Topic: What's your advisable source of capital to use for trading. (Read 678 times)

You could apply this strategy only when the market is super bullish. Trading with any money be it borrowed only then makes sense. It is however not suggested at all to trade with borrowed money. You should have your own funds for it from your savings and that too should go into the best coin or asset’s trading. You can experiment once you have enough funds.

I suggest not borrowing money as capital, let alone we beginners in cryptocurrency trading, as well as gambling. unless you are a pro trader, and use a bank loan to increase capital, with certain strategies of course

That's a good idea but you should not risk all your money, savings have allocation and you just allocate a certain amount fro trading from your total savings.  This is because trading is risky, and no assurance you will be successful, also, I agree that borrowing money to start trading is a stupid idea, you can't be too confident when you haven't proven yourself that you have a great chance to be profitable.

I used my savings account as my capital instead of borrowing money and paying big interest. If you also have savings on your banks, better to use it and let it grow with your investments. Banks can’t give high interest higher than what crypto investment can give to you.

Definitely.Trading with borrowed funds can only give us more stress and pressures because you should always make sure that your trading should be profitable so that you can pay back your loan.The worst thing is that you start trading when the market price suddenly crashes down so it will require much of your strategies to still end up making profits even if the market price turns into negative.

The thread isn't about you advising me, the truth is, I don't bite more than I can chew. The loan isn't because I'm broke or anything related, most people think because everyone is doing something in a specific way, it mandate every other person to do the same.  We have some individual that are at their best when under pressure but they fail to utilize that energy since they go along with the crowd and do what ever everyone else is doing. Some traders trade with their personal fund and still end up at loss but they will never know if something's else who had worked because they failed to risk trying.

   Many people make huge mistake when they borrow money for investing. I wouldn`t make a difference here in what someone invest, every investment has risks,
doing that with borrowed money is double the risk. Borrowing money should be the last option!
   Learn to earn money! Money is everywhere around, you just need to learn how to collect it. Today anyone can earn some money in many ways and have some
starting capital. What I learned in my life on my own example and watching others is that we respect the money more if we earned it on hard way. Easy money
is easily spent, but when you earn it in a hard way you respect it much more!

If I advise you to try to make use of the same energy when it does to trading with your own money.
I am not the kind of person that likes to borrow money for whatever I'm doing,  I prefer to do it with my own money and know that I am not owing anybody than borrowing and being worried about what might happen if I lose it.

You're taking a big risk by putting a borrowed money into crypto.  Forget about whatever energy you claim to be having,  it's just that luck is on your side. Imagine that you lose that money,  then what are you going to do?  Start bothering yourself on how to pay back a money that you lost? You Better start making use of you own money.

There is no other way indeed if you have no money to increase your initial capital of money to trading unless you borrowing money which is very risky because if you lost and run out the money then you have to pay your debt but based on my experience i was never borrowing money as my capital trading and all of it i get from my salary works and from signature campaign payment

I don't trade with borrowed money and always tell people not to do it. It's not only more stressful but also can get you in trouble. What would you say if an exchange owner played with your money and lost and you couldn't withdraw and had to wait for him to earn back? What will the lender say when you lose his money? How will you pay it back?

If you want more risk and more reward trade with leverage but with your own money.

I won't even think of borrowing to trade in cryptocurrency.
I have been in a situation where I borrowed and I always constantly in thoughts of how to repay back that loan cause I hate owning. The experience is really not encouraging.
It is best I trade with my money than trade with borrowed funds because the market is sometimes unpredictable. You can still be determined when trading even with your funds; the thoughts of losing your hard earned money will keep you determined to gaining it back. With borrowed funds, it's more like pressure for me.

It is money we are talking about here, and I doubt if there is anyone that wants to joke with his money irrespective of the source it is coming from, how can someone save for so long after he must have suffered for it, and you think he will just dump it in the market with caring or getting serious about it.

