Can I take a loan to invest in bitcoin? - page 19.

AicecreaME

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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?

You're correct.

Loan interest is fixed, while Bitcoin price is not. So it is really not advisable to take a loan for your friend to invest in Bitcoin since the price is very unpredictable. Even if he's going to use it for trading, I don't see it a very good idea unless he has enough experience that can back up his decision which makes him confident that he can make a lot of profits out of it so that he won't have sny problem paying up his loan.

Theones

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Quote from: DanWalker on February 10, 2023, 09:22:01 AM

Everyone has a different mindset, as long as they take the risk and have a job with a stable income, they can pay those loans even if their bitcoin investment fails, they can borrow money to invest. But I would call it stupid when they don't have a steady job and rely solely on that investment to pay off their debt or give them a rich life. It is true that if you want to succeed, you have to take risks, that's not wrong, but invest strategically, have a plan, don't gamble.

I am no expert in this thing but I have take loan once and invested it and I repent for what I did.
I think there is no point in doing so - one loose twice - one is loan and the then the debt you keep paying for no reason.
so I would not take loan since I am not good in finances.

jokers10

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Quote from: cryptosize on February 10, 2023, 05:24:47 AM

Again: you should ask people who take loans, not me.

If someone is 99,99% sure, he should not take a loan.

Don't ask me how is 100% possible, ask people who take loans, because I don't!

Sorry, it was your idea. We can read some stories in the topic about what reasons were used by those who took a loan for investing in crypto, no one said they were 100% sure. And you didn't say not to take a loan unless you 100% sure, you said to take it when you are. But anyway I see that you didn't really mean what you said, so okay, we can consider this discourse over.

Quote from: Ayers on February 10, 2023, 06:49:13 AM

I don't understand what he means either, but if you take out a loan with collateral, as far as I know, the loan term can be extended up to 3 years. This means we can pay the principal one time, but in those 3 years, we have to pay interest monthly or quarterly, interest must be paid during the term of the loan and principal can be paid on the last day of the loan term. The long-term loan package has a higher interest rate than the short-term loan package. If we do not have a job or a stable source of income, borrowing is extremely risky. In general, you should not borrow money to invest, just use idle money.

Seems that not everyone in the topic realizes what a loan could mean. Grin

Ludmilla_rose1995

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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?

even though your friend is a woman, I salute her intention to borrow money through a bank and invest all that money in bitcoin because not everyone wants to do something that is very risky like this. My advice is if he really wants to try investing in bitcoin, he should not use borrowed money, it's better to just sell unused items or collect money slowly, don't be greedy.

DanWalker

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Quote from: xSkylarx on February 09, 2023, 12:22:19 PM

Quote from: DanWalker on February 09, 2023, 11:10:15 AM

Quote from: uche6215 on February 09, 2023, 04:48:51 AM

Quote from: Wong Gendheng on February 08, 2023, 09:44:33 AM

In my country for taking loans at banks registered by the country being exposed to monthly interest around 2 to 6 percent per month, usually debt for vehicle loans is the highest interest, if we want to borrow money at the bank then in my opinion this is a very good thing because the potential for crypto is growing rapidly, I also plan to borrow money in the bank and I use it to renovate the house and the rest is about 25% I use for investment cryptocurrencies.

To be sincere I can't use or advice someone to use borrowed money to invest on Bitcoin. I know Bitcoin price is grow rapidly but it's not always growing sometime the price of Bitcoin reduceses. Imagine using $25k you borrow from a Fiat bank to invest on Bitcoin and the price of Bitcoin falls from $23k to $19k and the time to pay back the loan is almost near, what will you do? If you want to invest on Bitcoin you have to use your hard aimed money to invest so you won't get into Dept.

Me too, perhaps borrowing money to invest is considered one of the taboo rules I set for myself. I am willing to save, work more to save a little to have money to invest, and not impatiently borrow to invest, not only with bitcoin but with any form of venture capital. As an investment, besides the return, we should think about the risks we face, especially bitcoin, which is the most volatile and risky investment.
Honestly, I hope and believe that the future of bitcoin is very bright, but I have never been 100% sure that it will be and no one can say for sure.

