Topic: At a range of 2years, can a Bitcoin literate invest with a borrowed fund in BTC? (Read 451 times)

It’s not actually wrong if you borrowed some funds for the purpose of an investment, as long as you have a stable source of income that will pay back your loan if that planned investment didn’t work as planned. However, if you are only relying solely for your investment to work so you can pay back that loan, well that’s a very bad decision. You could end up being homeless in the long run if your investment failed in the process.

My suggestion is ask yourself first if you are actually able to pay or not. If not, then delay your plan of investing. Save first so you can finance your own investment.

taking a loan is really not advisable especially if you think you have no means to pay back on time or no collateral to back up in case your plans go sideways. so much better to hold yourself in any investment if you think there's a possibility that you can't make it on the target timeline. because if you can't make it, it will be a headache on your side because it is hard to find money just to supplement what has been lost. you will end up paying high interest from loan sharks.

Be it 2 years or 5 years, it’s still not safe to invest in bitcoin with borrowed funds. Bitcoin has so much volatility that you can’t even predict exactly when are you going to see it rising and profit from it, because most of the time its price even drops lower from the position you bought it. So seeing that borrowed funds growing with daily or monthly interest, that will only pressure yourself while seeing bitcoin price moves uncertainly. I suggest just save before deciding to invest, at least even if you lose all that money, it’s only yourself who will be held responsible for that.

remember, success usually comes because it is accompanied by the courage to take risks and I see your friend doing the right thing, but he also has to adjust his income so that he doesn't have to sell the bitcoins he holds when he runs out of money.

good investors must have debt that they can manage well, that is part of being wise in managing money, it is difficult to make a profit if hold bitcoin only in the short term, it would be more profitable if hold bitcoin for the long term.

A few people become gainers when invested by borrowing money from others, but that doesn't mean you can be gainers as well. They would be lucky where you won't be. I won't advise anyone to invest in crypto by borrowing money. Though there is a chance to be a gainer, due to volatile crypto behaviour, it's hard to predict what will happen after investing. I prefer the DCA strategy, which means investing from your savings instead of borrowing from someone else.

I would never advise anyone to consider taking a loan when investing in bitcoin. Bitcoin is a risky investment due to its high volatility, that’s why one should only invest on his own money that he can afford to lose, otherwise investing with borrowed funds will only cause an investor’s panic because there’s no guarantee as to when the profits will eventually become available knowing its price may suddenly move upward and downward because of its price fluctuations. So to play it safe, never risk some funds that you think you can’t afford to lose.

Your friend has heard a lot about bitcoin and binary he wonders it has done but if your friend doesn't buy bitcoin and wait for another time, he will be here with us welcome with 2 arms but he should never do it. Borrowing money to do something urgent when you don't have the means to pay back doesn't end well often than we have seen here. If you must buy bitcoin, do it with the fund you can afford to lose and I'm sure the money your friend is using is not the type he can afford to lose in any ways.

God forbid, if your friend relative that lend the money want his money back urgently, I don't think your friend is going to escape what will come after because I know for sure that he wouldn't tell them that the money he borrowed will be used for Bitcoin. If the cousin know about bitcoin too and it's the type of money he can spare, I don't think he will give out the money when he can also utilize the same opportunity.

If he is only investing in Bitcoin, it is very possible that he will make profit from the investment if he holds the Bitcoin. Many people trust that Bitcoin can generate profit while alt coins can not be trusted because they are usually unpredictable but Bitcoin price will always get a bull market that will make the price to spike.         If your friend takes the loan from bank it may have too much accumulated interest before the price of Bitcoin will generate profit but if he can take an interest free loan from his relatives, it is more better that way but he should also know that Bitcoin price can be unpredictable.       What if he doesn't get enough profit after two years? Let him get a good back up plan.

Usually people would really be just trying out to look into the outcome without trying to look up on what are the risks involved on making out such decision. Most people would be assuming that their
plans would really be ending up to be positive or something that could give out that kind of assurance into themselves that they are making the right decision. On the time that they've been fucked up
because of the decisions that they had made then this is where self realizations would be kicking in. This is why it would really be that important that you should really know on what you are doing.
Thinking up on realistic things rather than on making yourself that delustional.

Put up into your mind that when it comes to investing then it wouldnt really be recommended that you should really be that taking up some loan from someone specially into those shorter terms.
In every market cycle then it would be composed of 4-5 years on which no one would really be waiting up for that long for them to get repaid up. Then on how you would gonna do it?
Its not something an easy situation for you to come up with.

In the eyes and thought of the person borrowing the money it looks really simple and easy because he would be thinking that Bitcoin might blow up within that range but unknowning to the person that it's a wrong step because Bitcoin is something that no one is certain of how the price is going to move so when the person plans to pay back within the two years interval the market might actually get something else to say about that and before you know it the whole thing has become one sticky hell ass problem.

It may seem like a no-brainer that the person would make a profit in 2 years, but it's not. Imagine your friend took a loan to invest in Bitcoin in November 2021 would he have been able to pay back the loan 2 years later?

First, a person has to have a source of income that he can invest me. Bitcoin is too risky and volatile to invest with borrowed funds. It could lead you into a very awful situation.
I've seen cases where people had to run because they took loans to trade Bitcoin and when they lost it all, they had serious issues.

