Topic: At a range of 2years, can a Bitcoin literate invest with a borrowed fund in BTC? - page 2. (Read 354 times)

Loans can be taken if there is an extra need and there is no other option but I don't like investing or borrowing for any other purpose. I think people who invest with loans think that they will invest with loans and earn a lot of money in a short period of time and after that they will repay the loan and invest again with the amount of profit. If they had thought that as I dream of profit, I might suffer a loss and how would I repay the loan in case of loss, but they would not have dared to invest with the loan. If you have a small amount of money, it is a lot and you should start investing with that small amount. It is not wise to take money from others and use that money for your own investment. At the time of taking the loan, the borrower may have a good relationship with the person providing the loan, but when the person is unable to repay the money on time, the relationship between them will deteriorate and there may be many more complications. So it is better to avoid loans as much as possible.

When it comes to investment it’s not always good to start up with a borrowed money you need to have your own money first before you can think of going into investment, the risk alone for investment is something else and if we check the interest that always comes with loan money you will know you are taking a very risk.

If I must advise, your friend should not even think of the loan not just because it’s not his money but also if you check very well bitcoin profit is not certain you never can tell when that money will be able to give him back enough profit to pay back what he have borrowed and also have some left for his investment decision.

Just a quick general comment:

If you consider investing but don't have the funds:

Buy the cheapest lottery ticket where the top prize is covering your investmnet needs:

The chances to win are quite low, but not 0, and if you are lucky you have easy money that you can invest....

If your friend has a fixed income, he can borrow money to invest in Bitcoin. But if he doesn't have an income, it's best not to borrow money. This is about how he was able to pay back the loan money. Moreover, he wants to borrow the money for 2 years.

But if his relatives want to delay returning the money for two years, maybe he can borrow the money. But it's still risky because we don't know what will happen in the next 2 years. He can make a profit from Bitcoin, but he also may not yet make a profit from Bitcoin.

It all depends on his consideration for borrowing money from his relatives. If there is an agreement to pay the loan 2 years later, he may take out the loan. But if he has to pay it back every month, it is even risky for him because he has no income.

One should never invest on loan. Those who invest by borrowing I think is completely stupid. Suppose you are very experienced in cryptocurrencies so you take a loan from your relative and invest in cryptocurrencies. After investing for some reason your investment is damaged if your relative asks you for money then how will you manage the money? At that moment you either have to sell your investment at a loss or have to re-loan from somewhere else with double interest. So I would say you should never invest with debt.

For the few years I have been into cryptocurrency, I have come to understand that investing in it with a borrowed fund is a really stupid move we should all avoid, because due to the volatility involve, their is a possibility that you can lose the money due to it, and another thing you have to consider is that investing in it comes with is own pressure, so borrowing money to invest into cryptocurrency comes with is own added pressure all together, which can make you sell at a loss if the loan time have elapse and the creditors are at your neck, so this is a situation we should all avoid by all means.

So my advice to that your friend is that he should desist from taking loan to fund his crypto ambition
 because so many things can go wrong in a short period of time in the crypto industry which can lead him to lose all the money.
And talking about taking loan from him family members is really wrong, because their is a high possibilitythat you cannot pay back at the right time which could damage your family relationship with him or her
please let him be guided.

Depends, if you're really good at leverage trading then you can easily do this but if you're an amateur that's hit or miss in leverage trading then definitely don't do it because you're going to regret doing that and at the same time you're going to end up having to pay for that borrowed money for a really long time because let's face it, people have a hard time delivering the borrowed money at a promised time and day.

Sure you can believe that it will go there but the problem is that we've already at February 1st and bitcoin is still not going to where you want it to go, are you talking about the last day of the month? If so then there's a possibility that we're going to see it.

I assume that this loan is without interest which is very good for business. Trading is a very risky section of Bitcoin business and it needs special skills or expertise to be successful in that area. He could lose all the borrowed funds within a short period if he is not proficient in trading.  I would have suggested that your friend consider buying and hodling Bitcoin for a long time. He might make some profit if the price appreciates. However, two years is not a long period to invest in Bitcoin.

I am not a fan of taking loans to invest in any business because it is risky. The crypto space is one of the most volatile investment platforms, so it would be better to invest with your funds. It shouldn't be just your funds but the part of it you can afford to live without or even lose.  
Your friend should look for other sources of raising capital maybe by getting an extra job or selling a personal belonging.

There is no point taking loan from bank to invest in crypto currency. Because crypto currency is not a get rich quick scheme. So it's an investment that requires a long term. So whenever we talk about cryptocurrency investment, We should remove our mind from loan, because loan will continue to add interest, and Bitcoin is a gradual process journey which the profit made from it to pay the outstanding loan may not come out as soon as possible. So you will add more problems to yourself than make profit. So in conclusion there is no need to take loan for investing on bitcoin.

Any possibility to go BTC $50k again within February 2024?

Investing with borrowed money === Leverage trading. Do not do it because especially with that short of a time frame, you will be liquidated. Except the liquidation does not come from an exchange who takes it out of your balance, it comes from threats, lawsuits, court cases, and so on. Two years is way too short a time frame to make any sort of profit.

I want to say bad things to this kind of strategy, but TBH, I've done it twice in the past already, and it favored me.
Yes getting a loan just to invest into crypto is a bad move, but I always believe in the word "timing". You can't time the market I know that, but if you know when you're entering then at least you will know when you will be profitable the most.

