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Topic: What do you think about borrowing against your bitcoin? (Read 565 times)

sr. member
Activity: 700
Merit: 251
It seems like a great theory. However, the collateral has to have certain value, no? I mean, it must be nice if bitcoin price increases, then you will have profits. But what if the price crashes? Then would it still worth it as the collateral as the value is not as high as the initial amount? Well, I don't really understand how it works, but the theory seems great for me if only the price remains high, and increasing. However, in this market full of volatility, I don't think things will go as easy as it seems. But there might be chances it works though, maybe someone can try and share their testimony of doing that?
legendary
Activity: 2310
Merit: 1422
Borrowing without selling to get a few bucks it's quite a great thing for me. Last month I needed to buy both a washing machine and a vacuum cleaner and since I was short of cash I borrowed from Nexo credit line and sent the day on my crypto.com visa card. Next month I will repay in full and that's it.
hero member
Activity: 1498
Merit: 586

Meehn I don’t think I like that kind of idea. I believe that most of us here are business people at least, so why not maybe take profit from the Bitcoin and use it to finance and boost your business to a higher level and then when you sell and make enough profit from your main business, you can then invest more money if the price of Bitcoin has reduced by then.

I think putting yourself in debt will be very bad, although I do know it’s possible that the price of Bitcoin can go up, but what if it doesn’t go up and it happens to be at the time you’re meant to pay the debt back? You will then be in a really tight position which wouldn’t be good for you. Well, it’s still left for you to decide, and moreover this is why you’re being told to invest what you can afford to risk, that way you wouldn’t have things like this to worry about, and will only withdraw whenever you want to, even if it’s in five years.

What is the used of borrowing money and making bitcoin as a collateral when you can exchange bitcoin into fiat and used the money that you have earned in cryptocurrency to sustain tha needs of your family right. Borrowing money is a total kind of risk plus let's add to your burden the fact that whether you have a source of income to be able to pay your monthly due or not you need to provide it. Better you think a better and wise decisiob before you put your bitcoin into collateral.
sr. member
Activity: 2226
Merit: 347
Let’s think, the person who would hypothetically borrow you BTC at price of 50 000 will want not 50 000 but the whole BTC back by the market price together with some per cents for instance in five years. So in five years BTC can cost one million as well as 20 000 and the person who borrowed BTC would have to give it back with per cents (not money but BTC and per cents). If he/she is a good trader than it might work but just hodling can't help hear.
Considering out those lenders into this forum where loans or borrowed btc should really be paid up on btc form and not on basing on the amount in fiat and thats whats really an advantage for those who do lend you off money and a very unfortunate event into those who borrowed up money.We know on how volatile the price is which means you do need to pay it up fully with bitcoin on exact number.
It would really be putting you in shock this is why i never intend to make out some loan in btc form.I would rather taking a loan in fiat with other viable source or ways i could rather than
on getting some loans in form of crypto.You wouldnt know on what comes next on next month .
full member
Activity: 1848
Merit: 158
I prefer not to borrow atall. I would instead invest only a part of my whole savings  into Bitcoin rather than everything, then use the other parts to finance other important things when I need to . Or I will simply just focus on accumulating small bit of Bitcoin regularly.

Borrowing can be addictive. And imagine getting addicted to it but not using the borrowed money well and being profitable.

Borrowing is very risky as this market is a very volatile one. I won't advise someone to do it if he has other means. Just be contented on what you have and make use of it. Lucky, if the market is in the positive direction when you need to pay the loan. But how about, it is in the negative direction when the lender wants the money? For me, this is not a very smart move.
hero member
Activity: 2828
Merit: 611
The idea would be to borrow using the Bitcoin as collateral, and refinance as the price continues to rise. That way you don't sell your Bitcoin and you don't pay taxes, income tax or capital gains.It should be done with a low debt ratio, which will allow you to weather a bear market storm for a couple of years.

I do not see it clearly, I understand that in general the best you can do is to avoid debt and increase your net worth, and you can only sell partially when the price reaches certain milestones. For example, you sell 25% when the price reaches $100k, another 25% when it reaches $250k, and so on.

I don't like the idea they propose either, because if it were to become generalized, bitcoin would be encouraging the very thing it proposes to flee from: bitcoin is an alternative to money as debt and encouraging massive indebtedness by taking bitcoin as collateral seems paradoxical, to say the least.
Meehn I don’t think I like that kind of idea. I believe that most of us here are business people at least, so why not maybe take profit from the Bitcoin and use it to finance and boost your business to a higher level and then when you sell and make enough profit from your main business, you can then invest more money if the price of Bitcoin has reduced by then.

