User, what is the best way to use this to make money when it launches? Use 20k of BTC to get 20k fiat and buy BTC...

user, what is the best way to use this to make money when it launches? Use 20k of BTC to get 20k fiat and buy BTC? Other ideas?

That is risky because of the ratio requirements. It might work though. The best way to use it is to avoid taxes. Say you are a wage cuck and want a lambo. Use SALT loans to get the lambo and your wage cuck job to pay off the lambo. You minimize your taxes because you didn't cash out your crypto. Short term investment gains are taxed up to 40% (like 15% long term). These loans will have much lower interest rates than your tax rates. So you save money. Does that make sense?

And yes, you could use them for leverage, especially while day trading, but you just have to know what you are doing.

i heard 7% which isn't good for a fully collateralized loan

The rates will be high at first because volatility. Still cheaper than taxes. Or just delaying cashing out certain holdings until they are considered long term investments.

7% loan vs. 25% increase in taxes for short term profits.

thanks user, those are some good ideas

>You minimize your taxes because you didn't cash out your crypto
>because you didn't cash out your crypto
K. e. k.

Enjoy prison.

Do you even understand how collateralized loans work?

I understand that you think the IRS will ignore you magic crypto collateral and not send you to prison.
>pro-tip: you're getting the BBC

BTC is treated like a stock. You don't owe taxes until you sell it. The loans help you delay selling it. How is this complicated to you?

Elix to the moon

Interesting. If i wanted to do some home improvements and took out a loan through Salt. I assume I use my crypto as collateral. Do I repay the loan in crypto? Do you know if there are penalties for early pay-offs of the loans.

Thank you in advance.

>You don't owe taxes until you sell it
Lol yeah I've got bad news for you. I'll take what is:
>capital gains tax
>day trading tax
>quarterly reporting which I'm sure you don't do
for $500, Alex?

Enjoy getting gaped.

So you can leverage a loan to buy more crypto? I can give crypto to borrow USD to buy more crypto? I have 1k salt... I just want to throw big boy money at some projects and stop only buying 1k of each shit coin

If you miss payments they deduct it, plus a fee probably, from your crypto. The other problem is that you must keep a certain ratio between your crypto and the loan balance. So if BTC drops 20% in a week, you could either have your BTC liquidated until the ratio is recreated, or you have to deposit more BTC. They said no penalties for early pay offs. This is good and bad. It means higher interest rates.

We are using holding BTC as an example. Capital gains tax only comes up when you sell. If you bought BTC last year and have no traded it, you own nothing right now.

Day trading tax? You mean short term capital gains? Yes, every time you sell your assets the profits are taxable. No shit. You use SALT to not sell your assets.

Nobody anywhere has held BTC and left it alone for more than one year. Your example is absurd.

Your BTC will either be taxed as capital gains or normal income tax.

Thank you so much for your intelligent response. Let me ask this another way. I take out a loan for home improvements because the contractor and subcontractors don't accept bitcoin. Basically I would be taking out a loan and repaying it with the bitcoin I would have paid to the contractor and subcontractors.

Would this make sense? I mean I would have spent the bitcoin anyway, so I am not worried about the ratio of crypto to my loan balance because I intend to just pay off the loan. For convenience sake, I don't mind paying reasonable fees and interest.

>Nobody anywhere has held BTC and left it alone for more than one year.
Which is a perfect use of SALT. If you a crypto asset that exploded in value, instead of selling it and paying 40% taxes, you get a SALT loan for a year and pay 15%. That is literally the example I first gave. Why are you trying to argue with someone who is helping people? Are you just a fucking angry loser? Fuck off.

Your help is retarded. If I want to take out a massive loan, I'd go to a bank and get better interest rates.

Nobody is going to hold such a volatile asset like crypto ($300,000 in your lambo hypothetical) for over a year and do nothing with it. Go hodl some penny stocks until 2020 and let us know how it goes.

Yes, you could do that with SALT, but I think there might be fees. They don't mention any but loan operations love fees. The information SALT provided just says if you miss payments those payments are automatically deducted from your crypto (while keeping the ratio between cypto and loan balance). So, theoretically you could get a loan and just let the smart contract pay it back in crypto. It might cost you more though. I am not sure.

OK dude. If I bough BTC in February and absolutely had to get a lambo right now a SALT loan would be cheaper than cashing out. Also, I have not even speculated about BTC appreciating, which it has, much more than the interest rates on these loans.

I appreciate your answers. I really like the flexibility of this type of loan. I am bullish on BTC and my assets are tied up in cryptocurrency. This would give me a number of options, especially if the value of BTC continues to increase at a rate higher than the interest rate. Best regards!