I said that I borrowed money just to invest into crypto. Yes I borrowed money, and used my monthly income to pay that loan. A few years after, that money already doubled because I invested during the bear market. The amount isn't that high since I'm kind of experimenting at that time, but I know when to enter, and I believe that I can pay that loan thru my salary, and it paid me off.

However, I don't recommend anybody doing this kind of strategy as not all strategy works on all people. Maybe I'm lucky that I borrowed, and entered during the bear market. As for OP, 2 years is a very long time, and knowing that we might be in a bull run a few years from now, I think your friend can pay it off. Just tell him to invest that borrowed money on Bitcoin to mitigate losses. Before doing this, consider everything including your monthly salary, and how it will affect you as well.

Whether or not your own or a loan money you are going to invest it's all the same that takes the risks. Though your own money if lost it's on your own problem but if it is a loan money you are risking your dignity and other peoples money so if your friend really insist in using loan money then he has the right to do it but tell him to make plan B. Tell your friend to find a job immediately so if something bad will happen to his investment then he may be able to repay that loan.

I agree with many others that borrowing money to invest is a piss poor idee.

And to involve family or friends makes it even worse.....

To consider:

If all goes well you make some money and feel like superstar and your family and friends will think you are so smart.

If all goes bad, you will become the reason of tensions, maybe people will start to avoid you, you have to beg for extenbing a possible repayment scheduke, just imagine you become unemployed and the person giving the loan urgently needs a repayment.... Who wants to bring himself in such a position ??

My best advice is:  Only invest a small amount you can afford to lose, if you are such a talented trader you reinvest your profits and over time become rich without having borrowed 1 cent.  Ok takes longer, but it is more healthy than expieriencing a heart attack every time the market goes against you..

You should never take any loans to invest in anything because if your investment goes down in value you are losing money both ways with the principal invested plus the interest.

Borrowing money should only be used to purchase goods like homes or cars, not for speculation. Many had done this and they are in a bad financial situation. Plus there is no guarantee that Bitcoin will go up 2 years from now, so why risk it. Horrible idea.

Compared to a loan to be used to buy a new car, to buy a new phone, to travel abroad, to go shopping, etc, to borrow money to invest in Bitcoin is way better. But your friend should make sure that he can pay the loan even if the investment didn't turn out well. Your friend's capacity to pay should not be solely dependent on whether the investment works. If this is assured, then your friend can proceed taking that loan and buying Bitcoin with it.

And if it doesn't work, your friend should stick to his Bitcoin until such time that he makes a profit. Hodling will pay off in the end.

Taking a loan from a relative can only be profitable if the relative himself understands all the risks he is taking by providing such a service. There is a difference between debt to the bank and debt to the family. What are these connections, and how long is the relative willing to wait for a return? In any case, as was said above, we cannot be sure that everything will go according to the scenario that your friend suggests. But he must imagine all the consequences if something does not go according to plan and ways to overcome them.

I see the underlying logic but the problem with such a move is that theory is one thing and practice is another. If the pattern that has happened in previous Bitcoin cycles is repeated the next 18 months or so will be bullish, meaning buy now to sell roughly then it seems like a good move. The problem when you use borrowed money is that you don't make the same decisions you make when you use money you have to spare. If things don't go as planned, if suddenly there is a big drop in the price, when you have invested with money that you have to spare you ride out the storm and do nothing but if it is money that you owe don't be surprised if you make rash decisions like panic selling.

This issue is often the subject of long debate. Because investing in bitcoin with borrowed capital is not recommended. Even though the person running it already has extensive knowledge about Bitcoin, the risks are still very large. Because you need to remember it
that no one knows what Bitcoin will look like in the next 2 or 3 years. The possibility could continue to develop or even experience setbacks. So this is where the role of capital used will be very useful to minimize risks that may occur. Indeed, if you look at Bitcoin today, it looks like Bitcoin will continue to experience good growth in the future. But you need to remember, don't just think about the good side, but the bad side must also be remembered and taken into account.
Because if we invest in an asset, including bitcoin, the calculations must be complete and not only think about the good side. Because in an investment there are always two possibilities that can happen.

So even though your friend has mastered and has extensive knowledge about Bitcoin, this is of course not enough and there are still shortcomings. Because for example, right now your friend is borrowing money from his relatives to invest in bitcoin. Then your friend promises his relatives that he will pay the debt within 2 years. Of course this will affect his mentality. But even so, the possibility of making a profit is also not small. Because currently bitcoin is in the right condition for the time of purchase. Because the Halving and Bullish Market will definitely arrive soon. For this reason, at this time bitcoin investors have the opportunity to make a profit. So at that time the opportunity to make a profit will be very big for you friend. However, my advice to your friend is, don't wait 2 years to pay off the loan. Because it would be better if, for example, your friend has made a profit, then the loan money must be returned immediately.

op Bitcoin market has a lot of volatility so it is not a good decision to invest Bitcoin by borrowing from someone. If we borrow and invest bitcoin from someone then our thinking will increase twice so I think it is not in the case of anyone's bitcoin investment but in any business if you borrow money then we have to face problems. So it is the right decision to borrow and invest bitcoin. not  It will take two years for your friend to pay back the loan he borrowed for two years, of course hoping that the bitcoin market will grow more during these two years so that he can pay it back. Since the Bitcoin market fluctuates all the time, it is impossible to say that the Bitcoin market will move upwards.