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Took Loan for -2% of Portfolio, Backed By Crypto

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Avatar for MarcDeMesel
Written by   2554
1 year ago

Via DeFi platform cream.finance you can for example use DPI as collateral, that I happen to hold. You can borrow different fiat coins such as USDT, USDC & DAI at an interest of around 15%, however you also get interest on your deposited/locked collateral, around 3%, but since I deposited 4x the collateral as the size of the loan, I end up paying net only 4% on the loan, a great deal, especially compared to traditional finance where the best loans available, that you can also freely invest in any other market and can even spend if u wish, would be from Interactive brokers, using your stocks as collateral, but still paying 5% interest.

Taking loans against your assets and thereby invest with leverage can be risky if prices just went up a lot a a strong correction is more likely then and can cause margin calls, but I don't believe that is the case currently in crypto.

In my case for example, cream.finance has collateral requirements of 45% for a coin like DPI. That means that if value of loan is more than 45% of value of collateral, and for example loan becomes 50%, they will start liquidating my collateral to pay down the loan as to make sure the loan is payed back (Interesting to note is that this liquidation process is also done decentralized, anyone can start liquidating my collateral and pay down the loan, and even make money doing so, 8% of the loan in fact, money I will lose if this happens).

45% is also therefore the maximum you can loan against your collateral if it is DPI, but for example if it is ETH it's 75%. However if you would max out the loan you would get immediately a margin call if price of your collateral just goes down a little. So you want to go for say half of that, 22.5% if DPI, so that price of your collateral needs to drop by -50% before you get a margin call.

What are the chances Crypto and DPI in particular drops another 50%, after it just dropped 50% past month? I would estimate at only 10%. That means good odds to take. Especially if you are able to invest the loan in another great uncorrelated opportunity, for example, I'm looking to invest the proceeds into hotels/resorts that have been severally affected by plandemic, an opportunity that might be gone in 6 months if rulers stop closing borders and tourism starts recovering.

Also, if I am unlucky and the 10% chance of crypto dropping another -50% happens, causing a margin call, I can still reverse the investment in resorts, if it is liquid enough, or sell another investment, such as my short gold, airlines or tankers, to prop up my collateral requirements and avoid liquidation.

Fully collateralized my 9% DPI, hope I can find solution to use my BCH also. Via cream.finance seems risky as you would have to use binance smartchain and would have to therefore wrap BCH on binance causing counterparty risk. CeFi solutions such as Nexo.io seems expensive at 15% interest for loan, and no interest on BCH collateral, and Celcius I don't trust to be good business given poor track record of it's founder Alex. Anyone knows better solution?

Other than that, not doing much in my portfolio. My short options on GLD are recovering as gold is starting to go down again. Not too late to hop on, think risk/reward is still very good, Puts for example at 160 strike expiry months of this year can pay off big time as think likely GLD will go to 150 or lower.

Also continuing to invest and donate BCH into BCH ecosystem. When prices drop so much I like to do that, not with my own stash but by buying the BCH with other non crypto sources, such as the cash or margin from my stock broker. It's cheating my system a bit as I am not allowed to increase exposure to BCH when following the Kelly criterion but it's only a few percent so all good.

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Avatar for MarcDeMesel
Written by   2554
1 year ago
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Comments

sir @MarcDeMasel, I found you a great tipper on this platform like you are the owner of this website. Actually, I have no knowledge about bitcoin cash. But I have a great knowledge of nature. But the green guy I mean TheRandomRewarder do not upvote me and you also. I am very sad about it.

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1 month ago

such an inspiration Sir. Gotta explore more about crypto

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2 months ago

Tefe

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2 months ago

you are my role model Marc

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2 months ago

Greetings from my side, really inspired by you sir, it's been couple of month since you last published your articles, looking forward for more articles from your side

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3 months ago

I keep stalking your account sir. I just curious if you were really exist because lots knows about you and I observe your last pubished its been a couple of months. Well, anyway lookinh forward with you sir Marc😍🥰

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7 months ago

Really nice

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3 months ago

This is very informative content sir, I am excited to read more on your content. Excited to connect with you. I am happy to learn new information from your article.

