Can I take a loan to invest in bitcoin? - page 11.

ichsan ardi

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Quote from: Phyna4 on January 22, 2023, 07:40:00 AM

"Can I take a loan to invest in bitcoin" this question was asked by a friend

My reply to her is this:
It is generally not advisable to take out a loan to purchase Bitcoin or any other cryptocurrency. Cryptocurrency markets are highly volatile and the value of a particular coin can fluctuate greatly in a short period of time. This means that the value of the coin you purchase with a loan could drop, making it difficult to repay the loan. It is important to do your own research and make sure you understand the risks before investing in any financial product, including Bitcoin.

What is your advice?

I suggest not to invest when you are ready because borrowing money to buy bitcoin is a very high risk thing, what's more, the cryptocurrency market is very volatile, so avoid things like that, buy bitcoin when you are ready and accept all the risks because there is no bitcoin guarantee will go up do your own research before buying.

GigaBit

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Those who are experienced in trading platforms and try to invest in trading business with loans. There are several things that an investor should carefully consider before making a loan. Because if the loan is taken, the cost increases. A specific amount of money is to be paid to the bank or any other institution as installments every month. Also how much assurance is there where you invest. As far as cryptocurrencies are concerned, Bitcoin is still about 60 percent below its all-time high, so if you had invested at that time, you would have been at a loss and would have had to pay extra. As a result, a person can lose from both sides. So try to invest with your own money in Bitcoin and what you can afford to lose.

jokers10

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Quote from: Theones on April 22, 2023, 06:53:38 PM

that is what is on my mind too.
Honest person should not take loan at first place. Because they are not used to it.
And they will take loan and will spend most of their life repenting for what they have done so far.

That's right. Let's look at it using this year situation: first bitcoin doubled its rate to USD, then it was growing a little. And when it went over $30k many started saying it is definitely a bull time, and next level will be at $33k. And what do we see now? Bitcoin lost about 10%. Well, if we hold some savings in it, then it is not a problem, we are just waiting until true bulls. But if there is a loan taken an $30k+ then what can a person feel when he sees that his assets are already down and no guarantees that it is a small correction before bulls. It could be so that it is a correction before flat. Or less likely bear return. I guess the one with a loan can be very nervous what can lead to health problems and regrets of course. Better not to risk that way.

Theones

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Quote from: jokers10 on April 18, 2023, 02:00:48 AM

Quote from: Latviand on April 17, 2023, 02:04:32 AM

Defaulting a loan is a disaster, most got lucky because they don't serve jail time because AFAIK, you can go to a small claims court if your borrower defaulted the loan. I totally agree that it's a follish game to do especially that no one can win. It's alright to borrow money to invest in bitcoin or any type of investment, I mean businesses do it all the time, and it's in billions if not millions but you have to understand that loan is a social contract that you need to fulfill at your end.

It is a disaster for honest people, and I know some who tried to cheat the system, but main thing is that none of them are happy with that, it is not a way. Some can be fugitive from justice for years, but what they got from not paying their debt is not enough for that, so they have less than in regular life.

But even to take a loan for too risky enterprise even if has less risks anyway is not good. Paying a debt when lose with investing can be hard both emotionally and financially.

that is what is on my mind too.
Honest person should not take loan at first place. Because they are not used to it.
And they will take loan and will spend most of their life repenting for what they have done so far.

Cryptock

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Quote from: Unbunplease on April 17, 2023, 06:44:51 PM

Quote from: MusaPk on April 17, 2023, 02:12:14 AM

There is no need to jump with huge money rather you can invest with small money also aka Dollar-Cost Averaging (DCA). The basic idea in DCA is to put small money regularly and that's a guaranteed strategy that will give you good return.

About DCA. The key question is when you start investing small money. If you do so when bitcoin is just starting to enter a bearish phase, you will only be losing for an indefinite period of time (a new bottom will be present). Yes, so far bitcoin has started its rise after a fall - but will it always be like that? And if you invest a small amount of money for two years - it will add up to quite a lot of money.

point well stated!
but if we have no money for the investment - then it would be hard to wait and invest
Sometimes one needs an emergency fund. That is so desperately needed and one cannot wait for that long.

Sayeds56

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Quote from: Cryptock on April 17, 2023, 04:31:09 PM

likewise I won't do it - I did it once in my life and I suffered a huge loss. Now I won't do it again in my life ever again.
I suffered loss and I suffered depression and my health suffered so much . . Life was a chaos when I did that.
Now I won't do it again.