But there are people who are willing to risk this and do this move so that they can earn profit, which I'm not going to say is the wrong move, but they have the will to do this and take the risk even though they know the consequences. But for myself, I would rather save or work overtime just to earn more money to save and invest in bitcoin than take a loan that, for sure, I will have a hard time paying off. Though investment always has a risk, if we don't take it, the possibilities of earning profit are zero, but the possibilities of losing your investment are also high.

Everyone has a different mindset, as long as they take the risk and have a job with a stable income, they can pay those loans even if their bitcoin investment fails, they can borrow money to invest. But I would call it stupid when they don't have a steady job and rely solely on that investment to pay off their debt or give them a rich life. It is true that if you want to succeed, you have to take risks, that's not wrong, but invest strategically, have a plan, don't gamble.

puloweh555

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Making loans to invest in crypto is not the right choice, it is highly not recommended to trade using borrowed money. You also know that crypto prices are very volatile and sometimes it goes up and down unreasonably. If you see a bullish market, and there is no cold money capital, you better let it go, don't force it. because if you are reckless it will harm yourself.

Because if you make a loan it will have a very negative psychological effect, and your financial management in the future if you experience a loss from the loan. Investing with cold money is very different from borrowed money, using cold money makes you mentally calmer than borrowed money.

Ayers

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Quote from: jokers10 on February 09, 2023, 11:29:01 PM

Quote from: Lubang Bawah on February 09, 2023, 11:12:09 PM

Wnfortunately we don't know if the current price is a bottom or there is still a chance to go up, we can say this because it has happened, but I think borrowing fiat is a good thing because the potential for bitcoin in the future is getting better, so what I want to say is borrowing money but with a long term payback period, for example 5 years or more.

Usually when you take a loan you have to start your payment nearly immediately and do so until a debt is fully repaid. So most of us would hardly find a way of borrowing something what can be returned in five years. If there was such an option it would be very attractive for lots of things and crypto was not even in the top of them. But I don't know any place where to get such a loan. Any hints? Cheesy

I don't understand what he means either, but if you take out a loan with collateral, as far as I know, the loan term can be extended up to 3 years. This means we can pay the principal one time, but in those 3 years, we have to pay interest monthly or quarterly, interest must be paid during the term of the loan and principal can be paid on the last day of the loan term. The long-term loan package has a higher interest rate than the short-term loan package. If we do not have a job or a stable source of income, borrowing is extremely risky. In general, you should not borrow money to invest, just use idle money.

Aanuoluwatofunmi

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When we talk about investment in general, it is not advisable to take a loan and use it to invest on anything no matter what condition sorround it, not to talk of taking loan to invest on a volatile digital currency like bitcoin, you know being a newbie, you're likely not to get adequate result as expected unlike the experience users, what you need is to source for a capital or earn the currency and safe it for an investment not to go and lend.

cryptosize

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Quote from: jokers10 on February 09, 2023, 07:41:51 PM

Quote from: cryptosize on February 09, 2023, 11:08:48 AM

Why do you ask me? Huh

Ask people who take loans for that purpose.

Because it is your advice in a topic with a question if someone can take a loan for investing in bitcoin. If you say yes in case of 100% certainty then I'm wonder how can that 100% certainty be reached. If you have no clue then how can you give such an advise? I suppose it is impossible so I want to warn people who might want to try to follow your advice. And I hope none is taken loan basing in such idea so I hardly can ask anyone who did. Grin

Again: you should ask people who take loans, not me.

If someone is 99,99% sure, he should not take a loan.

Don't ask me how is 100% possible, ask people who take loans, because I don't!

philipma1957

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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?

yes you can take a loan to invest in anything you want.

proper question is should you thank a loan.

the correct answer to that is each and every person has different circumstances and knowledge.

for some the answer is yes for some the answer is no for some the answer is maybe.

I took a 12000 cc loan in sept of 2022

I took a 3200 cc loan in dec of 2023.

the 12000 loan is paid . I made 740 usd on the loan instantly and now get 3 usd a day .

But most no one in the world has the circumstances I had to do that loan.

the 3200 loan is down to 1700.

I made 264 instantly and it earns me 6 a day. I have until feb 2024 to pay this loan.

both loans are interest free.

