Hey Jessatoshis
I've been looking for ways to secure more liquid Bitcoin to start opening up more contracts on HODLHODL and earn interest on my Bitcoin holdings. I'll openly admit it hasn't been easy to secure Liquid Bitcoin cheaply. You either have to peg in Bitcoin with an on-chain transaction or exchange like Bitfinex that supports Liquid Bitcoin transactions.
Now I cannot sign up to new exchanges, download apps, do KYC, and all that other shit they make us do to exchange assets, and I'm always looking for ways to do simple swaps.
Yes, this means I need to pay a little more, but I think it's worth the premium to avoid the hassle. That's why I was pretty stoked to find this site called Side Shift.
Note: This is not a paid post; this is just me messing around with services
Side shift swaps
Side shift is by no means a perfect exchange, but it gets the job done for what I want. It allows you to exchange 30 plus tokens or token representations from different chains and swap them for L-BTC.
From what I can see, they support tokens on ETH, BCH (using the SLP tokens standard), BNB and a few chains like Solana and Stellar.
If you are in DE-FI or have coins you want to convert to Bitcoin but want to avoid exchanges and mining fees, then L-BTC is a great option to consolidate your gains in Bitcoin.
I prefer using services like this and using blockchains instead of exchanges; yes, it can be more expensive, but if your work it correctly, like using L-BTC, it can be much more affordable or equal to using your standard exchanges.
Storing your Liquid Bitcoin
You will need a compatible wallet to use liquid Bitcoin, I am personally using the Green Wallet by Blockstream, but you can also use Aqua or any other compatible wallet. Once you have the wallet set up and loaded up, you can treat it as your standard Bitcoin and use it on various apps that support L-BTC.
As I mentioned earlier, I am using HODLHODL, which seems to be the only DEFI platform using the token, but some exchanges are willing to accept it.
Note: L-BTC is a side chain that is run by Blockstream along with a federation of exchanges. The chain is centralised but offers chapter transactions and faster transaction times. It's a great way to use Bitcoin at a cheaper rate and stay away from the main chain.
You can always swap out your L-BTC for BTC without restrictions other than the mining fees you'd pay for an on-chain transaction. This has been great for me as exchanges often have transfer limits and other annoying shit I don't want to deal with when transacting.
Have your say
What do you good people of HIVE think?
So have at it, my Jessies! If you don't have something to comment, "I am a Jessie."
Let's connect
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Posted Using LeoFinance Beta
Everyday, a new learning. I learnt something new again today.
Thanks a lot for bringing these great things to our attention and spreading the knowledge.
!LUV 1
The more you know the better decisions you can make, again, not without its own issues and risks, but no worse of better than the other options in my opinion
Is L-BTC a similar thing to SWAP-HIVE on Hive-Engine or is that something completely different. I've been wondering whether it might be a simple way to buy small amounts of BTC with Hive but I'm guessing the rates would be poor. Just a gut feeling with no experience to back it up! 😁
Posted Using LeoFinance Beta
Yes correct it’s a representation of Bitcoin on another chain called the liquid chain! So you’ll need your Bitcoin wallet set up for liquid to use it
You can also use lightning, if you want to let’s say swap hive for BTC in small amounts and hold it in your own wallet then the best I’ve seen so far is having a Bittrex account
There you can sell your HIVE for Bitcoin and then remove your Bitcoin from the exchange to a lightning wallet and you’ll pay no fees
Hmmm. OK. Thanks for the extra explanation. Copied and pasted. 😍
!ENGAGE 20
Posted Using LeoFinance Beta
I have about 5% of my BTC on lightning 10% on liquid and 30% with CEFI platforms and 55% on main chain in cold storage! If my percentage gets too big on one the other chains I draw down and lock it away
😬 don't want to risk too much
Useful information and great timing. Thanks. I was just checking into the details of Celsius and Nexo etc. and wondering how much to put there.
Since my Bitcoin is still on various exchanges I suppose moving it to Celsius and Nexo etc. will probably only increase the risk slightly from where it currently is.
!ENGAGE 20
Posted Using LeoFinance Beta
Yeah I’m not too confident over these platforms there no insurance and we don’t know how well capitalised they are so I don’t leave too much with them
I would really prefer a non-custodial service where I can lock my coins into a multi-sig instead.
Hopefully as things progress well get that
I've heard others say they are waiting for this. But how do you lend coin for security if you don't give the lender access?
!ENGAGE 20
Posted Using LeoFinance Beta
ENGAGEtokens.ENGAGEtokens.ENGAGEtokens.Do you see any risks using this wallet since it is still somewhat centralized?
Posted Using LeoFinance Beta
Yes i do, the federation could always be corrupted but it's simlair to using an exchange or holding coins on aother chains since none of them are decentralized
I wouldn't keep a massive amount in liquid I just use it for some DEFI and to make it cheaper to touch the main chains so when I have enough BTC that I want to lock into cold storage I can move it from there
I prefer this to using an exchange
@chekohler, you were given LUV from @harpreetjanda. About: https://peakd.com/@luvshares https://ipfs.io/ipfs/QmUptF5k64xBvsQ9B6MjZo1dc2JwvXTWjWJAnyMCtWZxqM