For a while now I have been practicing a very simple principle. Every time I receive income, I convert it all into Bitcoin. Absolutely everything. No exceptions. I do not keep a percentage in cash, I do not separate money for expenses. Everything goes into my core asset. That is how I make sure I pay myself first.
The idea is not mine. Robert Kiyosaki has been repeating it for decades. If you want to build wealth, you must secure your assets before you think about spending. Most people do it the other way around. They live, they spend, and only at the end, if there is something left, they invest. It never works. I decided to flip the script and it changed everything.
But there is a problem with this method. If you put everything into Bitcoin, how do you live. How do you cover your expenses without touching your core. The answer is to borrow against your Bitcoin. Not recklessly, not at high leverage, but carefully, with margin as a tool.
I studied different ways of doing this. I looked at Xapo Bank, which has been developing interesting products. I explored DeFi protocols like Aave. At first, DeFi looked attractive, but it has a fundamental problem: it is not really Bitcoin. It is WBTC, a derivative that represents Bitcoin but is not the same thing. That was a red flag for me. If I am going to collateralize, I want the real thing.
That is why, after testing and comparing, I ended up with Binance.