The only source of capital that should even be encourage and recognized for trading and investment in cryptocurrency should strictly be savings, because anything out of savings Is simply at the risk of such investors. Savings can still be controlled, when you lose your investment that come through savings, you will worry less than losing loan. In fact loan investment can even make such trader to omit suicide if he cannot pay back again.

Being in debt for trading is the worst thing as the income is not guaranteed and plus you need to repay it soon with interest. I used to trade in 2017-18 and in May 2019 when the market conditions were good and it was mainly in altcoins and BTC/ETH pair. I not only traded on crypto exchanges but on Forex too which had a stop loss option and all the investment was either the money I earned from the forex as a free deposit or was from the profit earned. I noticed I was more comfortable trading with the money given by the forex as a bonus even though I made losses of about $50 but I was able to easily recover it when BTC/ETH pair started fluctuating a lot. I barely trade on crypto as there is no bonus at all and plus their withdrawal fee is ridiculous.

Capital investment should always be your own money whether it is as small as 0.01. Never to use it for gambling/trading.

I don't think its a good idea ti borrow your capital just to trade. Imagine what will happen if all of a suden the price of the coin that you bought dropped and its about time that you have to pay up. Even if its a long term loan like 1 year payable in installments. I know some people who used their credit limit to borrow and buy Bitcoins when its on a bull run.

I have done that quite frequently when I was still trading, and it actually worked out well. I know it's definitely not something you should do as rational trader, but in my case as a hodler I can't really go wrong doing so.

Before the $6000 mark broke last year I bought spot purely to flip it for a profit higher, but the trade itself didn't works out well. I decided not to sell at a loss but hodl instead, which at current levels has offered a great entry point.

Looking at how most traders react to a change in market dynamics, they have no problems taking a hit to ride newly formed trend. Get rich quick noobs have no problems selling either because they always sell when the price dumps.

As a last resort i would definitely consider this option but it  wont really be necessary yet you know the risk on falling into debt is real which makes more the situation more harder for you.Better to trade off into the amount which you do earn first even on small chips yet you are still on a trial or test phase and if you do see that you would need to borrow money for some bankroll or capital add up then thats the time but make it sure that you would able to repay.

Borrowing money is the last thing which I will agree to do but only in a case when I will need this money for something that will help life. Investments are another pair of shoes: here you invest somebody's money and returns yours. There is a high risk to lose everything and get a huge debt, starting to work only to return everything that you decided to lend.

These are all always follow the most traders, at the same time traders comes under the stock market so they have good experience experience in trading platform. But crypto trading is little different from normal trading so I earn 50 percent profit on suddenly then some tokens and altcoins are most complicated investment and huge profit investment. I always set the satisfy percentage of trading so automatically it will make some profit.

When you decide to start trading by borrowing money from other people, you should think about how you will going to pay that money. And if you cannot make a profit from trading, then you will be in trouble because your money will reduce and you will get a loss in trading. But that will not be a problem if you have skills so you can try to make a profit from trading so you can pay back the money. Although you have skills, it still difficult to make money if the market situations are not good to trade.

I never traded using capital from loan, I think if you use the capital from the loan, it means your burden is heavier, indeed the motivation to generate profits will be high, but for those who fail and cannot bear the burden of loan, it will be very frustrating, this the experience of my friend even felt like suicide because of his debt. In my opinion it's better to use your own income capital, while for motivation you can build your goals so that it can inspire you to do your best.

For what op said, I don't think the money used for trading makes a difference or that it adds additional inspiration. I just think Op entered the right trades at the time he used loan money to trade not that he got an additional skill or because maybe the market understood it was borrowed money, nope !

My capital in trading was from my signature campaign payments. So far, I am rolling that as my funds in both bitcoin and altcoin tradings. But I've never tried borrowed money as a fund in trading, it will be very hard to recover if the market suffers from long bear and the problem is that it isn't your own money. It's better if you buy bitcoin with your own salary even if it will dump, nothing to worry but you can just hold it even longer.

