Topic: Would it be foolish to take out a crypto loan at this stage of the bull market? - page 3. (Read 295 times)
May 12, 2021, 11:39:14 AM
I think it’d be more advisable to take a fiat, bank loan. Buy bitcoin & HODL until late 2021. The price is going to probably treble so you could easily pay the loan back & make loads of profit too, easy money.
May 12, 2021, 11:33:04 AM
Why don't you use your current funds to accumulate your bitcoins? Learn for yourself in advance how successful you are with trading.
Regardless of the market situation, it is not recommended to take out a fluctuating loan for an unsecured profit.
Regardless of the market situation, it is not recommended to take out a fluctuating loan for an unsecured profit.
May 12, 2021, 11:30:58 AM
I would never consider taking a loan to invest in crypto or in an asset in the traditional financial markets like stocks or gold. Instead, use some of your savings and invest an amount you would be comfortable with losing. Worst case scenario, you lose your own money. It feels bad, but at least you don't own anyone anything. Think about it a bit. How would you feel losing $15.000 of your own money? If you add interest on top of that, it gets even worse.
If you are employed and have a steady income, put away some money from each pay check and invest it little by little in bitcoin. That's how I would do it, but you have to assess the risks yourself.
If you are employed and have a steady income, put away some money from each pay check and invest it little by little in bitcoin. That's how I would do it, but you have to assess the risks yourself.
May 12, 2021, 11:25:47 AM
Drop the idea. It is ain't good!
The golden rule is - "You invest what you can afford to loose and you invest only after full-filling your daily needs". Here you talking about the loan, which is not your money and in addition to that you will have to repay the interests rate plus principle amount. Dam, that would be worst decision.
With such high peak and volatility, my hands would be shaking to take the loans and invest. Big NO!
The golden rule is - "You invest what you can afford to loose and you invest only after full-filling your daily needs". Here you talking about the loan, which is not your money and in addition to that you will have to repay the interests rate plus principle amount. Dam, that would be worst decision.
With such high peak and volatility, my hands would be shaking to take the loans and invest. Big NO!
May 12, 2021, 11:12:39 AM
The thing with loan is that you need to be sure about repayment or you use a collateral incase you don't pay back. So, you need to guarantee the one giving the loan of prompt repayment, if you can't guarantee this, better not to take the loan. There is no guarantee your Bitcoin invest will be profitable for you to repay the loan.
A wise/smart borrower could however drastically reduce risk in different ways before taking the loan, one of which will be to automatically sell the Bitcoin holding if price goes down to certain level within 4 months, and he has to have extra money in savings to cover the small losses and pay back the loan.
A wise/smart borrower could however drastically reduce risk in different ways before taking the loan, one of which will be to automatically sell the Bitcoin holding if price goes down to certain level within 4 months, and he has to have extra money in savings to cover the small losses and pay back the loan.
May 12, 2021, 10:58:27 AM
Isn't it ALWAYS a foolish decision to try and take a loan to invest? Don't invest what you can't afford, that kind of thing is always said here and there. No it most likely wouldn't pay off, the market is cruel to everyone. Dunno much about crypto loans, but wouldn't it also increase in price depending on its market value? That might hit you harder. Plus if you did it once, you can do it again. Crypto is volatile enough ,meaning it's risky already, putting the odds against yours doesn't seem like a very good idea.
May 12, 2021, 10:54:19 AM
Taking a loan is always risky even in a normal circumstance, and it is even worse taking a crypto loan to trade, better you trade with what you can afford, nobody can tell the direction which the market can go, reason why it is difficult to outrightly tell yes go ahead and take a crypto loan, but it is upto you to do what you feel you can handle.
May 12, 2021, 10:35:34 AM
No, i think it really is a foolish decision. The risk is already high, don't need to add loan into this situation. You're not supposed to take a loan, no matter what, it's better if you don't have a loan in any condition, since it can be destructive at times.
You will just regret everything if things turn bad, and at that time, there's no way to go back anymore. Loan is dangerous, and especially if you're taking a crypto loan, with no certainty at all. It's more like gambling your life and money into it, which is surely not a wise decision to make.
You will just regret everything if things turn bad, and at that time, there's no way to go back anymore. Loan is dangerous, and especially if you're taking a crypto loan, with no certainty at all. It's more like gambling your life and money into it, which is surely not a wise decision to make.
