Other Alternatives to Borrowing Money to Start Trading - page 2.

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Quote from: LogitechMouse on May 25, 2023, 03:31:17 AM

Quote from: alastantiger on May 20, 2023, 11:55:56 AM

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For newbies, compounding a $10 crypto trading investment means reinvesting the profit from your initial $10 capital in the same asset, such as bitcoin, to generate an increase in returns over time. So the $10 may compound over time, and you can get $100 in returns. It requires patience, just as trading does.

This is the best alternative to loaning money to kickstart your trading journey. What are the other alternatives you know?

For newbies?? Are you sure about that?
Do you think that newbies can make their 10$ into 100$? Do you think that they can make their initial capital x10 knowing that they're just newbies.

I'm not saying that newbies have the same experience, but when I was a newbie, I'm very prone to FOMO's, and pump and dumps. It's because I was a newbie at that time, and I don't know anything about technical analysis, or trade base on what are the latest news. I'm pretty sure that newbies can't do that easily, so don't daydream.

Well, trading for 10$ as a newbie is a good way to kickstart your trading journey already, but don't expect to have good results on that one. Most of the time, you will incur losses because of you lacking of experience. Is there any alternatives that I know? Maybe just work harder, earn more money, and use that money to trade. I don't recommend borrowing money just to trade as well unless that loan can be paid within a month or 2.

As a beginner, of course you need to be realistic and don't expect to make profits many times over,
this is crypto where the risk is very big and it takes a lot of experience to trade or invest,
it's better to focus on learning both knowledge and skills I think it's much more important.

LogitechMouse

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Quote from: alastantiger on May 20, 2023, 11:55:56 AM

~
For newbies, compounding a $10 crypto trading investment means reinvesting the profit from your initial $10 capital in the same asset, such as bitcoin, to generate an increase in returns over time. So the $10 may compound over time, and you can get $100 in returns. It requires patience, just as trading does.

This is the best alternative to loaning money to kickstart your trading journey. What are the other alternatives you know?

For newbies?? Are you sure about that?
Do you think that newbies can make their 10$ into 100$? Do you think that they can make their initial capital x10 knowing that they're just newbies.

I'm not saying that newbies have the same experience, but when I was a newbie, I'm very prone to FOMO's, and pump and dumps. It's because I was a newbie at that time, and I don't know anything about technical analysis, or trade base on what are the latest news. I'm pretty sure that newbies can't do that easily, so don't daydream.

Well, trading for 10$ as a newbie is a good way to kickstart your trading journey already, but don't expect to have good results on that one. Most of the time, you will incur losses because of you lacking of experience. Is there any alternatives that I know? Maybe just work harder, earn more money, and use that money to trade. I don't recommend borrowing money just to trade as well unless that loan can be paid within a month or 2.

Gallar

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Quote from: alastantiger on May 20, 2023, 11:55:56 AM

I am bringing this to the forum because someone asked me this question. I thought I should share and get more insights. According to the individual, while they were considering loaning about $100-$200 (money they know they can pay back within a month) to start their trading, someone advised them against it. Instead, they were told that all they need to do is to compound $10 instead.

For newbies, compounding a $10 crypto trading investment means reinvesting the profit from your initial $10 capital in the same asset, such as bitcoin, to generate an increase in returns over time. So the $10 may compound over time, and you can get $100 in returns. It requires patience, just as trading does.

This is the best alternative to loaning money to kickstart your trading journey. What are the other alternatives you know?

I actually don't agree with the borrowing system to start a trade, whether it's in crypto assets or trading in other assets. Although this opinion is certainly a lot of people who agree, but surely there are also people who do not agree with my opinion. Because borrowing money to trade in crypto, I'm sure many will agree, that this is very risky. Especially in crypto that is not bitcoin (altcoin), it will definitely be very high risk. But that doesn't mean that people who borrow money to trade in crypto will all end badly. Because not a few people do this and get benefits. But it's just, doing so comes with a much bigger risk, than trading with cold money. So borrowing money to invest in crypto, is actually an option, when you really don't have capital, or you want to increase your capital to trade crypto, and doing this is definitely not in a safe zone.

And if I am asked to choose, borrow money to increase capital, or trade with the money that I have, I will definitely choose to trade in crypto with sober capital money. Even though it takes a lot of patience to make a profit, the most important thing is that I'm in a safe zone.

