Sunday Rundown - February 21, 2021

And the beat goes on

Happy Sunday!

Bitcoin continues to run and altcoins continue to pop off seemingly out of nowhere. Last week I got a few questions about taking profits. I posted a video explaining my thoughts about that.

As far the overall market situation goes, I will have another update for premium subscribers soon. Surprising data to share. Did you catch my February 18, 2021 update? If not, tap this button to get the update.

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Watch this video of Raoul Pal and Michael Saylor sharing their thoughts about exiting the market. Definitely worth watching.

I would add my own comment about Michael Saylor’s approach of borrowing against his bitcoin instead of selling it. That’s a great idea if you implement it properly. Saylor likely has experience managing debt and good people helping him execute his strategy.

Rather than try to borrow against bitcoin during a parabolic zoom, I would just takeaway the idea of using bitcoin as a financial asset that you can leverage for cheap credit that you can use to buy more assets. This is a time-tested way to build wealth in modern economies. You buy an appreciating asset, borrow against it, then buy another appreciating asset (or more of the same).

Read Rich Dad, Poor Dad for a conceptual understanding of why this works and try it with low-risk, not-volatile assets before you attempt it with crypto.

For example, you can look into a personal line of credit on a two-year draw period at a fixed rate with interest-only payments. That will let you borrow money for a flat fee, pay only interest for two years, and then settle the balance at the end of the draw period. If you have good credit and live in the US, you can probably borrow at a rate of 6% or so.

Convert that money to USDC then put it into your Celsius wallet to collect 12% interest. Instant 6% annualized profit, pulled out of thin air. After two years, cash out the USDC, pay off the loan, and keep whatever’s left.

That’s not financial advice—it’s still risky and complicated—but it’s a much lower-risk way to use debt to build wealth than borrowing against bitcoin during a parabolic upswing.

Sign up for Celsius now and you will get $30 BTC for a deposit of $200 or more (any crypto) when you tap this button:

Use my referral code 1539536f0f when signing up so you get your $30 free bitcoin.

The key is managing risk. Saylor is up at least 200% on his bitcoin and runs a publicly-traded corporation. He can borrow cheaply with little risk. You might be in a different position.

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A reader told me about Claimable, a website that lets you check your ETH address for any airdrops you may be eligible for. Try it if you have a chance:

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One last reminder that I’m re-closing Altcoin Insights at 11:59 pm tonight (east coast USA time). Read Friday’s post about that.

Crazy times in Cryptoland. Big things brewing.

Relax and enjoy the ride!