Topic: Borrow to Buy Bitcoin is Not Advisable.Consider the Factors Before Doing That. (Read 908 times)

As much as possible, avoid borrowing if it is not that important. Maybe only get a loan when it's really for an emergency purpose, for example, a lack of hospital payment or something else, but not at the point where you sell Bitcoin. Although buying or investing in Bitcoin is not a bad thing, the only way to do it is to buy it out of debt.

It would be fine to borrow money if there is another source of income that is more than dalwa; in this matter, I can understand, but if you are just an employee and you are going to borrow money just for bitcoin investment, there is a risk involved for sure. It's even better to buy little by little; it's better than taking out a loan.

The thing with borrowing money to invest in Bitcoin isn’t just about when the bull run will come but have you forgotten that volatility goes both ways? So while you’re waiting for the bull run, it is very possible that a bad news could come and even put Bitcoin in a more terrible state. Investing in Bitcoin isn’t compulsory, it’s better you invest your own $20 than invest a borrowed $400.

Yes as the subject said, using borrowed money to buy bitcoin is not good idea because the interest is accumulating every week/month and you don't know when the bull will come and even if you know, you will not know how much it will be. And assuming you took a loan of $400 to pay back within 3 years and the interest rate is $2 weekly and in the 3 years period, bitcoin has not reach the speculated price to sold your bitcoin to pay your loan. Or when you sell, you get the exact amount of the loan, or 1% profit from the sell and you pay off the loan and there is nothing left for you to start over. Is that a good investment? No. So there are many factors one can consider before using borrow money for bitcoin investment. You have to consider the duration of the loan, the probability outcome of bitcoin at the end of the loan year, and the interest rate accumulated at the time to pay back the loan.

When you have done your homework well and you see that you can use the loan to invest on bitcoin and there will be no problem at the end and you will have some changes remain in your wallet then you are free but if not, it will shock you and you will be frustrated so prevention is better than cure as they said. Therefore using loan for investment is not advisable. Ordinarily, you cannot just come to the cryptocurrency Ecosystem space without proper planning and started investing, it is not done in that way, at least calm down to study how things are done in the environment, making some analysis, compare and contrast some of the risk involved then if it is good then you key into it and if it is not then you look for an alternative way to invest in bitcoin.

I came up with this topic because I was planning to borrow money to invest in bitcoin but when I looked at the risk involved, I have to give up the borrowing plan.

The risk that involves in borrowing to invest is higher than bitcoin investment itself. When you borrow to invest them you have to prepare yourself to face and dance the music of the two volatiles. And as I said when you borrow and the investment will not favour you then you have enter into a very serious debt though all come from the amount you borrow to invest.

Risk always exists around us and I also understand how risky it is to borrow money to invest. But what I am asking is if a person has a plan and is confident enough to repay that loan even without needing the profit from that investment, borrowing money to invest is not so bad.

To me, there is no success without trade-offs and we should accept challenges to achieve success. Not everyone who borrows falls into crisis or deadlock, sometimes debt reinforces their thinking because if they don't work more, they will never be able to repay their debt. Pressure is scary for some people, but sometimes it is a motivation for some people to become stronger. If a person is afraid of pressure and is not willing to accept it, it will be difficult for them to succeed.

When investing in bitcoin, there is no amount that you invest that’s too small, you don’t have to invest a large amount before you will be satisfied with your investment. It’s better to invest a small amount and have peace of mind than take out a loan and invest a large amount of money. When investing in bitcoin, there is always uncertainty. Nobody knows when the price is going to pump or dump, everyone is just predicting, and prediction can be wrong. If you take a loan just to invest in bitcoin, and when it’s time to pay back loan and bitcoin price is below the amount which you bought it, how are you going to pay back the loan? You are going to sell at a loss, then look for ways to be able to complete the money so that you can pay back your loan.
 
Loans are not always an option when it comes to bitcoin investment, it’s better to get a job, then you can start investing a little from your salary. Don’t think the amount of bitcoin you are holding is too small,  just keep on holding and keep on accumulating more from the salary that you are receiving. Don’t be deceived or pushed by anyone to take a loan to invest.

If a good buying opportunity arises now and it's still not yet the time to get your monthly salary what will you do? Since you are certain that your salary will be paid by the month ending it still feels right to me to take a loan or borrow the exact amount that you will be able to pay back by the month ending from someone.
 

Risk always exists around us and I also understand how risky it is to borrow money to invest. But what I am asking is if a person has a plan and is confident enough to repay that loan even without needing the profit from that investment, borrowing money to invest is not so bad.

Of course I also never thought that there are some of them who are desperate to borrow just to invest. Yes that's right, as we know the benefits in investing are very large and it is clear that there is also a very high level of risk there, therefore some experts and professionals always advise to always learn more deeply and try to use money that will not be disturbed by other needs, none other than this advice so that investors can invest with peace of mind and implement their best plans. Honestly, I never think of borrowing money to invest, because obviously with the risks that are there even if for example we use personal money there is still always pressure that we feel, well especially if you use money from loans, of course it will make you even more depressed and all you think about is probably only profit so you can pay off your debt, and obviously indirectly it will greatly interfere with your mental and psychological calm when investing.

Of course they should not be rash in this decision and should always consider it. If there are indeed some who do this way then I say they will only waste time and money, because it is very unlikely to succeed with all the great pressure they face, and yes it is true that to get to success there must be sacrifice first, but not by borrowing too, it is not a good alternative and should be avoided.

and when there is money left over, then we can invest it or we set aside a little of the money we earn to put into investments.

Borrowing money to spend, especially in a volatile market like cryptocurrencies, is risky. Its like starting a project that was meant to fail from the start. You are right about pressure and its effects. Desperate to pay off debts might lead to haste, unwise decisions that worsen the situation.

We'll ignore crypto's hidden concerns like computer theft, changing rules, and market manipulation. Working behind the scenes and pulling strings from the dark is popular here. Poor folks who need to borrow money should not come here. Borrowing money to spend absolutely defeats the purpose of investing and creates a weak foundation.