Invest in Bitcoin or Altcoin, how about Both?
Learn why 'Invest-to-invest' will be the future of crypto investing
should you invest in Bitcoin or go degen and invest in an altcoin which has 100x potential, if you are a crypto investor, you know this dilemma.
Sure, Bitcoin is great and will potentially change the world of finance ( including potentially replacing swift ), but Bitcoin price moves slowly, whereas altcoins offer incredible volatility.
In short, altcoin investing is sexy - the ups and downs, the roller coaster rides, the memes, the videos.
Bitcoin misses that, Bitcoin has no news cycle and no celebs shilling it, but Bitcoin offers the stability of slow growth.
Let's combine Both
Imagine this, you want to invest $10,000 into the new bored ape clone, instead of YOLOing the 10 Grand, you can invest this into Bitcoin and take a loan of $6,000 to invest this into the shiny new ape NFT.
Should the NFT go up 100x, you make a killing at ~ $600,000, you can sell it and invest back in Bitcoin.
Should the NFT crash and burn, you lost the NFT but you still have Bitcoin so all is not lost.
The Fine line
As always, there are some risks here, should Bitcoin go down you would be asked to post more collateral for the loan or face liquidation of your Bitcoin position.
Sometimes, Both Bitcoin and NFT could crash which could complicate the trade, but hey there are no free lunches right.
The Bottom line
The bottom line is that 'Invest-to-invest' offers a unique opportunity to get the upside of alt-coin investing while avoiding the downside to a large extent.
This could be a very interesting solution to 'Should you invest in Bitcoin or dogecoin or shibainu or bored ape or solana or million other shiny alt-coins'
You can also apply similar logic to investing in any cash-generating asset like a business or real estate so long as you are able to generate better returns than the interest rate of borrowing against bitcoin, here is a guide ( A guide to investing by holding Bitcoin )
But one thing is clear, Selling Bitcoin is stupid!
Disclaimer: This is not financial advice, this information is purely educational, All Investments carry risk. Always do your own research.