The cryptocurrency is a field in which people are not ready to accept their profit but are in wait for further increase of their money. If your friend take loan for two year of duration but in such duration bitcoin does not show any increase then from where he will return such a big amount?

Although there is no doubt in Bitcoin's success but it is reality that it is also a part of cryptocurrency so anything can happen anytime therefore try to avoid taking loan for cryptocurrency investment.

If your friend has little profit but then he choose to wait more to gain more profit because greed is a natural in humans and then he does not see any huge pump again then it will become risky for him as there is a possibility of losing money in crypto market. It will be better to be thankful for your present situation and don't take any loan for bitcoin or other crypto investment.

It sounds good when you have understood the nature of Bitcoin's volatility but that's not enough for someone to justify that he's good to take a loan just because of that. Look, many are actually experts here and have been in the market for a very long time but that doesn't seem to be an excuse or reason for them to use as a ticket for them to be desperate to take a loan so that they can invest more. They use their times and skills in exchange of money just as the normal employee-company cycle or with any business that they're involved. Because no matter how you evaluate yourself for being good and had the idea about Bitcoin, it's not giving you the exemption to avoid unforeseen events through its volatility.

Investing is risky and investing from loan money is more risky. Because you have to time the market very well to get enough profit for at least paying your loan interest.

It is something uncontrollable from you and the lender because you and the lender can suddenly need money for emergency so that if loan repayment call comes sooner than expected, you will likely have big trouble. If you have emergency, it will be even worse.

Work, get money and use it for DCA Bitcoin, don't take any loan, is smart and safe investment strategy.

I would not borrow fiat from anyone to invest in Bitcoin. Bitcoin does seem to recover eventually, but you can't be 100% sure how fast it will recover this time. Also, maybe the fees will be very high during the bull market, and then the price will rapidly go down and stay down for years to come. So it's just risky to rely on Bitcoin growing to repay the debt, and 2 years isn't a big amount of time for Bitcoin.
Instead of borrowing, I believe it's better to just start investing gradually, putting affordable amounts into Bitcoin and accumulating the desired sum over time.

There are no prohibitions regarding trading and investing in cryptocurrencies with borrowed funds, but only recommendations. For some, following these recommendations will allow you to preserve your well-being and your fingers (for each day the debt is overdue). For others, these recommendations are like extra ballast, holding back their desire for profit. I want to say that there are no universal schemes that are the ideal solution for everyone. There are both successful examples of trading and investing in cryptocurrencies using credit money, and unsuccessful examples of doing the same with their own money. If you are confident that you can come out a winner with trading or investing in cryptocurrencies with borrowed money, then go for it. But remember that the risks are just your personal headache.

If your friend really decides to do this, then you and no one else can dissuade from investing with credit money. Are you interested in opinions on this matter? As discussed above, this method of investing is not approved by the majority, but I would probably also take a risk in this situation. If you look at bitcoin judiciously, then this asset is one way or another all the time getting more expensive. Even buying at a loss on highs in the next cycle will still return the investment. Volatility is a temporary phenomenon that can be ignored unless there is an urgent need to sell bitcoin at a loss due to an urgent need for money for expenses.

Before taking the loan, Paying back within two years time will look very achievable and the time frame very long, until when the loan is collected and the time begins to fly. Two years may feel like two months.

Borrowed funds will always put the borrower under pressure, unless there is an intention not to pay back.

It will be different if you are offered an interest free, pay back anytime or not kind of money from relatives as a way for them to help you. That kind of money can be accepted and used for investment in bitcoins.

2 years would be short unless if he would really be that investing on 2-year period but i would definitely say that it would be ideal if you do invest on bear market period which it do usually happens on post bull run of course on which this is the best time that you should really be getting in, but since you do only have that 2 year agreement on repaying a loan then it would fall short. Its true that it wont really be that recommended on taking up a loan for you to have those crypto investment on which we know that it isnt really something that would really be that recommendable because we cant really be able to make sure that the market would really be having those pumps on the time that you would be making out some repayment. What if you wont really be able to repay those in time just because the price hadnt been able to pump or not really that in the right timing? Then you would be fucked up into that situation, unless if you do have that money allocation for repaying those loans then it would really be just that fine.

Well, as what you said there will be no rewards without any risk involved so if your friend is ready with the possibilities of his venture then it is time to give it a go. Now, in life as well in trading there is no guarantee so it can either be prosperity or bust.
Borrowing from relatives and friends who also are oriented with the situation can be a good idea rather than borrowing from banks or leading institutions or hell shark lenders. I am then expressing my good luck to your friend and maybe you can also help him from time to time most especially moral support and make things clearer for him so he won't be another victim of bad decisions while trading Bitcoin.

Cryptocurrency investment is very risky, your friend may borrow the money, lose it and get himself into bigger problems. So tell him not to borrow loan in order to invest in Bitcoin. A castle is never built in a day, it's a gradually process and it'd could time. If he's working and cannot afford to buy a lump sum, he can be doing DCA and be stacking Bitcoin gradually from what he's able to earn from his job or business.