A few weeks ago we launched the ability for http://Blockchain.com  users to borrow PAX USD using their #bitcoin (BTC) as collateral without leaving their http://Blockchain.com  Wallet. We’d love to share some interesting ways customers have used the feature.

(1/9) A thread

(2/9) Many people who currently hold BTC as a long-term investment — the #HODL crowd, if you will — don’t want to sell it. But sometimes it’s helpful to get quick funds either for an emergency or to help make payments if their financial situation suddenly changes.

(3/9) The most common use case we see for borrowing against crypto is to use the borrowed funds to trade crypto, effectively providing leverage on a trade.

(4/9) Ex: User deposits .5 BTC as collateral & immediately borrows up to half that amount in PAX. Roughly $1700 at today’s price. They use that $1700 of borrowed PAX on the http://Blockchain.com  Exchange to make crypto trades with the goal of earning extra return on investment.

(5/9) Another creative user decided to use the funds as an ‘arbitrage’ opportunity to borrow money for 5% APY and then to deposit it in an account that earns interest at a higher rate.

(6/9) Ex: Imagine the same user deposits .5 BTC and borrows the equivalent of about $1700 worth of PAX, paying 5% APY. They then send it to another lender of PAX who pays a higher APY. As long as they monitor the rates they can feasibly profit off of that arbitrage opportunity.

(7/9) NOTE: This is just our way of showing you the types of things we’ve seen our users do, which you might like to consider with a borrow. This does not constitute investment advice or a solicitation to borrow.

(8/9) In fact, only do so if you understand the variables and have consulted with an independent financial and/or advisor.

(9/9) Would love to hear any other creative ways you can think of using borrowed funds with your BTC as collateral. Reply to this thread or visit our help center to learn more: https://bit.ly/34VjD3m