MultiversX Tracker is Live!

Using a credit card to pay for living expenses... then paying it off at end of each month using Bitcoin profit... allowing me to DCA more bitcoin every payday and potentially get free rent/food etc? Logical or stupid? Have I even understood Jack Mallard's

Bitcoin Reddit

More / Bitcoin Reddit 105 Views

New to bitcoin and investing in general. I get paid $3k (AUD) every fortnight. Let's say I want to put in 50% of my pay cheque to Bitcoin (i.e. 1.5k AUD, so around $1k US), and the other 50% to other investments (both DCA strategy, looking to buy and hold long-term). I would then use an interest-free credit card (that has no interest for 2 months) to pay for my living costs for these 2 months (approx $600 a fortnight on single room I rent, food, gas). Then, assuming Bitcoin has gone up in this period, I would withdraw just enough BTC every 1-2 months to pay this credit card debt off before the interest kicks in. And try to time that withdrawal during a dip? Then repeat.

Other than the risk of Bitcoin not going up, or god forbid crashing, are there any other disadvantages to this approach? Are there even any advantages in the first place?! I'm assuming the advantage is I could have a higher DCA rate each fortnight, and by the time I pay the debt back, I would have gained enough profit to basically mean I got free or at least discounted rent/food for that month? Surely there is a flaw with my logic here, pls I would appreciate any feedback and perspectives, strengths/weaknesses etc. Jack Millar is who I heard this strategy from but I'm not even sure if I understood it correctly - 30:00 https://www.youtube.com/watch?v=0c_enEuz8Do

The other option is I do what I was intending to do prior to hearing Jack Mallar which is regular run of the mill approach - pay my living costs out of my normal pay cheque, not touch my credit card, and invest a couple of hundred $ less each month in Bitcoin. Jack Mallar's situation obviously is vastly different to mine, given he won't have a government job like me lol, but is the rationale the same - that it's better to not pay for living costs in normal currency, as a way to hold more Bitcoin stock?

Any insights appreciated.. thank you. Btw I have no credit card debt outside of what I would spend on my living costs in this scenario, if I end up doing this.

submitted by /u/MeasurementMental534
[link] [comments]
Get BONUS $200 for FREE!

You can get bonuses upto $100 FREE BONUS when you:
πŸ’° Install these recommended apps:
πŸ’² SocialGood - 100% Crypto Back on Everyday Shopping
πŸ’² xPortal - The DeFi For The Next Billion
πŸ’² CryptoTab Browser - Lightweight, fast, and ready to mine!
πŸ’° Register on these recommended exchanges:
🟑 Binance🟑 Bitfinex🟑 Bitmart🟑 Bittrex🟑 Bitget
🟑 CoinEx🟑 Crypto.com🟑 Gate.io🟑 Huobi🟑 Kucoin.



Comments