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Quote from: ShowOff on May 24, 2023, 03:13:29 AM

Quote from: ethereumhunter on May 24, 2023, 01:18:22 AM

You should be aware of how good your ability to trade first before you decide to borrow money because many of us don't recommend it. If your skills in trading are good enough and you can analyze the market well, maybe borrowing money to trade will be a good decision so you can do it. But if not, you don't need to borrow money and should keep learning more about trading so that you have your skills ready the next time you want to borrow money. It will not make it difficult for you to make a profit to pay off the loan. And you already know that trading takes time because market conditions are not always good, especially now that market conditions are bearish.

Honestly avoiding loans for trading purposes is recommended, but someone can get loans for his investment plans if the timing is right. The problem is that everyone has to consider all the risks involved in investing, including security and price volatility, even if they can guarantee regular payments of their monthly income/salary, the risks must be considered.

The OP offers an option that looks like saving $10 over a period of time instead of making a $100 loan. I agree with his investment strategy which may also look the same as accumulating a budget and doing DCAing on the assets he chooses. This of course can avoid the risk of bad loans, but of course some of them can also get loans for their investments.

Most people don't consider the risk and just fill out a form to borrow the money so they can't see how much risk they can take later. And they should be able to manage their finances better than their salary because they can channel it to meet their living needs, while they can also prepare a certain amount of money to pay off the loan every month if they end up taking out a loan.

I prefer to do DCA by saving $10 in bitcoin instead of borrowing $100 because by doing so, we can reduce the risk of repaying the loan. Apart from that, he doesn't need to think about unnecessary loans and only focuses on raising more Bitcoin through that DCA.

Smartvirus

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Quote from: alastantiger on May 20, 2023, 11:55:56 AM

For newbies, compounding a $10 crypto trading investment means reinvesting the profit from your initial $10 capital in the same asset, such as bitcoin, to generate an increase in returns over time. So the $10 may compound over time, and you can get $100 in returns. It requires patience, just as trading does.

Compounding certainly feels like a good idea, not one of the worst but much more better than the taking a loan. Although, it makes certain requirements of you, that you be good in your trades enough to make the profits you need from a $10 trading capital to be the equivalent of your desired capital for starting trading. J don't know how that is doable but, you could try!
It would take a professional trader with minimal mistakes or trading errors to come by such mistake and many more than most would often have a trading capital more than a $100 to trade with.

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Quote from: Finestream on May 24, 2023, 05:59:28 PM

Quote from: Oshosondy on May 20, 2023, 12:03:47 PM

It is not easy to use $10 to make $100 in trading, even if you gain and include the profit in the next trading or position your opened. One of the disadvantages of this is that once there is loss, it would be more because the profit is included. I see this as a way to greediness and a way to lose.

If you want to trade, you have to gain and set aside your profit, or you can set aside some of your profit which you will not be using for trading.

You’re right with this. Compounding is not as easy as it is unlike OP says. It takes a lot of patience of waiting for positive outcome, and you could just end up ruining all your profits if you stick to this idea. Taking a loan on the other side is not advisable too, once your trades lose, then you will struggle for sure on how to pay for your loan. Good thing if you have a job to pay for it, but even so, I would not suggest new traders to take a loan and trade. Just save and when you’ve got enough funds that you can afford to lose, then you can start your luck in trading.

The thing here is that not all does have the patience for them to wait until they do have that enough funds for them trade on, because on the time that they would really be able to see on what are the benefits of doing trading then it would be that impossible that for you not to have that kind of interest kicking in or spark up and you would really be liking to test it right away without even trying out to remind yourself that it isnt something that not risky to deal off with but rather its the opposite. Compounding is really indeed possible but its true that this one would really be taking lots of time and effort before you could be able to reach out that certain state.

Borrowing or taking a loan is never been recommendable, as much as possible you should really be providing your own capital out of your earnings or income but of course it would really be just that a small amount
or something that you could afford to lose because trading isnt really a guaranteed profit on the time that you would engage because we know that trading is never been that so simple.

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Quote from: Oshosondy on May 20, 2023, 12:03:47 PM

It is not easy to use $10 to make $100 in trading, even if you gain and include the profit in the next trading or position your opened. One of the disadvantages of this is that once there is loss, it would be more because the profit is included. I see this as a way to greediness and a way to lose.

If you want to trade, you have to gain and set aside your profit, or you can set aside some of your profit which you will not be using for trading.