The investment was in btc mining gear.

but for this to work you need really good credit.

you need a cc offer for a new card
say it give 1 year to 15 months no interest.
and it gives a bonus of 200 or maybe 500 bucks with a large buy.

also you can not do it often maybe one ot two loans a year.

MiF

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Taking loan to invest into bitcoin or any other types of crypto coin is risky, that was a very risky idea, we know already that in crypto there is always a sudden change in price or status of every coin so the investment is not safe at all i didn't advised everyone to get a lone and invest into crypto.

jokers10

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Quote from: Lubang Bawah on February 09, 2023, 11:12:09 PM

Wnfortunately we don't know if the current price is a bottom or there is still a chance to go up, we can say this because it has happened, but I think borrowing fiat is a good thing because the potential for bitcoin in the future is getting better, so what I want to say is borrowing money but with a long term payback period, for example 5 years or more.

Usually when you take a loan you have to start your payment nearly immediately and do so until a debt is fully repaid. So most of us would hardly find a way of borrowing something what can be returned in five years. If there was such an option it would be very attractive for lots of things and crypto was not even in the top of them. But I don't know any place where to get such a loan. Any hints? Cheesy

Lubang Bawah

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Quote from: cryptosize on February 09, 2023, 08:32:44 AM

You should never take a fiat loan to buy Bitcoin (let alone altcoins), unless you are 100% sure you can buy the dip at the absolute bottom of the cycle.

Like buying $200 BTC in Jan 2015, or $3200 BTC in Dec 2018, or perhaps $15700 BTC in Nov 2022.

Wnfortunately we don't know if the current price is a bottom or there is still a chance to go up, we can say this because it has happened, but I think borrowing fiat is a good thing because the potential for bitcoin in the future is getting better, so what I want to say is borrowing money but with a long term payback period, for example 5 years or more.

jokers10

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Quote from: cryptosize on February 09, 2023, 11:08:48 AM

Why do you ask me? Huh

Ask people who take loans for that purpose.

Because it is your advice in a topic with a question if someone can take a loan for investing in bitcoin. If you say yes in case of 100% certainty then I'm wonder how can that 100% certainty be reached. If you have no clue then how can you give such an advise? I suppose it is impossible so I want to warn people who might want to try to follow your advice. And I hope none is taken loan basing in such idea so I hardly can ask anyone who did. Grin

xSkylarx

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Quote from: DanWalker on February 09, 2023, 11:10:15 AM

Quote from: uche6215 on February 09, 2023, 04:48:51 AM

Quote from: Wong Gendheng on February 08, 2023, 09:44:33 AM

In my country for taking loans at banks registered by the country being exposed to monthly interest around 2 to 6 percent per month, usually debt for vehicle loans is the highest interest, if we want to borrow money at the bank then in my opinion this is a very good thing because the potential for crypto is growing rapidly, I also plan to borrow money in the bank and I use it to renovate the house and the rest is about 25% I use for investment cryptocurrencies.

To be sincere I can't use or advice someone to use borrowed money to invest on Bitcoin. I know Bitcoin price is grow rapidly but it's not always growing sometime the price of Bitcoin reduceses. Imagine using $25k you borrow from a Fiat bank to invest on Bitcoin and the price of Bitcoin falls from $23k to $19k and the time to pay back the loan is almost near, what will you do? If you want to invest on Bitcoin you have to use your hard aimed money to invest so you won't get into Dept.

Me too, perhaps borrowing money to invest is considered one of the taboo rules I set for myself. I am willing to save, work more to save a little to have money to invest, and not impatiently borrow to invest, not only with bitcoin but with any form of venture capital. As an investment, besides the return, we should think about the risks we face, especially bitcoin, which is the most volatile and risky investment.
Honestly, I hope and believe that the future of bitcoin is very bright, but I have never been 100% sure that it will be and no one can say for sure.

But there are people who are willing to risk this and do this move so that they can earn profit, which I'm not going to say is the wrong move, but they have the will to do this and take the risk even though they know the consequences. But for myself, I would rather save or work overtime just to earn more money to save and invest in bitcoin than take a loan that, for sure, I will have a hard time paying off. Though investment always has a risk, if we don't take it, the possibilities of earning profit are zero, but the possibilities of losing your investment are also high.