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4 months ago

Hey marc. please come back

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5 months ago

Hey Marc, are you not active on Read.cash anymore? We got into #BCH because of you 😊

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5 months ago

Happy Valentine's Day MarcDeMesel ❤️ https://read.cash/@MarcDeMesel ❤️ ❤️

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6 months ago

Thank you:)

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6 months ago

Greetings, glad to find you active on Twitter. Following you there. Stay blessed 💕

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6 months ago

Thank you that you first of all help people financially. I think it helped a lot in different life situations. Also many people have found friends !!!!!!!! I do not know why you are doing this, but low bow to you, not there are so many people like you in the world

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7 months ago

Keep up the good work

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7 months ago

Thank you so much for supporting Bitcoin community... I am inspired Happy new year in advance to you and your family

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7 months ago

Offcource..@MarcDeMesel yes sir..we can't find our destination without facing hardships in our life...we have to take risk in our life to gain something.You are a great inspiration for people like us.

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7 months ago

Even as a newbie and one who has little or no knowledge on Bitcoin Cash and crypto, I am inspired. I have been learning and also learnt quite a lot from your articles

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7 months ago

Everything in this life is to take risk before you become successful and before you become successful in life you must help someone to become successful

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7 months ago

Everything in this life requires risk.It is not possible to achieve success without risk

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8 months ago

Marc, I'm a foreigner living in Kenya as well. WHat do you think about BlockFi?

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8 months ago

We keep on learning

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8 months ago

Amazing, Thank you so much

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8 months ago

Everything about life is indeed a risk. Every successful businessmen, trader, or individuals will always engage in a risk. It's 50 50.

Therefore, if you're willing to take such risks as a businessman or an investor and ready to win or lose, then you're on the path of a major breakthrough

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8 months ago

Wow I'm so much Happy for this your article, your article always make me feel strong and feel happy too. Thanks so much for supporting bitcoin cash community.

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9 months ago

Thank you for supporting the Bitcoin cash community, with your generosity I and many others can save money using noise cash and read cash. Cheers for the good times making Bitcoin cash alive!

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9 months ago

Much obliged to you that you as a matter of first importance help individuals monetarily. I think it helped a ton in various life circumstances. Likewise many individuals have discovered companions. A debt of gratitude is in order for sharing this post it is hopeful I am roused by your post

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9 months ago

Wow

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9 months ago

Thanks for sharing this post it is aspiring I am motivated by your post

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9 months ago

You share a great idea to us.I hope it will helps in future for invest.

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10 months ago

Tener una buena estrategia de inversión a corto o largo plazo es lo que nos dará buena rentabilidad y buenos márgenes de ganancias, todo en base a su experiencia en inversiones con criptomonedas sabe que no hay pierde siempre a largo plaza se obtienen muy buenos márgenes de ganancias!

Me gusta mucho que tienes un portafolio amplio y varias fuentes de ingresos, y una buena estrategia seria invertir en hotelería o turismo siempre analizando como va la situación y el mercado.

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10 months ago

Oh really? Wow that's good to hear that you shared it here in read.cash,but so sad I can't download more apps due to lack of storage on my phone.because this phone I used is needed to be repair. But I couldn't have any money to repair it. Anyway thanks for sharing this. Somehow I have an idea. That there is loan sites and applications that we can lean on. Its so great you shared this. Thanks sir De mesel.

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10 months ago

I had not yet read your articles and it was really worth it. Around here everyone loves you very much for what you represent for read.cash and all its users. These teachings of yours are worth pure gold, and the way you allocate your profits in new investments and providing support here to other users is worthy of admiration. You hardly know me, I haven't been on the platform for a month, I'm new, but I want you to know that I wish you the success of the world. People like you make this world a little more beautiful. Thank you very much for all my friend!

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10 months ago

Wow this is so helpful. Thanks for sharing this wonderful thought.

