get a loan and reinvest it - page 3.

fadhilz123

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Quote from: el malagueno on March 19, 2021, 01:52:25 AM

Hello. I see different platform like nexo, blockifi, etc... that can borrow you crypto or stablecoin. I'm here to ask if you have a strategy for example you borrow btc with an interest rate of 6% and then you use it on defi with 8% APR. Thanks for helpful. Cool

Get a loan and reinvest it is not the best solution if you want to earn money in cryptocurrency, remember that crypto is fluctuating, if you choose the wrong asset then you will regret your decision. You should join in crypto using side funds, not loans or your main funds because this is so dangerous. Also, don't sell your real asset only for join in crypto

MCobian

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Quote from: dunfida on May 01, 2021, 05:29:16 PM

Quote from: Twinkledoe on May 01, 2021, 04:42:25 PM

Quote from: aoluain on May 01, 2021, 04:37:46 PM

Borrowing FIAT to buy Bitcoin can be extremely rewarding but it comes down to timing
and to whether you can pay the loan in the short to medium term.

I have done this twice last year, my idea was to "pre buy Bitcoin at a cheap price"

The timing was right because we were about to have the halving and were entering a bull cycle.

In february 2020 I was able to get the first loan and buy Bitcoin at around $10,000, I have
realised a 6x return on this and the loan is now paid.

You got lucky because bitcoin increases its price. But the OP is asking if he will borrow btc at a certain interest and invest it into a DeFI project with supposedly higher APR. I think, this one is very dangerous to take. Because you have no idea if that defi project will deliver their target APR. What if that particular DeFi is weak and haven't gotten the interest of crypto users? That APR will go down and you can't recover your losses.

This do certainly talks with some luck when you do make some loans for you to invest in bitcoin and able to repay those interest on specific time because not all would really
be having the same result or situation because the market is way too unpredictable.There's no way you can precisely tell thats why its risky to take some loans for you to
make out investment but if you can repay it without the need of those profits then go ahead .

Its a matter of risk and if it turns out to go along with your side then for sure you would really be happy in that case.Getting in as early of $10k is something remarkable.

I was among the unlucky ones, because I borrowed money from the bank to buy Bitcoin and altcoins in 2018. But until 2019 the crypto price had
not fully recovered and I was already having trouble paying my debt repayments. Finally, I had to sell my car to pay off the debt, since then I didn't
want to invest in crypto using borrowed money again. As you said, not everyone is lucky to be able to pay debt repayments, and also the crypto
market is difficult to predict. So it is very risky to invest using borrowed money, don't let my experience all of you experience it too.

dunfida

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Quote from: Twinkledoe on May 01, 2021, 04:42:25 PM

Quote from: aoluain on May 01, 2021, 04:37:46 PM

Borrowing FIAT to buy Bitcoin can be extremely rewarding but it comes down to timing
and to whether you can pay the loan in the short to medium term.

I have done this twice last year, my idea was to "pre buy Bitcoin at a cheap price"

The timing was right because we were about to have the halving and were entering a bull cycle.

In february 2020 I was able to get the first loan and buy Bitcoin at around $10,000, I have
realised a 6x return on this and the loan is now paid.

You got lucky because bitcoin increases its price. But the OP is asking if he will borrow btc at a certain interest and invest it into a DeFI project with supposedly higher APR. I think, this one is very dangerous to take. Because you have no idea if that defi project will deliver their target APR. What if that particular DeFi is weak and haven't gotten the interest of crypto users? That APR will go down and you can't recover your losses.

This do certainly talks with some luck when you do make some loans for you to invest in bitcoin and able to repay those interest on specific time because not all would really
be having the same result or situation because the market is way too unpredictable.There's no way you can precisely tell thats why its risky to take some loans for you to
make out investment but if you can repay it without the need of those profits then go ahead .

Its a matter of risk and if it turns out to go along with your side then for sure you would really be happy in that case.Getting in as early of $10k is something remarkable.

Twinkledoe

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Quote from: aoluain on May 01, 2021, 04:37:46 PM

Borrowing FIAT to buy Bitcoin can be extremely rewarding but it comes down to timing
and to whether you can pay the loan in the short to medium term.

