Have you ever wondered how to "get rich" in #crypto #btc?
In this 𧡠#threadstorm, I simply tell you what I did to make millions. It's literally a 2 step process
ππ½ππ½ππ½
Have you ever wondered how to "get rich" in #crypto #btc?
In this 𧡠#threadstorm, I simply tell you what I did to make millions. It's literally a 2 step process
ππ½ππ½ππ½
you have millions ? ππβοΈβοΈπ§π
no π π
Looks like you are not a good liar :|
1/ Some people tend to think that it's super easy to make money in #crypto. A lot of people approach the bull market and look for ways to just buy in and sell out quickly for a profit.
These are typically the people who get crushed π»
2/ Right now, #Bitcoin is trading at $24,129. Up from the recent lows of ~$16k this past year
$BTC got beaten and battered along with the rest of the crypto industry in the wake of a slowing economy + #FTX and many other firms blowing up
3/ How do you see a bear market coming?
The biggest question that people ask is how do you see a bear market coming? How do you know when stocks or crypto are going to crash? How do u make profits when everything goes to shit?
You can't.
4/ If you could see a bear market coming, you'd be the richest man or woman alive. You'd simply say "hey it's coming. I'm gonna short everything" & then you'd print billions of dollars
Having a plan is the only way to get rich in investing
5/ My Bear Market Approach to Making Millions of Dollars in #Crypto
Step 1). DCA
Step 2). Don't F*ck it Up
6/ I don't believe that the bear market is over just yet. Does that mean BTC will tank back to $16k tomorrow? Not necessarily
This means its still a great time to employ #DCA in your portfolio
7/ In this bear market, I have the same strategy I deployed last bear market. It made me millions of dollars.... and now, it's going to repeat history
8/ We are not trustworthy, remember? We need to preset conditions and make financial decisions when we are rational. We are not rational in the moment, but we can be hyper rational when we step back and look from afar
9/ Step 1). Dollar Cost Average into #BTC and Other Projects
Simple, right? You don't buy-in all at once. You continue to buy over long timeframes. When $BTC dipped below $30k, a lot of people said they were buying as much as they could
10/ I didn't take that approach. I made my strategy before the bear market hit. I started dollar cost averaging into BTC as soon as it went below $30k
I didn't take all my dry powder and whip it into the market like an idiot
11/ Step 2). Have a Way to Survive
Okay so now your dollar-cost averaging. You need to make sure that life doesn't get in the way of your #DCA.
hey that rhymes!
12/ You need to be able to pay your bills to survive. If you are forced into selling your #crypto before the bull market hits, then all of this is for nothing. To make sure you can do this, take a hard look at your budget and how you earn $
13/ The #Crypto industry has evolved so much over the years. During my first bear market cycle, there wasn't a whole lot to do when the bear hit. We had to just kind of sit tight and #HODL
14/ Today, you can earn crypto on platforms like #Hive & #LeoFinance. You can deploy assets in #DeFi and earn #yield. You can deploy assets like #BTC into #Collateralized Vaults and take on loans to pay your immediate expenses
15/ All of this utility has made it EASIER THAN EVER to not get sidetracked during your DCA plans
That's the goal:
16/ Instead of selling #crypto to survive, I #DCA pretty much all of my income into #BTC. Then I deploy that BTC to a collateralized loan vault on
@MakerDAO
and take #DAI debt against it
17/ I then use that $DAI debt to pay my expenses. This may be feasible for you if you have a good income to expense ratio
18/ So here's a simple formula: 2x Income -> 1x Expenses
Loan vaults can vary in terms of how much they let you borrow. My vaults tend to allow me to borrow up to 50% the value of my collateral
19/ So if my expenses per month are $10,000, then my income needs to be $20,000 in order to 100% #DCA into #BTC and then take a big enough loan each month to pay my bills
20/ So let's just use these round numbers:
@MakerDAO
vault and I borrow 10k #DAI
It's nice of you to assume that we can make $20K a month sir.
The reality is that most people can't even afford to buy crypto but they still join. That's why a lot of them love reading airdrop hunting guides lol
Ser this is just an example
You can do it with $2k
or $200
or $20
It's all relative to your expenses and your income. #ReadtheThread!
$20 sounds more reasonable. Please refrain from using rich people examples in the future. You make us poors feel even more poor ser
lmao
It's easier to use $20k since 1 BTC is worth $20k (rough enough)
Also #thread more so you make more #money.
EZ
True dat
21/ Now I'm, left with $20,000 worth of BTC and 10k in debt that I need to pay back at some point. My interest rate is roughly 3.5% APR
So BTC needs to appreciate more than 3.5% per year in order to cover just the interest on the loan
22/ Let's also just assume (to keep things easy) that BTC is $20k right now
So I have 1 #BTC and $10k worth of debt
If/when BTC = $50k, I now have $50k worth of BTC & $10k debt. I sell $10k worth of my BTC collateral to pay off the debt
23/ If I didn't do this and DCA'd 50% of my income into #btc and paid bills with the remaining $10k:
I then have $10k worth of $BTC (0.50 BTC) and $0 debt
When BTC eventually reaches $50k, I would have $25k (0.50 BTC) and $0 worth of debt
24/
25/ The rich do this in the real world. They own #property, #stocks, etc. & borrow against them. They live off debt & their assets appreciate more than the interest rate + amount they are borrowing each year
Time we start doing it too.
26/ If you enjoyed this thread, check out my long-form article to dive deeper into the topic on #leofinance & #hive:
https://alpha.leofinance.io/posts/view/khaleelkazi/my-bear-market-approach-to-making-millions-of-dollars-in-crypto