Bitcoin Forum

I have a friend who has quite great trading skills, almost every trade he manages to make a profit. But I see he always uses capital
under $ 500.If in my opinion he should use a large capital of at least $ 5,000 to get greater profit. I suggest to him to borrow from
the bank as trading capital, but he refused with the reason too risky and insecure. I want the opinion of you members of this forum,
whether to use capital from bank loans unsecured and risky if used trading by traders who have good skills? even though in my opinion
safe as long as we can make a profit and smoothly repay loan installments to the bank.

This is a risky move but it can be more profitable since your friend already have a good skills in trading. Its ok to have a small capital as long us its not came from any debt, and you cannot force your friend to borrow money because he knows what he is doing. If I do have a great skills in trading, I will use my savings as my capital and no need for me to borrow money and pay the interest.

Your friend is right it is risky and if I was on his/her position I would also do the same thing.
Your friend is already making money from his/her skill and we don't need to be greedy it is safer to use what you could afford to lose rather than taking a loan to risk.

Even if you have good skills in trading, it is not recommended to borrow money from the bank because we don't know if we can always make a profit from trading. Your friend has skills, and he can manage the risk by using under $500 to trade, I think he knows what he did, and he always tries to control himself in trading. He has a good responsibility for his money, so he doesn't have to risk more money than he can afford.


We never know what will happen in the future, and I think it is better we know who ourselves so we can have control for ourselves, which will help us to be wise in making a decision.

There is a big risk involved, and besides, even though your friend is good at trading, we really don't know what's going to happen in the future, so it still 50/50, depending on your risk appetite.

I know someone who borrowed money from a bank to buy Bitcoin in December 2018, when the price is around $3000. Right now we can say that it was a bold move, he just hold on it and I think did sold some around June 2019 when the price hit $13000 and repaid the loan. Well that is one success story, but what if the market goes down up to this point?

Yes, because if we have a great ability in trading, for sure, we will earn from it. There are no bad things about trading because it keeps the significant circulation of different currencies around the world. It is easy to be a good trader. You will just be going to do some research. You should have full knowledge of cryptocurrencies, so you will be able to know and observe the volatility of different currencies. The higher the amount of you will going to trade, then for sure, the higher the profit you will have if you have successful trading currencies. This is really similar in investing, you will not be sure if you will win it, but I am sure that if you have an ability in this aspect, then you might earn so much money.


Well said, investing and trading are both risk-taking because you are not sure you will earn from this, you may win, and you may lose. So the higher the amount then, the higher the risk, so having excellent skills on it will be a significant advantage for you; keep having that ability so you will continue earning so much currency.

Although I haven't invested such amount into trading at ones but still didn't see anything wrong with taking that bold step in bettering your life. When trading, capital has an important role to play. If you're good in trading then capitalizing on is very vital, getting a loan is putting yourself under pressure so if your friend is the type that can do well under pressure without panicking then he should go head.

The common saying, don't invest more than you can lose is important but in life those who're willing to risk it more are usually those who profit more just as they lose more incase their decision doesn't favor them.

Your friend did the right thing. Better not to trade in fear.
 If he is very confident in his skills, he will likely give the loan thing a try (still not a good idea to trade with borrowed money). But it seems he isn't too sure of himself... so, don't press him further.
However, if your friend could risk using collateral for the loan, that will probably be better.

Nobody should be taking loans out to trade with. What happens if he screws up and blows up his account?

Increasing capital and risk by 10x, especially with borrowed money will have a drastic (probably negative) effect on trading psychology. I doubt he would keep performing so well. That's a recipe for emotional trading.

If he wants to try trading with other people's money and taking a cut of their profits, he may be able to open a PAMM account at a crypto CFD broker. Not my area of expertise but I'm pretty sure they're out there.

It's also like you are doing gambling if you use to trade the funds from loans.
But I know there are a lot of people out there that they are using some loan money but still, the RISK is still there.
Even how good or skillful you are on trading, you can still say that you will win every trades.
Make sure you have backup or plan B if ever your loan will get rekt in trading.

never do that

it doesn't matter if you are the biggest trade in the world or not, but never borrow from the bank to make a trade. Look at the following:

1 - you make a loan at the bank and the bank gives you that loan, but to pay in 3 or 5 years, that means that every month you will have to pay the loan

2 - you start trading, however you will never make a profit every consecutive day without having losses

3 - The market suddenly drops in price, which means that even if you put Stop - Loss you will have some loss

4 - if you get sick you won't be able to trade and that means lost days

5 - there will come a time when you will start to trade under pressure because you have to pay part of the loan at the end of the month, apart from that you will also have other bills to pay

I wouldn't recommend this for begginers who seeks an opportunity with trading unknowingly, because without any proper knowledge is possibly bringing them to much worst problem. For those who come up with a strong foundation, I guess that's their last option to use banking loans but it should be done with focused trading approach before trading profit will become the source of funds that can be used for family needs and other expenses.