I think putting yourself in debt will be very bad, although I do know it’s possible that the price of Bitcoin can go up, but what if it doesn’t go up and it happens to be at the time you’re meant to pay the debt back? You will then be in a really tight position which wouldn’t be good for you. Well, it’s still left for you to decide, and moreover this is why you’re being told to invest what you can afford to risk, that way you wouldn’t have things like this to worry about, and will only withdraw whenever you want to, even if it’s in five years.
legendary
Activity: 1316
Merit: 1481
Borrowing BTC rhymes with gambling BTC: since the value of the loan is usually fiat based and not bitcoin based, if the loan-to-value ratio falls under the emergency threshold it becomes a big liquidation risk! It is not an option to borrow money against bitcoin fro me now. Better to keep on holding.
sr. member
Activity: 910
Merit: 253
Hodlers Network
Mostly people borrow to pay debts but if borrowing fair to extend your Bitcoin possessions is fine, just make beyond any doubt simply have sufficient cash to pay for that obligation or else you’ll finished up offering your Bitcoin fair to pay for it. I moreover don’t like to borrow cash and I just purchase bitcoin with my additional cash so I don’t got to constrain myself hurrying into this showcase, its superior to continuously learn to earn no matter in small but one day it will handsome amount.
hero member
Activity: 2044
Merit: 784
Leading Crypto Sports Betting & Casino Platform
I completely agree with all users who spoke negatively about a loan for investing in Bitcoin, but at the same time, if we are talking about an experienced investor who has sufficient knowledge, it may well be profitable to invest the money received from the loan. Almost the end of 2020, as well as the beginning of 2021, provided quite extensive opportunities for profitable investments, including even such cryptocurrencies that showed lightning-fast, but short-term jumps in price, such as AME, DOT, Dogecoin....
It's totally like gambling. Professional investors can't predict the market and they will be in serious risks of loss if bitcoin suffers a temporary devaluation. Bitcoin is good on long run, but it should never be put as guarantee for something on short-medium run. The traditional  holding strategy is still the most efficient in crypto universe and if you want to risk yourself a little more you can also invest your coins to earn passive income, but borrowing against your btcs is insanity.
member
Activity: 534
Merit: 19
Borrowing doesn't make your situation much comfortable, it makes it worse. I dont prefer borrowing but after I watch Robert Kiyosaki talks about lending it will change everyone's perception about it.

https://youtu.be/dN5qHjnd_xk
Ucy
sr. member
Activity: 2674
Merit: 403
Compare rates on different exchanges & swap.
I prefer not to borrow atall. I would instead invest only a part of my whole savings  into Bitcoin rather than everything, then use the other parts to finance other important things when I need to . Or I will simply just focus on accumulating small bit of Bitcoin regularly.

Borrowing can be addictive. And imagine getting addicted to it but not using the borrowed money well and being profitable.
sr. member
Activity: 2352
Merit: 245
If we are not completely sure about the price growth of bitcoin for the duration of the loan, then obtaining such a loan for investing in bitcoin looks like a gamble. Since the price growth of bitcoin is almost completely unpredictable, then the use of credit is clearly inappropriate here. Many have already talked about their negative experience of obtaining a loan for subsequent investment in cryptocurrency. However, some learn only from their own mistakes.
sr. member
Activity: 2226
Merit: 347
I completely agree with all users who spoke negatively about a loan for investing in Bitcoin, but at the same time, if we are talking about an experienced investor who has sufficient knowledge, it may well be profitable to invest the money received from the loan. Almost the end of 2020, as well as the beginning of 2021, provided quite extensive opportunities for profitable investments, including even such cryptocurrencies that showed lightning-fast, but short-term jumps in price, such as AME, DOT, Dogecoin....
Possible but this cant really be attained by everybody which do simply means that experience is a must and taking a loan from an experienced person might really give out
different outcome compared to those who did just took up some loan without any idea on when to enter the market.Also, it is somewhat need some sort of luck when you do
deal into this market due to unpredictability then no matter what analysis you would make through.If you do saw some opportunity that you cant let it pass then
its a matter of risk if you do decide to do it but be sure that you do know on what are the next things that you do need to settle.
member
Activity: 812
Merit: 53
I don't want to suggest anyone to borrow Bitcoin for trading. Bitcoin is a very volatile currency. And if you borrow 1 Bitcoin at 10000$ rate and used this amount. And Now price of Bitcoin is 50000$. It means that now you have to pay 5 times more then your borrow amount. So, it is very dangerous.
full member
Activity: 1316
Merit: 108
I completely agree with all users who spoke negatively about a loan for investing in Bitcoin, but at the same time, if we are talking about an experienced investor who has sufficient knowledge, it may well be profitable to invest the money received from the loan. Almost the end of 2020, as well as the beginning of 2021, provided quite extensive opportunities for profitable investments, including even such cryptocurrencies that showed lightning-fast, but short-term jumps in price, such as AME, DOT, Dogecoin....
copper member
Activity: 238
Merit: 1
Buy Bitcoin in Dubai | Buy Bitcoin in Istanbul
I do not like debt.
I think a lot of the financial problems the world is dragging down come in large part from debt. The over-indebtedness of people, of states, of companies. Money is created as debt. At first it was mortgages and personal loans, then credit cards, but today you can finance practically everything.
I've been hearing the idea that selling your Bitcoin to take (some) profits is stupid. That it would be better to borrow against it and let it keep growing. I heard this from Saylor a Max Keiser. If you really believe that Bitcoin is going to keep growing, that it's going to reach $1M or more, why are you going to sell it at $50k?
The idea would be to borrow using the Bitcoin as collateral, and refinance as the price continues to rise. That way you don't sell your Bitcoin and you don't pay taxes, income tax or capital gains.It should be done with a low debt ratio, which will allow you to weather a bear market storm for a couple of years.
I do not see it clearly, I understand that in general the best you can do is to avoid debt and increase your net worth, and you can only sell partially when the price reaches certain milestones. For example, you sell 25% when the price reaches $100k, another 25% when it reaches $250k, and so on.
I don't like the idea they propose either, because if it were to become generalized, bitcoin would be encouraging the very thing it proposes to flee from: bitcoin is an alternative to money as debt and encouraging massive indebtedness by taking bitcoin as collateral seems paradoxical, to say the least.
I'd like to know what you think about it.
It is risky to use debt as an investment for Bitcoin. Firstly, what will you tell the bank about how you will use this money. Popular bitcoin influencer Peter McCormack used debt to buy Bitcoin and after a while, he posted that his bank does not want to work with him anymore. He said that he will use it for a new car but he invested that money in Bitcoin to buy a better car, I guess. Secondly, you cannot predict the cryptocurrency market since it is too volatile and your money can drop significantly. Finally, if you decided so then you should borrow as much as you can afford to lose. It is not financial advice and no one should risk the money they cannot pay back.
hero member
Activity: 2520
Merit: 783
taking a loan to jumpstart your cryptocurrency journey is something that I am actively against and is advising to avoid, We may be very hopeful about bitcoin reaching the moon or solar system but we are also fully aware that there is that chance where we could lose everything in a snap, and we don't want that to happen to you, so only invest what money you can afford.


