Topic: Taking loan for investment can be life threatening - page 5. (Read 918 times)

Taking a loan to invest in a crypto is indeed risky because of the changing price conditions. Therefore, taking out a loan to invest in crypto is not recommended. So you better tell your uncle that he should be careful with his friend and immediately pay off the loan. That's also what I would suggest if I were in your position to get a bigger risk. But if your uncle doesn't want to listen to your advice, that's up to him and you can't do anything about it.

Borrowing funds and taking loans would be a big help if you're a skilled trader and you're knowledgeable about crypto investment and you know that you're able to pay your debt in time. But if you're just being influenced by a colleague or anyone who is not fully equipped with knowledge of the crypto industry, you are taking too much risk. One mistake that your uncle has committed is that he trusted his friend too much and maybe that person convinced him with too good to be true profit. He'll be lucky if that meme coin would boom but he might fail if that coin would turn into a bubble.

Taking loan is not good idea and I think that as the crypto is volatile so giving another person a loan is somewhat risky. I think that your uncle is not familiar with risk involved with crypto that's why he taking loan for investments. Taking loan and investment in meme coins both are risky so if a person involved in dual risk then failure will be his fate. May be the price goes up and he take profit but taking loan for doing risky work is not good idea and everyone should avoid it.

If the person receiving the budget is so trustworthy, then I think your uncle will have to be patient to get his return on investment. The main problem is, how will he pay off his loan if the investment goes bad or things don't go according to plan?

I would never consider a loan to invest, obviously to me it would only add a burden that shouldn't exist when I have a personal budget. There are many things that need to be considered when someone really wants to invest, one of which is not to make a loan. The investment risk is very large, especially if you have to entrust the budget to other people.

I feel alive when I take risks. Would I risk the apartment I live in? No. Would I risk my daily car? Maybe, dunno. Would I risk cash I've saved? YES

Would I take a loan and risk those money by investing them in cryptocurrencies? NO.

I'm going degen all the way with the money I've saved so that even if I lose I can still live a decent life. But I would never ever take a loan in order to invest the money either in crypto or stocks.

Your uncle has acted out of pity to help a friend and pity isn't enough to decide into crypto investment. I don't think there will be a solution suggestion for you because your have already invested it and if the friend is asked to resell, it may amount to losses. The best is to be optimistic that the investment is successful. He will need patient for the halving season to come and probably the friend can record some profit to return the loan but if the loan money wasn't paid back then your uncle can only lick his wound and learn from his decision and action.

Friend or relative or some sort of partner, I think taking loan without a security or just on the basis of a relation could be dangerous financial decision. What would your uncle do if his friend lost everything in the process? If that person is not getting loan for himself then there is something really wrong about the credit profile of his. I don’t know it could be less CIBIL score or something that’s why they might have taken loan in the name of friend. Anyways, that’s different procedure but whole point here, it’s stupid decision to take for investment and that too for someone else. I mean if someone is asking loan to me then I would only grant one in the case of emergency. Having this for crypto investment is complete non sense. Hope they get it back in time and everything settled for good.

Taking loan for investing is totally risky, because crypto currency is very unstable it is very difficult to predict the market and if you don't have patience  you will surely loss, but if you have a good job and you can pay the interest of the loan then it is not life threatening but still it is not good idea because you need to pay for the interest and maybe your earning will only go to the interest of your loan ang nothing will be left for you.

If you know, that I started investing no more than $50. After I was sure, within a few months I tried to go into debt. This debt is without addition when payback, so that in the end of the year I can return with the remaining profit. But if now I was given a debt opportunity, I wouldn't do that again. Even today I feel more comfortable with the capital I use. Because trading is not my main job.

So now after almost more than seven years of trading I prefer a comfortable position to adjust to my circumstances. But I respect others who have different opinions, it's natural. Don't make your investments make you suffer more with your finances.

People always think of the positive side of investment which is taking of profit, assuming they are also thinking of the other part it will have been better, it will reduce a lot of tension because nothing will be new to them. Taking loan for any investment talk less of crypto is a big threat to life, taking loan for investment is not bad thing but don't take 100% loan for investment. Moreover don't take loan to start your business, not all business people do survive for their first investment. Start with the little amount you have. As for me you have play your role very well.

First of all never take loan unless you have the ability to pay back even if you lost the loan which either you invested or failed in doing a business that is why taking loan is beneficial for rich people whereas for poor it will become a life time trap.

Taking loan for someone else is ultimate stupidity in my own, I will never do that unless under emergency situation but will close the loan in few months not keep paying for it every month.

