Alexander Lorenzo used $250,000 in crypto as collateral to borrow $70,000 for a Tesla without selling his holdings. He's betting on Ethereum hitting $12,000 and Bitcoin $300,000 to cover the loan while staying fully exposed to upside, but warns the strategy requires precise risk management to avoid losses.
Chapters
I bought a Tesla with this exact trading strategy. I made a lot of money off of it. It's like the loans, right? So crypto is great. The problem with crypto is that it's volatile. So we know it goes up a lot. Like, we're probably going to see Ethereum go to like, I don't know, probably like $12,000 this cycle in the next 2 years. Probably going to see Bitcoin go to like at least a quarter million, $300,000 this cycle. But the issue is the volatility is crazy, right? So you don't, you don't want to pull the money out to pay for stuff. at the wrong time because it could be down a lot. So this is where the loans come into play, right? So my— the story is I bought a Tesla Model 3 for $70,000, but what I did is I actually took the $70,000 I was going to use to buy it, I took a quarter million, I put it into a loan, I took $70,000 as a loan, paid off the vehicle, and then Ethereum went up. It went to like a million dollars, and basically the vehicle was paid off by the appreciation of the actual crypto. And so the point is to not sell your crypto. The issue is people just dollar cost average. They just buy. They don't, they don't, they don't have a strategy. And then early to pay for things they actually need, right? So this is where the, the loans come into play. And so there's a, it's, you know, it's a very specific process behind it to do it the right way. But I do it to try to pay for almost everything in my life. I'm taking a loan against my crypto to pay for this. I'm taking a loan against my crypto for that. And it allows me to accumulate crypto at a higher rate if you do it right. If you don't do it right, you'll get wrecked. But it's one of the most powerful strategies I've used to make money in crypto and never sell, is these loans. It dampens the volatility because the volatility is crazy, but the loans make it consistent so you can actually use the cash for whatever you want. I highly recommend people learn it. And we actually have a calculator in our community that gives you the perfect calculation And helps you offset the risk in like a perfect way and tells you exactly how much you should take out of the loan. And you can change it according to your risk profile. It's like this whole entire AI calculator that does the math for you to pull this off. I highly suggest you guys can take, take action. Go to my group, click the link.