Even if you have a great ability on tradings still its not a good ground for you to get a loan in bank for capital since we still doesn't know on how the scenario came in the future and if the market will not come to our side for sure you will be left empty handed and broke.

So better trade a amount  what you have that you can afford to lose and remember to secure profit always to win on the trade.

I actually agree into your friends insight towards bank loan on using it on his trading to expand out lot sizes.Its possible but would really be still like a gamble knowing that trading doesnt guaranteed out profits on daily basis which there are times that losses is inevitable but if a certain trader can handle it out on making profits on greater chances then it might be worthy to try it out.

In my case if im that good then i might consider on getting a loan but wont really be that big so that it wont be hard to repay.Just get the amount that you can actually pay
even the market wont be good into you.

If there is a chance to take it by cash then do it.
Do not directly buy bitcoin or any altcoin using banks.
You are just going to mess it up if you want out.
Loan then pay with your profits.

But there is also one thing to consider. Does your friend who is profiting from under $500 can manage large amounts? Have he tried it?
Is there a possibility that now he may lose because of the tension of the bigger amount in stake?

How did you not see that it is too risky? I mean it is quite obvious and looking at you right in the face and you deemed him "insecure" instead of yourself too crazy to do something like that? If you are having so much hard time to not even understand why bank loans are not the way you should be trading there are thousands here that can explain to you why it is a bad idea but you probably already know it don't you?

I mean you know what a loan is, you know you will have to pay it back, you know that there is always a chance your friend may end up losing money and not be able to pay the bank back as well, there is no way you don't know any of this you know them but you still want to take that "risk" because you think you may be on the winning side. We all just say "what if you are not".

If someone can do just like how your friend does then it is not a problem to loan out some cash from the bank but remember that it is still risky even though if someone can make a money from trading. It doesn't mean if you are good at trading you won't fail as a trader, the best advice is to not use any borrowed money to trade or gamble, always minimize the risk of losing money to avoid some troubles if you aren't confident with your trading skills.

No matter the high skills, experience and self confidence there is always a risk in trading and there is no guarantee of profit.
First rule of any investment so of cryptocurrencies investment too is to invest the extra funds that you don't need and not the funds that you don't have.
Therefor I wouldn't suggest that you use bank loan for trading and investing because there is always a risk that you will don't make enough profit to cover the loan so you might find yourself in problems.

There was already someone who came up with this idea. Same Idea, different terminologies used. That guy sounds like a professional trader though, in trading, having a big or small capital does not really matter. When you are good, you are good. Having a big capital from anywhere but is a lack of skills in trading will make you end up being broke. Remember that thing. But as a trader with character and skills, starting small is never a sad thing. You can always make your small stuff big when you have the skills. Nevertheless, simple but easy to comprehend.

Your buddy does everything right

And anybody in your place should refrain from recommending such things. If he follows your advice through and fails, losing the borrowed funds while still having to pay the debt, you will be to blame, and rightfully so. Apart from that, trading with one's own money is not the same as with the borrowed funds (read, someone else's money), while trading with 500 dollars is not the same as trading with 10x as much

Your friend is correct in his assessment, even if you are a great trader you should never ask for a loan in order to trade, the reason for this is that even with great skills there will be times in which the market will not cooperate at all and you will incur several losses in a row, it is hard enough to try to make profits in the market without having to pay interest to a bank if you add a handicap like that I can guarantee you that even most of those that obtain profits in the market will be unable to pay their debt with their trading skills alone.

The reality is quite different, though

You may be good with a small capital and quite bad with a bigger one. Trading is not so much about technical skills as about having the right mindset. And with bigger capital, the time-tested approaches can be easily disrupted due to psychological factors of never having to deal with a substantially bigger capital before

This is not even the point of discussion as the numerous examples of people who suddenly became rich and then ended up even poorer than they were before speak for themselves. There is no abstract "professional trader", professional everywhere and with any amount of money at their disposal

Yes. It's a very risky thing if you trade with your borrowed capital than using your own savings. No one knows what will happen in the future even how capable and skilled you are, you are still prone to losing. So it would be better to trade only what you can afford to lose than trading a big capital which if you lose it all, you will still suffer paying for it.

Your friend is right. It's wrong and high risk taking out a loan from a bank to trade because any losing trade on his part will cause him to panic. Trading doesn't need panicking and banks don't like excuses once it comes to repaying a loan. No excuses whatsoever. This is where you get to hate the bank. Let him build on his small capital and with constant profits from winning trades it will grow. Then he can take bigger risks and bigger profits.

