I am bullish on BTC and at the same time I need some fiat liquidity right now. Is there some combination of financial products I can use? As an example:

  • I have 10 BTC (assume current FX $10,000)
  • I want to get $100,000 out
  • I am willing to spend some money to have the right to get my 10BTC after 1 year.

What do I do here? I was looking into buying call options, but that seems quite expensive. Maybe perpetual futures?

  • What are "perpetual futures"? – D Stanley Oct 6 '20 at 12:21
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    Sounds like you want to have your cake and eat it too. In theory an options-like product would be what you want [giving you cash today but the ability to cash-in on the potential upside of future growth without the risk of potential downside], but you think that's too expensive, soooo... – Grade 'Eh' Bacon Oct 6 '20 at 13:29
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    And to quote the crypto community, "not your keys, not your coins" - don't put your trust in any financial intermediary that trades in crypto, because they are largely unregulated, and the community is rife with fraud. Cash out while you can. – Grade 'Eh' Bacon Oct 6 '20 at 13:29
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    @crinv I get results for "Perpetual Contracts" and "Futures" but not "Perpetual Futures". Perpetual Futures sound akin to a "Contract for Difference" in traditional investing (but are illegal in the US due to their extremely high risk, possibly leading to the different name.) – D Stanley Oct 6 '20 at 13:41
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I have 10 BTC (assume current FX $10,000) I want to get $100,000 out

NOT going to happen. Your credit side is too high. OTHERWISE there are now PLENTY of companies giving credit against crypto collateral. But NOT 100% — 50% AT MOST.


Here's the problem, you have a currency that has an ever-fluctuating price that keeps moving up and down with every single small change with the crypto community. Now put yourself in the shoes of the lending company, you have just been given $107,070 in BTC, a currency that in the last week alone has had a peak of 11,080 then has dropped to 10,235 in 3 days. That a 7.63% decrease in 3 DAYS! 10 BTC is a lot of money, but for credit, it's not worth $100,000 AT ALL! I don't even know much about economics and I still know that you will NOT get that sort of result WHAT SO EVER. Items that don't change their value, such as a stablecoin or items that retain their value like a diamond, or certain jewelry work really well for loans, but a currency that is everchanging is too risky to bet on. Seriously.

Good luck with whatever you are trying to do though, and I hope that you can figure out a plan to action! :)

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