You’re right with this. Compounding is not as easy as it is unlike OP says. It takes a lot of patience of waiting for positive outcome, and you could just end up ruining all your profits if you stick to this idea. Taking a loan on the other side is not advisable too, once your trades lose, then you will struggle for sure on how to pay for your loan. Good thing if you have a job to pay for it, but even so, I would not suggest new traders to take a loan and trade. Just save and when you’ve got enough funds that you can afford to lose, then you can start your luck in trading.

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Quote from: alastantiger on May 20, 2023, 11:55:56 AM

I am bringing this to the forum because someone asked me this question. I thought I should share and get more insights. According to the individual, while they were considering loaning about $100-$200 (money they know they can pay back within a month) to start their trading, someone advised them against it.

I don’t know why some people think taking loan is an option in trading, I don’t recommend anyone that want to trade or invest in bitcoin to take loan, anything that will make you take loan because you want to invest or trade, then you should have another source of income incase if the trade goes side way and you lose money, you will be able to pay back the loan even if it’s going to affect you, but to be honest loan is not always an option in trading.

I don’t know if those people are new in cryptocurrency or they have stayed long, if they are new, then the shouldn’t go close to loan and they should just start trading with very little amount.

Quote from: alastantiger on May 20, 2023, 11:55:56 AM

For newbies, compounding a $10 crypto trading investment means reinvesting the profit from your initial $10 capital in the same asset, such as bitcoin, to generate an increase in returns over time. So the $10 may compound over time, and you can get $100 in returns. It requires patience, just as trading does.

When you are trading with $10, how long will it take you to make $100, am sure it won’t be a easy task, you have to multiply your money by 10 times, i don’t know how they will be able to accumulate that amount of money, because they might still end up losing from the $10 when they enter a trade. If you want to start learning how to trade with $10, it’s really nice but don’t expect any reasonable profit.

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Quote from: Mpamaegbu on May 23, 2023, 05:46:49 AM

Quote from: alastantiger on May 20, 2023, 11:55:56 AM

According to the individual, while they were considering loaning about $100-$200 (money they know they can pay back within a month) to start their trading, someone advised them against it.

I quite agree that's it's not a good idea to get a loan to fund trading. However, if the borrower has a mean to pay back that loan within a month, I would advise them to take the loan. It will fast track the trading process. I'm one who don't believe in keeping money in the bank while there's an investment to use it for. The idea of compounding $10 isn't a wise one, considering that the profit margin of such a small capital will be infinitesimal and may even take weeks of unnecessary stress trading to get up to $200. Given both scenarios, I will pick the loan option.

I have to agree with this too. Taking a loan is not wrong as long as you are capable to pay for it. However, do not take a loan that is above your income so that you can easily pay for it. And when it comes to trading, it’s always a wise one to start with small funds and when you are making significant profits already then you can increase your trading size. On one hand, i cannot agree with compounding as it’s susceptible to more losses including the profits that you will gain too, much better to take a loan than to resort into compounding.

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Quote from: lixer on May 24, 2023, 02:06:30 PM

Quote from: alastantiger on May 20, 2023, 11:55:56 AM

I am bringing this to the forum because someone asked me this question. I thought I should share and get more insights. According to the individual, while they were considering loaning about $100-$200 (money they know they can pay back within a month) to start their trading, someone advised them against it. Instead, they were told that all they need to do is to compound $10 instead.

For newbies, compounding a $10 crypto trading investment means reinvesting the profit from your initial $10 capital in the same asset, such as bitcoin, to generate an increase in returns over time. So the $10 may compound over time, and you can get $100 in returns. It requires patience, just as trading does.

Compounding will take a lot of time, you can't turn your $10 into $100 in just a month or so, it takes years for your invested amount to gain enough money so that you can use it for trading especially if your investment is as low as $10 or even $100. With trading, it is quicker, might be more risky but it at least makes the process quicker.

If someone knows that they can do trading efficiently and won't lose the money they are about to invest, taking a loan from a trusted person isn't a bad idea but only if they know that they can repay it on time.

Taking a loan wont really be that a bad thing as long you are really that responsible when it comes on repaying it on time. There are really lots of uses on which loan would be used or be intend to be applied on.

Some would really be put up on investment or some would really be buying out something on what you do like.Its true that if you do go for compounding then it would take a while but arent you that sensible that if
ever you do able to reach out that target you would considering yourself to be good already? This is what people should be targeting out on which they should really be seeing that they do really have a progress.
If you dont make yourself in a rush then you could really be on that good path on way of learning it. Dont make yourself in a rush because this is on where mistakes do usually happens on which if a certain
person do really make things in a rush.