Your friend is professional trader, he know his limit and safe place for his strategy. Using bigger fund to get bigger profit from bank loan is not wise decision, there's risk and pressure when he fail, in psychology knowledge we should avoid it. We can say he doesn't like challenge but I'm really sure if he move from his safe zone it will give bad future for his economy. Let him in his position right now and I suggest you learn trading from him, I promise you'll success like him, even better.

He found his way and the right place for his future is trading in safe mode, don't blame/ judge him for his decision. I'm not good trader but I think people feel comfortable in safe place than must leave into new place with grey result. For me ( personal opinion ), leaving safe ways and test strategy using big fund is worth to try, if fail at lest he know there's line couldn't pass.

I think we don't need to use capital from the bank loans to trade if we can trade with making a nice profit because you will make another risk in the pay that money to the bank. If your friend can make a profit from his trade, then I agree with him to make as much profit as he can and never borrow money from the banks. The risk and insecurity will be the important thing that we need to think about because it is about how we can pay the money, and I think your friend doesn't want to get more risk by the banks.

Even your friend or you are professional trader or you know many information about trading using money that you borrow to the bank is very risky because we know Bank loan is very restrict and once you did not pay you go to jail instantly for sure and the percentage of interest is high. Just use the money that you have and don't lend to the bank.

You’re just trying to misleads your friend man. How do you advise someone to borrow loans and trade with it? Why don’t you give money instead and forgive him when the trade goes wrong? For sure you would not do that but you are advising him to borrow loan. Borrowing money to trade is a very bad idea and you should know that.

Imagine that he lose that money in trade, I hope there will be a means for him to be able to make up and pay it back right? It would be best for him to continue with the $500 he is trading with and keep taking it a little until he grows big. It’s not good to be rushing these things, it’s best to do with what you can afford to avoid regrets.

That's why your friend have good trade skill. There is no idea he/she is a professional trader. A good trader never being a greedy one. Literally everyone will say you that trade with that money which is not so much mean to you if you get loss. Cause crypto currency market run very fast and this marketplace is so sensitive that's why your friend didn't risk to much which is good idea in my opinion. Well everyone will be want to catch big fish but sometime stay low is a better option, specially in crypto currency market.

And you can't underestimate the risk to be followed in acquiring such loans from the banks.  Such a thing you can't avoid when you are in the trading field but if your friend has that kind ability, then why not have to try it. But I could suggest that not to borrow for that big amount, it is getting safe if we just started at a small amount.

As we know, crypto trading won't work that easily as many others think about it at first. If he was able to make good and profitable with a small amount, then it was time to increase his capital and make additional bank loans.

It is not safe. You're not 100% sure that you will earn in trading in order to pay your loan. Loans do have interest and you'll not gonna like seeing it growing because you have no money to pay for it. For now it is OK to use small capital. At least he can still afford to lose some small capital. As what you have said he manage to make profit, then make that small capital grow.

This would really need some serious consideration if you do plan to take a big loan from banks.Come to think that you should able to
repay those loans in a particular or exact due date to avoid penalty problems or else you would really make yourself submerge into
a deep debt.

I cant say it is safe but its also one of the way on extending out your chances on making more profits but this will all depend on
how effective your are or profitable into your trades but if you arent sure on your skill then better not consider this option.

It is not fair to trade with a bank loan. Your friend's trading skills are good. Therefore, you should not trade with a bank loan. There are a lot of risks here. As he trades using his own funds, there is no pressure. When he trades with a bank loan, there will be a monthly installment pressure. And in that pressure, he can make the wrong decision. The result will be a huge loss.

Tend to agree with this, borrowing money with someone else or even in the bank is a very risky part because you don't know if you will earn a profit or lose. Start with a big capital in trading is a good idea but when it comes borrowing on it just to have capital isn't a good idea anymore. Because trading for me is just like gambling, you didn't know it will give accurate profit. That's why I prefer capital that I can afford whether win or loss at least that's come from my own pocket.

The possible outcome or consequences is probably double jeopardy.

Your thinking is not wrong when loans from banks always force us to pay monthly profits, besides, trading has no concept of absolute success, so we will have a lot of pressure, from making a profit, avoiding loss and paying interest to the bank but we still need to remember that trading is not completely gambling when we have the knowledge, and no investment is 100% guaranteed. If the risk could be doubled, the profits would correspond, even more when we make money in the crypto market, therefore, with sufficient confidence in the skills, this option may still be considered

I have to say that your friend is really a wise person. He would enjoy smaller profits rather than taking big risk and that is what would never make him face excess loss. I went across a number of people who have similar thought of taking financial loan from banks and utilizing that amount in trading to make profits but have you ever thought what would happen if you face loss with that financial loan and now you do not even have money to pay the EMI of the loans?

This would keep on multiplying your actual loan amount and you would need to pay hefty charges for maintaining your credit line. You might even end up being bankrupt if you do not have proper management and that is the reason why I would prefer each and everyone to stay away from this kind of thinking.