I will not support taking loans for investment into liquid assets like forex and cryptocurrency as this is going to affect your performance and also shaping your investments decision. We have stories of people be in problem now because of loans. Someone in one of the states in my country went into a loan from a microfinance bank to invest into cryptocurrency in 2018 February with collateral of his house! The bearish market that happens throughout last year forced him to sell all the coins in September and the court has revoked the ownership of the house from him. I think it will be a big lesson to avoid loan for cryptocurrency investments.

If you borrowed your funds in trading, you will be pressured and at the same time motivated because you need to pay the loan you borrowed in a certain time and because of this you will be more focus and dedicated in trading. If you are using your own capital in trading, there is not that much pressure in it because it is your own money. I think both of them has both pros and cons although I didn't borrowed any money yet for trading. I only use my own money in trading.

Don’t assume that many people does that, I believe that if you take a survey now and ask how many people would encourage loan, you will see that only 10 percent of the questionnaires will support loan, loan is not a good idea at all, and no matter how great you are or skillful you are, loan is too risky. People do make mistake, and you can never know when he mistake will come, even the so called professional trader will never boast of making mistakes sometimes in trade that usually do cost them a whole lot.

Imagine you making some huge mistake that will make you lose your trade, if it was your money, you will only feel the pain of losing, but with loan, you will not only feel the pain, you will also start getting worry about the loan also. Your salary is still quite okay, that is what I use also.

The wrongest source of capital you can ever use of trading is loan, loan is a risk that is not necessary, you might be getting away with it right now but the day it will burnt you, I hope you don’t come crying back to us to look for solution because by then, it would have already been too late for anyone to help you.

When it comes to cryptocurrency investment, people would always advise you to trade with any money that you can afford to lose or let go off for a very long time and if you look at loan, loan does not meet any of the above suggestions. It is better you take your time to safe and then use it for trading, cryptocurrency is a volatile market and what if something happens to that coin you are trading, how would you pay your loan back.

Margin trading is a good instrument if you don't take too much risks, but lending money on lending boards like you do isn't right approach. You will never earn and you will be so stressed trading with loan.
If you have track record, then you can join copy trading service, prove your skills and big money will find you

Completely agree with you.
In short i too will do the same.
Savings are really helpful in order to get up from the losses.
For trading we use some of our savings and when we get profit, we take the principal amount first and trade with the little profit.
This is the way, i do oftenly.

I use my own capital to start trading, actually I'm not a day trader I only try to trade when I guess the market is suitable for me (from my knowledge) to trade such as when bitcoin price continue to increase from $5000 to $13500, I took money from my holding especially from my investment in altcoin and I made it to trade in altcoin and the result was I got a good profit at that time. In other hand, I never tried to borrow money especially in form of bitcoin. I just affraid when I can't pay on time my account will be the target and actually I won't have a comfortable feeling when I trade.

Don't think, "Not correct" is the right word to use. The idea of using borrow fund motivates me although I don't take loans i can't afford to payback. The whole idea behind the loan is, it puts me under pressure and I do quite well under pressure then I do when I'm in my comfort zone, in this case my personally funds. Like I said the whole idea of personal funds give me the impression I got nothing to lose as I'll just result to hodling the bought coins if the trade doesn't go as I planned.

I've only ever traded my own capital as well; I did try to trade on borrowed funds a long time back and it just didn't work out too well because I was under extreme pressure to make good trades and I ended up folding under the pressure. For that reason alone I would suggest just saving a bit of money every week or so and putting it aside for trading if you're able to do that.

Rather than use borrowed funds as a source of motivation, i think setting daily, weekly and monthly targets is much better whilst using personal capital. Whenever i do not achieve my daily or weekly targets, i try to work harder the next week to achieve what i lost in the previous week.
This method works for me.

