Topic: This why wall street are rich and you are poor - page 3. (Read 976 times)

I am not rich nor poor as well and I have figured that out as well. So farm I have always focused on making my portfolio bigger but did not consider passive income too much, which is why wealthy people are doing most of the time as well. I have to say that there is a guarantee most rich people leverage themselves against the inflation and just do passive income that increases in asset value. The most known version that everyone can understand easily is buying a house and renting it, you are making a passive income from the rent but the value of the house goes up at the same time.

For 2022, my goal is to reach 100 dollars a month passive income, not a lot, very tiny for most people, but I will reinvest that anyway so let's see if I can do it. Understanding finances is not easy, but it is not difficult neither, as long as you have time to read and learn.

It is also worth remembering that "in the world of corporations" there are still many special laws and regulations. Which will never be available to an individual. For example, the same bankruptcy procedure. As simple and unobtrusive as a company can start a bankruptcy procedure, and what difficulties will be when trying to declare oneself, an ordinary person, bankrupt! How easily multimillion-dollar obligations will be written off, and how you will be shaken out to the wrong side for every cent. And many other, simpler and less painful procedures for businesses, but not for individuals. Therefore, the risks and consequences of ineffective investment there are less “gentler”, and corporations are allowed to “play naughty”, which is not allowed for the layman

Getting loan to invest depends on what to invest on to get more money. This act can't favour everyone, Getting loan to invest is risky though. But sometimes it favours those who are  understand what they are into. Borrowing money to start up business is not bad but not for people who can't manage money well.

Yes, there are those that have worked hard and I think it's a noble pursuit but once they have a taste of power and influence at the top, they're going to start systemically making everyone poor, I mean you don't want everyone to be well off and not dependent on you right? Lobbying won't exist if the rich doesn't want poor people to stay poor. They have a part in those misery.

Of course, I would say that majority of them are smart investors and are going to take every opportunity to make money not just in crypto market but in all other financial investments that they can find.


Oh well, to be honest, I'm neither rich nor poor, however, I was able to understand how financial works when I started to get a job so I just balance everything. Have some savings in the bank and then some investments in stocks and in crypto in the last 5 years, so I can't complain. I do not want to comment about the poor maybe it was really fate that put them in that position. As for our crypto investments, let it be, being a holder here is a choice and it's a good one. It might take years to see your money grow, but once it multiple then it will all be satisfying.

If you are going to do that then why not just use leverage and call it a day? After all that is precisely what leverage is, you are borrowing money to buy an asset and buy way more of it than what you could otherwise buy in order to increase your profits.

Asking for a loan to a bank is just a more roundabout way to do the same with the difference the interest rates you will have to pay for such loan are probably higher, however I still think it is a bad idea to do it unless you are an expert trader with years of experience in the markets, and evne then doing something like this is a very risky maneuver.

The rich always find a way to keep accumulating wealth, this is why they hardly want to let's go of any investment or opportunity they sight their eyes own.
Poor man on the other side of the world that's been unfair too is still struggling on how to be financially stable and feed the family, foot bills and pay insurance for health and natural disasters. It's not even all poor that thomk about other options I outlined, majority are struggling to feed themselves, how do you convince them to invest when they have nothing to invest as capital.

This is not rocket science, it is simple logic, if you are borrowing money then borrow for the right reason, and I complain agree with borrowing to buy in the dip and sell during the bull run but we can't predict the way the market will go, up or down and how long it will stay down, and I won't advise borrowing without having a different source of repayment just in case market didn't go as expected, it is risky but if things turned well could also be rewarding.

Actually, each person has their own opinion regarding borrowing money,
there's nothing wrong with it as long as we can manage it well it doesn't cause problems,
what is clear is that we can't equalize everyone's opinion

While I would agree with you that borrowing money can certainly help create wealth but there is nothing saying that if you don’t borrow money you won’t be successful, that’s simply not true. For a lot of people borrowing money can be a very dangerous proposition. Many people do not have the proper mindset to borrow money responsibly and would be much better off never doing so. 

