Why greed is dangerous for your Bitcoin stack if you listen to scammers:

They will tell you things like:

“Don’t spend your Bitcoin. Borrow against it, because the rich never sell their assets.”

This can seriously harm you when dealing with centralized or semi-decentralized lenders.

Centralized lenders:

They can and do fail.

If Bitcoin drops significantly, your collateral may be liquidated, which could trigger a taxable event.

When you try to add more collateral, the platform might be offline or you might already be too late.

Semi-decentralized lenders:

They still rely on centralized components, such as price oracles and liquidators, which require trust.

There may be bugs in the protocol that can be exploited.

This is especially risky if you do not trust governments or the company behind the platform.

Using leverage with Bitcoin through loans, perpetuals, or futures:

This introduces significant financial and psychological stress.

Other common traps:

“Buy my altcoin…”

“Invest in my Bitcoin treasury company”

“Lend your Bitcoin risk-free to earn yield” (there is always risk)

Stay cautious, especially during a bull market.