Topic: Borrow to Buy Bitcoin is Not Advisable.Consider the Factors Before Doing That. - page 4. (Read 691 times)
August 03, 2023, 05:45:10 PM
If you want to live the peaceful life,you should avoid of borrowing the money.Because it's not an advisable one,because you can get into trouble to pay the interest for the loan.At the time of interest,if you don't have any money.You may sell the holding bitcoin for the loan interest, it give you loss and the additional burden.So it's essential to don't borrow until you need money for emergency.Even you can do saving for your future,when the money was saved in crypto currency.It will give you more profit as compared to holding the money at the bank.
August 03, 2023, 05:38:03 PM
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.
Yes, indeed this is very risky when we are going to invest in Bitcoin by borrowing money, especially from banks. This is high risk and highly not recommended. The reason is, indeed, as you said, the price of Bitcoin is very volatile. Even though there will be a bullish era later, who can guarantee 100% that it will happen at the time we are targeting? what's more, usually when borrowing money from a bank or from anyone, they don't ask for monthly installment payments, right? then where does the money come from to pay the installments, which usually have quite high interest. Or if someone provides a loan with a maturity of several years, it's like it's hard to find a loan like this.So, just be wise and self-aware of our ability to invest. never force yourself to invest in an amount that you cannot afford.
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August 03, 2023, 05:31:20 PM
I believe any cryptocurrency investor that borrows money just to invest in the market if not for an emergency is greedy because the fundamental concept of crypto investment is to invest the amount we can afford to lose not borrowing to invest in the market that's full of uncertainty and there's no guarantee of making a profit until the end result is known.
August 02, 2023, 05:13:10 PM
I agree that borrowing to invest in Bitcoin is not advisable especially when there is no need to rush things out to buy BTC. Even if we have a stable job, it is not advisable to borrow money and pay for it with our day job salaries. I believe that there should be conditions before saying that borrowing to buy BTC is ok like:
1. If there is a sudden crash in the BTC market where we will not see the same price again.
2. We have a stable job that can pay the borrowed money in the shortest possible time.
3. The event of a crash is near the event of the Bitcoin market transitioning to a bull run.
4. Our financial capability is still ok even while paying our debt and interest.
I am a bit open-minded and favor flexibility so borrowing money for Bitcoin investment is somehow ok for me but with certain conditions.
1. If there is a sudden crash in the BTC market where we will not see the same price again.
2. We have a stable job that can pay the borrowed money in the shortest possible time.
3. The event of a crash is near the event of the Bitcoin market transitioning to a bull run.
4. Our financial capability is still ok even while paying our debt and interest.
I am a bit open-minded and favor flexibility so borrowing money for Bitcoin investment is somehow ok for me but with certain conditions.
August 02, 2023, 04:55:20 PM
Borrowing money is never a good idea for any type of investing. I know way too many people in the past who basically bought Bitcoin on a credit card which had an interest rate of 20%.
They said that 20% is cheap because Bitcoin will go 1000%. And for some who got in early and got out before the top got lucky but for many they are bag holders and are basically paying interest on a losing investment. Which is an awful thing to do.
Yes, in all types of investments, there are risks so we should at least learn to invest at our own risk. That means we should avoid borrowing money as much as possible especially that bitcoin investment has no guarantees when will its value will grow and reach an all time high. The safest method is just to invest your money at a minimal amount so that if you lose, your finances will not be greatly affected. Invest some of your hard-earned money but only at an amount that you can manage to lose. They said that 20% is cheap because Bitcoin will go 1000%. And for some who got in early and got out before the top got lucky but for many they are bag holders and are basically paying interest on a losing investment. Which is an awful thing to do.
August 02, 2023, 04:55:01 PM
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.
You took the right decision, it is easy to think that if you borrow money you can increase the amount of bitcoin you can buy and with it your profits, but rarely things are so straightforward, using a loan to buy more bitcoin than what you could normally do is nothing more but to use leverage trading, and in that case you might as well use exchanges for that, not something I recommend, but at least they are specialized on those kind of maneuvers, while taking such a loan on your own is a big mistake, especially if you are using a credit card to make that purchase, since where I live the interest rates for that kind of loan are incredibly high. 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.