This is not a universal advice as we differ social status in life and we have various priorities as well. It is not really advisable to loan or take credit to use it for investment because the general rule in investing is invest what you can only afford to lose. You should only use your spare money to invest in something that you think will potentially earn in either passive or aggressive manner. Because there is always a risk present in investing. And if ever your investment undergo chaos or suddenly crash, you will not have a hard time moving on with the spare money that you've lost. Compared in losing the money you just owe from the banks or from your close friends by planning to invest. That would hurt big time most especially if you didn't manage to have your investment money returned yet.

I think advice could work on those who have high risk tolerance. For those who don't, I discourage you from taking this as this could cause anxiety and stress to you during the days that the capital hasn't gained back yet. There are many general rules here in cryptocurrency. If ever you find one that is suitable for you, then go live by it. After all, to each his own. We still have different perspectives and strategies on how we want to achieve the things the we are craving for.

Unfortunately, it is not always right to look at the rich and count other people's money. I believe that in order to achieve success or, for example, in order to become rich, you need to make a huge amount of effort on your own or just be born into a rich family. Moreover, I do not think that the big players will want to see more people like them, because this can curtail their wealth and make them less powerful. You also need to take into account the fact that most often wealth appears due to not entirely honest methods, which means that for this it will be necessary to break the laws. I don't think this is a good idea. But if you really want to be like the people of Wall Street, then I can only wish you luck.

Loaning for investing isn't for everyone especially for poor people who don't have enough assets for collateral and for those who don't know how to handle loan funds. As for me, it would be better to save enough funds for investing rather than borrowing because there's no guarantee of sure profit in crypto investing so there would be a big risk of not being able to pay the debt in time which may only result in regrets in the end. It would be better to use our own hard-earned funds for investment.

That certainly depends on how you handle the money or the proceeds of your loan, I know people who borrowed money to fund their business and they were successful in the long run. Maybe it's not for everyone as borrowing money is a high risk, and one could lose in the process as well.

For me, I do not think that borrowing is a good idea to get rich, on the contrary I know people who borrowed a lot of money and then became indebted and some of them cannot pay the debt, of course there are some people who have succeeded in making profitable investments through borrowing, but this is not always the case, it is not possible To give this as an investment advice or a rule of investment, personally I prefer to start with a small capital and grow little by little without the need to borrow, pay off loans and pay interest and fines as a result of delaying the payment of debt.

Bad example of making money using borrowed money.
It is always necessary to invest the money that you can afford, borrowed money always goes into liability, unless you are a genius trading and analysis.

I took 4 loans from 3 banks in 2018 to buy crypto. It was mostly sideways action until this year. However I was in profit in less than a year. Would I take another such risk again. Not at this scale, I have downgraded my life to nothing, sold all my cars and live in a crappy apartment and only buy base necessities. It's a valuable skill to have though.

People should do what they do well and most of us are not qualified to judge such things.  The majority of most market participation is along the lines of a tracker or similar lending to knowledgeable and trusted institutions already involved in the market, crypto doesnt exactly have that though its not completely bereft.  Its too easy to go wrong trying to cherry pick ideas, its highly risky anyway and its doubtful most people have any personal advantage in their judgement.

Those are old days where people borrowed money and the same had turned to be millions by now. As per the present market situation it is possible to survive and make money through the skills, because in the past there is not much opportunities to promote the skills and services. Now situation is completely different.

Recently saw an article where a person launched his brand on Instagram and every service is being offered through it. This have now turned to be a million dollar market brand. Borrowing makes it more risk, and if one is with precise plan for the future it might workout. As an user mentioned there are people who've gone bankrupt through borrowed money spending on business, and people who've succeeded. So, it is all about our fate.

Good point. Even if you should diversify your investment, there is still risk, because all of them are not going to be successful, not to talk of when you have just invested in one. The thing is that we never get to hear the stories of those who lose in the market, the only stories that we get to hear are of those who are lucky and made millions and billions of dollars and turn motivational speakers the next day.

So that way people who have not had any single experience starts thinking that it is quite easy, while the truth is that it is not. Borrowing money is a huge, but if you’re sure about what you’re doing and you know you would benefit from it, then it’s up to you, you can decide to go ahead.