When you do understand your situation on which you are aware as a noob then starting up with small amounts is better. Dont put it up all in a single point on which you are really that minding
already on making huge money out of those capital that you had put in.

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Quote from: alastantiger on May 20, 2023, 11:55:56 AM

I am bringing this to the forum because someone asked me this question. I thought I should share and get more insights. According to the individual, while they were considering loaning about $100-$200 (money they know they can pay back within a month) to start their trading, someone advised them against it. Instead, they were told that all they need to do is to compound $10 instead.

For newbies, compounding a $10 crypto trading investment means reinvesting the profit from your initial $10 capital in the same asset, such as bitcoin, to generate an increase in returns over time. So the $10 may compound over time, and you can get $100 in returns. It requires patience, just as trading does.

Compounding will take a lot of time, you can't turn your $10 into $100 in just a month or so, it takes years for your invested amount to gain enough money so that you can use it for trading especially if your investment is as low as $10 or even $100. With trading, it is quicker, might be more risky but it at least makes the process quicker.

If someone knows that they can do trading efficiently and won't lose the money they are about to invest, taking a loan from a trusted person isn't a bad idea but only if they know that they can repay it on time.

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Quote from: alastantiger on May 20, 2023, 11:55:56 AM

snip

This is the best alternative to loaning money to kickstart your trading journey. What are the other alternatives you know?

being able to earn $ 10 from a trading capital of $ 100 is actually quite good but is it that easy to get it?

anyway, even though it's not easy because there are many competitors, have you ever heard that participating in a trading contest on a crypto exchange can give you a little profit or capital for trading? ^{(imo one way/alternative to get gambling capital other than by borrowing the money)}

for newbies in trading, i suggest you don't use large capital yet + loan money from the bank, learn the basics first so you don't regret it.

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Quote from: TelolettOm on May 23, 2023, 07:48:49 PM

Quote from: alastantiger on May 20, 2023, 11:55:56 AM

I am bringing this to the forum because someone asked me this question. I thought I should share and get more insights. According to the individual, while they were considering loaning about $100-$200 (money they know they can pay back within a month) to start their trading, someone advised them against it. Instead, they were told that all they need to do is to compound $10 instead.

For newbies, compounding a $10 crypto trading investment means reinvesting the profit from your initial $10 capital in the same asset, such as bitcoin, to generate an increase in returns over time. So the $10 may compound over time, and you can get $100 in returns. It requires patience, just as trading does.

This is the best alternative to loaning money to kickstart your trading journey. What are the other alternatives you know?

As newbies, this is too risky to take this decision. Moreover, taking loans to start trading. These may be possible ways, but not wise decisions and risky ways to do. Trading for newbies may be something new, trading is not as easy as they think. they may only think about buying low and selling high every day. But, do they consider that market can probably change very easily? And how they will do if something happened and they cannot handle this?
this is too risky. if I were them, I will not take any loan to star trading, moroevr I am a newbie.

Trading is certainly not intended for beginners because of the big risks,
basically trading is so complex and not just about buying and selling,
so better focus and prepare myself I think it's much more important.

ShowOff

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Quote from: ethereumhunter on May 24, 2023, 01:18:22 AM

You should be aware of how good your ability to trade first before you decide to borrow money because many of us don't recommend it. If your skills in trading are good enough and you can analyze the market well, maybe borrowing money to trade will be a good decision so you can do it. But if not, you don't need to borrow money and should keep learning more about trading so that you have your skills ready the next time you want to borrow money. It will not make it difficult for you to make a profit to pay off the loan. And you already know that trading takes time because market conditions are not always good, especially now that market conditions are bearish.

Honestly avoiding loans for trading purposes is recommended, but someone can get loans for his investment plans if the timing is right. The problem is that everyone has to consider all the risks involved in investing, including security and price volatility, even if they can guarantee regular payments of their monthly income/salary, the risks must be considered.

The OP offers an option that looks like saving $10 over a period of time instead of making a $100 loan. I agree with his investment strategy which may also look the same as accumulating a budget and doing DCAing on the assets he chooses. This of course can avoid the risk of bad loans, but of course some of them can also get loans for their investments.

ethereumhunter

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You should be aware of how good your ability to trade first before you decide to borrow money because many of us don't recommend it. If your skills in trading are good enough and you can analyze the market well, maybe borrowing money to trade will be a good decision so you can do it. But if not, you don't need to borrow money and should keep learning more about trading so that you have your skills ready the next time you want to borrow money. It will not make it difficult for you to make a profit to pay off the loan. And you already know that trading takes time because market conditions are not always good, especially now that market conditions are bearish.