I completely agree with your opinion that taking loan to invest in a risky asset can lead to dire consequences, in case your investment incurs losses and your income from other sources is not sufficient to cover the installments of loan. It is always advisable to invest from your own saving, no matter how low amount is available for investment.

Regularly investing in Bitcoin on major price dips with long term perspective has the potential to yield significant benefits.

tazmantasik

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Due loan is productive and have manage well controlling for investing in Bitcoin its seems not matter when taking loan and use as investment capital, almost the same with businessman take much loan and use for building their business and have capacity repaying loan on deadline days. Bigger risk always waiting for when getting loan invest in bitcoin, some time out predicting if bitcoin dropped drastically and should recovery back up money repaying loan if won't higher interest later. Probably not matter with loan and use for investing in bitcoin trough loan capacity under 80% of our assets. Don't take loan for investing in Bitcoin above 50% your assets because when bitcoin drop difficult looking for recovery money.

jokers10

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Quote from: Latviand on April 17, 2023, 02:04:32 AM

Defaulting a loan is a disaster, most got lucky because they don't serve jail time because AFAIK, you can go to a small claims court if your borrower defaulted the loan. I totally agree that it's a follish game to do especially that no one can win. It's alright to borrow money to invest in bitcoin or any type of investment, I mean businesses do it all the time, and it's in billions if not millions but you have to understand that loan is a social contract that you need to fulfill at your end.

It is a disaster for honest people, and I know some who tried to cheat the system, but main thing is that none of them are happy with that, it is not a way. Some can be fugitive from justice for years, but what they got from not paying their debt is not enough for that, so they have less than in regular life.

But even to take a loan for too risky enterprise even if has less risks anyway is not good. Paying a debt when lose with investing can be hard both emotionally and financially.

Uruhara

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Quote from: Unbunplease on April 17, 2023, 06:44:51 PM

Quote from: MusaPk on April 17, 2023, 02:12:14 AM

There is no need to jump with huge money rather you can invest with small money also aka Dollar-Cost Averaging (DCA). The basic idea in DCA is to put small money regularly and that's a guaranteed strategy that will give you good return.

About DCA. The key question is when you start investing small money. If you do so when bitcoin is just starting to enter a bearish phase, you will only be losing for an indefinite period of time (a new bottom will be present). Yes, so far bitcoin has started its rise after a fall - but will it always be like that? And if you invest a small amount of money for two years - it will add up to quite a lot of money.

Precisely DCA was carried out because it saw the market potential that would experience bearish. And with DCA we can get different things with every purchase. And since DCA is for long term investment then I don't think we should worry about the dips that occur during bear markets. because we will continue to repay regularly. maybe even we are lucky because we can get the price every time there is a decrease. and that would make our average purchases cheaper each time we buy from a lower price.

STT

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BTC has no yield so invest wont pay the cost of the leverage used to hold BTC. So first clue right away is the premise is incorrect, the standing bias is the cost of the trade will decay the value of holding the BTC on leverage. Small details might not seem important, BTC goes up its simple profit but unfortunately plans can go sideways when encountering reality.
For sure BTC is volatile, its a difficult trade to do at the best of times and I do not have certainty we are in any kind of solid bullish trend at the moment. Im optimistic but BTC has to be able to be held outside of its apparent dollar price for its general usage and leave the rest to traders to worry about. Alot of traders are professional who can write off losses, personal 'investors' cannot.

Unbunplease

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Quote from: MusaPk on April 17, 2023, 02:12:14 AM

There is no need to jump with huge money rather you can invest with small money also aka Dollar-Cost Averaging (DCA). The basic idea in DCA is to put small money regularly and that's a guaranteed strategy that will give you good return.

About DCA. The key question is when you start investing small money. If you do so when bitcoin is just starting to enter a bearish phase, you will only be losing for an indefinite period of time (a new bottom will be present). Yes, so far bitcoin has started its rise after a fall - but will it always be like that? And if you invest a small amount of money for two years - it will add up to quite a lot of money.

Cryptock

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Quote from: Gallar on April 15, 2023, 10:25:41 AM

Quote from: Phyna4 on January 22, 2023, 07:40:00 AM

"Can I take a loan to invest in bitcoin" this question was asked by a friend

My reply to her is this:
It is generally not advisable to take out a loan to purchase Bitcoin or any other cryptocurrency. Cryptocurrency markets are highly volatile and the value of a particular coin can fluctuate greatly in a short period of time. This means that the value of the coin you purchase with a loan could drop, making it difficult to repay the loan. It is important to do your own research and make sure you understand the risks before investing in any financial product, including Bitcoin.

What is your advice?