What helps me is that i take small profits daily rather than wait for  a 20-30% profit. It helps me project the profit a such achieve over a given period and i try to work toward that goal.
It's not an easy thing to do but you have to look for something that motivates you, perhaps your dream house, ride etc.

Like 10 % of your capital am out that you got for investing and to the cryptocurrencies, never invest your saving amount at the salary amount which needed to pay your your weekly or monthly bills in near future because you are not going to make much profit in very short time unless you are very lucky, show investment capital should be your trading capital as well.

Trading on borrowed capital sounds difficult psychologically and might make me too risk averse. Whatever works for you though, as long as you have a way to repay the loan if you lose the principal. For some people, trading with lent capital might provide the pressure/incentive needed to avoid trading recklessly. Maybe.

I only like trading my own capital. I've been staked by investors before (PAMM) but it's not really my thing either. My capital, my risk, my profits.

Of course, trading with loan money will provide a different motivation than when you use our own money. The desire to quickly get a profit so that we can immediately repay the loan will certainly be a priority and usually we will be a little rushed. If we are lucky, we are safe, but if we are out of luck, maybe we will take longer time before getting a profit, which of course will extend the time for us to repay the debt. I myself do not want to trade with loan money. It'll be a double risk tho! The capital from our spare money would be better to use and it's less risk.

Well, trading with borrowed money would probably work if the borrower can afford to pay back. If the borrower can't afford the borrowed funds, he will be under extreme pressure and may end up making rash decisions during trading.

It's just not advisable for people who cannot afford their loans to trade with them. If the market makes a deep dive and stabilize at the bottom, it going to be big problem for those trading with borrowed funds they can't afford to pay back.

My only capital to do trading is from bounty rewards and contests. I wouldn't ever to use money from loan to trading because this kind of business have risk too and will be bad if we lose in trading and can't pay our loan.

I never try both of them because all of my trading activities come from my personal income from a bounty or may salary IRL.
for me using a borrowed capital, i will never try that because of i afraid if i lose it from trading but if you are skilled enough to trading maybe you can borrow some money that you can cover using your personal income if you lose it on trading.

Investing and trading is the main source of income for most of the people here, and I think they are trading for a long time now so I think that it is.

I think I would agree that don't take a loan for trading. I did read that one on this thread but also that is a suggestion of my friend in the past. The only reason he said to me is that if I will be loaning money, use it anywhere else and not in trading or investing since you are risking that money and that is not a 100% profit, that is like gambling, of sorts.

I never use a loan to help me to start trading. I was fortunate that in 2013-2014, I can get a free coin from many faucets website, and I can use that free coins to start trading. In that time, I can earn so many bitcoin and altcoin in few months, and I don't use my own money to start trading. From that, I can slowly to collect so many altcoins for trading and saving more bitcoin until now, and that helps me to continue trading without borrowing money from others. I only think that if I use the money which I borrowed, I will get trouble to pay back the money because I don't have a high-skills in trading and I still getting lose from time to time. I think borrowing money will not a good way for me.

I would never advice someone to take a loan for trading. After all trading is something that needs you to be able to hold that money for a long time, basically to get a proper price to buy bitcoin. Because that entry point is crucial in determining your exit strategy and profit thereafter, you would want to use your own money to trade and not someone else's.

Secondly, do not invest more than what you can lose. I cannot emphasize that enough, because once you have made a mistake and you start to regret it, a vicious cycle of depression and anxiety will start which you will not be able to break unless you have faith and emergency money at hand. These markets are very volatile and unpredictable such that investments should always be made strictly within limited amounts of incoming money.

Trading with money on a loan is very risky move and could end badly for you so you could end up as a double looser.
But all that depends on how big the loan actually is and how wrong your sale or buy order end up to be.

You could also end up as a big winner but that kind of situations rarely happens twice in a row so i would call this kind of stuff pure gambling with borrowed money.