This isn't really about cryptocurrency, its our financial management skill and what are do and don't s when it comes to money.

I disagree, taking a loan to invest in business carries risks as well, I know crypto investment is highly volatile but I am in the midst of people that have use loans to build companies and big businesses, it doesn't end well, when damages and losses comes it will shift your whole business into an imbalance state, if the money is your then its a lot better, you will still be in a cool mood, because the money is yours, no reason to panic or be in worries.

I am wondering how people walk around in peace when all they are built upon is on loan, I have seen banks taking over companies once the owner died, when the owner was alive no one knew he use bank loan to establish the business, now his children are in big poverty because the bank took everything from them.

The only better idea I have is to stop that uncle from trading by depending on others person. specially where your uncle is trading with loans.  And through this he is breaking the first rule of trading. So the Idea is only to stop him from this type of trading I think he gonna in trouble. It is really stupid to give that loan money to another person who is trading in meme coin.
I will firstly tell him about the horrors of investing in meme coin and I willshow him the scams of the previous history and will give him knowledge about the basic rules of trading, and then tell him if you still want to invest money in this way, do it.

Taking loans to invest in a business is nice, but taking loan for cryptocurrency investment is one thing i wouldn't do or advice any one to do. Becsuse cryptocurrency investment is a long term investment, so if you are taking a loan to invest in it, and maybe the time to pay back the loan may be in a month or two months time and your investment will take like a year before you profit from it. And am pretty sure that no one would take a loan to pay back another loan.
So cryptocurrency is not an investment you take a loan to start up.

I don’t think his friend will be able to return the amount, and if he’d do that, surely the amount is not complete already. So he must prepare himself and just face the consequences of his action. That’s what blind people get when they give easily their trust, so he must learn from that. Also, you should never stop from convincing your uncle not to take loans again, if he won’t listen to you, then that will be his problem definitely.

For me, such a situation looks unacceptable when one person borrows money himself in order to borrow it later to another person. Thus, your uncle violated one of the principles of trading by investing money that he cannot afford to lose, since it is money borrowed.

Basically there is nothing wrong with investing with borrowed money, but what you need to learn first is knowledge about investing so you are not too hasty in choosing the crypto you want to invest. Because if you lose it will be a double burden.

Investing in bitcoin is a wiser choice than Altcoins whose future we don't know. Bitcoin, without the slightest doubt, even if the price falls, there is still hope for it to rise again because bitcoin is the mother of all coins. I agree with you.

Hmm, It seems there are some things we don't know about this claim yet, maybe OP is not a friendly person? Maybe you aren't approachable that's why your uncle doesn't bother coming to you for some guidance.

There is another possibility where the uncle feels like he will drag himself through the mud by seeking advice from a much younger person than him, believe me, some older people do not like this.

Or maybe he doesn't like you for some reason, there are some jealous uncles in the world, who don't like seeing younger people prosper.

I really don't know if this is really dangerous or not but I know that there's consequences in investing crypto as it is not stable which means your crypto's value let's say $1000 and later it won't be $1000 anymore due to price decrease. Also be careful when someone offers you that they can double your funds which is true (it could happen) but that's what scammers do or the scheme they are using and the time it will take doesn't match at all. Let's say x2 the amount of funds you have in 24 hours which is impossible unless you are gambling if lucky.

He just falls prey to offers from his friend, who know what his friend has told him about how much money he will earn, i am hoping your uncle is talking about a real friend, not a newly made friend on Twitter or telegram who try to convince you to invest in crypto and earn double in 2 hours, etc., etc. As you mentioned he is old and it would be hard for him to repay his loans again then all i can say he has axed himself on his foot.

There are many factors that one should keep in mind that you only invest that money in newly coming meme coins that you do not care of, well i am wondering what the work of venture capitalists to invest in newly upcoming meme coins by understanding the potential it has and once those VCs made there profits they exist from it leaving others behind stuck in that meme based platform. But in your case, your uncle having no or less knowledge obviously false knowledge could be life-threatening for him not the taking of loan, Because its the nature of the person who convinces him/her self to do stupid things (no offense)

i was in your shoes, I will ty to educate him about crypto in a proper way that an old man understands easily because of the education of how things work and how much potential do these meme coins have and how they start. will help in to decide whether he should invest or do these acts in the future or not, Well for Now, no one can do anything except your uncle's friend, maybe you should talk personally to him but what good it could be of, like if the money is already invested. all i can say is pray for now and be careful next time and teach him the lessons that he needs to know.