Never be greedy. Your greed is making you ask this.

It always can be considered or an option to take if you are that confident to your skills towards trading.This is way more better than spending those loaned money into something which isnt worth
or doesnt generate  income for you like gambling or just simply shopping out those funds or according to your likes and doing such thing is just like hammering your own head since
you do just simply making a problem when the repayment or due date comes.

We know the capability of trading on making tremendous profits if its done well and some sort of luck which paying up that loan will be somewhat easy.

i think i already heard a simillar to this but it was gambling related . the guy also ask that he will gamble a loan money from a friend because he had a skill  .  not sure if you are related to it   ? and this time you use the word trade and banks    .  trading is less riskier than on gambling but the said amount on the op is still huge imo   .  better if you lower it and see if how things go   ,  on trading you can possibly earn if you have an ability or skill  but you cant say that it is safe  . safe only means that zero risk  .

Not only that we do not really know if his friend is really good at trading, many believe that as long as they win a few trades then they have a system that works but in order to verify that what you are doing works you will need to backtest it against several different markets and compare the performance of your system, most traders never do that so they do not have a clear idea of how profitable, if any, their system really is, so it will be a mistake to get a loan under those circumstances.

Today one of the fastest earning is with the use of trading many people want to be included with this because they think it just easy still there are some essentials needed to win our trades some of them are paying some time just to earn a lot of knowledge first, they need to identify the strategy and techniques how they will win their trades and also avoid having market mistake. If you think you are already confident to the task you are doing and you will win your market income and have a capital better to start your trading right now but if you don't have any capital you can use the bank to get some money for your investment but always make sure all of the transaction happening is calculated avoid getting too much money and lose it that may cause having a debt.

I agree there's nothing wrong to trade by using your loan as capital, but I think it better to used your own money than borrowing and paying it with interest. But make sure you have enough knowledge and put only small anount of divide your money, one for your daily needs and the other for your trading.

Your friend knows how to handle his funds well and it's a good thing that he's not relying too much on his skills. We all know that trading wouldn't guarantee us a good amount of profit without risking a huge amount of capital as well. We should still control ourselves from risking a huge capital especially if we'll just borrow it from banks.

Yes, trading does not actually have fixed profits but the profits a experienced trader can have in trading are quite higher than the amount of interest we would need to pay so it would always be profitable to take loan from banks at 10% to 20% interest rate and earn 40% to 100% in few months in leverage or margin trading if having experience.

Risk is constant here so you should always have a backup plan before proceeding with any such deal because you might even need to pay excess charges from your pocket if ever you face constant loss by simultaneously hitting your stop loss or liquidation price, etc.

There is everything wrong with that, but this is not what the poster you replied to said. There is absolutely nothing wrong with using small amounts to trade (to each their own), but this has nothing to do with borrowing funds from the bank (whatever the amount). Further, if you need some leverage, you don't have to take a loan from a bank at all. You can just start trading on margin. The effect will be the same since you are effectively borrowing from other traders (or exchange itself)

This whole thread makes no sense if you can margin trade

Yes, though riskier than setting up your own business and making sure that you will have something left to sell should you see your capital going bust. I see nothing wrong with it provided that the borrower will have the means to pay foe the capital plus the interest on the bank, but if you got nothing to help you bail out of the mess then I'll probably advice against it. Once you got the loan, it's yours to use anyway but use it wisely--and before jumping into the mess that is trading, better be equipped with knowledge and experience or you will just put the money down the drain.

To be honest I do understand those people because lets face it, if you wake up every morning, go to work, come back home and watch some tv and sleep and repeat that the simple fact is you will probably not get rich. You have to do something different to stand out and make some extra because the world is designed to keep the working class keep being working class and unless you risk something you will not make any money and will be poor until you die.

However, the way to get out is not to risk the money you do not have but more like risk the money you worked hard to save. Some people literally wake up at 6 am, study a bit about their startup, go to work at 8 am, come back at 5 pm, start working on their startups at 6 pm and work until 2 am to make their dreams work, that is how you get richer, not by taking a loan and trading with it.

For me its depend the situation, for me taking the risk if you have huge money in your hand but if not then dont risk your money particularly if you used your loan for you trade even you have a great ability in trading. Its better to used your own money but dont used all, its better to divide your money.

Even if you are a great trader, as what he have said to you borrowing money from bank just to make a bigger capital is more riskier. Because not all the time you can hit the jackpot even if you have good skills in trading as we are not perfect and time will always come that we can make a mistake.

As a good trader, it will be good if you are patient because your small capital can easily multiply if you have patience therefore there is no need for you to take too much risk by borrowing money from the banks if you have the skills to make your small capital into a big one someday.

