First of all, I'd invest what I can afford to risk. It doesn't sound like you can afford to risk that much considering it'll be borrowed money you probably are not sure of paying back.. By the way, I wonder what financial institution lends money without any sort of collateral, assurance or guarantee that borrowers will back. A secure source of income with sufficient pay would've lessen the risk abit for the lender and you.
Still I wouldn't invest everything in Bitcoin.
Topic: Taking a loan to buy Bitcoin? - page 12. (Read 4700 times)
It doesn't make sense according to me to buy bitcoin by taking a loan. I know you have confidence that bitcoin wouldn't fall, even fall you don't have a problem. The question is if you don't have a problem if fall then why not just buy whatever fund you have for your assets optimization? You may collect funds to buy bitcoin from the available source that you have currently from where you would back the lend amount in case of Bitcoin fall. I do not agree with any way to buy bitcoin in this situation with lend amount. Just remember what happened in 2017. Be patient and manage funds by yourself instead of taking a loan.
I think what we are seeing right now is a rocket that is launching. I want to get on this rocket and I think any minute it could be too late as there is already all kind of heat shooting out of the rocket. It is hard to get on at this time. So I am considering to take out a loan of say 20.000 Euros. It wouldn't kill me if it fails but I don't think it will fail. Even if it crashes it will come back 2 or 3 years later. And yes we might eventually end up seeing prices of $100M per Bitcoin or maybe $1B. I am saying this not so much because I think Bitcoin is a great invention. I am saying it because I think the Euro and the USD are currently collapsing. Now since Elon has gotten on others will get on. And eventually the government can not make Bitcoin illegal anymore because too many people are heavily invested.
Do you think taking out a loan makes any sense? The problem is that right now I can not do it because due to the lockdown my income is too low. I would have to wait for the lockdown to end. Then I can work night and day for a month so that I end up making like $7000 within a single month. With that I will easily get a loan of 20K maybe even 50K who knows?
Do you think it is worth it? This might be a once in a lifetime chance.
Do you think taking out a loan makes any sense? The problem is that right now I can not do it because due to the lockdown my income is too low. I would have to wait for the lockdown to end. Then I can work night and day for a month so that I end up making like $7000 within a single month. With that I will easily get a loan of 20K maybe even 50K who knows?
Do you think it is worth it? This might be a once in a lifetime chance.
I don’t think that a bank loan will lead you to financial independence, even if you donate all this money to invest in bitcoin. After all, the growth of bitcoin is very volatile and cannot be predicted, you can wait for a year to increase its price and the loan will remain.
I'm in the same position before.
But I am glad I didn't do it.
This could be addictive you know. When you start taking loans and then felt there is profit you might do it again until you are buried with it.
The same goes for when you think backward. You don't earn a profit so you take another loan and it will be a cycle of continuous debt.
I would not recommend that. I'd rather buy with my own savings even just for a decimal point of Bitcoin.
But I am glad I didn't do it.
This could be addictive you know. When you start taking loans and then felt there is profit you might do it again until you are buried with it.
The same goes for when you think backward. You don't earn a profit so you take another loan and it will be a cycle of continuous debt.
I would not recommend that. I'd rather buy with my own savings even just for a decimal point of Bitcoin.
I think what we are seeing right now is a rocket that is launching. I want to get on this rocket and I think any minute it could be too late as there is already all kind of heat shooting out of the rocket. It is hard to get on at this time. So I am considering to take out a loan of say 20.000 Euros. It wouldn't kill me if it fails but I don't think it will fail. Even if it crashes it will come back 2 or 3 years later. And yes we might eventually end up seeing prices of $100M per Bitcoin or maybe $1B. I am saying this not so much because I think Bitcoin is a great invention. I am saying it because I think the Euro and the USD are currently collapsing. Now since Elon has gotten on others will get on. And eventually the government can not make Bitcoin illegal anymore because too many people are heavily invested.
Do you think taking out a loan makes any sense? The problem is that right now I can not do it because due to the lockdown my income is too low. I would have to wait for the lockdown to end. Then I can work night and day for a month so that I end up making like $7000 within a single month. With that I will easily get a loan of 20K maybe even 50K who knows?
Do you think it is worth it? This might be a once in a lifetime chance.
Do you think taking out a loan makes any sense? The problem is that right now I can not do it because due to the lockdown my income is too low. I would have to wait for the lockdown to end. Then I can work night and day for a month so that I end up making like $7000 within a single month. With that I will easily get a loan of 20K maybe even 50K who knows?
Do you think it is worth it? This might be a once in a lifetime chance.
It looks like you are going to do whatever you want despite the fact that most of the opinions expressed are against you taking the loan.
However, I will give you mine. Instead of taking a loan, see how much would be the monthly payment of the loan you intend to take and buy bitcoin every month with those amounts. You will have much less risk, you will sleep more peacefully and in the long term it will be very, very profitable.
