How Much Bitcoin Should You Borrow Against?

Start with the cash need

Work backward from the actual liquidity need. If you need $30,000, do not borrow $60,000 because the platform allows it. Extra borrowing increases interest cost and liquidation risk without improving the core plan.

For high-net-worth holders, this discipline matters more. A large BTC balance can create a false sense of safety, but liquidation thresholds are mechanical.

Choose LTV before platform

A 25% LTV loan against $200,000 of BTC produces $50,000. A 50% LTV loan produces $100,000, but leaves much less room for Bitcoin to fall. The safer plan often requires pledging more BTC, not borrowing at the highest possible LTV.

Run the 50% drawdown test

A 50% BTC drop roughly doubles your LTV. A 25% starting LTV becomes 50%. A 40% starting LTV becomes 80%. A 50% starting LTV becomes 100% and will likely be liquidated before that point.

If a 50% drawdown breaks the plan and you cannot add collateral quickly, the loan is too large.

Keep collateral reserves

Do not pledge every available coin if the loan is large. Keeping BTC or cash outside the platform gives you the ability to top up, repay, or refinance during a selloff.