I have done this twice last year, my idea was to "pre buy Bitcoin at a cheap price"

The timing was right because we were about to have the halving and were entering a bull cycle.

In february 2020 I was able to get the first loan and buy Bitcoin at around $10,000, I have
realised a 6x return on this and the loan is now paid.

You got lucky because bitcoin increases its price. But the OP is asking if he will borrow btc at a certain interest and invest it into a DeFI project with supposedly higher APR. I think, this one is very dangerous to take. Because you have no idea if that defi project will deliver their target APR. What if that particular DeFi is weak and haven't gotten the interest of crypto users? That APR will go down and you can't recover your losses.

aoluain

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Borrowing FIAT to buy Bitcoin can be extremely rewarding but it comes down to timing
and to whether you can pay the loan in the short to medium term.

I have done this twice last year, my idea was to "pre buy Bitcoin at a cheap price"

The timing was right because we were about to have the halving and were entering a bull cycle.

In february 2020 I was able to get the first loan and buy Bitcoin at around $10,000, I have
realised a 6x return on this and the loan is now paid.

AmoreJaz

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Quote from: Sithara007 on April 10, 2021, 11:30:06 PM

Quote from: franky1 on March 19, 2021, 02:09:54 AM

an asset last year may have rose by 8% but that does not mean it will do so every year

also. you might end up buying in at the assets 8% ATH and then it drops

meaning invest $1000.. it drops by 6% meaning at year end you get $940
but your bank wants $1060
yep you lost out on 10% having to pay $100 from your own income

Couldn't put it any better than this. And this is exactly why I never take loans to make investment. Even with mainstream assets such as equities, I have a policy of never making an investment from a loan. There were a few occasions where it was looking very attractive to make an investment in IPOs, and I couldn't do it because I was short of cash. I had the option of taking a loan, but went against the idea in the end. And most of the time, it worked for me pretty well.

wont also take a loan just to invest in a very risky environment. if you are thinking about investing in crypto projects, not advisable to me to get a loan and risk it. but when it comes to tangible assets like maybe real estate, i would go for it - taking a loan. but here in crypto, even if we say, you are a veteran wanted to invest in a new project, thats very precarious imo
ive seen a lot of crowdsourcing campaigns here, invested in some, but ended up losing. and again, am tempted but i need to keep my funds safe for now. hard to gamble in new projects.

STT

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The market is already containing alot of leverage that is the main danger to adding into that and hoping to sell before they do. I was reading a good article on funds trying to take advantage of premiums for a profit and it easily goes wrong and reverses. My base line is the basic case for BTC and utility it might offer to small users vs ongoing FIAT inflation, if thats not there I wouldn't believe in it especially as I think that backs up all other speculation and market action despite their size its the smallest elements that matter most.

https://decrypt.co/63779/grayscale-bitcoin-trust-traded-discount-nav-for-month

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Quote from: slapper on April 12, 2021, 08:05:02 AM

Quote from: Sithara007 on April 10, 2021, 11:30:06 PM

Quote from: franky1 on March 19, 2021, 02:09:54 AM

an asset last year may have rose by 8% but that does not mean it will do so every year

also. you might end up buying in at the assets 8% ATH and then it drops

meaning invest $1000.. it drops by 6% meaning at year end you get $940
but your bank wants $1060
yep you lost out on 10% having to pay $100 from your own income

Couldn't put it any better than this. And this is exactly why I never take loans to make investment. Even with mainstream assets such as equities, I have a policy of never making an investment from a loan. There were a few occasions where it was looking very attractive to make an investment in IPOs, and I couldn't do it because I was short of cash. I had the option of taking a loan, but went against the idea in the end. And most of the time, it worked for me pretty well.

