Topic: Should I Get a Loan? - page 2. (Read 1019 times)

I wouldn't recommend taking a loan either unless the person in question is an expert who has been in the trading space and financial markets for a considerable amount of time, which makes them qualified to be able to use a loan in a good way and not waste it by trying to achieve something.

When someone is new in trading, they shouldn't think of borrowing money or taking out loans so that they can start their career in trading because what if it doesn't work out? You will get in serious trouble if you don't successfully manage the funds and lose it all without any success because you will still have to repay the loan, which you can't do if you don't have a stable source of income. Taking out new loans to repay the old ones is not a good way of managing loans.

So, a newbie in trading should only start getting involved financially if they know they have money that they can spare and can afford to lose so that even if their experiments don't work out, they should still not be in any trouble for it.

If you already have your own analysis and are confident in what you are doing, then you can take the loan. However, if your analysis is just "I believe" and you do not have the ability to pay the debt, then you should not take the loan. Because there are many cases where traders borrow money from banks or loan sharks with the belief that they can multiply it in a certain period of time, but what happens is that their analysis is wrong and instead they lose a lot and end up in debt. Think carefully about all your trading decisions, don't just be sure of something so you don't think rationally, especially here you are trying to trade in futures which is much riskier for you to MC if your analysis is completely wrong.

That is why we don't have to take a loan because we must pay the money to the lender. Not to mention with the interest that we need to pay which can makes the borrowed money become big. If we don't have an income, we will be difficult to pay the lend and the lender will not let us go without repayment. From this reality, we must realize that if we use our own money, that will be better because we don't have to repay the money and that can make us be careful deciding. We will always analyze first before we place an order buy or sell and make sure that we do the right so we will have a chance to make a profit.

If you can still pay the loan even though the trade does not go according to your analysis, then take out a loan okay for you, but if your ability to pay is entirely the result of trading, then it is highly recommended not to do so.
Trading with borrowed money will put you under great pressure because you have to make a profit, and pressure can make you the wrong decision.
One thing you must remember is to never be sure that your trade will always run smoothly.

I don't know of you can be able to pay back the loan even if the trade is not profitable but the truth is that it is not a good idea for you to take loan to trade because trading is unpredictable. Taking a loan for trading can also turn habit that can really affect one in trading when one is unable to make profit to pay back the loan. Having a source of income is very important in trading, with this when you trade with the amount that you can afford to lose even if the money that was used in trading didn't come out profitable you don't have to be so worried because you already have a source of income that you can depend on.

One thing you should avoid in crypto investment even though it is in bitcoin investment that we know is that future assets should not be in debt especially if you are a beginner, because it will be very risky. You also have to have a foresight, if your investment does not go as expected, you will lose your investment funds and the worst case you cannot repay the loan so you will be forced to liquidate other assets or take out another loan to pay off the investment debt. Of course this will be dangerous because debt is a promise that must be paid off, while the price of bitcoin cannot be predicted clearly, although the price of bitcoin is predicted to vary, but bitcoin still cannot be predicted accurately while you have to pay debt installments every month.

In addition, debt is more expensive because of the interest you might pay. Being in too much debt can damage your finances and burden your relationships with family and even friends. So if you want to invest, you should use your own money, besides that you can use the dca method to buy bitcoin.

The danger of debt is not only now, but for the future because once you have debt even if you are sure you can pay it, it is not good for the long term because in the future when you don't have money you will do the same thing.

Taking a loan makes you to be working for someone else because for every profit that you make, you will have to take out some percentage of the profits to repay parts of the loan untill you have finished paying all the loan before you can start making money to use to take care of yourselves. Loans makes us slave and not independent and that is why I do not like taking loans. There are some loans that can become bad luck for your business and you would not be capable of paying back. Trading with your own money is always the best advice and that should be what we all should be doing and not trying to make money faster than how we have learnt how to trade because it will fail us and we would not be successful at trading instead losing money constantly.

For the reasons you want to get financed I wouldn't advise because there is uncertainty in how price moves with cryptocurrencies.. and unfortunately from your writing you seem so convinced that price is going one way and that's up

And one of the reasons for price being bullish is Trump stepping in, but am thinking it will be small gains as the momentum seems to have slowed down...which leaves the probability being 50-50.

The key on here is that you should really be that always consider out that on the time that you do take a loan for whatever reason it would be then the main thing on here is that you do really have the capability on repaying it out without having no issues on which if you do find up some opportunity on investing into crypto on which we can say that the price is on the bottom or something that a good entry then you can always have this option but just like been said earlier that as long you arent that depending with your crypto profits on repaying up the loan then you should be just that fine. The main problem or issue for some people is that they do really make out their crypto profits on which its being used to repay up the loan on which this one isnt really that ideal at all.

Taking up some loan specially on seeing up some opportunities isnt really that a bad thing but make it sure that you do really know the risks involved on taking up such step.
There's really that negative and positive side of things at the moment that you do make out such decisions on which this one wont really be that simple at all. Always make use of your own common sense for making up such decisions because if you wont be that having such act then you will definitely be struggling if ever financial challenges comes and thats why you should really that know on what you are doing and not doing up some rush decisions without knowing up the risks.

