Is it better to sell my Bitcoin or borrow against it?

You’ve been holding Bitcoin for a while. Maybe you bought it years ago, maybe more recently — either way, you believe it’s worth keeping long term. But life doesn’t stop while you hold.

There’s a house project, a business idea, or maybe just something you want to do without cashing out your future.

So you face the question that every investor eventually wonders: Do I sell what I own, or can I use it without giving it up?

The old way: selling your assets.

Selling Bitcoin is the straightforward move. You tap a few buttons, your BTC becomes cash, and you can spend it right away.

It feels simple — until the market rises again. The Bitcoin you sold at $30,000 might be worth $60,000 later. You’re out of your position, and to get back in, you’d have to buy at a higher price.

Selling also comes with tax implications in many countries. The moment you sell, your profits can become taxable.

So yes, selling gives you instant liquidity — but it’s final. It’s like cutting down a fruit tree because you need the apples. You get what you want now, but you lose what could’ve grown later.

The new way: borrowing against what you already own.

Now, Bitcoin holders can do what wealthy people have done for generations.

When homeowners need cash, they don’t sell the house — they borrow against its value. When investors need liquidity, they don’t dump their stocks — they use them as collateral.

You can do the same with Bitcoin.

When you borrow against your Bitcoin, you’re not selling it. You’re simply locking it up as collateral — like putting it in a secure digital vault while you take out a loan backed by what you already own.

Here’s what actually happens:

• You decide how much you’d like to borrow.
• The platform calculates how much that’s worth compared to your Bitcoin. If your BTC is worth $50,000, you might borrow around $10,000 to $15,000 safely.
• You receive that amount in cash or stablecoins. You can use it for anything — investing, paying bills, or funding a project.
• While your Bitcoin is pledged as collateral, it’s securely held for the duration of the loan. You can’t access or trade it during this time, but it remains linked to your account and is released in full once you’ve repaid.

What happens if the price of Bitcoin changes?

If Bitcoin’s price rises, the value of your collateral increases — and that’s good news. You keep the upside and can even borrow more later if you choose.

If the market dips, your loan-to-value ratio — or LTV — changes automatically. LTV is a simple way to measure how risky your loan is. It compares how much you’ve borrowed to how much your Bitcoin collateral is worth.

For example, if you borrow $10,000 and your Bitcoin collateral is worth $50,000, your LTV is 20%. That’s considered very safe.

But if Bitcoin’s price drops and your collateral falls to $33,000, your LTV jumps to about 30%. You still owe the same $10,000, but your backing asset is now worth less, so the ratio increases.

Every platform has a safety threshold. If your LTV climbs too high (say, toward 70–80%), you’ll get notified to either:

• Add more Bitcoin as collateral, which raises your total backing value, or
• Repay part of your loan, which lowers what you owe.

If you don’t act and the price keeps falling, the system can automatically sell a small portion of your Bitcoin to rebalance the LTV and prevent a total liquidation.

That mechanism protects both you and the platform — it ensures your loan stays backed at all times, even in a volatile market.

Why this strategy appeals to long-term holders.

Borrowing against Bitcoin isn’t about taking reckless debt. It’s about thinking like an asset owner. You’ve built something valuable. Now, instead of selling it off, you’re learning how to use it — without losing the potential future upside.

It’s the same principle that wealthy families have followed for decades:

They keep their assets working in the background, and when they need liquidity, they borrow instead of selling the assets they believe will grow.

This approach lets you stay invested in something you believe in while still having flexibility in your day-to-day life.

But it’s not without responsibility.

Every loan, even one backed by Bitcoin, comes with responsibility. If the market drops sharply and your collateral loses value, you might need to step in — either by adding more Bitcoin or paying back a portion of what you borrowed.

That’s why smart borrowers don’t take out the maximum they can. They stay conservative, borrowing what they actually need, not what the calculator says is possible.

That way, even if the market dips, they have plenty of room to breathe.

How it works on Nexo.

On platforms like Nexo, borrowing against Bitcoin is designed to be simple and flexible:

• You add your Bitcoin as collateral.
• You receive funds instantly with no credit checks or lengthy approvals.
• You get the funds in Fiatx* or stablecoins like USDC.
• You repay whenever you choose.
• Your Bitcoin is pledged as collateral and temporarily locked during the loan, continuing to gain value if the market moves up.

And once your loan is paid off in full, your BTC is released back to you exactly as you left it.

Explore how it works at nexo.com/borrow.

The bigger picture.

For years, Bitcoin was seen as a risky experiment — something only early adopters or tech enthusiasts cared about. That story has changed.

In 2025, Bitcoin has moved from the fringes to the financial mainstream. Large asset managers, hedge funds, and even public companies are now holding it as part of their balance sheets. Banks are developing crypto custody services. Regulators are setting clearer frameworks instead of blanket bans.

This growing institutional involvement signals maturity. Bitcoin is no longer just “digital gold” — it’s becoming a recognized asset class. Institutions treat it less like a gamble and more like something that belongs in diversified portfolios, alongside stocks and bonds.

That shift changes how individuals think, too. Instead of treating Bitcoin as something to trade or time perfectly, more people now see it as an asset to manage — to borrow against, to earn on, and to hold as part of a long-term wealth strategy.

*FiatX represents digital representations of traditional currencies used within the Nexo platform.

These materials are accessible globally, and the availability of this information does not constitute access to the services described, which services may not be available in certain jurisdictions. These materials are for general information purposes only and not intended as financial, legal, tax, or investment advice, offer, solicitation, recommendation, or endorsement to use any of the Nexo Services and are not personalized, or in any way tailored to reflect particular investment objectives, financial situation, or needs. Digital assets are subject to a high degree of risk, including but not limited to volatile market price dynamics, regulatory changes, and technological advancements. The past performance of digital assets is not a reliable indicator of future results. Digital assets are not money or legal tender, are not backed by the government or by a central bank, and most do not have any underlying assets, revenue stream, or other source of value. Independent judgment based on personal circumstances should be exercised, and consultation with a qualified professional is recommended before making any decision.