Loaning is not always bad if you already have some funds in your pocket. For example, if you have around $1000 and you put them all in safe investment, for example, it is bitcoin or Ethereum, loaning in this circumstance will give you more funds to invest in another project. Take a loan as small as $300-400. There are many opportunities to generate outstanding profit. Just look at Binance coin, it has given investors more than 900% for investors who invested in the early of this year

Taking loan and investing will always profit, if the investment is made on the correct cryptocurrency. My choice is to have own fund in hands and then go for a loan. If you've got $1000 in hand go for another $1000 as loan. Now analyse and choose the right cryptocurrency for investment. The market is highly risk at times, so to minimize the loss we need to have little holdings apart from the investment amount. For this reason I prefer backing fund other than loan amount for investing.

slapper

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Quote from: Sithara007 on April 10, 2021, 11:30:06 PM

Quote from: franky1 on March 19, 2021, 02:09:54 AM

an asset last year may have rose by 8% but that does not mean it will do so every year

also. you might end up buying in at the assets 8% ATH and then it drops

meaning invest $1000.. it drops by 6% meaning at year end you get $940
but your bank wants $1060
yep you lost out on 10% having to pay $100 from your own income

Couldn't put it any better than this. And this is exactly why I never take loans to make investment. Even with mainstream assets such as equities, I have a policy of never making an investment from a loan. There were a few occasions where it was looking very attractive to make an investment in IPOs, and I couldn't do it because I was short of cash. I had the option of taking a loan, but went against the idea in the end. And most of the time, it worked for me pretty well.

Loaning is not always bad if you already have some funds in your pocket. For example, if you have around $1000 and you put them all in safe investment, for example, it is bitcoin or Ethereum, loaning in this circumstance will give you more funds to invest in another project. Take a loan as small as $300-400. There are many opportunities to generate outstanding profit. Just look at Binance coin, it has given investors more than 900% for investors who invested in the early of this year

beerlover

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Quote from: Sithara007 on April 10, 2021, 11:30:06 PM

Quote from: franky1 on March 19, 2021, 02:09:54 AM

an asset last year may have rose by 8% but that does not mean it will do so every year

also. you might end up buying in at the assets 8% ATH and then it drops

meaning invest $1000.. it drops by 6% meaning at year end you get $940
but your bank wants $1060
yep you lost out on 10% having to pay $100 from your own income

Couldn't put it any better than this. And this is exactly why I never take loans to make investment. Even with mainstream assets such as equities, I have a policy of never making an investment from a loan. There were a few occasions where it was looking very attractive to make an investment in IPOs, and I couldn't do it because I was short of cash. I had the option of taking a loan, but went against the idea in the end. And most of the time, it worked for me pretty well.

That is a problem if you can't afford it, but if you can afford it you are talking about a chance to make even more if you can hold and that only matters if it drops. So, this means if you buy a loan of 1000 and then it goes up to 2000 dollars then your bank wants 1060 and you made 940 dollars profit right? That is the good side of course and not the bad side.

However if you look at the other side, if you get 1000 loan and it goes to 940 dollars, you are going to lose money but it is easier to get a loan and pay that instead of saving money monthly when you get wage.

It means you could risk it, if you can only pay it back and that way maybe it will fail this year but next year it will double? Or maybe the year after that? It is an investment you made and you may or may not profit from it on the loan but at least you would get in right now right away instead of waiting a year and hoping that it will go down when you have enough money.

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Quote from: Sithara007 on April 10, 2021, 11:30:06 PM

Quote from: franky1 on March 19, 2021, 02:09:54 AM

an asset last year may have rose by 8% but that does not mean it will do so every year

also. you might end up buying in at the assets 8% ATH and then it drops

meaning invest $1000.. it drops by 6% meaning at year end you get $940
but your bank wants $1060
yep you lost out on 10% having to pay $100 from your own income

Couldn't put it any better than this. And this is exactly why I never take loans to make investment. Even with mainstream assets such as equities, I have a policy of never making an investment from a loan. There were a few occasions where it was looking very attractive to make an investment in IPOs, and I couldn't do it because I was short of cash. I had the option of taking a loan, but went against the idea in the end. And most of the time, it worked for me pretty well.

Matters with self control and not all people would really be having that kind of discipline in mind on following on what they had ruled on earlier.
If you dont like to put yourself into trouble then the best thing to do is not to take any loans, no matter how attractive the situation is for you to make out some investment.
You wouldnt know on what comes next unless if those funds is something that you can pay later on without relying on what you had invested.
You wont really be putting yourself into some sort of problem if you do have this kind of behavior.

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Quote from: Sithara007 on April 10, 2021, 11:30:06 PM

Even with mainstream assets such as equities, I have a policy of never making an investment from a loan. There were a few occasions where it was looking very attractive to make an investment in IPOs, and I couldn't do it because I was short of cash. I had the option of taking a loan, but went against the idea in the end.

