do not invest in crypto from loans. - page 6.

pooya87

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Quote from: Lida93 on January 28, 2023, 10:37:55 AM

Quote from: pooya87 on January 28, 2023, 12:04:18 AM

They always say "never invest what you can not afford to lose" for any market that you want to invest in. Loans and borrowed money is almost always money that people can not afford to lose even though some may still want to take bigger risks and try their luck in this market, these are the same people who are usually investing in altcoins (aka gambling) their money away.

I personally don't see anything bad in taking a loan to invest in crypto, particularly bitcoin. For it's just same as taking a loan to invest into normal conventional business which you're not still promised of making profits at the long run cause losses can take place too should business go wrong.
The only issue we should direct our point to is that for you to take a loan to invest into crypto make sure you're well skilled and strategic about the crypto industry not just blindly jumping in with a loan out of believe that by luck it might work. That's when it's bad.

There are a couple of problems with this way of thinking. First it depends heavily on market conditions. For example taking a loan and investing in bitcoin during 2017 when price was going up every month would have been a good risk to take but the same thing in 2022 would have ended badly, although an investor who is not investing borrowed money can hold but not someone who has to pay back the loan.

It is even worse when we are talking about the altcoin market. What you call "skilled:" is not defined there because we are facing a very manipulated market and no amount of skill can really be reliable in manipulated markets that are being pumped and dumped for no reason.

lionheart78

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Quote from: Rx009 on January 27, 2023, 11:46:47 PM

so in my opinion, don't invest from borrowed money because there will be potential losses, what do you think, do you agree with me?

I agree that we should avoid loan as much as possible especially when we are investing in a risky venture. It is better to invest our own money and lost than having our funds coming from a loan and got lost because not only we lost the initial capital, we need to pay for the interest too. Meaning if we invest and lost the loan money, we have to pay more amount due to the interest rate attached to the loan amount. This means we have lost our money twice already. One is from the investment capital and the other one is from paying interest on the loaned money.

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No you can not invest in crypto with borrowed money, it is not a get rich quick scheme. Invest in bitcoin or crypto for a long time, but if anyone borrowed money he/she has to pay interest every month. I don't see any way to repay the loan from the profit of crypto. Eventually, you end up in debt where you don't have a way to repay the loan.

It is not advisable but you can still loan and invest in cryptocurrency. There is no rule or regulation that forbids us to invest our loaned amount in cryptocurrency. It is that many financial experts and gurus do not advise this kind of approach.

If you have the job and be able to pay for the loaned amount in time without selling your investment then Iam ok with loaning and investing it on Bitcoin. In investment there is always a risk whether you own your money or not, but if you are good with risk management then by all means you can have a loan to fund your Bitcoin investment venture.

Quote from: sheenshane on January 28, 2023, 06:28:06 PM

Invest only what you can afford as always we advise it here.
Don't gamble in altcoins if you don't have proper research on them because it's a risk, don't believe in high risk which means high profit, no it's likely to lose your assets in that way.

Stick to Bitcoin if I were you.

Does this mean it is ok to have a loan and invest it in Bitcoin?

sheenshane

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Quote from: Rx009 on January 27, 2023, 11:46:47 PM

so in my opinion, don't invest from borrowed money because there will be potential losses, what do you think, do you agree with me?

Of course, I tend to agree with this, it seems like you've hit a double-edged sword.
First, paying the interest on your debt and two paying your losses by investing in altcoins. That's terrible if that will happen, I don't know how you'll recover the amount that you've borrowed and invest in altcoins. It seems you gambled in that way.

Invest only what you can afford as always we advise it here.
Don't gamble in altcoins if you don't have proper research on them because it's a risk, don't believe in high risk which means high profit, no it's likely to lose your assets in that way.

Stick to Bitcoin if I were you.

SmartCharpa

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Quote from: Rx009 on January 27, 2023, 11:46:47 PM

I heard that there were people who invested in crypto, and ended up buying crypto and their money from loans, but it's a shame they suffered losses because they invested in altcoins, but they lacked knowledge and lessons about crypto. but with this incident it made me think that investing in crypto should not result from loans because,,,
will make the mind uneasy, and always in the shadow of the deposit every month.

so in my opinion, don't invest from borrowed money because there will be potential losses, what do you think, do you agree with me?

You are undoubtedly correct. is very risky to invest with borrowed or loaned money because you could lose, and if you lose and are asked to repay the borrowed money by the time it is due, it will cause a big problem. If you are unable to repay the loan, you risk losing your home because the person who gave you the loan won't let you leave when it is time to pay it back. Therefore, investing money that you cannot afford to lose is a bad idea.