August 02, 2023, 04:46:51 PM
Taking loans is a setback in life.
Taking a loan to do business is not a set back. All determine what you use the loan for. When you use the loan for a progressive business, you can pay the loan at the said time. Many people have taken loan to start business and succeed in life. When you take loan and use it to do business and have interest daily then you can pay back the loan so I didn't see any setback in it. But my concern is on bitcoin investment because of it volatile nature.It won't be a setback if the person knows what he is doing, and know how to achieve success in his chosen business.
That is true, some people can attain success by taking a loan for their respective business.
But one should really be careful in doing so because you can easily be in deep debt if your business is not earning.
As much as possible, pay your debts once you are already generating income, so you won't be tied to the loan sharks.
August 02, 2023, 04:44:29 PM
Taking loans is a setback in life.
Taking a loan to do business is not a set back. All determine what you use the loan for. When you use the loan for a progressive business, you can pay the loan at the said time. Many people have taken loan to start business and succeed in life. When you take loan and use it to do business and have interest daily then you can pay back the loan so I didn't see any setback in it. But my concern is on bitcoin investment because of it volatile nature. 
August 02, 2023, 04:36:35 PM
Bitcoin is a high risk asset so should only invest at an amount that you can afford to lose, and not by borrowing money or taking a loan just to own a portion of it. Because if you do that, you are already losing even before you take profits. The monthly interest might be very annoying so instead of investing bitcoin for long term, you might do it for short term and sell some of them for immediate profits so you can pay your loan. That way, your investment might not work because you tend to panic instead of patiently waiting when its price will skyrocket.
August 02, 2023, 04:26:52 PM
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.
I think you made a wise move and made a good decision because you found out first and considered what risks would occur and what risks would be faced if you made a loan to buy Bitcoin.Several times I have seen and heard of someone who dared to make a loan to invest in Bitcoin and most of them are too sure of their calculations and they underestimate the risks they will face.
I think they are too blinded by greed to get a lot of profit so they ignore the reason and rationality they have, what they do is only dare to take risks without thinking about and considering the impact of the risks of what they are going to do for themselves.
I don't know, even though there is someone who has succeeded in improving his finances and economy because he gets a lot of profit investing in Bitcoin from borrowing results, but we really never fully know about that person's success story, of course there are many factors that influence his success and we don't necessarily have those factors the same as that person.
August 02, 2023, 03:31:48 PM
Loaning to fund your investments isn't necessarily a bad thing, as many billionaires in the past got their massive bags thanks to this tactic. It's all about building a great credit, and then borrowing only what you can afford to lose. Take for example people who invest to buy real estates, When you buy real estate with your own money, it's money that's coming from your own pocket, which yields you less money, sure at the end of it if you decide to rent out the property you get all the profits back willy-nilly but it would be wiser to actually take out a loan in the bank and let them pay for your investment, then pay them with a dividend of the money you earn from the whole investment process and you basically made the bank pay for your investment!
There's risks to this as with all investment schemes but at the same time, this type of investment process gives you more money to work with to expand your wealth faster, than if you bought stuff with your own money.
There's risks to this as with all investment schemes but at the same time, this type of investment process gives you more money to work with to expand your wealth faster, than if you bought stuff with your own money.
August 02, 2023, 03:16:48 PM
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.
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.
So basing up on the example which $8 per month kind of interest then it do plays around on 2% on monthly and 24% on yearly basis on which these kind of increase could really be wiped up if you do really know on how to play with that 400 bucks of yours in this volatile market but since not all would really be capable on doing so and this is why they would really be making out such choice on simply holding it up which it is true that its never been that good or wise decision on taking a loan for you to make out some long term investment specially on something which there's no assurance that it would really be making out such huge leap into its price.
Yes, we can really be able to say about its potential but its not guaranteed. This is why always just consider on investing on something the amount that you can afford to lose or something that would be your extra.
Dont put yourself into some deep debt just because you are really that eager on making investment just because you've seen anyone is doing it but always take precautionary measures on the time that you would
be stepping your foot into this space.
