- First, I establish from the outset that BTC is solely for holding, not for selling. When BTC surpasses its peak and an Altcoin wave is on the horizon, all you need to do is put your BTC into cross margin and borrow USDT (not exceeding 50% of your capital) to invest in Altcoins.
- For instance, if you currently have $26,000, you could invest in 1 BTC and hold it from now on. Hold it until BTC surpasses its previous peak of $69,000, which would mean your asset is now worth $69,000. At this point, place the value of 1 BTC into Cross Margin and borrow $30,000 to invest in Altcoins. Borrow only $30,000 or even less, not more. This way, you can continue holding onto that 1 BTC as it climbs to $100,000 or $150,000, while also having $30,000 to invest in Altcoins. With the $30,000 borrowed, smart investment in Altcoins can potentially turn your initial asset into $300,000. You could sell the original 1 BTC that you held onto for $100,000 or $150,000. The combined profit from BTC and Altcoins could amount to around $400,000 - $450,000. After repaying the $30,000 borrowed from the exchange, you'd be left with $370,000 - $420,000.
What happens if the bear dip hits first and then you're suddenly faced with a margin call, meaning you have to add more bitcoins to the loan?
It's a good strategy (
for traders - not for regular people as it is very likely they will mess up somewhere down the road) if you know which altcoins to capitalize on, but like I said, it is more suited for people who pay close attention to the crypto markets.