348Judah

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Quote from: Rx009 on January 27, 2023, 11:46:47 PM

I heard that there were people who invested in crypto, and ended up buying crypto and their money from loans, but it's a shame they suffered losses because they invested in altcoins, but they lacked knowledge and lessons about crypto. but with this incident it made me think that investing in crypto should not result from loans because,,,
will make the mind uneasy, and always in the shadow of the deposit every month

Note only on other cryptos you're not expected to take loan on, even if it's bitcoin don't dare yry take a loan to invest, the problem is that people got enticed from the adverts they receives from exchanges to invest on a particular crypto without telling them the risk attached if they do so, in this same vein we always encourage neebies to learn first before they started investing on anything and after which they have acquired the knowledge to a certain point we then recommend them to have a start with bitcoin, when bitcoin fall in orice it rises while some other cryptos dont, some cryptos were also a scam project introduced in form of crypto to investors, but all these can be avoided if you really know what you're doing and not working by what they are saying.

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Quote from: Rx009 on January 27, 2023, 11:46:47 PM

I heard that there were people who invested in crypto, and ended up buying crypto and their money from loans, but it's a shame they suffered losses because they invested in altcoins, but they lacked knowledge and lessons about crypto. but with this incident it made me think that investing in crypto should not result from loans because,,,
will make the mind uneasy, and always in the shadow of the deposit every month.

so in my opinion, don't invest from borrowed money because there will be potential losses, what do you think, do you agree with me?

until now i still have a business whose initial capital is the result of my loan ^{(of course this is not recommended)}, i was very reckless at that time because i was thinking about future prospects and thankfully so far i have been profitable and my debt has been paid off a few years ago. from what i'm saying is you have to be able to see the prospect of a crypto asset that you buy, if you buy bitcoin with borrowed money then your chances of losing are small ^{(see what el salvador has done)}, avoid buying altcoins whose price is rising because it only depends on the hype.

cydrix

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I agree with not investing in crypto from loans. Loans are borrowed money and it is very risky too use since it is not yours. What if you invested it and you loss? You don’t have the money to pay your loan which is a very bad thing. Somehow using loans to invest has a difference with your own money when investing, you’ll probably take care of it and expand your earning through the money you borrowed.

Bobrox

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How possibility with investor or businessmen take loan and use it for their start up capital, there are have two possibility with start up capital between loss or profit. I don't think problem when using loan for investing in cryptocurrency and he has competence how to manage with consistency earn profit and success repay back his loan.

There are not mistake when taking loan and keep worth for investing in cryptocurrency, but need experience and have more education for taking risk for investing in cryptocurrency, I don't think with my ideas is good advice financial because not recommended for the other investing in cryptocurrency from loans.

Sakanwa

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Initially I will say I agree with you, because getting loan form some were to invest in cypto is very not right.
Getting the loan is not the problem but do you understand what you are about to invest in!!
Haven't taken the loan you need to understand, study and learn how cypto works and how it's been carried out too.
It has once happened to me I borrowed a loan of about $500 to get in to cypto and I was not even educated about everything in it and I lost a hole money and it became am problem forme to pay back but God helped me and I was educated on it and I get to pay back the money with interest. It is never advisable to borrow loan to invest in cypto because you cannot predict what will become of us.

mk4

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Quote from: Lida93 on January 28, 2023, 10:37:55 AM

I personally don't see anything bad in taking a loan to invest in crypto, particularly bitcoin. For it's just same as taking a loan to invest into normal conventional business which you're not still promised of making profits at the long run cause losses can take place too should business go wrong.
The only issue we should direct our point to is that for you to take a loan to invest into crypto make sure you're well skilled and strategic about the crypto industry not just blindly jumping in with a loan out of believe that by luck it might work. That's when it's bad.

The difference is that you can get rekt regardless if your bitcoin/crypto thesis was right; due to a lot of factors(economy, regulations, FUD, etc). With a conventional business, while there are also factors that could be unforeseen, a huge majority of the results would totally depend on you and your performance.

Lida93

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Quote from: pooya87 on January 28, 2023, 12:04:18 AM

They always say "never invest what you can not afford to lose" for any market that you want to invest in. Loans and borrowed money is almost always money that people can not afford to lose even though some may still want to take bigger risks and try their luck in this market, these are the same people who are usually investing in altcoins (aka gambling) their money away.

I personally don't see anything bad in taking a loan to invest in crypto, particularly bitcoin. For it's just same as taking a loan to invest into normal conventional business which you're not still promised of making profits at the long run cause losses can take place too should business go wrong.
The only issue we should direct our point to is that for you to take a loan to invest into crypto make sure you're well skilled and strategic about the crypto industry not just blindly jumping in with a loan out of believe that by luck it might work. That's when it's bad.

PrivacyG

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I fully agree. The idea of borrowing money to invest is crazy. Get money you do not have to hope for a profit you may never get. Not only you get soaked up in debt, you may never see that money ever again and continue to be in debt for many years.

We should maybe add 'never invest money you do not have' next to the idea of never investing money you can't afford to lose.

-
Regards,
PrivacyG

Welsh

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Should go without saying, usually loans are fixed terms, and even if you think you know the market you're likely to get caught out eventually. It's a terrible idea, really. In fact, you shouldn't be using anything, but your own money to invest in anything. These days, people rely way too much on money that isn't them, and it's the perfect business strategy for the banks.