In my opinion, we should never take any kind of loans to do buy something we can't afford.
We have to plan out well and think of every possible risk before actually doing it.
What if your friend takes the loan but suddenly the market crashes and he loses half of the investment.
It will turn out to be a nightmare for him.
Instead he can take out the smaller profits, save it and then use it again in future as a bigger amount to get a bigger profit.

i usually don't support trading with a borrowed money because for me the risk of losing is doubled since you need to pay for the capital and also the Interest so the time you are trading you are thinking of higher profit to cover the loans and fees and also to gain.

but since you have mentioned Him being a great in trading?then why not try to take a loan but of course with small amount at first because there might have been Luck in his part using 500$ and may change if he uses more bigger capital?

Lol man loan is not something you’d like to get yourself into. My best advice would be that he should continue the way he’s trading and be contented with what he has. Sometimes loan is a really bad idea, I have been down that road and I will never again in my life take loan again.

Imagine you take loan and you lose it, you’re going to regret ever taking that loan, because they are going to pressure you and whatever you used as a collateral will be used as a way to recover the money for the loan you took. So I will advise you to stay clear from loan and stop giving your friend the advice to take loan, if it doesn’t work out he’s going to blame you for deceiving you.

Even a trader who has 90% ability, has a Trading Plan.
One of them is "Risk Management", of course, a trader who has the ability has prepared everything from the source of funds, technical or the amount of risk that will be experienced.

And also a trader always tries to minimize the possibility of loss.  If funds are traded as a result of loans from banks, it will be very risky if you experience losses, of course disturbing the psychology of these traders.

Because as good as any of his trading capabilities I'm sure everyone loses.  So I think it's better to use a minimum fund, the most important thing is to be able to profit consistently.

- I disagree that bank loans are always bad, although the majority of people borrowing money from banks are falling into a bad situation but don't just look at the failure rate, look at the success rates, with the increase in capitalization, some people have a better financial background through trading, so borrowing money from a bank to trade is still possible. But of course, there is no security when we borrow money, so avoid getting into a situation where we cannot repay our debt, we should choose a loan that is suitable to economic conditions

Im not much into trading, but actually it crossed my mind this week taking a loan to buy btc , something like 5k 6k.   
Hold those 5k 6k in btc while paying to the bank, and selling it when btc reach 13k 14k.
At current btc prices do you think its a bad idea? With halving coming.

You don't need a bank loan for that

You could just open a margin position on an exchange like Bitfinex within minutes and get done with that (and pay pennies as interest, for the record). People in this thread seem to be discussing matters (e.g. trading, as per thread title) which they are not even remotely familiar with. I understand when someone considers it outright a bad idea (the point that I entirely support, just in case), but when someone else is seriously discussing taking a loan to buy some bitcoins, that makes me cringe

Like i said, it crossed my mind.
Im not yet very confortable with trading too. I buy and hold, i got into crypto 8months ago when i was forced to be at home with a broken leg, i pretty much im holding all the little coins i have bought.
I know theres margin trading,contracts but to me thats still too dark for me.

My idea was to make a profit with all the upcoming events, even if i had to wait and hold it for a year or more i still think thats a good solid investment, after all its btc.
It would repay the loan plus i would get a decent profit.

I also know there m8ght be better choises like you said man, but im not confortable with those.

hypothetically speaking

So how are you going to pay back to the bank?

As you won't be able to hold your bitcoins bought on borrowed money when the time is up and you will have to return the loan. I'm curious if this thought crossed your mind too. If you are going to return some other money (as you seem to imply), then the whole idea makes no sense as in that case you could just buy the bitcoins with that money right away without any loans from any banks

I would pay monthly, i work unfortunately   :D
Thing is i dont have that amout of money to invest, even with loan plus fees, lets say btc reach like 15k its very doable right, on a 6k loan i would end up paying 7.2k on a 62month plan to the bank.

Its still profit i  my eyes

Edit. I could buy btc mothly true, but the whole idea was the opurtunity. Btc current price

Your eyes are deceiving you

Given the current price dynamic, you are likely to do better with monthly purchases after all, or, in more concrete terms, with a strategy called dollar-cost averaging. It is a simple strategy following which you regularly buy some bitcoins with a given amount of dollars, no matter what the current price is (hence the name). You can look it up in Google if you are interested in specifics

Yeah...with current situation and all the news, i think its too risky, even i dont feel confortable now.

I google it, didnt knew tbh. ive been doing kind off that, except without a plan, i bought a little everynow and then serveral times, but i might plan it better, i will for sure.