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10 months ago

Thanks For Sharing Your Ideas and Thoughts❣️

$ 0.01
11 months ago

As you said... you covered all scenarios and hopefully nothing unexpected will happen. I don't take much of a risk with crypto and I prefer to just stake for interest or farming rewards. I do see the opportunities in Crypto loans and maybe one day I will join. Best wishes !

$ 10.01
1 year ago

right

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1 year ago

This is a worth-to-read article especially for someone like me who wants to learn more about Crypto and DeFi. Marc, thank you for sharing your valuable knowledge with us.

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10 months ago

Yes, a good article, thanks for sharing

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10 months ago

Good and helpful article. thanks for sharing with us

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11 months ago

I am a newbie here ,and im trying to write articles and interacting others coz i want to earn money to help my husband and also i want to find some friends ..Thank you so much for this platform

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11 months ago

I know this article is great and helpful.

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11 months ago

When it comes to crypto loans, I'm just an amateur and don't have much knowledge on that. Also it takes personalities with wider knowledge as you on such investment areas to join in since it involves higher risk. For now I think I would rather stick to the crypto staking aspect which is another form of investment because this is where I have an average investment knowledge about.

For me, crypto staking as an investment is less risk than crypto loans type. I will later decide to join the crypto loan type when I gain enough knowledge and have enough funds to proceed. Though profits gained from crypo staking are not that huge but are reasonable. I really admire you for your courage and wider knowledge on investments which yields good profits @MarcDeMesel .

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11 months ago

Marc De Mesel please give me like . I am poor and homeless , I have ten kids and my dad had canser , please drop some cents here

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11 months ago

in business there are always risks, this has always been known, in the globalized world the strategies we know now, the internet, 5G technology and different cryptocurrencies have helped many to have capital for other traditional businesses, ie I invest in crypto and use the earned for the purchase of assets. greetings thanks for this post, it seems to me that every day you have to study more and learn from those who already know a lot.

Translated with www.DeepL.com/Translator (free version)

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1 year ago

GLD wow this is new I have never heard about it before . Thank you for this article

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1 year ago

Well explained... You talk on each and every topic about cryptocurrencies...i am vey surprised to know about GLD ...thanks for giving information about GLD, this is a pretty good idea to attain maximum benefits...i will definitely join

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1 year ago

Newbie here and learning a lot how cryptocurrency works. Thank you for this additional info

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1 year ago

Hello King 👑 Marc... I'm Your fan from Africa ♥

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1 year ago

Thank you for this article,it's really helpful

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1 year ago

Thanks for this article it gave me an idea about crypto, bch, loans and interests.. I need to read more of these to better absorb it

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1 year ago

Thank you for the information... this is all rather new to many of us with respect to the Crypto DeFi arena these days since it has grown not only in market cap but in popularity as well. Its like a whole new game. Cheers Marc!

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1 year ago

Es interesante leer sobre tus estrategias.

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1 year ago

If it is profitable then I think these should be taken advantage of.

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1 year ago

Hello sir can you help me please

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1 year ago

I don't have any background yet about crypto loans so I think that would be risky for me and my earnings here are not that great as of now so I guess I'll be reading more about crypto loan sir.

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1 year ago

Крайне интересно и информативно

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1 year ago

This is so risky. I'll just stake my coins.

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1 year ago

As for me, I really need to sort things out first. Especially as an amateur one. But if I were to say, there might be a good opportunity in Crypto loans yet I should then observe and most of all learn more about it, hoping that may be one of this days, I go for a try.

Good day! All the best for you sir! :)

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1 year ago

I am just sad that I don't know yet in everything about crypto. I am new with trading, new in investments and I even don't know yet that crypto loans and how does it work. I can't read and understand it. That's why I do not dare to take the risk to it as of now. But I am willing to learn and explore about this thing.

What I can say now is that " May God bless you sir Marc, your plans about cryptos, especially to BITCOIN CASH.

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1 year ago

I am a beginner and an ignoramus with cryptocurrencies. But I am constantly learning. One day I may be great with my knowledge. Thank you!

