00:00 Speaker A
We have our favorite segment of most shows, which is how not to invest. Hit it.
00:05 Speaker A
How not to invest. How not to invest.
00:15 Speaker A
And the story of the day for how not to invest is
00:20 Speaker A
buy meme coins with credit cards on Robin Hood wallet and FOMO appears to side step card network rules. So listen, there’s the story that it’s sidestepping card network rules, which in and of itself is interesting and I’ll tell you about that very briefly. So basically, the block, uh they did some, you know, uh
00:41 Speaker A
slething and they were able to buy meme coins directly through Robin Hood wallet and FOMO using ordinary credit cards uh connected through Apple Pay and Google Pay
00:53 Speaker A
uh using the checkout system crossment, but what’s interesting here is you’re not supposed to be able to do that because many card issuers restrict cryptocurrency purchases, they think that crypto transactions are treated as cash advances, which carry higher fees. Well, these were labeled as digital goods, digital assets basically and not as crypto specifically, more like buying digital art or something like that. So that’s an interesting story. Somebody earned chase points by doing it, right? Okay, great.
01:21 Speaker A
The real story is here is don’t buy volatile assets on credit cards.
01:29 Speaker A
You’re going to pay 20% interest to buy a meme coin that could go to zero before your transaction actually goes through. I think the average hold time for these things is less than 5 minutes.
01:43 Speaker A
This is just a bad idea. It’s almost worse than leverage.
01:47 Speaker A
Buying it on a credit card with a high interest rate that inevitably will send you into bankruptcy is not the way to interact with meme coins or the broader crypto market or probably any financial asset.