Personally, I would not dare to invest using borrowed money, let alone borrowing from a bank, because investing is very risky, not only in crypto, in other assets it is just as risky. Unless you are ready to take all the risks that must be faced, if the situation is like that maybe it's okay. But my advice, don't force investing, if you don't have money yet. Because if you are forced to invest, you will end up overwhelmed, because it is difficult to pay your monthly installments (if borrowing from a bank). Therefore, it's better to save first, if the money in savings is enough to invest, then right away you can start investing, but don't forget to read the terms and conditions of the investment service you are going to visit. If you want to invest in bitcoin, you must first research the history of bitcoin and how it works.

likewise I won't do it - I did it once in my life and I suffered a huge loss. Now I won't do it again in my life ever again.
I suffered loss and I suffered depression and my health suffered so much . . Life was a chaos when I did that.
Now I won't do it again.

MusaPk

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Quote from: Gallar on April 15, 2023, 10:25:41 AM

Personally, I would not dare to invest using borrowed money, let alone borrowing from a bank, because investing is very risky, not only in crypto, in other assets it is just as risky. Unless you are ready to take all the risks that must be faced, if the situation is like that maybe it's okay. But my advice, don't force investing, if you don't have money yet. Because if you are forced to invest, you will end up overwhelmed, because it is difficult to pay your monthly installments (if borrowing from a bank). Therefore, it's better to save first, if the money in savings is enough to invest, then right away you can start investing, but don't forget to read the terms and conditions of the investment service you are going to visit. If you want to invest in bitcoin, you must first research the history of bitcoin and how it works.

If you borrow money then you have to pay monthly/ quarterly installments and failure to do so results in penalty. Bitcoin price volatility works in both directions i.e. they can go up or down and there are equal chances that your money may get struck for indefinite period of time. There is no need to jump with huge money rather you can invest with small money also aka Dollar-Cost Averaging (DCA). The basic idea in DCA is to put small money regularly and that's a guaranteed strategy that will give you good return.

Latviand

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Quote from: jokers10 on April 17, 2023, 01:39:38 AM

Life is long and if someone thinks he is good in fooling others there'll be the one who is better in that and who will fool the first one. So it is better even not to start playing that game and if started then to stop. I saw some who started and none of them won from that. Taking a loan not to return it is a bad game and I'd not recommend it to anyone.

Defaulting a loan is a disaster, most got lucky because they don't serve jail time because AFAIK, you can go to a small claims court if your borrower defaulted the loan. I totally agree that it's a follish game to do especially that no one can win. It's alright to borrow money to invest in bitcoin or any type of investment, I mean businesses do it all the time, and it's in billions if not millions but you have to understand that loan is a social contract that you need to fulfill at your end.

jokers10

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Quote from: Theones on April 16, 2023, 06:23:12 PM

...
But if you don't care about debt on you and you are good at fooling people then you can take loan and also bear your losses - I did the experiment twice and I failed miserably

Life is long and if someone thinks he is good in fooling others there'll be the one who is better in that and who will fool the first one. So it is better even not to start playing that game and if started then to stop. I saw some who started and none of them won from that. Taking a loan not to return it is a bad game and I'd not recommend it to anyone.

Theones

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Quote from: BobK71 on April 15, 2023, 11:26:03 PM

Quote from: Phyna4 on January 22, 2023, 07:40:00 AM

"Can I take a loan to invest in bitcoin" this question was asked by a friend

My reply to her is this:
It is generally not advisable to take out a loan to purchase Bitcoin or any other cryptocurrency. Cryptocurrency markets are highly volatile and the value of a particular coin can fluctuate greatly in a short period of time. This means that the value of the coin you purchase with a loan could drop, making it difficult to repay the loan. It is important to do your own research and make sure you understand the risks before investing in any financial product, including Bitcoin.

What is your advice?

Investors take out loans to invest in Bitcoin or cryptocurrencies. But naturally if we think about the loan there is a certain amount of money to be repaid, which some times can be greatly reduced after investing in cryptocurrency. As a result, an investor loses the ability to repay that amount. A loan can be made if the investor has an alternative source of income to repay the loan. Many have lost and many have also got the opportunity to pay off the loan in a short period of time. I think whether the loan should be taken or not that depends on the financial situation of the investor.

i would second your suggestion - because when you wish to take the loan - its already a stress - if you are not a defaulter
But if you don't care about debt on you and you are good at fooling people then you can take loan and also bear your losses - I did the experiment twice and I failed miserably

jokers10

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Quote from: Gallar on April 15, 2023, 10:25:41 AM

...
Therefore, it's better to save first, if the money in savings is enough to invest, then right away you can start investing, but don't forget to read the terms and conditions of the investment service you are going to visit. If you want to invest in bitcoin, you must first research the history of bitcoin and how it works.

