Topic: Should I Get a Loan? - page 3. (Read 1019 times)

Do not trade with money that you cannot spare. A loan definitely falls under that category.

There is no telling when and if you will make the money back in order to pay the loan, but there is a certainty that the debt keeps piling on and growing bigger and bigger out of control.

I know expert traders who would not do this and I do not think you should either.

It is very wrong to take a loan to trade and taking a loan for trading Bitcoin can make you broke. You are also thinking about trading with leverage which is more risky, I do not know how experienced you are as a trader but just know that future trading is not for new traders that do not have any experience before. Instead of taking out a loan, my advice for you would be for you to think of other ways that you can raise the capital that you need to start trading and the capital must not be too big, you can start small and steadily grow your account to any figures that you wish to grow them to. When you have more money, you can then begin to take some high risks which then, you already have backup plans for when the trade does not favour you.

Depends on the financial situation of the OP, I generally would advise against going in debt in order to invest, the risk might be greater than the reward. The loan the OP is discussing about is $2,800, with a repayment of $3,400 within 8 months, which is $425 per month. It's a large amount of money, I don't know the OP's financial situation, but I'm not sure how feasible it is to pay such a hefty amount, buying Bitcoin isn't generating a steady source of income that can assist in the repayment of the loan.

I wouldn't do it personally, it sounds extremely risky and may leave you in debt, repaying $600 more than the loan in 8 months isn't a minor amount of money.

Do you even know about margin trading, which you are planning to take a loan and start, or are you just a newbie in trading? Seriously going for a loan doesn’t make sense, but since you will be paying back with your salary, then I don’t have any problem with that, because even if you lose all your money, then you will have to pay with your salary, and you will learn not to take a loan to trade, and if you end up being successful, then it’s fine. But when paying back your loan with your salary, hope it’s not going to affect you and your family members? Don’t allow other people to suffer just because of the mistake that you make.

The risk in margin trading is just too high, so if you are new to trading, then I will recommend you stay away from it and don’t even try to take a loan to start it, because you might end up losing everything, it’s better to trade spot rather than margin trading.

Nope!
That perfect repaying plan can work somewhere else if you are taking the loan for the crypto market to invest and repay after getting some profits keep in mind it's highly volatile, especially on a current level where sentiments are bullish and a peak of manipulations going on.

This market's manipulation will disturb you at peak level and will test your patience and I'm sure 80% of the people will get confused and under pressure they will suffer more financial losses.

One rule about borrowing is that you should have a perfect plan of repaying the loan before you even think of borrowing.  If you are only relying on the profits you're going to make from your trades to be able to settle your debts, then I'm afraid your decision is a very risky one. Trading bitcoin is not like trading commodities where you are somehow sure of getting either your money or the goods back, you are just speculating what may or may not happen. Why put yourself in such a tight corner? Instead of being in a hurry to start earning, hold on, work hard to raise capital where you can trade with a stable mind. If you insist on trading with borrowed funds, you will be giving yourself lots of expectations which may make you more anxious and desperate to make profits.

This is too much risky when you want to invest on Bitcoin or any others crypto coin then I don't think this is a good idea. crypto and bitcoin is highly volatile so you can loss after you bought some bitcoin or others crypto and also you can make profit but no one can granted you anything but you have to pay back your loan to bank with high interest. so what is your next plan if you loss your money what will you do then? you have the ability to play that loan without selling your bitcoin in loss ? if you have that ability then you can do this otherwise you shouldn't do this.

It will be a bad decision in my view, trading with the loan amount is not for everyone I'm not saying no one can do that but what I'm saying is that it puts an extra emotional burden on the mind.

We need to know that emotional control plays a critical role in efficient decision-making and for the rest you better know. Until or unless you are trained like a bot you cant trade with the fear of losing the amount and repaying the loan amount pressure.

I would definitely suggest against it, because you are going to start repaying it back. It says two months, plus if you end up being wrong the hurt will be bigger and you would have hard time. I am not saying it won't go up by the way, I think it will go up in two months and that's fine, you could just slowly pay it back with the profit as well, so it is not really a terrible idea in the sense that it won't go up, it is just that if you are wrong and if I am wrong and if all these investors are wrong, the return for you will be terrible and you will end up with a big trouble.

I would suggest not taking these risks, if you can repay that back without selling any bitcoin and do make that much from your salary, then consider it, otherwise don't.

This should have been done before Trump success in the election, by now you would have made enough profit to pay back your loan but here you asking when nobody knows exactly what the market will says by next year. Nobody can tell you exactly what Trump is going to do with the Bitcoin market whether his plan is going to be next year or a year after next year, it's all speculations which is why I will advice you strongly not to take any loan my friend.

All this math's you are doing, the market doesn't really care if you are using money meant for your health or not. It might not go as you might expected. If the bank can grant you loan, that means you have the means to earn. Kindly leave the idea of taking loan and use some part of your earning to be doing DCA(dollar cost average) on Bitcoin, with time you will have more Bitcoin and you don't have to worry about paying back any interest to anyone.

