Topic: Borrowing money to invest in BTC ( My own past experience) - page 2. (Read 453 times)

Investing using personal money will also have psychological and depressive effects if we don't have crypto knowledge and don't understand fluctuating price movements and even choose the wrong coin to invest in, especially if investing is using money from co-workers even though the initial agreement he has trusted you to manage the investment, but one day he will ask him to return her money even though she knows that the assets in the portfolio have decreased. In conclusion, the initial deal will be betrayed if the economic conditions deteriorate so he asks for all his money back, so never manage investments from other people's money because it is very risky and it is also not recommended to invest in crypto.

Only when you are confident in your ability to return the money borrowed from someone can borrowing money be beneficial. Don't borrow money if you can't pay it back.

Your financial condition might change in an instant due to life circumstances. You may lay out a plan for how to pay back the borrowed funds, but something else could derail your repayment strategy. Since our financial intentions for the future are uncertain, it is advisable to prevent this situation by refraining from investing in crypto with borrowed funds.

I think borrow money for long term is a good move like 4,5 years which a gives you good returns and if not you will be able to pay back money for selling i suggest to invest whatever you afford its may be 20$ par month but the key is invest every month .

This is very lucky for you, borrowed money to invest in Bitcoin at a profit, paid the borrowed money and was able to profit from the investment of the borrowed funds.
Not everyone is able to make a quick profit. Borrowing money to invest is very risky, it is equivalent to investing money that you cannot lose. You should only use your own idle funds to invest and wait for the desired goal to be achieved.

Your investment experience may be 1 in 10 who successfully repay the loan from the profit earned from the loan. I don't want to follow in the footsteps of anyone who managed to profit from borrowed money, the risk of investing in crypto assets is volatility and we don't know whether we can make a profit or even lose because of FUD.

Investing from borrowed money can increase psychological problems if expectations do not match reality. When you can't get a profit due to very high fluctuations, it will even mess up investment management. Even though I often get offers from co-workers to use their money for investment, because in my opinion the offer is a risky activity, until now I have never even traded using other people's money. Even though he said he didn't really mind if the money ran out, I still refused because I felt responsible for the money.

It all comes to how knowledgeable you are in terms on how the market especially the crypto market is moving.  I will share my own personal experience because I also did the same thing.

Just a few months ago, I borrowed a small amount (around 350$) and the whole amount will be used to invest into good stocks. We agreed that we will be paying it monthly, and we don't have any problem paying it at all on a monthly basis because we can pay it. The good thing is that we had funds to be used to buy stocks at a cheaper price since we are in a bear market. I will just wait until the bear market ends and the bull market comes. The good thing as well is that the stocks that I bought pays dividends on a quarterly basis so regardless of what happen, I will still be paid thru dividends. If it goes down, I will just buy more.

There is nothing wrong borrowing money just to invest into different assets as long as you know when the good time is to buy it. The problem with some of the investors is that they are borrowing money because they've been FOMO'ed. They are afraid that they might be missing out thus, they will borrow money to buy it and most of the time, investors tend to lose money because of this. There is a risk yes but also take note that if you invested in a bear market and as long as you can pay that debt like I am then there's no problem with it. If you can borrow $10,000 as long as you can repay it and you bought at a bear market, then I guess there's no problem at all.

You have right moment when borrowing money and invest it in Bitcoin because price drop and you can repay loan on time after Bitcoin reach to higher price, I sure is not financial advice when using borrowing for investing in Bitcoin actually loan adopted with interest payment every months. I sure many people have doing this step actually they taking loan and used it for investing in Bitcoin.

Have another source income when using borrowing money for investing in Bitcoin actually have interest system, we can't expected with profitable every time entering in Bitcoin investment, when price drop have alternative way for paying loan interest without need to cut loss or selling Bitcoin in lower price.

You can repay the loan because you entered the crypto market in the right time, it must be very different if you entered it at the end of 2017 where the price of BTC and altcoins was high, and after that the market immediately entered a bearish period, It is very possible that you will experience stress.

Even you can make a profit and also repay the loan but profits will decrease if the loan has interest obligations, but that's a personal opinion and for me I won't borrow even though I understand how the market works because the pressure will be greater and will cause quite high stress.

'within range' and having other means to repay, these are keywords, I think people forget these two and get drowned.

Borrowing money that is small or an amount that you can afford to lose and you can just pay it to the lender easily without having a hard time finding that money again is good.
There are some lenders that offer interest and got some terms that you need to pay the amount of money you borrowed for a span of time, this is difficult.
So overall for me, borrowing money to invest is not good. Investment is risky, especially in cryptocurrency.