I can agree with you in general, but there's one thing: you can start investing at any time, doesn't matter how many money you have. Of course your profit or losses are based on how much did you invest but you can start even with several bucks.

Quote from: Theones on April 15, 2023, 06:57:51 PM

Never invest on the loan money unless you are sure to get profit at the end of the day

How can you be sure in anything? If someone lend money to their best friend their friend can be robbed and not return money, and there are many different reasons why any expectations on fast income can be false. You can never be sure in anything, everything is statistical and has more or less risks.

BobK71

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Quote from: Phyna4 on January 22, 2023, 07:40:00 AM

"Can I take a loan to invest in bitcoin" this question was asked by a friend

My reply to her is this:
It is generally not advisable to take out a loan to purchase Bitcoin or any other cryptocurrency. Cryptocurrency markets are highly volatile and the value of a particular coin can fluctuate greatly in a short period of time. This means that the value of the coin you purchase with a loan could drop, making it difficult to repay the loan. It is important to do your own research and make sure you understand the risks before investing in any financial product, including Bitcoin.

What is your advice?

Investors take out loans to invest in Bitcoin or cryptocurrencies. But naturally if we think about the loan there is a certain amount of money to be repaid, which some times can be greatly reduced after investing in cryptocurrency. As a result, an investor loses the ability to repay that amount. A loan can be made if the investor has an alternative source of income to repay the loan. Many have lost and many have also got the opportunity to pay off the loan in a short period of time. I think whether the loan should be taken or not that depends on the financial situation of the investor.

Iranus

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Quote from: Gallar on April 15, 2023, 10:25:41 AM

Quote from: Phyna4 on January 22, 2023, 07:40:00 AM

"Can I take a loan to invest in bitcoin" this question was asked by a friend

My reply to her is this:
It is generally not advisable to take out a loan to purchase Bitcoin or any other cryptocurrency. Cryptocurrency markets are highly volatile and the value of a particular coin can fluctuate greatly in a short period of time. This means that the value of the coin you purchase with a loan could drop, making it difficult to repay the loan. It is important to do your own research and make sure you understand the risks before investing in any financial product, including Bitcoin.

What is your advice?

Personally, I would not dare to invest using borrowed money, let alone borrowing from a bank, because investing is very risky, not only in crypto, in other assets it is just as risky. Unless you are ready to take all the risks that must be faced, if the situation is like that maybe it's okay. But my advice, don't force investing, if you don't have money yet. Because if you are forced to invest, you will end up overwhelmed, because it is difficult to pay your monthly installments (if borrowing from a bank). Therefore, it's better to save first, if the money in savings is enough to invest, then right away you can start investing, but don't forget to read the terms and conditions of the investment service you are going to visit. If you want to invest in bitcoin, you must first research the history of bitcoin and how it works.

I agree that it's not a good idea to borrow money to invest in bitcoin or a business, but if you have a steady source of income and plan to repay that loan, even if your business fails, then you can take a loan. Sometimes we need to take risks to be successful. Don't wait until you are qualified to start because opportunities will not wait for us.
And in case you don't have any other source of income and just dream of getting rich by borrowing money, you should get rid of that thought in the first place.

Theones

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Quote from: Gallar on April 15, 2023, 10:25:41 AM

Quote from: Phyna4 on January 22, 2023, 07:40:00 AM

"Can I take a loan to invest in bitcoin" this question was asked by a friend

My reply to her is this:
It is generally not advisable to take out a loan to purchase Bitcoin or any other cryptocurrency. Cryptocurrency markets are highly volatile and the value of a particular coin can fluctuate greatly in a short period of time. This means that the value of the coin you purchase with a loan could drop, making it difficult to repay the loan. It is important to do your own research and make sure you understand the risks before investing in any financial product, including Bitcoin.

What is your advice?

Personally, I would not dare to invest using borrowed money, let alone borrowing from a bank, because investing is very risky, not only in crypto, in other assets it is just as risky. Unless you are ready to take all the risks that must be faced, if the situation is like that maybe it's okay. But my advice, don't force investing, if you don't have money yet. Because if you are forced to invest, you will end up overwhelmed, because it is difficult to pay your monthly installments (if borrowing from a bank). Therefore, it's better to save first, if the money in savings is enough to invest, then right away you can start investing, but don't forget to read the terms and conditions of the investment service you are going to visit. If you want to invest in bitcoin, you must first research the history of bitcoin and how it works.

Never invest on the loan money unless you are sure to get profit at the end of the day

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