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1 year ago

Using Flash Loans for arbitrage trading

For example, If you spot a drastic price difference of an asset like LINK, you can take out a flash loan and buy the asset on Uniswap only to end up selling it on FTX. You then repay the original flash loan and go back home with the rest of the profit.

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1 year ago

should a flash loan not be repaid in the same transaction? so from a dex to an Exchange is not possible ? do you have experience with this?

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1 year ago

(...) Above this line i had typed out a reply that by the time i was finishing it made me think:

I should have made an article out of this..... Which i then went and did! Good idea!!

And i found my reply was too large for a reply apparently by the time I got finished typing it.... So you can now find it here:

https://read.cash/@AnonSunamun/following-the-example-of-mr-marc-de-mezel-set-in-his-last-article-9c44c762

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1 year ago

Personally, I would stay out of cryptocurrencies and open positions in Marc Gold, there are different international fronts that suggest that gold is tremendously undervalued.

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1 year ago

Hope it goes up, and in worst case not more than -10%. Best of luck 😊

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1 year ago

Crypto loan, I guess it's very risky knowing that there will be possibilities that the value will goes down since it changes every time. I just hoped sir, that you'll get what you desired for doing crypto loan. Good luck for that sir. Newbie here so, this article will help me gain more knowledge about crypto thing. Best of luck!

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1 year ago

That's a great strategy, further DPI being an index of handpicked DeFi tokens gives that added hedge which a single coin or token can't give.

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1 year ago

As your explaination is so clear . I wanted to invest now and try a small amount . Thanks sir marc .

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1 year ago

Crypto world can for sure surprise you. I mean the chances of another 50 percent drop are low, but can't be ruled out especially the way things are playing out. I remember my early days in 16 when I would loan it on Poloniex for margin trading. Without much knowledge, I was always in for a disaster. With dex, things have become way better but I still don't have a heart for it yet. I am more focussed on understanding the underlying technologies and projects for now. Good luck to you. Cheers

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1 year ago

I'm lending on Nexo using my readcash earnings but haven't tried their loan yet... As for me, it is too risky, and I'm not knowledgeable that much yet about crypto loans. I rather stake my crypto to gain more crypto and put in Binance savings account to generate interest.. That's the safest way to do for now especially that the market isn't stable yet.

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1 year ago

Hello, my friend.

I read in one of your messages on noise.cash that you are looking for investment areas. Investing in real estate was always a good option.

I do not know if you know that the large investment corporations are buying middle-class residential complexes paying 20 to 50% more than their sale price. Curious, no!

Perhaps, you will find here a good opportunity, since you are also interested in the hotel sector.

Follow the money trail.

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1 year ago

My religion forbids taking loans. Investments using loans indeed can have disasterous outcome, be careful.

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1 year ago

Well, I also think the risk or reward is still very good. Most probably what your are expecting can be happened. There's chance of it. Alex has poor track record. If i say, better option then, a lot of comment already here. I 'll go with them and will say it good

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1 year ago

sir you are always right .. i m read all all post and fallow

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1 year ago

I read the Geta article a few times. So that I can understand the matter better. And understand about investment returns. Not to mention your knowledge of this. But I understand. Sometimes I also want to invest my money here right now. But I'm new to this platform so I'm taking the time. I will understand the issues better then I will invest very soon. Thanks.

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1 year ago

I remember reading your post regarding taking the loan and watching the live session you had on YouTube regarding this as well. 4% seem like a bargain, no doubt and the uncertainty is what you clearly highlighted regarding a possibility in the drop of crypto prices. Everything in life is about risks and sometimes we ask ourselves "What if it doesn't work out?" To which I always reply "What if it does?" It's a risk and life itself is a risk because nothing is certain except for death and taxes.

As an Economists, I would say taking a loan is never a bad idea in any way but what to use it for. Diversifying in what you see as a more lucrative market would cover up for any of the lapses and make the risk worth taking.

I can only wish you the best sir and I pray it works out well for you. You have been nothing short of a blessing.

