The Bitcoin Collateralized Loan Strategy: 2 Cycles of Massive Gains

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I've written extensively about my strategy for collateralizing Bitcoin into vaults and taking out DeFi loans against the collateral.

You can find my blog posts all throughout Hive and INLEO talking about this.

In short, you're DCA buying Bitcoin all throughout the bear market. You're taking that Bitcoin and placing it into a vault on a protocol like MakerDAO.

Then, you're taking out DAI loans against that Bitcoin. You can use DAI (or whatever stablecoin you are loaned) to pay for expenses IRL, etc.

You do this instead of spending actual $ on things. For example, let's say your rent is $1,000 per month.

Instead of just paying $1,000 per month, you could buy $1,500 worth of Bitcoin, collateralize it and borrow $1,000 to pay your rent each month.

This accumulates debt but also accumulates Bitcoin.

In a bull market, Bitcoin goes up, you pay down the debt and keep the leftover profits. It's far more money than you would have gotten if you just paid for things straight up.

Now, there are tons of other variables at play here. You have to stay safe and not get liquidated, you also have to earn above your living costs.

About INLEO

INLEO's mission is to build a sustainable creator economy that is centered around digital ownership, tokenization and communities. Our flagship application: inleo.io allows users and creators to engage & share micro and long-form content on the Hive blockchain while earning cryptocurrency rewards.

App: https://inleo.io
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Our Hive Applications

Join Web3: https://inleo.io
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Web3 & DeFi

Web3 is about more than social media. It encompasses a personal revolution in financial awareness and data ownership. We've merged the two with our Social Apps and our DeFi Apps:

CubFinance (BSC): https://cubdefi.com
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▶️ 3Speak



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5 comments
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What platform are these vaults on?

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Good day everyone! I am sure that many people are now interested in Bitcoin due to the rising price. I would like to share useful information about bitcoin halving with all traders so that you can understand how it affects cryptocurrency and what to expect. In fact, the Bitcoin halving process occurs during a certain period and you must carefully monitor this in order to be able to earn as much as possible.

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Hello khaleelkazi!

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Hi @khaleelkazi
Do you know if converting my Ether to Bitcoin using the conversion feature on my exchange Gemini has different tax ramifications then selling the ether and using the proceeds to buy Bitcoin?
Thank you
P.S.
I know it is not Financial Advice.

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