If you are receiving like $1000 as monthly salary and you know that you are not greedy and be willingly to return the money borrowed. If you know that bitcoin price will increase and you want to invest but having no money at that time and in haste about it. I do not see anything bad to borrow like $100 or $200 which you know you will still see in salary and pay back.

But the investment may be on the other way, if you think of the profit, you should also prepare for the worse. You should also know that borrowing money comes with high interest if not from family or friend. I mean if it is from bank or loaning company, the interest is always very huge.

from the story you tell, it looks like you borrowed money from relatives or friends who don't need the money in a short time. but for other people it's not easy, not everyone has friends or relatives who are willing to lend their money, so most people borrow from banks or moneylenders.
indeed we can't say that borrowing money to invest in bitcoin is 100% stupid but it comes back to each other's decisions, if you are really ready with the risk you will accept then do the loan to invest in bitcoin but if you are not ready to take the risk that you are likely to receive, don't do that loan.

It is always a high risk to borrow money, especially to use for something that is unpredictable. If you failed with the loan money on building farms, many people in this forum failed with the loan money for crypto investments. So, if it isn't for an urgent need, it is better to avoid borrowing money. We can try to collect/save money little by little. When the amount of money reaches the expected target, we can use the money for building farms, crypto investments, or any other purposes. There should be another way to collect money, try to avoid borrowing money.

We all have different occurrences in our past lives, I borrowed money to build a farm and it all came crashing down, I had to be careful with my decisions because later I found out that borrowing money to do anything in my life always ends badly, I stopped it and grow up step by step on my own.

I'm happy that it turned out fine for you. Even though you only borrowed a small amount of money, I'm highly against using money that you don't practically own. It's an unspoken rule not to use borrowed funds for investments, not just Bitcoin, for the same reason you wouldn't go to a casino with borrowed money. Things can quickly deteriorate, and you're screwed, especially if you have a bank loan and are paying interest. If something occurs and you're unable to make your payments on time, accrued interest will quickly accumulate, putting you in serious debt. If I remember correctly, a member here recently claimed that he took a loan of over $10.000 in order to buy bitcoin. This not only poses significant risks in the event that Bitcoin or the market crashes severely, but it also significantly reduces your APY, assuming everything goes as planned.

Luckily, Bitcoin's prices were much lower in 2017 and it was considered a great period for purchases, regardless of what your capital was, in which case it was small and even if it didn't go as planned, you wouldn't be in so much trouble, but it is still something to be avoided.

You are still said to be very lucky because at that time the market was good, meaning that borrowing can be returned quickly because at that time it was friendly to the bitcoin price so this could benefit from the loan, but we must know that it is a very big risk especially invested in Bitcoin whose price fluctuations are unpredictable because of what I found in several articles many people are trapped in this because they borrow money for investment while interest continues to rise because every month they have to be paid this which makes them become chaotic when the market which is not lucky means it is in bearish.

Borrowing must be in the calculation and you can control what must be invested correctly, even if it's in Bitcoin but the movement must be able to be analyzed correctly at least don't get trapped which makes you a heavy pressure who has to return the loan money with the time that is due , it must be reconsidered so I always avoid borrowing to invest in bitcoin because I know this is not a good way to make a profit just because of a loan.

Indeed, many large companies make loans but they know about the financial stability that will be used and this is not in bitcoin which cannot predict the price.

You never say a thing about how you borrow the money, this part matters too because I won't take a loan from a bank for example to invest in BTC, if it's from a family member or a friend who understands what type of a person I am then it's all good, even if loss happens they know I will pay back, still it depends on where you get the money and what's the payback time.

The time you borrowed money to invest on bitcoin 2017, was a good time to invest and that is why your enable to pay back quick at second quarter (Q2) of the year 2017, base on the bear market, that cryptocurrency market has been experience for few months now, has not recover, and is a very high risk to borrow to invest in bitcoin, as you said, accept is a long term holding before paying back.

You might as well have borrowed $150 to go to the casino. It wouldn't be much different, in fact, which is far from saying that it's a good system for making money.


I would apply this to borrow money in general, not just if you are doing it to invest in Bitcoin.

but in my opinion, nowadays if you invest with borrowed money, it is not very good or not good,
because if investing or trading in crypto especially, it is very risky and may have an impact on your psychology when you trade,
for example
- if the market goes down, there will be more panic, because it's borrowed money and if we don't make a profit or loss it will be a problem.

- in essence, it will be more difficult to focus.