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Quote from: alastantiger on May 20, 2023, 11:55:56 AM

This is the best alternative to loaning money to kickstart your trading journey. What are the other alternatives you know?

Selling unproductive assets so that the results can be used as trading capital, I mean by unproductive assets are goods that are not really needed but the value if sold is enough to start trading, these goods can be electronic goods such as cell phones because in my community often someone has a cellphone more than one so selling it can not only be used for trading but also reduce expenses due to routine internet costs because actually one cellphone is enough, or other items that are not really needed and when sold we won't experience much loss.
But trading will always be risky because any capital used is very possible to lose, so traders have to realize that expecting $10 to $100 is not easy, not only requires time, but patience and the right strategy.

TelolettOm

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Quote from: alastantiger on May 20, 2023, 11:55:56 AM

I am bringing this to the forum because someone asked me this question. I thought I should share and get more insights. According to the individual, while they were considering loaning about $100-$200 (money they know they can pay back within a month) to start their trading, someone advised them against it. Instead, they were told that all they need to do is to compound $10 instead.

For newbies, compounding a $10 crypto trading investment means reinvesting the profit from your initial $10 capital in the same asset, such as bitcoin, to generate an increase in returns over time. So the $10 may compound over time, and you can get $100 in returns. It requires patience, just as trading does.

This is the best alternative to loaning money to kickstart your trading journey. What are the other alternatives you know?

As newbies, this is too risky to take this decision. Moreover, taking loans to start trading. These may be possible ways, but not wise decisions and risky ways to do. Trading for newbies may be something new, trading is not as easy as they think. they may only think about buying low and selling high every day. But, do they consider that market can probably change very easily? And how they will do if something happened and they cannot handle this?
this is too risky. if I were them, I will not take any loan to star trading, moroevr I am a newbie.

AmoreJaz

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Quote from: Bushdark on May 23, 2023, 06:48:09 PM

We should never in any way think of borrowing money from people just to satisfy our curiosity of getting into trade when we know that we don't have the fund to sustain usbif we finally lose the money that we are using to trade. Trading is very risky so we should not borrow money from any source and trade since the market so we cam trade when we can try and hustle and make some cash so we can use it to trade the market and make some funds that we can use to to trade bigger in the market without having any problems.

yes, it is better to start small and learn the steps. at least, when you lose that amount, it is yours. no one will be chasing after you. also, there's no guarantee that you can always get the profit that you want even if you borrowed the 100 bucks. you may likely end up losing it all. so how can you pay your debts? that's a very risky move. so while you are still earning money to fund your trading activities, just be contented to start from 10bucks. at least, aside from learning the tricks, you are at peace with yourself that you don't owe anybody.

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Quote from: Bushdark on May 23, 2023, 06:48:09 PM

We should never in any way think of borrowing money from people just to satisfy our curiosity of getting into trade when we know that we don't have the fund to sustain usbif we finally lose the money that we are using to trade. Trading is very risky so we should not borrow money from any source and trade since the market so we cam trade when we can try and hustle and make some cash so we can use it to trade the market and make some funds that we can use to to trade bigger in the market without having any problems.

That's the number one potential problem here, it will increase the risk.
When you borrow money to invest or trade, there's still risk with your investments and if your trades don't yield the expected returns, you'll still be liable to repay the borrowed funds, potentially leading to financial strain or even losses. It seems like you will potentially hit the double edge sword if that happens.

Next will come the psychological pressure, trading with borrowed money can significantly increase the psychological pressure on traders.
Fear and anxiety about repayment obligations may could a barrier to your success and lead to impulsive or irrational trading decisions, which can further increase the potential for losses.

So OP was right, the best practice that you'll do is to buy Bitcoin in a DCA method.

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We should never in any way think of borrowing money from people just to satisfy our curiosity of getting into trade when we know that we don't have the fund to sustain usbif we finally lose the money that we are using to trade. Trading is very risky so we should not borrow money from any source and trade since the market so we cam trade when we can try and hustle and make some cash so we can use it to trade the market and make some funds that we can use to to trade bigger in the market without having any problems.

Topic: Other Alternatives to Borrowing Money to Start Trading - page 2. (Read 477 times)