Topic: Taking loan for investment can be life threatening (Read 929 times)

That's exactly the point, people should invest their money responsible and within their means. The risk of using borrowed money and trade above our means is too big compared to the limited upside we get. Borrowing money means we are bound to fixed interest payments to not default on our debt. Investing is usually the exact opposite of making a fixed repayment schedule. There is a lot of randomness in financial markets that can lead to unforseen losses or winnings. When having a profitable trading strategy there is. I need to increase the risk with leverage, we can just run our strategy for a longer period of time to make enough returns.

Investing in the crypto world and in the real world are two different things, that's the point.
Investing in the internet world, the risk is greater than investing in real things like gold etc.
For most people who invest in the crypto market, they start small first, for example: in a day, week or month invest according to their income to set aside money for investment, without loans.

Borrowing, it's the same anywhere, especially at the bank, you have to think about interest every month, coupled with the large bank interest, it makes anyone add a burden on their shoulders, for me, invest little by little according to the income you have.

Investing is encouraged, but forcing yourself into loans is discouraged.

But not all. There are people that get influenced by what they've seen, like those they follow on social media. It doesn't mean that the person you follow has a lot of followers and is very influential. If then give you financial advice, you will then follow them, thinking that you will make a profit on it. I remember before, a lot of influential people promoted some coins, and a lot of people bought them, but it turned out later on that the price was dump, and those investors haven't recovered.

I completely understand your concern about the situation with your uncle and his friend. It's always risky to invest in any asset, including cryptocurrencies, and it's especially concerning that your uncle took out a loan to invest in a market he doesn't understand.

If I were in your shoes, I would try to advise your uncle on the risk of investing in cryptocurrencies, especially meme coins and other projects that do not have a solid track record or strong fundamentals. I would recommend that he seek unbiased advice from a financial planner or advisor before investing any more money.

In Colombia there is a type of loan, and it is drop by drop, where every day you give the interest, and those who do not pay are sought out by people who have training in hostile treatment to intimidate them until they pay, and thus, that type of It is not good to take loans, less for crypto and you that depend on crypto to do it, however, a loan with payment facilities and with a good deal, it is very possible that good things will happen and a happy term will be reached, but that already depends Whatever the person, then I don't know if they have this type of loan in other countries.

That's a better case, but you know what ... most people that doing this are highly possible speculating, they are lured by how successful other people , thinking that he can do it as well while he never know the darkside of all of these investment thing.

Mostly clueless on what they are doing and as fir the result they get busted and confused.

Investing in cryptocurrencies with debt is one of the riskiest decisions in my opinion. No matter how many trusted coins you invest in cryptocurrency, once you lose it, you're out of debt. And here your uncle trusted his friend here even though your uncle is wrong but his friend is the most wrong. His friend has betrayed him. Your uncle should have consulted you since you were experienced in cryptocurrency here. I pray that your uncle does not lose. If he falls into loss, he has no speed but death in old age.

Its never been recommendable on doing such act or thing on where you are really putting yourself into huge trouble specially if you do rely with your crypto profits then you would really be putting  yourself at risks.
We know that this market doesnt assure on where it would be making up some movements which means that what if it wont really be making profits on the time you would be needing to pay up your loan?
Pretty sure you would be fucked up and something that you would really be putting yourself into great trouble, unless if you do have other income sources on which you could really make yourself
sustain despite of the market condition or whatever it would be.This is the importance on minding on what are your capacity when it comes to funding sustenance.

Right. Investing into cryptocurrency from a loan certainly increases the level of risk. You could have lose a lot  in the end especially if you invest on those coins who have no potentials to succeed. The reason why we should  only invest a small amount from our hard-earned money, and not from taking a loan. And for OP’s uncle, his way of trusting his friend has gone too far. In the end, he’ll be the one to suffer the consequences of his action. And most likely, even if his friend make some profits, I don’t think the amount of money from your OP’s uncle will still be return.

Thats taking a risk; those people who took out a loan for their business have a plan B, meaning if their business is not successful, they can still pay it off, or in the worst case scenario, they have collateral on it with which they can still pay it off. The problem right now is that if you take out a loan just to invest in bitcoin, you have no control over its price, meaning if the price drops, you have nothing to do with it, unlike in business where others will buy your business or investors will invest in you.

Taking a loan to invest in cryptocurrency is not advisable at first time because no certain assurance that this is what will happen in crypto industry.

 I will say your uncle have make  a mistake by trusting his friend about a business he doesn't know all about.i don't think your uncle may even have knowledge about cryptocurrency industry, if not he could have not just go ahead and pick a loan to invested cryptocurrency. As for me even it is someone's money that he/she can afford to lose, I will not abide by ideas of giving money to any friends to help to invest in crypto industry because it very hard nowadays to even trust even family members with money.the truth is that anything can happen and hardly human beings admit with others people mistakes.helping others to hold their cryptocurrency investment is what I will not like to do, the best can do is to help them with the knowledge.