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1 year ago

Yes, it's a great deal, Sir since u said that u think of all the possibilities or scenarios, just hoping that nothing happens unexpectedly and yes, u can also get assets or invests in hotels or resorts as some country or the tourism r starting again for example here on Boracay though right now, it's open for local tourists or guest only, wishing u the best n more power, Sir

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1 year ago

I read your article sometimes back about getting a loan but I didn't get the full list due to my little knowledge in the crypto-verse, I made some findings and got to know more about it.

One thing that differentiates successful people from the masses is the ability to take risks because I understand little of the risk attached to using your portfolio as collateral during an unstable time with cryptocurrency.

I believe that you have taken a smart move since you have genuine reasons for doing that which funding the BCH ecosystem is one of it.

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1 year ago

I prefer staking Cryptos but I've been planning to use my BCH that I hold as a collateral for a loan to buy other assets. Market seems still undecided for now so I have this 2 scenarios for collateralizing my BCH; half for when market hits my deep target and half when market reclaims it bullishness.

Binance seems good with 75% margin call. Hope I'm not wrong with it.

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1 year ago

prefer staking Cryptos but I've been planning to use my BCH that I hold as a collateral for a loan to buy other assets. Market seems still undecided for now so I have this 2 scenarios for collateralizing my BCH; half for when market hits my deep target and half when market reclaims it bullishness.

where do you plan to use your BCH as Collateral ? Binance only gives short-term loans ?

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1 year ago

Stake NEXO Tokens worth 10% of the total value of assets in your Nexo account to be eligible for higher interest rates. ... If you choose to Earn Interest in NEXO Tokens instead of in-kind (same cryptocurrency), you will receive an additional +2% interest on all your assets held in Savings Wallet. You will automatically receive an extra 2% on your fiat and stablecoins and +1% on your cryptocurrencies compared to the standard rate.

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1 year ago

I was afraid to take risks in crypto and have always been relying on cryptos I earn. But this... This seems to have a great deal. I have not much to say about cryptocurrency as I am just a newbie in crypto. But investing in hotels/resorts is a good move. Some hospitals pay hotels for their patients as well as BPO companies. They pay for their employees' lodging during the quarantine. The company I am working with has a cryptocurrency campaign (which I am not part of giving the fact that I have no enough knowledge in crypto) but I think you can also invest in BPO companies. The campaign I was telling you about pays their agents (employees) in crypto.

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1 year ago

Do you really think we will see another 50% drop this year and are you more in favour of getting loans from crypto balance then cash

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1 year ago

I have not dared to take the risk because my knowledge is not very good. I'm new to trading and haven't made a profit because the market is not good.

I can't read your postfolio yet. Does that mean you have 7 different assets? I'm still at the beginning of getting to know the crypto market. My friend said to keep learning the crypto market. In addition, my friend suggested that I study gold and stocks.

I will ask a friend to explain about this article. I have to study again and again.

Thank you.

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1 year ago

I think your loan decision was a balance type. Taking a loan for the purpose of exploring another opportunity which has the potential of sealing off any uneventful against the collateral. I like your business strategies and your grits in diving into many investment opportunities.

I hope someday I will be able to do something like you are doing when I have enough to invest. My risk level is still very minimal, and I know that no risk no reward. Thanks for sharing this information, I am really learning from your articles.

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1 year ago

Great idea for investment. Taking this risk for is logical enough. As you think here is just 10% chance that they will go down by another -50%. But there is 90% chance that they will go up and therefor a pretty good investment here. Nice investment ideas as I saw in your last youtube video that your goal is to become a better investor(you are a pretty good investor now). So this a step to your goal I suppose. I like the thing about you that how you like to take the risk instead of playing it safe. Wish you good luck.

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1 year ago

Hello Marc I liked this information you shared about getting a loan using a collateral your cryprocurrency but as you said it is a risky part here. What if the price will goes down again up to 50% your loan will be damaged and not even gaining profits. hehe I know you can do it even tho this is happening.

In the last part "Also continuing to invest and donate BCH into BCH ecosystem " That was the big impact or a solution to survive or bring back the BCH. I appreciate your idea. Do what ever you do that it will takes a good part of you sir.

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1 year ago