way to fund the trip while saving as much money as I can. As of today I realized my best option is probably a very simple one.
I have both BTC and ETH in Blocfi and their loan interests seems to be lower than the payout interest rates for both of the coins.
The main things to know is LTV or Loan to Value as well as when you get margin called. The highest LTV for a loan is %50. So let's say I have BTC that amounts to 100k. That means I can take out a loan that goes up to 50k. If the BTC value drops to let's say 71.42k that make my LTV value 70%. At that point I would get a notice and 72 hours to deposit money before margin is called. I can also get a crypto amount liquidated if the LTV reaches 80% before I deposit money into the account.
We all know when it comes to crypto it's not that easy. The fluctuations are high and it makes the risk higher. The good in this is I believe this crypto market will continue into 2023 with minor pullbacks along the way.
Looking at a low risk of 20% LTV and knowing I want to pay off the loan in 1 year would give me an interest rate of 4.5% for an interest total of $900. My risk won't be too high if this is possible. I'd try to limit myself to a 20k loan tops while I let my crypto continue to gain interest.
The smallest loan you can take seems to be 5k. That also gives me the option to split my loans and use both the ETH and BTC I have available in my account to their optimized potential.
I'm still looking at my savings safety net and seeing what's possible with the least risk. Whatever happens, I am very excited for the future. This just seems to be the best option for me at the moment.