I still couldn't get those people who go for loan to invest. Do they really believe that they can get 2x or more profits within 30 days so that they can close the loan or they plan to encash some of those investments to get ready for first installment of that loan? Because, loan must be a monthly commitment whereas bitcoin investments or any mainstream assets like gold also may not produce good returns so that we can be sure about repaying loan on time.

Bitcoin showed a good progress this year so far but we cannot be sure about it will be reaching these levels by the beginning of this year so that we could have gone for a loan to invest in bitcoin and to enjoy these levels of appreciation. So, it is fully risky one hence when we are dealing against unpredictable risk, it is always good to go with what we are having excessively in our hand.

Sithara007

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Quote from: franky1 on March 19, 2021, 02:09:54 AM

an asset last year may have rose by 8% but that does not mean it will do so every year

also. you might end up buying in at the assets 8% ATH and then it drops

meaning invest $1000.. it drops by 6% meaning at year end you get $940
but your bank wants $1060
yep you lost out on 10% having to pay $100 from your own income

Couldn't put it any better than this. And this is exactly why I never take loans to make investment. Even with mainstream assets such as equities, I have a policy of never making an investment from a loan. There were a few occasions where it was looking very attractive to make an investment in IPOs, and I couldn't do it because I was short of cash. I had the option of taking a loan, but went against the idea in the end. And most of the time, it worked for me pretty well.

bitgolden

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Quote from: STT on April 09, 2021, 07:31:22 PM

I confirm that introducing leverage into crypto usage is a bad idea for a limited indivual. If a company or fund wants to do this they can spread their declared losses over 6 years against any taxes and do far better in dealing with the loss over time but a person can easily get caught out by changes in volatility.
In simple terms think of it as getting in a rowing boat that hasnt been tied to shore, you will find yourself split impossibly and getting wet :p

Arbitrage is something hedge funds do, famously we had a billion dollar fund blow up on this basis in the late nineties. The inventor of that particular attempt made alot of money and then they lost it all and some more, they were Nobel prize winners. They werent wrong, they were unlucky and the market destroys people who dont respect it like a volcano pretty much. There is no free money

I like Jim Rickards for his discussion of natural events in free markets, historic precedent and extrapolation, he respects BTC as a form of cash which many others refuse to do so (or only changed their mind when profits came calling). I count him as one of the good guys to listen to in the big scheme of things, crypto isnt fractional reserve its part of why it goes up so severely.

That is the problem with investment as a regular person, a company could even show losses and not care about their crypto profits or losses because at worst they would be basically saying it is a loss on their taxes and that would make them richer. Think about it this way, there is a wall street company that made 1 billion dollars profit on their stocks, they pay taxes accordingly but if they also have 1 billion dollars loss on crypto they will pay zero taxes and that is why I think it is quite obvious that we are going to end up with a lot of companies who are getting into crypto since it would help them.

If they make a profit they make a profit, if they make a "loss" they still own those cryptos that they will profit later on and right now that helps for tax write off. That works very well for companies, what about regular people? We get none of that.

STT

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I confirm that introducing leverage into crypto usage is a bad idea for a limited indivual. If a company or fund wants to do this they can spread their declared losses over 6 years against any taxes and do far better in dealing with the loss over time but a person can easily get caught out by changes in volatility.
In simple terms think of it as getting in a rowing boat that hasnt been tied to shore, you will find yourself split impossibly and getting wet :p

Arbitrage is something hedge funds do, famously we had a billion dollar fund blow up on this basis in the late nineties. The inventor of that particular attempt made alot of money and then they lost it all and some more, they were Nobel prize winners. They werent wrong, they were unlucky and the market destroys people who dont respect it like a volcano pretty much. There is no free money

I like Jim Rickards for his discussion of natural events in free markets, historic precedent and extrapolation, he respects BTC as a form of cash which many others refuse to do so (or only changed their mind when profits came calling). I count him as one of the good guys to listen to in the big scheme of things, crypto isnt fractional reserve its part of why it goes up so severely.