Agree to the point, indeed its highly risky against the bitcoin due to its volatility and you never know just like the prices from 57k fallen till 46 and what if it continues to fall. So, the one who has taken the loan will just be unable to repay it. It’s always better to earn first and then only start with the capital you have it so that you do not have any lenders as such else that is different stress.


The one who do that will have triple worries since he need to come up with the interest + lose from possible volatility as well might lose everything he loan since he didn't know what is the exact thing to do since I'm sure that he do that(taking loans) because some has been hyped up that they can possibly earn thousands of dollars for investing or trading with bitcoins and crypto.
member
Activity: 686
Merit: 26
★777Coin.com★ Fun BTC Casino!
taking a loan to jumpstart your cryptocurrency journey is something that I am actively against and is advising to avoid, We may be very hopeful about bitcoin reaching the moon or solar system but we are also fully aware that there is that chance where we could lose everything in a snap, and we don't want that to happen to you, so only invest what money you can afford.


Agree to the point, indeed its highly risky against the bitcoin due to its volatility and you never know just like the prices from 57k fallen till 46 and what if it continues to fall. So, the one who has taken the loan will just be unable to repay it. It’s always better to earn first and then only start with the capital you have it so that you do not have any lenders as such else that is different stress.
legendary
Activity: 2310
Merit: 1422
As much as possible if you really wanted something that you still cannot afford to have as of the moment, you better not to include the idea of borrowing money no matter what the reason is for the fact that you still have lots of time until you can afford having such thing. The point is that if you have been familiar into the concept of always borrowing money is that you will not progress that easy because you are being dependent into someone or something that can let you borrow money just to afford what you wanted to have. In terms of Bitcoin, we all do know how unstable or volatile price of Bitcoin is so why do make it an idea borrowing money and using it as a collateral when you are still not sure of how the price will be keep going? As much as possible avoid getting into debt and do only limit yourself into things you can afford.
The amount of money that you do not currently have is also important in terms of how you choose whether or not you should get into the borrowing land.
To me avoiding debt is very important to keep some financial health. When I was young and not having any money I wanted to buy stuff, like everyone else I guess. It was always a great despair not being able to buy things like my friends.
With time and study, I built my financial foundations which now gives me peace of mind.
sr. member
Activity: 1918
Merit: 370
taking a loan to jumpstart your cryptocurrency journey is something that I am actively against and is advising to avoid, We may be very hopeful about bitcoin reaching the moon or solar system but we are also fully aware that there is that chance where we could lose everything in a snap, and we don't want that to happen to you, so only invest what money you can afford.
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