DanWalker

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Quote from: uche6215 on February 09, 2023, 04:48:51 AM

Quote from: Wong Gendheng on February 08, 2023, 09:44:33 AM

In my country for taking loans at banks registered by the country being exposed to monthly interest around 2 to 6 percent per month, usually debt for vehicle loans is the highest interest, if we want to borrow money at the bank then in my opinion this is a very good thing because the potential for crypto is growing rapidly, I also plan to borrow money in the bank and I use it to renovate the house and the rest is about 25% I use for investment cryptocurrencies.

To be sincere I can't use or advice someone to use borrowed money to invest on Bitcoin. I know Bitcoin price is grow rapidly but it's not always growing sometime the price of Bitcoin reduceses. Imagine using $25k you borrow from a Fiat bank to invest on Bitcoin and the price of Bitcoin falls from $23k to $19k and the time to pay back the loan is almost near, what will you do? If you want to invest on Bitcoin you have to use your hard aimed money to invest so you won't get into Dept.

Me too, perhaps borrowing money to invest is considered one of the taboo rules I set for myself. I am willing to save, work more to save a little to have money to invest, and not impatiently borrow to invest, not only with bitcoin but with any form of venture capital. As an investment, besides the return, we should think about the risks we face, especially bitcoin, which is the most volatile and risky investment.
Honestly, I hope and believe that the future of bitcoin is very bright, but I have never been 100% sure that it will be and no one can say for sure.

cryptosize

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Quote from: jokers10 on February 09, 2023, 10:17:13 AM

Quote from: cryptosize on February 09, 2023, 08:32:44 AM

...
you are 100% sure you can buy the dip at the absolute bottom of the cycle.
...

And how can you be sure in that? If you are not a clairvoyant you have no real way of being sure in anything in crypto market: I've seen no one here who didn't make any mistake in predictions. You can guess one time and be wrong the next time. And even while we in majority believe that bitcoin will grow we don't really know how soon will it grow, what will be a path to ATH, etc. You can never be 100% sure.

Why do you ask me? Huh

Ask people who take loans for that purpose.

jokers10

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Quote from: cryptosize on February 09, 2023, 08:32:44 AM

...
you are 100% sure you can buy the dip at the absolute bottom of the cycle.
...

And how can you be sure in that? If you are not a clairvoyant you have no real way of being sure in anything in crypto market: I've seen no one here who didn't make any mistake in predictions. You can guess one time and be wrong the next time. And even while we in majority believe that bitcoin will grow we don't really know how soon will it grow, what will be a path to ATH, etc. You can never be 100% sure.

cryptosize

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You should never take a fiat loan to buy Bitcoin (let alone altcoins), unless you are 100% sure you can buy the dip at the absolute bottom of the cycle.

Like buying $200 BTC in Jan 2015, or $3200 BTC in Dec 2018, or perhaps $15700 BTC in Nov 2022.

Inwestour

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Quote from: Agbe on February 07, 2023, 03:09:12 PM

Yes if only you know how you can pay the without touching the bitcoin you have bought with the loan. That is if there is any other alternative to pay the loan then it is a good idea to take loan and invest in bitcoin. Because probably the present time you want to buy or invest on bitcoin, there is no money and you know that money will come in the short period of time, and bitcoin price is very low for you to invest at that time, mate I will advise you to collect the loan and invest then when the money come, you pay back your loan. And of there is charge remained after the repayment of the loan, you can still used the remaining cash to invest to add up the first ones.
But if you are planning to repay your loan from the investment then I will advise you not to take the loan. Because it might land you in a very big mess.

A bit strange logic, if there is another source from which a person makes a profit, then it is better to buy bitcoin from it right away. In any case, you will have to pay interest on the loan.

And the price has already risen well from the bottom, from the lowest point the price has already grown by more than 40%, which is a lot and there was no correction. Therefore, now is not the safest time to take a loan to buy bitcoin.

In addition, will play a role, at what interest you can take a loan, one thing if 3-5% per annum, and another thing if it is 30-50% per annum. I don't like the idea of taking out a loan to buy bitcoin, anything can happen, and person can end up without bitcoin at all.

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