May 12, 2021, 10:34:21 AM
Different cultures have different attitudes to loans, and it seems that the West is totally okay with those, but where I'm from people try not to take loans unless there's absolutely no other way. If you're thinking of investments, you shouldn't take money for that, especially to buy Bitcoin almost at its ATH point. It might go up, but it can also go significantly down. It's unclear from your post to me what you need the money for, but loaning money to pour it into something volatile is a very risky decision. If you're worried about BTC volatility but still want to take a loan in BTC, I guess you can agree to fix the amount in USD even though the payouts will be in BTC.
May 12, 2021, 10:23:26 AM
For now it's a little difficult to say: because we don't know the true Bitcoin ATH, the risk is of course there, back to your confidence in the loan.
Two things you need to know about the risks that will occur.
1. The news that we often read on various Bitcoin sources in the end of 2021 will touch the $ 100k mark, that's a prediction.
2. The same thing and the reverse of 2021 is a sign that the new ATH against Bitcoin is already at the peak, that is also a prediction.
From these two risks you can conclude about the 'loan' you want to make.
1. Your future confidence Bitcoin could touch $ 100k.
2. Your belief about Bitcoin is currently at the top.
Honestly, if that happened to me I would of course conclude that I took a loan and increased Bitcoin, at least the end of this year.
For that all decisions are in your hands in determining the risk of 'loan' that you take, think and be ready to take all the risks that will occur, if your decision is intact.
Two things you need to know about the risks that will occur.
1. The news that we often read on various Bitcoin sources in the end of 2021 will touch the $ 100k mark, that's a prediction.
2. The same thing and the reverse of 2021 is a sign that the new ATH against Bitcoin is already at the peak, that is also a prediction.
From these two risks you can conclude about the 'loan' you want to make.
1. Your future confidence Bitcoin could touch $ 100k.
2. Your belief about Bitcoin is currently at the top.
Honestly, if that happened to me I would of course conclude that I took a loan and increased Bitcoin, at least the end of this year.
For that all decisions are in your hands in determining the risk of 'loan' that you take, think and be ready to take all the risks that will occur, if your decision is intact.
May 12, 2021, 09:48:42 AM
Everyone has to decide for themselves, but I know there are still those who pay off debts from 2017/18 because they gambled with money that was not theirs.
Loans, borrowed money have invisible pressure that people are not aware of. Their minds and decisions will be distorted by invisible pressure. Bull or bear market (important note), it can always liquidate unwise and undisciplined borrowers.- They are greed, of course, if not they don't borrow and open leverage trades.
- They are gamblers, perhaps if they ask questions like OP.
- People will not stop and feel fear if they don't experience own loses
"What the hell I did? The market grows very crazy and I lost all or 90% of my capital. If I had neither been greedy nor used leverages, I would have been billionaire"
May 12, 2021, 09:41:14 AM
It is no secret or great wisdom that it is not wise to invest money that you are not ready to lose, or money that is borrowed - and in this case the situation is even more risky because it is a cryptocurrency. Although the prevailing opinion is that the bull market will most likely not be completed at least until the end of this year - would anyone bet on that outcome with borrowed money?
Everyone has to decide for themselves, but I know there are still those who pay off debts from 2017/18 because they gambled with money that was not theirs.
Everyone has to decide for themselves, but I know there are still those who pay off debts from 2017/18 because they gambled with money that was not theirs.
May 12, 2021, 09:15:07 AM
Will the loan have interest or will it increase when you payed it past due? If yes to the both then I would suggest that you shouldn't be taking out loans because the prices are really on a limbo right now to consider doing a loan to get more bitcoin, maybe if it is your money there will be no problem and always remember that loans aren't your friend, they were loaned to you for a reason.
May 12, 2021, 08:53:40 AM
When you take a loan with cryptocurrency, not stable coin, you have double risk of liquidation
- Risk of the cryptocurrency you use to make your loan (as a collateral). Its value can be decreased that cause your margin trade will be more easily to be liquidated
- Risk of the cryptocurrency you are in trades will decrease.
- In worst case, you will have double decreases from your collateral and the coin in opened positions
- Make sure you don't use more than 10% of your capital for loan, and margin trades
- Read Differences Between the New Isolated Margin Mode and Cross Margin Mode, then choose one type that fits your need and your risk management
May 12, 2021, 08:43:57 AM
If you are afraid of taking loan in Bitcoin due to its price that may increase, then go for fiat-pegged coins like USDT, BUSD or USDC and the likes.
May 12, 2021, 08:41:41 AM
I am looking to increase my bitcoin holdings and i am looking at taking a crypto backed loan with one of the leading platforms? i would be fine to take this loan out a few months ago but at this stage of the bull run how risky would it be ,i know a loan can be risky to begin with, but am i just playing with fire or is there a good chance it will pay off? it would be a 15000 dollar loan a 50% ltv for more information, thanks
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