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Quote from: el malagueno on March 19, 2021, 01:52:25 AM

Hello. I see different platform like nexo, blockifi, etc... that can borrow you crypto or stablecoin. I'm here to ask if you have a strategy for example you borrow btc with an interest rate of 6% and then you use it on defi with 8% APR. Thanks for helpful. Cool

Well, the intention is good but you neglect to see 6% interest rate is big enough that could give you some burden when in times of paying the loan. If you can find other platforms that can offer less, that will be fair unlike having this one. Will you have the capacity to pay for this on time?

I hope you'll be thinking this several times. You might be reading that most of us here are not in favor of committing loans just for trading or for investment it is just because we can never have the assurance in crypto. The volatility will affect your profit and that we can't guarantee that we can be profitable all the time so we can make payment as what is the promise.

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Quote from: ?? on ??

Quote from: chikading2016 on April 08, 2021, 10:34:02 PM

Quote from: el malagueno on March 19, 2021, 01:52:25 AM

Hello. I see different platform like nexo, blockifi, etc... that can borrow you crypto or stablecoin. I'm here to ask if you have a strategy for example you borrow btc with an interest rate of 6% and then you use it on defi with 8% APR. Thanks for helpful. Cool

Borrowing something that has an interest is really risky and it is not really advisable. If we are going to invest in crypto we need to study and see how it works because crypto is an investment that is risky because it is high on volatiliy.

No matter how well you plan it, there is always a risk in crypto investment. If you take a loan and unable to make money as planned, you will be in a very difficult situation where you might be in the loss in crypto and then have to pay the loan also. You can earn good too in crypto trading and easily replay the loan but before taking any step, you need to see both side of the picture and be ready for the worse.

Always go ahead when it comes to situation where you can possibly be ended up to because just like said there would be only those situations neither you would lose or would able to gain
for you to pay up those loans with interest but honestly taking up some loans for the sake of crypto investment is really a risky move to be done.Its better to find up some source
rather than on considering this step but if you are really eager to make this option then its up to your choice but remember always the risk so that you would be
prepared and able to face it up once it did happen but if it turns out that the market is on your favor then it would really be rewarding.

Dewi Aries

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Quote from: el malagueno on March 19, 2021, 01:52:25 AM

Hello. I see different platform like nexo, blockifi, etc... that can borrow you crypto or stablecoin. I'm here to ask if you have a strategy for example you borrow btc with an interest rate of 6% and then you use it on defi with 8% APR. Thanks for helpful. Cool

With crypto, or fiat, made investment with borrowed money is really bad idea. Maybe almost everyone's answer is same, not agree to do it. Because investment is risky, and not every investment will gain profit. It will make people more suffer if they lose, because they still must pay their loan.

LUCKMCFLY

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Quote from: chikading2016 on April 08, 2021, 10:34:02 PM

Quote from: el malagueno on March 19, 2021, 01:52:25 AM

Hello. I see different platform like nexo, blockifi, etc... that can borrow you crypto or stablecoin. I'm here to ask if you have a strategy for example you borrow btc with an interest rate of 6% and then you use it on defi with 8% APR. Thanks for helpful. Cool

Borrowing something that has an interest is really risky and it is not really advisable. If we are going to invest in crypto we need to study and see how it works because crypto is an investment that is risky because it is high on volatiliy.

This depends on what type of economy you live in, in a country with a fully inflationary economy it is best to borrow with the largest amount of local currency, there is no better business than that, because if you invest it in Bitcoin, the interest will be They pay only with the normal movement of Bitcoin, if the price of Bitcoin falls it is not much the problem because when the conversion is made to local currency the value of bitcoin will be much higher and in profit than that of the interest on the total debt As I say, this is ideal in an inflationary economy, in economies that are more stable, I think conditions change there.

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Quote from: el malagueno on March 19, 2021, 01:52:25 AM

Hello. I see different platform like nexo, blockifi, etc... that can borrow you crypto or stablecoin. I'm here to ask if you have a strategy for example you borrow btc with an interest rate of 6% and then you use it on defi with 8% APR. Thanks for helpful. Cool

Borrowing something that has an interest is really risky and it is not really advisable. If we are going to invest in crypto we need to study and see how it works because crypto is an investment that is risky because it is high on volatiliy.

Topic: get a loan and reinvest it - page 3. (Read 1392 times)