In your case, it seems to be the optimal strategy

More generally, everyone who is an ordinary office employee and receives a regular payment not related to cryptocurrencies or trading is advised to employ this strategy (provided they want to get involved with crypto in the first place). Buying a few bitcoins now and then with a fixed amount of dollars regardless of current price means buying more coins at lower prices and fewer coins at higher prices, so in the long run the breakeven point will tend to get lower and lower, even without selling anything at all

Personally, I do not approve of such risks. If your friend really has the ability to trade, then he can easily earn his first capital himself with $ 500, for a certain period. For example, in a year he can easily increase his capital by 10 times if he is really as good as you say about him. However, if he takes money from the bank and something goes wrong, he will fall into a debt hole from which he will get out for a very long time. Let your friend teach you how to trade, or you yourself can borrow money from a bank to sponsor a friend.

Times like we have now always remind us how easily everything can change over night. So fast we found ourselves in health and medical crisis that turned also into economy one.
Don't be so sure that you will be able to cover loan and that trading will be so successful. To my opinion to take bank loan for trading is too risky, especialy in times of uncertainty like now. I beleive that this corona crisis might be trigger for world recession that is about to start.

Don't ever take out a loan to trade or gamble. I know people personally who have done this and they are in debt because of this.

I had a friend who was broke, could only trade with like $3000. And he turned $3000 into like $9000 and then lost like half of it. So he assumed he knew what he was doing and borrowed like $10000 from a credit card because you knew he could pay it off soon. Long story short, he lost the entire account within a few weeks and had to pay off the credit card with its 20% APR interest. Worst financial decision of his life.

This is why credit cards actually stopped processing crypto exchange deposits back in 2018 because people could fall into debt if BTC crashed which is exactly what happened. And many people got burned and still owe the debt that they took out.

So never gamble with a loan.

Never even trade from borrowed capital, because mental burdens and discomfort can destroy trading strategies and focus. based on the experience and those who have good trading skills, but there must be conditions where they will lose a lot of money. So it's not worth it if you borrow capital to trade in a market that has great volatility.

Actually it's the merchant's choice because I'm sure his mental burden will definitely be heavy. but if the trader is capable then just do it, after all that trader choice

Indeed, the desire to seek more profits is something that everyone wants to gain from trading but do not let that profit make us forget the nature of risk when we conduct trading, we don't need to talk about bank loans, trading margin loans are also an experience for us, the loan amount may be very high but it always comes with special conditions, risks and fees. A lot of people are proud of their skills in margin but the battle is at the end, the number of people smiling is still too small, while the crying is more than ever

I agree with @Gheka here. Despite loans availability I always advise people not to take loans out simply for the purpose of trading. This is because like its said above, the risks are so much higher and you're not guaranteed profit even if you pride yourself as a good trader. Plus, the complication you'd get yourself into with paying interest rate on the loan is another reason not to assume profit and to just trade with only what extra $$$ you got!

Of course, each person has their own opinion on whether to take a loan from a bank or not.  Many people know that you need to rely on something so that you can give credit to the borrower.  But in my experience, a bank loan always carries a certain burden for a person and a person burdened with such a burden will not be able to fully work on the cryptocurrency market, because at the psychological level it will underestimate its results.  This is a psychological moment of the negative impact of bank credit on human activities.

It isnt worth the risk imho and aside from no guarantees on making profit you are indeed also being stressed too much that you should able to repay the loan which would really be a main distraction
towards your trading activity.Over confidence is one of the problems too yet even how good you are, you cant be sure if you would make money on a particular day,week or month.
So i wont take a risk on things which im aint sure that i can repay on said due date but if you we are somewhat sure on our skills then your choice but always think twice
on the consequences in case you do fail into your expectation.

Your friend is right the bigger your capital the bigger the possible loss, He is taking the safe way making it slowly but surely. In the first place borrowing funds on a bank just for trading is not really good you might end up losing and paying it for years to be deducted on your daily salary. But if you are capable and have extra funds it is better to have bigger funds high-risk high rewards but it is too risky.

Loans are bad especially if you like taking a risk with your trades. They will cloud your judgement and made you trade more nervously. A gambler could could say that taking a loan can later force your hand in trading.

Also a loss of a loan hurts you more than a loss of your own money. You can be in some real trouble when they take your car or your computer because you stopped paying and cut you off from ways of making it back.

You said almost everytrade he manages to make profit, which means he doesn’t make profit on every trade. So to you, do you think that taking a loan from bank to start trading cryptocurrency will be a good idea? There are times that he loses, what if he happens to lose more times after borrowing loans?

There are times you become anxious after you have lost some part of your trading money; at this point of time your focus is no longer on the main thing, you will only be focused trying to recover your losses and in the process of doing this you will keep on losing more money. I’d say that you should allow him, if he thinks that taking loan is not a good idea then he shouldn’t try it. Don’t force him into what he might regret later.

Stress would really be there and i agree on what you have said that loss of a loan does hurt even more than losing your own money since you know on what are the things behind in case you cant able to to make money.

I dont see a valid reason why would take a loan just because you do trust yourself too much to trade and we know that not all days are profitable and just like now where market is going down and doing sideways.
Utilizing price movements cant give that much for you to take profits.

