A different type of leverage trading for hodling BTC

I learned something from this video by Gerhard - Bitcoin Strategy today.

In a nutshell, Gerhard spoke about taking a loan to buy bitcoin and paying it off on a monthly basis in order to have a stake in bitcoin in the market for an extended period (since time in market is better than timing the market!).

In a way, it's like DCA, just that the DCA goes to paying the loan, rather than buying bitcoin directly every month.

This approach he described is also compared to leverage trading but can be practically safer to adopt if one's investment time horizon is long, like for a few years.

In the video, he based his strategy on the Bitcoin Logarithmic Growth Curve.

The underlying premise is, over a few years, bitcoin will increase in value substantially, thus making the interest paid inconsequential. If this holds true, then the net gain will be huge.

This is certainly not financial advice from me, although I imagine that this strategy would suit some people.

You can view his video for his full explanation.

Image Source

H2
H3
H4
3 columns
2 columns
1 column
1 Comment
Ecency