It's not a sin (as you say), but from a risk perspective it's very irresponsible, especially if the loss of that money could have direct consequences not only for the person who borrowed the same money, but also for the people in their family. The OP himself says the following:


Given that his entire venture is based on the political decisions of one man who is currently talking about territorial claims towards at least three different countries, the price of BTC could be anywhere between $50k and $150k in a month. Margin trading for (obviously) beginners in such conditions does not look promising at all.


Your money, your decisions - something like that would never occur to me, because gambling is something most people lose money at. Likewise, I wouldn't call gambling any kind of investment, for me it's just a type of entertainment and nothing more.

we don't have the same style of investing, and whatever they believe will be profitable is their choice. so as long as they’re not doing anything illegal, who are we to judge? The problem for some is they don’t succeed because they want to play it safe all the time, even with Bitcoin.

I admire CZ for his courage in selling his house for Bitcoin - not for any alleged illegal activities. But let’s not get sidetracked. We’re just having a simple discussion about borrowing money to trade. It’s not so dangerous if you’re confident you can pay the loan back, so why make it seem like it’s a sin to trade when borrowing money?

Personally, I sometimes borrow money to gamble, and I don’t think of myself as stupid. In fact, I like it because it’s taught me how to manage risks better. People may have different views on risk management, but at the end of the day, this is all investment. There are no guarantees, no matter where the funds come from. Let’s respect each other’s ideas here.



That’s on OP if he’s willing to sell his house, I can’t blame him if he sees an opportunity like CZ did. But personally, I wouldn’t recommend it, because I don’t want to be blamed if things don’t go as planned.  

Read the flow of discussion so you understand where I'm coming from.

That's a wrong question. OP is planning to borrow money from the bank, do you think bank will agree to lend him money if he does no have the capacity to pay?

I think comparing OP to CZ is lame. OP may borrow money to invest in bitcoin but does he have a plan to repay the debt if that investment fails? Does he have a stable job and income? Or is he just unemployed and wants to get rich by borrowing money to gamble? Meanwhile, even if CZ's bitcoin investment fails, we can be sure that he still has the ability to rebuild everything with his talent. He was able to create a market leading exchange in just a few short years, which shows what he can do.


Your comparison reminds me of the silly comparison many others make when they say Elon and Gate dropped out of college and both became billionaires, so they can do the same.  .

I am not against or considering borrowing money as a bad idea but we should at least consider our circumstances. If we have a job and income, we can confidently pay that amount without depending on investments, we can borrow. But if we are unemployed, lazy and just want to get rich quickly through leverage trading (gambling), borrowing money is really a bad idea.

@OP, most loans are betters off used to extend already existing business and not for starting a new business and even if you must take loan, it's not to invest it into volatile asset like Bitcoin. Although it depends on your risk tolerance and also the ability of you repaying the loan from your other income source if perhaps Bitcoin fails to give your the expected profits before the due date of that laon repayment.
If you don't have other means of repayment when your Bitcoin investment expectations are not met, then you should not take the loan, only invest with your own capital which you can afford at the moment.

Actually it's easy - if you can afford to pay back the loan this is not a problem, but it is a bad idea if you trade but the capital is from a loan, this will feel burdened on your own where you are targeted to pay off the debt from bitcoin trading.

Then I say this is not the right way that you do but a bad idea that most people avoid.
If necessary, just wait for the capital to be available, rather than borrowing from the bank, but maybe you have a different judgment then we will not force it which is clearly not recommended.

I can publicly call him an ordinary criminal who got rich by avoiding paying taxes all over the world, and (so far) has paid a huge fine and spent several months in prison. There is nothing positive about this man whom you and many others consider to be some kind of idol whose path should be followed - in which case, everyone should sell their houses and apartments and invest in BTC - the fact that 99% of these people will become homeless after that is probably not a problem worth discussing.

Borrowing money from a bank to trade with cryptocurrencies is a big risk for me, but if you think that the OP should follow the example of a great leader, why borrow money, let him sell his house or something else.

We have freedom of speech here, and just because you don’t agree with my reply, you’re calling it trolling? That doesn’t sound fair at all.

If you think borrowing money to trade is wrong and label people who do it as ignorant, then you’re essentially calling CZ, the founder of Binance, worse than ignorant. After all, he sold his house to invest in Bitcoin.

Just in case you haven’t read the story, maybe give it a look before jumping to conclusions.
CZ, CEO of Binance, sold his house and bought Bitcoin in 2014

Let’s keep the discussion balanced and respectful. 

Just because someone is willing to take the risk doesn't mean that it isn't a bad move or that we should encourage it.

We are here talking about a newbie (because if he was an experienced trader he would already have some money) who is so broke that he needs to take a $2.8k loan from bank in order to gamble his money away. Its exactly those kind of people who will come later and claim that bitcoin is a scam.

Anyway, this is my last reply to you as there's no point continuing this further since you are either completely ignorant or trolling.

That really depends on your perspective. If OP is willing to take a higher risk, then borrowing money from the bank isn’t necessarily a bad move.
If CZ sold his house to invest in Bitcoin, then why not consider borrowing a manageable amount that can be paid off through regular amortization?

You might think it’s a gamble, but isn’t life itself a gamble?


AGree? 

When you are taking a loan from bank to start the business you probably have some sort of a business plan, while in this case OP plans to use the money for gambling (aka marging trading) so those two are completely different things.


Lol.