Its a matter of choice though but risk is heavier than reward.

In my opinion i would not take such a risk like that. Crypto currency is very much sensitive market that i ever mate. So i would not prefer to do that kinda step which are really risky. Many good trader will prefer to do with trade those money which will not affect on your life if you lose it (specially in crypto trade). Just think you take that loan and buy btc/altcoin and suddenly market fall because of global recession like corona (which did) then what would you do..? Sometimes skill don't support us and so my opinion it's better to stay way from that risk.

Your friend is not a gambler and he understands that taking a loan from a bank is like going to the devil for a cup of water. Nothing from the devil is ever free of charge. There are always hidden charges. Your friend should continue in his record of winning trades and sooner than later he will have the big break he desires.

I agree with your friend, it's very risky and of course whatever happens is all borne by your friend, it's better to use the existing capital and it will continue to increase from time to time so the capital will be greater by itself

no and never,even how good we are in trading please never consider this because the more you invest money with interest is the more riskier the trade goes.

if you are good in trading then sell something from your own things and use as capital right?so you have no obligation to pay back.
since you can buy many when you start winning in your trading.

That's too risky mate even though you know that you are capable to multiply it easily. Your frined is just playing safe perhaps he's not too confident too much to take the risk of loaning from the banks. I myself will do the same thing as I know myself that I'm not professional. It's better in my opinion to just take the risk money that it's really yours thus if things went suddenly, it'll be feasible for you to recover it within a shorter period of time.

Your friend does it well and patience is the main key to profit every time he trades, and when you suggest borrowing money then obviously it will be a risk because you will not know what will happen in the future and your ability is not a guarantee for You will get the same opportunity as before, because when you borrow money for larger trading capital, indirectly it will make you greedy.

It is risky and even I wont really tend to make such step just to have more capital to trade.I would rather choose on letting my capital grow until it would come to
a point that it would become bigger and do give out advantage.You wont mind on repaying something in the end of the month which means its less stress compared
if you do have obligations to pay up and also it wont really be worth if you do trade up on something that you have just borrowed and as said
you cant be sure on how the market moves and this will highly affect or do increase out the risk.

in my opinion
If he's a really good trader and uses stop lose in his trades
he must take a loan from the company without being afraid
And I suggest trading without leverage

Even if you have good trading skills, it is still risky to borrow from others people money or to get bank loans in order to have capital in trading. Yet is a good way in order to increase your money in trading but still do not do it especially if you are still new in the trading. There are many traders who falls in huge debt after they lose the money in trading that they loaned  from banks. It is better if you will use your own capital in order to lessen the risks and also for you to have good mindset because there will be a bad mentality that you can have specially if your capital is only borrowed and you experienced losses.

Let's be honest, if you wish to start something from what you can make profit and live a life you need capital, the bigger the better. Many people don't have that capital and if they plan to start they need to borrow money, they need to take a risk if they wish to try! So that basically mean that if you don't succeed you will be in a problem, higher loan bigger the problem!
What's the reality? Many people take that risk, many of them fail, some succeed. If you read about successful stories, there are some similarities, they all did their homework, they made all preparations and calculations! So if anyone wishes to take a risk should do a homework and only then to sail into unknown waters! And if you can come up with some plan in case of emergency that would be great!
Listen your instincts, recheck your plans, make sure you did everything fine, and if you are sure in yourself do it!

Leverage trading on a loaned capital? I cant imagine on the stress and thrill with that one since you do know that you do need to pay something.
So it isnt really that advisable to go directly with leverage if you dont know on what you are doing.When it comes to confidence of a certain trader
to himself then it isnt bad but be sure that he can make money and as long he can repay then its his choice but on my part i wont take a risk
yet im also a profitable trader but taking a loan isnt included on my considerations.

He really gave you a good answer, see something no matter how good you are in trading there is a point that thing's will go Down and you will not see it coming. I have not have the idea to make loan's in a bank and use it for crypto is really insecure and risky to my own opinion I won't advice or recommend that.

in my opinion
If the person is managing the risks well and is using stop lose there is no need to hesitate
Especially if he wants trading to be his primary source of income

I totally agree with your opinion, as long as you have good risk management, there is nothing to worry about. Sometimes to be successful
in trading we must have the courage to take risks. If we continue to play safe, it will be difficult to develop. But of course we take risks,
must be with careful planning.

If we are trading inside our comfort zone we may take more dare decisions but if you are trading with loan amount which may not be possible so there will be loss in the returns that is why some users never wanted to take loans for risky investment and that is the right thing as well. You can invest lend amount on something which gives assured returns and its more than the inflation rate or else its not worth to invest.

If I observe from your story I can conclude that your friend is a great person and does not want to accept the risk, he really enjoyed the benefits with small capital.

