Borrow
Unlock your capital's full potential
Last updated
Unlock your capital's full potential
Last updated
Selling an asset involves closing the position on that particular token to free up liquid capital. If an individual is "long" on a particular asset, selling it would no longer entitle them to any potential upside on that asset's appreciation. Furthermore, in most countries, selling a position is treated as a taxable event.
Borrowing enables one to obtain capital without selling the underlying asset or incurring a capital gains sales tax.