Borrowing money for trading in cryptocurrency have risk but have right money management looks not problem for trading or investing by taking loan, firstly must take loan with most lower loan interested but OP take bigger risk have to pay much loan interested with short term period without one year and loan payment more than 20%. Looks difficult set up profitable in short term have to pay all loan payment and loan interest due bitcoin have reach most expensive price recently.

Better looking for another loan have small loan interest and get long term loan payment period, maybe under 10% is most effective for loan interested payment and get one year period before payment schedule. Its not difficult how to set up our profitable each month around 10% and can pay loan interest without much problem.

Basically, borrowing money to invest is already a risk because any investment has risks and it will be even riskier when we invest in highly volatile assets. And in this case, you will face the biggest risk because of using margin trading, and this is considered gambling, not investing.
So I don't think you will get any advice or consensus for your idea of ​​borrowing money because most people know it is too risky and no one wants to be blamed. So think carefully before making a decision.


I think if we are determined and serious about investing in bitcoin, there are many ways to achieve that goal, not necessarily borrowing money and investing by margin.

It is risky due to the fact that crypto trading is unpredictable but not really if the amount is still within his reach and then he still have other sources of income in case he fails to accumulate the re-payment amount in trading. I don't think your second advice there will work. If only he has it, there is a chance that he will not borrow money anymore. Or he will still? Because he is only taking advantage of the situation that he thinks once in a lifetime only to occur.

Six months for a loan repayment time is indeed looking so short but we must supposed to feel pressured here, not confident, especially if the repayment amount is also not small.

Don't rely on your payment gains with the bitcoin because at the first place, you don't know what will be the market price of the bitcoin for the following days or else you are well skilled trader beside on spot trading on that you can make good earnings that cater your loan, but if you are just focused with the spot trading using bitcoin as payment to your loan is not ideal, make other job or extra income you can use as a payment to bitcoin. As long as you can pay that debt there's nothing wrong with it.

Not a good idea considering that will took a 3x-5x margin which is too risky. Why do you need to take a loan and pay 600$ in 8 months while you can just buy Bitcoin slowly using DCA method every month or payday until 8 months with paying an interest rate.

The interest rate on loans adds pressure for more risky investments so I don’t recommend doing it esports if you will involved leverage on a loan money.

Bitcoin is not a pot of gold and shouldn't be seen as an investment Roi.
Second, the profitable way to invest in BTC is to never invest more than the amount you can afford to lose and if you can take a loan to invest in it when there's fear in the market you shouldn't invest now when there's greed which could lead to heavy outflow in the market because the major investors now  are organization, and institutional investors.

You maybe right on the first, but wrong on that part. ^^^

if you don't have the capacity to pay, they'll never give a loan that is equivalent to the value of asset you can put as colleteral.. it doesn make sense, how can they profit if they will dispose that? best practice is, they'll lend you money 50% or lower on the value of your collateral. I know that because I was a banker when I was still at the corporate world, but decided to get out on the rat race.

I don't know the level of your knowledge about trading, that you are thinking of taking a loan to trade. In fact, even if you have proper knowledge about trading, it is still not advisable to trade or invest with loaned money. In the cryptocurrency industry, anything can happen.

With that in mind, I advise you not to take a loan to trade or invest in Bitcoin. Instead, try to use a small amount of money you can afford to lose. That way, if anything happens, it won’t affect you as much.

The truth is, even those with good knowledge and great experience in trading sometimes incur losses. So, what confidence do you have that you will make the money and the interest from trading and repay within the time you promise the bank?Don’t try to play smart just because you see Bitcoin’s price rising now. Take fewer risks instead.

The bank will not care whether you can repay the debt or not, they will lend you money if you have assets with a value equivalent to the amount you need to borrow as collateral such as real estate, houses...


Also, from what OP said, we can see he is investing with money he can't afford to lose.
We don't know what OP's real situation is but if he doesn't have a plan and can't pay off his debt if his investments fail. Borrowing money to trade on margin is an extremely bad idea.

We should take cues from the experts, as they’re usually profitable in trading and follow proven strategies.

That said, these are more like safe standards, such as not borrowing money for trading. However, if OP decides to borrow, that’s entirely their choice. The risk is too high, but if they’re willing to take on high risk, then so be it. Borrowing money isn’t for everyone, as most of us are taught to minimize risk, following the basic principle of "invest what you can afford to lose." It’s similar to gambling in that sense.

If I were to borrow, though, I’d definitely use it for trading rather than gambling. At least with trading, there’s a chance to make calculated decisions.

Taking a loan have its risk so you must think about how if you can not make a profit monthly? The bank will ask you to repay the loan and if you can not do that, the bank will takes your collateral and left you behind with regretting.

You can continue trading with your own money so you will not think about the loan. You can focus to grow your profit because you will have a chance for that. When you are profit, you enjoy that profit without think about paying the loan.