August 02, 2023, 03:09:41 PM
Borrowing money is like a cycle that never ends. You should never take loan or borrow money from others to invest. Every investment carries risks and it's not only just Bitcoin investment. As you said in the OP, the market is unpredictable and we can never be sure when we will be in a uptrend market where we can make profits from our investment. Even if you are sure that bulls are back in the market, never invest with borrowed money. Bulls are back, yes, but they will be gone again. So invest what you can afford to lose. You may think that people are making money from borrowed money, then why can't I do it? Well if you keep making money with borrowed money, it will become a habit. One loss can lead you to your doom. Imagine you made 5-6 profits. But then you made one loss. You will have to pay that borrowed money back and you are now in a loss. So what will you do? Use other money to pay back the borrowed money or borrow some from somewhere else and pay that back?
It becomes a cycle and in the end you lose everything. If you have enough money to invest then do it.. otherwise never use borrowed money.
It becomes a cycle and in the end you lose everything. If you have enough money to invest then do it.. otherwise never use borrowed money.
August 02, 2023, 02:43:01 PM
Borrowing money is not a bad thing but the fact must be clear about what actually you are borrowing the money for and if like you said it is intended for an investment in bitcoin then probably not the best idea because
1. Bitcoin is a volatile currency and therefore can fluctuate at any given time.
2. Time factor of the loan collected,
3. The percentage of you acquiring loss is bigger than profits so that type of risk is a no go for me.
1. Bitcoin is a volatile currency and therefore can fluctuate at any given time.
2. Time factor of the loan collected,
3. The percentage of you acquiring loss is bigger than profits so that type of risk is a no go for me.
August 02, 2023, 02:39:57 PM
I think it's a bad idea to invest in bitcoin by borrowing money, even if you've done your analysis correctly, it's like gambling and there's always the risk of losing your current prosperity. instead, first get a job that you're sure will actually make you money and create resources for yourself, then invest in bitcoin with the resources you've created. i wouldn't recommend investing by risking your future because it will be much more difficult to recover in a bad situation
It's certainly a gamble. Borrowing in a highly volatile investment is a no-no thing that shouldn't be done. We're all bitcoin advocates and investors here but don't encourage that to be done by someone who's gone that far. Too many people have gone that much and made a wrong decision because just after borrowed, they've done a pretty bad timing. But even with good timing, it's a gamble that one should be willing to take as a risk but much better not to. I doubt that if someone tells a lender that you're in need of money and they need to approve it because you'll invest it in something else like bitcoin, you'll get approve. It's much more likely that they'll decline that loan you're gonna ask them to do. 
August 02, 2023, 02:35:44 PM
there are threads such this in the past , and being mentioned sometimes and indeed , why need to borrow from a investment that you will never have an assurance and perfect time frame to gather profit?
though Investing is far different from Gambling yet these are two the same thing when talking about borrowing when you wanted to increase your money.
try not to get involved in something with multiple risk. borrowing is obligation to pay and investing is also obligation to wait.
so what will you do if Bitcoin did not bring you the amount you expect in certain time? how could you cover paying your borrowed money with interests?
This is the problem, because if you end up not getting it on time then you are going to end up getting worse and worse. It's not the type of situation where you are going to end up being that much in trouble, I am talking about getting to a point where it's not going to be easy at all, you will not make it back even after you lose it once. So that is why the best way to invest is to save some money aside.though Investing is far different from Gambling yet these are two the same thing when talking about borrowing when you wanted to increase your money.
try not to get involved in something with multiple risk. borrowing is obligation to pay and investing is also obligation to wait.
so what will you do if Bitcoin did not bring you the amount you expect in certain time? how could you cover paying your borrowed money with interests?
People are not living properly even with the money they have, let alone saving it, but always try to put some aside whenever you can and you should be able to save some aside, that way you would be able to actually do something that is better. I understand it's not going to be easy, but I hope it gets a bit easier by the end.
