The latest #Bitcoin crash has been rough, especially for anyone with BTC-backed loans.
One thing that helped a lot of our members at Xapo Bank is that we restrict loans to 40% of their Bitcoin’s value – it gives an extra buffer when the market suddenly drops. But even with that, liquidations can still happen if you don’t stay on top of your loan health.
We’ve put together a short, practical breakdown of 5 ways to reduce your liquidation risk (things like how much to borrow, keeping spare BTC aside, and reacting quickly when your Loan-to-Value (#LTV) moves).
If you’re using your Bitcoin as collateral or thinking about it, this might be useful:
5 ways to protect your Bitcoin from liquidation:
https://www.xapobank.com/en/blog/avoid-btc-loan-liquidations
XapoBankApp / Xapo Bank
npub1hr…0lr5q
2025-12-09 16:29:12 UTC
Author Public Key
npub1hr4ljtv8v9pr2cdxycjlf4ldzdmwfx92h4adjvgq42zznrltvhhsl0lr5qPublished at
2025-12-09 16:29:12 UTCEvent JSON
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"content": "The latest #Bitcoin crash has been rough, especially for anyone with BTC-backed loans.\n\nOne thing that helped a lot of our members at Xapo Bank is that we restrict loans to 40% of their Bitcoin’s value – it gives an extra buffer when the market suddenly drops. But even with that, liquidations can still happen if you don’t stay on top of your loan health.\n\nWe’ve put together a short, practical breakdown of 5 ways to reduce your liquidation risk (things like how much to borrow, keeping spare BTC aside, and reacting quickly when your Loan-to-Value (#LTV) moves).\nIf you’re using your Bitcoin as collateral or thinking about it, this might be useful:\n\n5 ways to protect your Bitcoin from liquidation:\n\nhttps://www.xapobank.com/en/blog/avoid-btc-loan-liquidations\n",
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