ScissorKing
Newbie
- Jan 15, 2021
- 18
- 2
Let's say I have some crypto that I want to cash out into fiat money for whatever reason.
Loans are tax free.
So I could take out a loan in USD with a stablecoin like USDC, that is Dollar pegged, as collateral.
But I don't want to actually repay the loan with fiat money. I want that, after the set loan period, my collateral is used to pay off the loan.
In crypto lending you usually have to place at laest 200% of what you're getting paid out as collateral.
Let's say I wanted to borrow 10.000USD, I'd have to place crypto worth 20.000USD as collateral.
If that collateral is in stable coin, there's no risk of a margin call that would liquidate my collateral crypto.
My question now:
If the loan expires and payments are due, will all my collateral be used to pay for the loan or only the borrowed amount + interest charges, effectively resulting in only paying like 1-5% on the crypto cashout?
Not trying to evade taxes, just trying to pay taxes like billionaires lol
Loans are tax free.
So I could take out a loan in USD with a stablecoin like USDC, that is Dollar pegged, as collateral.
But I don't want to actually repay the loan with fiat money. I want that, after the set loan period, my collateral is used to pay off the loan.
In crypto lending you usually have to place at laest 200% of what you're getting paid out as collateral.
Let's say I wanted to borrow 10.000USD, I'd have to place crypto worth 20.000USD as collateral.
If that collateral is in stable coin, there's no risk of a margin call that would liquidate my collateral crypto.
My question now:
If the loan expires and payments are due, will all my collateral be used to pay for the loan or only the borrowed amount + interest charges, effectively resulting in only paying like 1-5% on the crypto cashout?
Not trying to evade taxes, just trying to pay taxes like billionaires lol