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August 02, 2023, 12:03:12 PM
You know that everyone cannot agree on one opinion; that's what makes us human. Some people think they can just get favours from some big risks that they take, but it's not always right for one to be in debt that they know will affect them. although it depends. There are cases where someone wanted to invest in Bitcoin but had no money at that very moment, but the price of Bitcoin was so low that he really needed to buy it at that moment, so he took a loan and invested in Bitcoin while he had a job he was doing, so he is gradually repaying his loan with his salary and not hoping to pay it back with the profit from Bitcoin. There's also another case where someone took a zero-interest loan from a family relative and invested in Bitcoin.
Well, those two kinds of loans described above are not really bad ones, but having to take a interest loan where your hope of repayment is only based on the profit you get from your BTC investment is a bad risk. With such an investment, the person's mind will not even be at peace because the person will really be anticipating when to make a profit and repay his or her debt. The person will always keep track of the Bitcoin price and market volatility and might not really be feeling so happy any time the market is dropping.
Well, those two kinds of loans described above are not really bad ones, but having to take a interest loan where your hope of repayment is only based on the profit you get from your BTC investment is a bad risk. With such an investment, the person's mind will not even be at peace because the person will really be anticipating when to make a profit and repay his or her debt. The person will always keep track of the Bitcoin price and market volatility and might not really be feeling so happy any time the market is dropping.
August 02, 2023, 11:35:45 AM
The question is, is it bad to borrow? If you know for yourself that you are responsible for borrowing and paying, I see nothing wrong. Now, like the title said, is it really bad for you to buy bitcoin from debt?
If there were people who were doing that, I would have been one, because I couldn't buy bitcoin for 250$ in one shot I just borrowed and I just held the bitcoin in my wallet, but I did that because I had a lot expenses to do. And even so I did that I paid off my debt before my due date. And now the bitcoin that I owed the purchase that I was paid. This means that borrowing money is not bad, ...it only gets bad when you don't pay off your debt.
If there were people who were doing that, I would have been one, because I couldn't buy bitcoin for 250$ in one shot I just borrowed and I just held the bitcoin in my wallet, but I did that because I had a lot expenses to do. And even so I did that I paid off my debt before my due date. And now the bitcoin that I owed the purchase that I was paid. This means that borrowing money is not bad, ...it only gets bad when you don't pay off your debt.
Many people always consider borrowing money to be bad, we should stay away, but I agree with you. If everything is under our control, then borrowing money to invest in bitcoin is not entirely a bad thing. I have never borrowed money to invest in bitcoin, but I have also borrowed money for business, and the results are as I expected, not as bad as people are saying. There is no success without trade-offs, borrowing money is not bad if we have a perfect plan.
August 02, 2023, 11:16:13 AM
There are many negative factors caused by using borrowed money to invest in Bitcoin, this action is really not recommended. Don't push yourself too hard to invest in Bitcoin if you don't have capital, let you miss the best opportunity (according to each individual) to make a profit, maybe your prediction at that time could be wrong.
Start with small things like collecting money little by little to buy Bitcoin, you can accumulate a number of assets when you have extra money. Investing using your own capital is more comfortable than forcing yourself to borrow money from other parties.
Start with small things like collecting money little by little to buy Bitcoin, you can accumulate a number of assets when you have extra money. Investing using your own capital is more comfortable than forcing yourself to borrow money from other parties.
August 02, 2023, 11:08:57 AM
Good decision.
This is like one of the many times that we've seen people have this thought of borrowing money to invest in Bitcoin. It's not really a good idea to do such because if you've got spare money and you're able to invest in Bitcoin, that's the best thing to do.
But if you'll literally borrow money to do that and you don't have any other money left and you'll rely on it, that's such a terrible idea that you'll experience the worst from it.
We all want people to invest in Bitcoin but not with loan money.
This is like one of the many times that we've seen people have this thought of borrowing money to invest in Bitcoin. It's not really a good idea to do such because if you've got spare money and you're able to invest in Bitcoin, that's the best thing to do.
But if you'll literally borrow money to do that and you don't have any other money left and you'll rely on it, that's such a terrible idea that you'll experience the worst from it.
We all want people to invest in Bitcoin but not with loan money.
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