What I fear is that you want to win at roulette betting everything on a single number and that is a matter of (a lot of) luck, not strategy.
I personally do this during the bear market and now I'm happy that I made that decision before, but right now with the market condition, I think its too risky and remember that Bitcoin will not go up forever, expect the bear market to come in no time.
Here's a comment that aligns a little with what I was thinking. Taking a loan could be an advantage but given that the market has already undergone a pump the downtrend is banned to happen any moment now. If you take a loan you must also be prepared to lose it, so while you was suggesting a 20-50K loan, I would be careful with how much you take out.
Being in debt and out of money because of the market volatility will no be a fun situation to be in. You tend to forget that you should not invest more than you can afford to lose and from your post it doesn't seem like you can afford to lose.
I'd just be extremely careful and consider all the odds.
FOMO I see. Anyway, It still your call, if you can take the risk then why not. However, as much as possible I wouldn't recommend taking a loan just to invest with Bitcoin. Though the market is now currently showing a good track don't be overconfident with it because we never know what are those big investors thinking, they might be buying right now but do you know exactly when they will take profit. But just like what I've said it is still your call if you think you will be able to take profit then it will be worth a shot but if don't get ready for consequences. That is why there is a rule that you should only invest the amount that you can afford to lose.
While it definitely could work out in the end and that I think it's likely to do so, I definitely wouldn't risk the small chances of your plan failing.
Obviously a quick and easy NO for me. Why not just hustle today and earn as much money so you'd have more money to allocate into bitcoin? Taking the loan option is such a lazy and risky path to take.
Obviously a quick and easy NO for me. Why not just hustle today and earn as much money so you'd have more money to allocate into bitcoin? Taking the loan option is such a lazy and risky path to take.
Never trade/invest with the borrowed/loaned money and there's no exception, even if the chances of Bitcoin going down in price at this stage is minimal, you simply can not say there's zero chance and that means even 5% chance of going down could still happen and could practically ruin you financially.
Also one other thing>>> When the money you're investing/trading with is not yours and you have to give it back at some point, it could lead you to make irrational decision along the way, maybe bitcoin goes down for 10% one day and you all of a sudden start panic selling being scared of losing the money that wasn't yours in the first place, what all this means is that because you invested more than you can afford to lose there's more chance of not making the right decision at hard times(even if those are just small short-term dips in price).
Also one other thing>>> When the money you're investing/trading with is not yours and you have to give it back at some point, it could lead you to make irrational decision along the way, maybe bitcoin goes down for 10% one day and you all of a sudden start panic selling being scared of losing the money that wasn't yours in the first place, what all this means is that because you invested more than you can afford to lose there's more chance of not making the right decision at hard times(even if those are just small short-term dips in price).
@elmuchodingdong
That's a crazy idea to me.
Instead to borrow money with a loan and repay back $xxx per month, what about using your own money each month and buy bitcoins for $xxx using the dollar average cost principle? Even if the market continues to increase it shouldn't be a problem if you're so sure that it will go to the million.
At least if the market goes down you don't owe money to anyone and you don't put yourself "at-risk".
It may be tempting to borrow money but the risk/reward is too high. If you are in your twenties, working and living with your parents, you can get over it. But if you have a home and children, you may end up on the pavement. And it's something you don't want to.
At least that's something I would never do. It's like people taking a loan to buy a house and 10 years later they lose their job
That's a crazy idea to me.
Instead to borrow money with a loan and repay back $xxx per month, what about using your own money each month and buy bitcoins for $xxx using the dollar average cost principle? Even if the market continues to increase it shouldn't be a problem if you're so sure that it will go to the million.
At least if the market goes down you don't owe money to anyone and you don't put yourself "at-risk".
It may be tempting to borrow money but the risk/reward is too high. If you are in your twenties, working and living with your parents, you can get over it. But if you have a home and children, you may end up on the pavement. And it's something you don't want to.
At least that's something I would never do. It's like people taking a loan to buy a house and 10 years later they lose their job
I personally do this during the bear market and now I'm happy that I made that decision before, but right now with the market condition, I think its too risky and remember that Bitcoin will not go up forever, expect the bear market to come in no time.
Know the risk of taking loan, and make sure that you can still pay that loan even if Bitcoin didn't go the way you want it but if you still experiencing a financial problem right now, then I will not suggest to take loan, just take it easy and work for extra money so you can invest on bitcoin without having any loans.
Know the risk of taking loan, and make sure that you can still pay that loan even if Bitcoin didn't go the way you want it but if you still experiencing a financial problem right now, then I will not suggest to take loan, just take it easy and work for extra money so you can invest on bitcoin without having any loans.