It is better to avoid loans for investment. You may be encouraged by everyone while taking a loan but when the time comes to repay the loan you will not have those who encouraged you. You took a loan and invested everything went well but one time you will see that suddenly the person from whom you took the loan will apply pressure to you to repay his loan, what will you do if your investment is facing loss at that moment. Then you could not profit from the investment and you could repay your loan properly.

As long as you don't have enough money to invest, keep learning about investing, this education will help you a lot and when you have enough money to invest, use the education you have gained and invest where you will see success.

It is a two way thing,we can't just conclude its totally wrong,what if he takes the loan,and the Money brings profit for him,should we say it was bad for him to take the loan? everything in life involves risk,and if you are not ready to take risk,then you have a slim chance if survival as an individual.It is only those who are ready,and those who have determined that no matter what it takes them or cost them in life,they are definitely going to make it,it is those people that also go extra mile in working hard to ensure that they have a good and quality future.Life isn't a bed of roses,where we easlily get everything we want,it is full of turns and stones which are ready to make you talk at the end if the day.At the same time,I am not in support that loan for investmest is a good idea,but I'm also saying one can actually take it,and become successful as well.

Someone who want to invest in a business and he or she is not Financially stable, he may decide to take a loan which to me i think is a norml thing anyone else can think of but taking a loan to invest in bitcoin is not a welcome idea. Reason is because bitcoin investment is a long term investment and requires patient to hold for the long period.
In my own opinion and conclusion, taking loan to invest in crypto is a wrond thought.

I don't know how I feel with this one.

I mean investing into meme coins "ONLY" is very laughable already, but there's money involved, so I'm kind of sad, and scared at the same time for your uncle because he got tricked by his "trusted" friend. Well, I guess the best thing that your uncle can do is to pray like you said. Sometimes, people will only realize that they're wrong when the worst thing happened to him. Let him continue what he did. He doesn't listen to you right? Let him experience it the hard way. I'm not saying though that his decision is wrong because there is still a chance that he can make money if he withdraws that money, pay that loan and keep the profit, but with how you shared it to us, I guess it wasn't the case.

I always say this. Experience really is quite expensive (in price).

It's his problem, and not yours anymore.
Like you said, he doesn't listen to you. Why bother spending time convincing him that what he did was wrong when he isn't listening at you at first place. It's a concern yes, and it's life threatening considering that you said that he is old, and the amount that he borrowed is huge, but sometimes people need to experience the worst things in life in order for them to realize that what they did was wrong.

Any better idea? Just let him do what he wants to do.
What would've I done if I'm in your situation? Like you, I will take some time in convincing him, but if I felt that he really don't listen to me, then I'll just forget about it.

Not the really best idea but if we just wait until we save money from our salary, we are about to lose a great opportunity as well. I hereby do not encourage doing this but can't afford also to mess up those opportunities while we still have another option which is taking a loan. As long as we have invested in Bitcoin, we can assure you that our investment will grow and can able to pay back our loan. Besides, we also have salaries that can help to pay. But if we are buying new projects and put all together, we simply put ourselves to high risk and possible losses.

You should not take loan to inverse in the trading,because both the profit aind loss happen from the trading. When you trade with loan,you are forced to do of payment in terms of interest.After few years,the pump on your invested coin will happen.But you can’t hold the loan giver for few years.So it’s better to earn some money and trade or invested after the earnings.I had same experience during my beginning of investment ,after learning something.Its easy to master in trading of cryptocurrencies with the experience.It’s essential to understand the fundamentals of crypto investing and crypto currency trading.You need to understand the different between trading and investing.

You are right because trust easily can destroy the life of someone and it can also destroy the relationship. So I think that a person should first get knowledge by himself because there is nothing difficult everything can be possible if one work for it.

you uncle is old man so I think his experience will be more than us may be he knows his friend very well and may be it will be a profitable decision. I think that you should just tell your uncle about meme coins that they can be risky so instead of making investment in meme coins why he not chooses some super beneficial coins. Further decision will be made by your uncle because he understands well about his success.

I still don't get it why we someone will go and get a loan just for the purpose of using it for trading. Trading had shown me some experience that we should never in any condition go and get a loan for the purpose of trading and using the profits to pay back.
The question is that what if you get a loan thinking you are going to use it to trade and use the profits to pay back and the contrary happens. This can be a great setback and a broken experience for any trader that would ever think of getting a loan for trading.
Even to collect money for people and trade is very bad.

Some people have already make this mistake by considering taking a loan first before they have their own capital investment with them, this are the set of traders that rush into gambling and later rush out as well, if we are interested in trading bitcoin, we need to source for the money or earn bitcoin enough to the capacity we could afford when trading it, we trade because we want to make profits and this only comes when we properly have a good start and not to be in debt.