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This strategy is how I leverage the power of 0% credit balance transfer offers and timing the cycles of Bitcoin to accumulate more Bitcoin than I can afford with monthly income. I go over it more in the full ebook but for the purpose of this Newsletter I will describe the timing of WHEN you want to use the strategy and save the playbook for HOW to use it. I discovered this strategy when I was well below the poverty line so I think it’s a very powerful tool for anyone who makes more than they spend and has enough discipline. This is not financial or legal credit or investing advice - just my strategy for accumulating Bitcoin while leveraging Fiat debt - like the very ultra wealthy do but for everyone.
Credit issuers need to make money from you - and when you don’t carry a balance they need to give you other offers to get your money.
My personal favorite of these offers is the 0% balance transfer and it’s actually changed my life in terms of flexibility around investing.
Most credit borrowers never pay back the full amount and they credit issuers know this - but with the rules in the playbook you can take advantage of these strategies to borrow against your own income.
The most difficult part is timing the use of the strategy but when paired with accurate Bitcoin analysis you can maximize your stack.
How do you get started with these strategies?
The first step to getting great offers is to have a Good Credit Score and make more income than you spend.
If you don’t have ABOVE about a 690 Credit Score then this strategy is not for you. Technically there are other ways you could leverage that I share at the end of the playbook but they are far less effective than the 0% balance transfers in terms of cost of fees. But assuming you have Good Credit then issuers will send you offers to either move a balance or direct deposit cash to your bank account for a defined period of time at 0% before the actual high interest rate kicks in. Truth is most people don’t pay back the amount they borrow in time and end up paying interest on it - but you’re not most people.
The key to using these strategies effectively is understanding WHEN to leverage these offers and that means having Good Credit all the time. You cannot use these strategies without making more money than you spend - and you’ll use that cashflow difference to pay back the amount you borrow. In the playbook example I give using this strategy at an optimum time during the 2020 cycle would have given you 3X as much Bitcoin as just dollar cost averaging. And over time I’ve learned the BEST times to use the strategy.
MY Perspective
Nobody taught me how to do this - I’ve only ever heard from other people that it’s risky and you shouldn’t do it. My experience with it was very different and as long as you can pay back what you borrowed (and in some cases even a few months of interest are worth it by the math) then you can maximize your exposure to Bitcoin during the times in the market where you can see the most outsized result. That being bottoms.
When paired with an EMA or SMA like the 20W you’ve seen me use in all these Newsletters and my social media content - you can extend yourself extra cash to buy Bitcoin at cheap prices and then it’s simply your job to pay back the loan before you started incurring interest fees. I think of it as borrowing against my future income and trading Fiat debt for a hard asset that will increase in value. The variable to pay attention to then is the difference between the interest you pay and the Bitcoin you keep.
If you’re someone who is already committed to buying Bitcoin indefinitely then this tool just allows to use your Credit Score to speed up the process of accumulating more assuming you have steady income and good spending habits. This is not for everyone. And you can absolutely use it incorrectly and fuck up your credit. BUT. If you are patient, make a plan and stick to it the best you can then it ends up netting you way more Bitcoin than you could ever buy monthly.
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