You deposit some bitcoin, take out a loan backed by the value of that bitcoin, then use that loan to buy more bitcoin. There are many popular services that do this. If you guess wrong, you can get rekt, and lose your all bitcoin.īorrowing against your bitcoin to buy more bitcoin is another way to get liquidated in the market. People can draw charts or make predictions all day long, but nobody knows for sure. The issue is that this is essentially gambling, because nobody can predict the future. If bitcoin goes down, and you’re short, you get more bitcoin. It’s a way to “super charge” your bitcoin gains, because if bitcoin goes up and you’re long, you get more bitcoin. Leveraged trading is generally offered by bitcoin exchanges, where you can take a long or short position in bitcoin, basically betting with other users which way the price of bitcoin will go. They are essentially the same concept, but presented in different ways. Leverage can come in the form of trading or borrowing. One way to become a forced seller is to use leverage to buy bitcoin. If you want to cash out some bitcoin, that’s cool, but just don’t become a forced seller.īecoming a forced seller means that you don’t want to sell your bitcoin, but you have to. Bitcoin is money and you can do whatever you want with it. Friends don’t let friends sell bitcoin! LOL OK that’s just a meme.

Stacking sats means you’re continually adding to your stack of bitcoin. As long as you have a sustainable stacking plan in place, then it shouldn’t matter. That’s why you stack sats regardless of price, and regardless of what’s in the news.

You can choose to believe what you want, but nobody knows for sure until it all plays out, and then it’s too late. The trouble is, there’s a constant stream of bullshit in the mainstream media, alongside a constant stream of engagement farming hopium pushed out by bitcoin influencers. That may seem counterintuitive – shouldn’t you buy when the market is low? Shouldn’t you wait for a good time to buy bitcoin? Sure… if you have a crystal ball and can predict what’s going to happen. It doesn’t matter what’s happening in the world, you just keep buying no matter what. Because you’re ignoring the price for your recurring buys, it should be easier. The second rule of stacking sats is to stack no matter what. If you are always waiting for a dip, you might be waiting forever. When your target price for bitcoin is over a million dollars, it doesn’t matter if you stack at $100, $1,000, $10,000, and beyond because it all comes out in the wash. You might buy at $40 and it rockets to $200k in the next six months. Nobody knows which way the price of bitcoin could go next. The first rule of stacking sats is that you don’t time the market. What Stacking Sats Means To The Everyday Bitcoin Plebĥ Basic Rules For Stacking Sats 1.There’s more to the philosophy of stacking sats than just the mechanical explanation though, so let’s dig deeper into what it means to stack sats. You can buy more than 2,000 sats with a single dollar! Considering that a sat is still worth just a fraction of a penny, everyone can afford some sats. The reason you stack sats instead of stack bitcoin is that the price of bitcoin is so high right now! Most people can’t afford a whole bitcoin, let alone buying multiple bitcoin at one time. This is the same concept of dollars and cents, like $0.10 is ¢10. “Sats”, is short for “satoshi”, which is the name for the smallest unit of bitcoin. What exactly does stacking sats mean though?Īt a high level, stacking sats means to continually buy bitcoin over time. It’s even made it’s way to mainstream financial news a few times, and will probably develop into one of the longest running axioms in Bitcoin Land, perhaps only second to not your keys, not your coins. The person who invented this catchy phrase is the bitcoin podcaster and privacy advocate Matt Odell, but it’s widely used throughout the community. This is a popular meme in the bitcoin community, and you’ll often hear it stated as stay humble and stack sats. You may have heard the phrase “stacking sats” used online in the context of bitcoin, or maybe you read it here on the blog.

Stack sats