This could be the worst suggestion I have ever seen regarding finance. You suppose having loan and having to face the problem of "if I can't make money I will not be able to pay my loan" as a good thing? That will give you motivation but motivation will not help you in a bear market or it will not help you if your money gets hacked or anything other than these two that could potentially happen.

Loans are the worst things you can get unless you are absolutely sure you will make more thanks to it, not just in crypto but in general that if you are getting a loan that means you should be absolutely certain it would be beneficial to you, if you are going to spend it on some things I think you will be in big trouble. Hence please do not listen to OP and get a loan just to trade crypto.

I wouldn't recommend any person to trade using money from loans unless of course, they can pay it back even if they got no profits. That's very risky to do so, and I believe the cons outweigh the benefits. You should have a clear goal when you trade and try to discipline yourself with that goal in mind. Holding should never be the goal if you're trading because that's for investing in a long term imo. If you're trading, whether it's swing trading or day trading, you should always aim for profits and tolerance of loss up to some point, and never resort to holding when you fail.

I have bought my funds from my salary and few of my savings. But, whenever I face losses I remind myself that I should now take off my savings for trading. I think this a very subjective thing. It completely depends on individuals skills and capacity.

Literally as a traders we must have fund for us to make an actual trade, right?
I think it doesn't matter, because as long as you are capable to do an actual trade in the market
and able to make money in it, for sure you can do trade anytime you like.

I understand, and this is also a way for me to become more responsible for my financial investment.
I have tried it, but everything seems too much pressure for me. Because I'm a newbie, I'm not taught through classes and I have to fight thousands of people.
I think we should still cultivate more knowledge, when it is good enough, we should borrow or call for our own investment fund.

The source of capital for trading is not much important to me. What I consider more important is if I have the ability to make money from trading. If I am sure I can make money from the market I don't care using my salary or even taking loans from Bank to fund my trading account which I know many people do that. It all gets down to how skillful you are and the confidence you have in your trading strategy.

Everyone has his or her own methods that works for him or her when it comes to trading crypto currency and the source of ones capital do have effect on ones trading result or attitude. I do prefer using my hard earn capital in trading crypto currency as that usually gives me confidence in case anything bad happen to my capital as compared to making use of loan for trading will put me under pressure and I really need not to be under pressure while trading crypto currency.

I would much rather trade with personal funds, which I can assume u borrowed from my other sources of income. I'm new in trading so I would need lots of practice and anticipate losses along the way.
I would love to build my skill and capital, so my trading becomes self sufficient, and I can comfortably trade using profits from previous successful ones.

I can see how borrowed capital would be an extra motivation for you, I think not everyone works well under pressure.

The difference here is that you got motivated when you do make use of borrowed funds since you do know that you do need to repay it that's why you do make the best of your trades.

Unlike into your own earned money where you do just confidently trade without hesitance yet you know that you do still have the 2nd option which is to hold where this thing isn't applicable if you do gonna need to repay some debts since you would need some profit in a matter of time yet you do have a due date.

When it comes to trading especially bitcoin, we all have motivation, something that inspired us to try our very best to profit from every trade. Mine involves trading with borrowed funds. I did notice sudden differences when I'm trading with a capital obtain through loans (borrowed capital) and that of my personal income. Capital gotten from my personal income, tend to keep me in my comfort zone which is something I'm not a fan off. Subconsciously i tell myself, "No worries if the trade don't go as planned, I'll result to hodling". But when it involves a loan capital the energy in me is always different.

Few weeks/months back before the very first bitcoin price spike that lead to $10,000+ per bitcoin, I did picked interest in trading once again since the market was on a standby (no major downward or upward price movement). I needed capital so I did apply for loan on lending board (which was successful). After I have gotten my capital, I began trading, my initial target was bi-weekly trades, and my first attempt was very successful, second wasn't that great but... To cut the whole story short, I notice i tend to do quite well with borrowed capital when trading then personal capital.

For the traders here, have you tried trading with both source of capital, which is your favorite and will be your advisable source of capital based on experience?.