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Do you think taking out a loan makes any sense? The problem is that right now I can not do it because due to the lockdown my income is too low. I would have to wait for the lockdown to end. Then I can work night and day for a month so that I end up making like $7000 within a single month. With that I will easily get a loan of 20K maybe even 50K who knows?
Do you think it is worth it? This might be a once in a lifetime chance.
You are certainly taking a high risk. There is no wrong with taking a loan for trading but see to it that you have any back-up resources to pay your loan once you fail in trading. You can't avoid losses in trading and if you only just rely on the profit that you may get from trading, that seems a burden to you. And that is really making no sense. Do you think taking out a loan makes any sense? The problem is that right now I can not do it because due to the lockdown my income is too low. I would have to wait for the lockdown to end. Then I can work night and day for a month so that I end up making like $7000 within a single month. With that I will easily get a loan of 20K maybe even 50K who knows?
Do you think it is worth it? This might be a once in a lifetime chance.
You better think about it now and try to listen to what we advise you. I'm not stopping you to take a loan but just be sure that it never compromises you in the future.
Even if it crashes it will come back 2 or 3 years later. And yes we might eventually end up seeing prices of $100M per Bitcoin or maybe $1B.
Then you're just delusional. There is not guarantee that Bitcoin holds its value. Personally, I believe that it could be worth more than the value currently but I'm still classifying it in the smallest proportion of my investments. In case you've forgot, loans generally comes with a certain level of interest.Do you think it is worth it? This might be a once in a lifetime chance.
No. If you don't have the means to repay the loan if all the money that you put into Bitcoin turns into zero the next moment (well, even if you do, how would you feel is you're suddenly in a debt of $20K?) , then you shouldn't do it. Cryptos in general are highly volatile, endangering yourself with higher than necessary risk is not advisable.
Better you have a safety net for your plans, else this is putting your one foot into the grave considering that loans from banks are really brutal if you do not meet their desired deadlines for your payment.
At this point in time, I'm compelled to say that you can go ahead and take out a loan to buy crypto. However, being sensible and rational about this, the risk involved in loaned amount to buy crypto is way higher compared to your actual money that you are okay with losing. There isn't any guarantee that the profits that you'll get in crypto will outperform the interest the bank imposes on the loan. Plus, if your job right now isn't paying sufficiently to cover for your expenses and your loan, then you'd just be placing yourself in a lot of stress.
Even I believes that taking out a loan has become justified now more than ever, given the amount of attention it gets from all fronts of the economy right now. It's a risk I would dare take, although one I would not suggest anyone to do knowing that I'm partly responsible if someone loses money because they heeded my advice.
At this point in time, I'm compelled to say that you can go ahead and take out a loan to buy crypto. However, being sensible and rational about this, the risk involved in loaned amount to buy crypto is way higher compared to your actual money that you are okay with losing. There isn't any guarantee that the profits that you'll get in crypto will outperform the interest the bank imposes on the loan. Plus, if your job right now isn't paying sufficiently to cover for your expenses and your loan, then you'd just be placing yourself in a lot of stress.
Even I believes that taking out a loan has become justified now more than ever, given the amount of attention it gets from all fronts of the economy right now. It's a risk I would dare take, although one I would not suggest anyone to do knowing that I'm partly responsible if someone loses money because they heeded my advice.
I do not have to read all about your post before I will tell you taking a loan is not necessary. But if you think you can gain from it, you can try but you can expect gain and lose, this will make it difficult for you. I will advice you not to take a loan. The bitcoin market and crypto market generally are volatility, loan is not recommended for it.
I think what we are seeing right now is a rocket that is launching. I want to get on this rocket and I think any minute it could be too late as there is already all kind of heat shooting out of the rocket. It is hard to get on at this time. So I am considering to take out a loan of say 20.000 Euros. It wouldn't kill me if it fails but I don't think it will fail. Even if it crashes it will come back 2 or 3 years later. And yes we might eventually end up seeing prices of $100M per Bitcoin or maybe $1B. I am saying this not so much because I think Bitcoin is a great invention. I am saying it because I think the Euro and the USD are currently collapsing. Now since Elon has gotten on others will get on. And eventually the government can not make Bitcoin illegal anymore because too many people are heavily invested.
Do you think taking out a loan makes any sense? The problem is that right now I can not do it because due to the lockdown my income is too low. I would have to wait for the lockdown to end. Then I can work night and day for a month so that I end up making like $7000 within a single month. With that I will easily get a loan of 20K maybe even 50K who knows?
Do you think it is worth it? This might be a once in a lifetime chance.
Do you think taking out a loan makes any sense? The problem is that right now I can not do it because due to the lockdown my income is too low. I would have to wait for the lockdown to end. Then I can work night and day for a month so that I end up making like $7000 within a single month. With that I will easily get a loan of 20K maybe even 50K who knows?
Do you think it is worth it? This might be a once in a lifetime chance.
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