I'd say stick with the Bitcoin concepts, and stop relying on banks. That's one of the very fundamentals of Bitcoin, so why would you rely on the banks that are giving you the loans to get into Bitcoin. I know the answer it's speculative investors looking to earn a quick buck rather than actually thinking Bitcoin is worth something, which again is missing the point. My belief of Bitcoin comes from its core principles, and that's why I believe ultimately it'll continue to rise in value.

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Those people keep wanting to make an investment well it's on the reality even in the assets in real estate people make a loan just to make a business and wait for the profit and let the asset pay for their loans that's a wise debt but in crypto the market there's no assurance with it and the volatility does not always gives a good market profit that's why how it works and not ideal to make an investment that you cant afford to lose if you got in a timing that you have a good wave of the market pump good for you because you earn but if not and make a trade surely you get a lot in debt.

aysg76

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Quote from: pooya87 on January 28, 2023, 12:04:18 AM

They always say "never invest what you can not afford to lose" for any market that you want to invest in. Loans and borrowed money is almost always money that people can not afford to lose even though some may still want to take bigger risks and try their luck in this market, these are the same people who are usually investing in altcoins (aka gambling) their money away.

Exactly the people see that some altcoins are giving out good returns to people like their small investment are turning out to be big and that even in small time period they just get blinded by this and hastily invest in them in hope for earning easy profits.They get loans or borrow money from someone also but they completely ignore why the coin is rising and is there any utility deriving factors that are pushing this price movement as in reality it's just pump dump scheme under which mostly they earn is loss.Then they start blaming the whole market and calling it a Ponzi without even understanding it before as they invest only for greed.

But the trading rule says if you can't afford to loose that amount then you should not be putting it and this is not guaranteed return which can assure you that with profits you can pay back the loan so why opt for these ways? If you have in mind long term goals then stick with bitcoin that will give you returns overtime and some sort of guarantee but again invest what you are not afraid to loose.

HajiBagi

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Investing in Crypto from laom is very risky, but I don't think some people understand that, especially those who don't have a better job or work doing, because after you take a loan and invest without having any work doing that after the market doesn't go well or it's time to pay the money you can be able to pay without being treated badly or thinking about how to pay the bebt, so my opinion here is that taking loan to invest in Crypto for who doesn't have work like salary earners or business holders is not advisable.

LogitechMouse

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Quote from: Rx009 on January 27, 2023, 11:46:47 PM

so in my opinion, don't invest from borrowed money because there will be potential losses, what do you think, do you agree with me?

No and I have a different approach with regards to that one.

Having a loan and using that loan to buy cryptocurrency can still be a viable choice, but it depends on one thing. Time.
When did you buy cryptocurrency? If you borrowed money at the 2nd half of 2022 and invested all of it into Bitcoin, you're into profit right now. You can sell your Bitcoins right now, pay the loan that you get and then go home with the profits that you have. On the other hand, if you borrowed money during a bull market, your chances of getting profit from it will be low and you might put yourself in a difficult situation.

While most of people here don't like that strategy, I like to do it whenever we are in a bear market. You can buy crypto at a cheaper price and in the long run, it will give you profit. Well, of course I don't suggest doing this strategy if you don't have any job that will help you pay that loan. You need to have a monthly income still and you are willing to put a portion of that to pay your debt.

I tried it already last year. I got a loan here, I bought Bitcoin using that money and I'm paying that loan on a monthly basis. What's the result? I'm in a profit now because Bitcoin's price went up already. Overall, it will depend on when did you borrow the money.

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Quote from: Rx009 on January 27, 2023, 11:46:47 PM

so in my opinion, don't invest from borrowed money because there will be potential losses, what do you think, do you agree with me?

Borrowed money may not be a potential loss but there is probability that it can be a potential loss. If you borrow today, you will have to pay interest, the investment may not give you the profit needed to even pay the interest in short time, the investment can be of loss in a way the borrower will not be able to pay and this will result to problem as interest accumulate and the money to be paid become more. Investment can take months or years before substantial profit, the kind of money we can use to do this kind of investment should be the money that we have, not the one that we borrowed.

Crypt0Gore

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A loan fund isn't yours to begin with, how can someone develop the mind to use such fund investing into something that's highly volatile? The best money for taking such risks is your hard-earned money that you are willing to risk and if you lose it won't affect you mentally, people that take such risk with loan are newbies that have not seen how cruel things could get in crypto space some times, they will learn, the hard way.

Poker Player

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I would rather say don't invest in crypto, only in Bitcoin. Or at most 80% Bitcoins and the rest alts if you know what you are doing. Unless you are one of the alt creators or something like that.

Regarding investing with borrowed money, it's generally a bad idea, and the results have been seen in this cycle, where leverage has cascaded downward. And while I personally avoid debt like the plague, it has to be said that it can be reasonable for some people with sense to use debt to invest as long as it is with a good debt to equity ratio, and making sure they have a good cash flow to make the payments.

If you look at many companies they have a mix of debt and investment, the bad thing is to have too much debt in relation to your equity and/or your income, but some controlled debt gives you positive leverage.

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