The latest #Bitcoin crash has been rough, especially for anyone with BTC-backed loans.
One thing that helped a lot of our members at Xapo Bank is that we restrict loans to 40% of their Bitcoin’s value – it gives an extra buffer when the market suddenly drops. But even with that, liquidations can still happen if you don’t stay on top of your loan health.
We’ve put together a short, practical breakdown of 5 ways to reduce your liquidation risk (things like how much to borrow, keeping spare BTC aside, and reacting quickly when your Loan-to-Value (#LTV) moves).
If you’re using your Bitcoin as collateral or thinking about it, this might be useful:
5 ways to protect your Bitcoin from liquidation:
https://www.xapobank.com/en/blog/avoid-btc-loan-liquidations