Crypto trading is full of risk, your friend is a cunning and great person, with a capital of $ 500 he can profit anytime by weighing high capital and high risk.

I am sure that your friend is quite professional in not sloppy trading and ambitions are full of meticulous consideration.
The saying:
"Little by little becomes a hill" .

Trading with what one can afford is the best and first financial or trading advice experts will always give. There is no reason to trade and be under stress just because of how much you are trading with, probably because it's borrowed; trading goes with relaxation. Your friend's decision is good, he is very correct and wise by rejecting that idea of borrowing from the bank, because the crypto market is highly volatile and anything can happen anytime. Lastly, whether it is loan from banks, or loan from friends it is wrong following that path when it comes to trading or better still all that pertains to crypto; trading within your limits is always the best.

If you are confident with your skills, you can definitely use loans to fund your trading regimen, but be careful with the loans you are going to use, make sure that the loan you are can be paid easily even if you are experiencing hard times when you are trading, you do not want your credit score to be affected with these, a piece of advice for traders is to have a safety net to help when you are experiencing a financial fall out, having a safety net like emergency fund or a day job helps a lot when you are a trading newbie, we will experience losses no matter what and it is up to us on how we handle thigs.

In trading, there is no invulnerable when it comes to risks, there is always a risk, that's why it requires a skill in order for you to succeed and win in trading. Making strategies based on the speculations and prediction will be helpful for you to minimize the risk of losing your money than getting huge amount of profits.


That's the reason why you should seize any opportunity that you can grab as much as possible so that you will have no regrets and you will not miss the chance to grow and improve your trading skill and quality.

He's lucky enough because he have great skills so that he can paid his loan using his profit. That's a good strategy and yet very risky, because what if there's a circumstances that he panicked when the market goes down and he lose all his money. If that happens, maybe that's the time where he is doomed by the market,  probably his life will become miserable as he loses the money that he only borrowed in the bank.

This implicitly suggests what you are trying to grab at is indeed an opportunity

If you are certain of that and this certainty doesn't stem from primitive wishful thinking or delusion, then for all fucks and sakes go for it. With that said, though, let me guess, the guy who had borrowed money from a bank to buy Bitcoin when its price was around 3k was flying blind. Of course, we are all wise after the event and in hindsight, and now that decision looks like a rational choice to us, but that's simply because we know what the price was after that. However, we couldn't know what it would be at the moment

Well it seems to me that your friend is taking a calculated risk with an amount he can probably afford to lose if he ends up with a loss. The thing with loans from banks is that obviously you'll have to pay an agreed interest rate on top and that would increase exponentially with the loan amount. Even if the person has great trading skill sis important not to overstep those fine trading boundaries as sometimes one tiny mistake can lead to huge losses and in the case of your friend I think he's doing well - he might not feel comfortable with a 10x increase in loan.

As for you, remember it's important to not get too greedy.

i always discourage people here that will use Loan or credit amount just to invest in crypto even how Good you are.
because you are risking not only your chance but also the funds of others.
If you are really good then Use your ability to make money little by little then gather all the money to start investing int his way you and yourself is the only at risk and you have no obligation for others.

I believe loan for trading purposes will not work even for highly skilled traders. I believe you are referring with "great ability" the professional traders. Yes even for professional traders, loan as the capital might be playing as a negative catalyst because they will be feeling extra pressure on their trading because they need to repay the loan from the profits they are making. When you are not able to fully focus on your trading and its related decision-making then there are a lot of chances for you to miss out something which will be leading to big losses because trading requires your attention at each and every moment.

I believe already a lot of traders might be getting loan for their trading purposes and if you notice their current loan is not the first  loan. I mean is they are good at trading then it means they are good at profit-making then what is the need for them for continuously getting loan for their trading purposes?

Starting with the small capital and then building your own big capital from profits on monthly basis will be helping any trader to sustain in long run and definitely loans will ruin all your trading capabilities regardless of how great you are previously.

This is a very risky thing and is not recommended by many. Although there are many successful traders, I definitely do not recommend your friend to trade with debt money because nobody can always earn money. Especially when the amount of debt you are talking about is a difficult amount to pay, this situation will wear the person out and stress. My advice to your friend is to continue to trade with his current capital patiently and reach his target by growing his own capital. In the event of a loss of money from transactions with debt, not only material damage but also moral damage will occur, which will adversely affect your psychology. For this reason, I definitely do not recommend doing such a thing.

Nahh, even if you ae highly experienced trader you may not be in profits all the time that is why you should start trading with your savings not with the loan money.

Using loan in a business makes sense because you are also making more profits thanks to the money you got, using it on trades makes no sense because you will only earn more but lose more as well, it is not a permanent increase in trading, it is a temporary one because you will end up paying that loan back with the trading income so you need to make more profit than the loan repayment and make it quick as well, which would hurt you a lot more.

In a business let's say you have a factory and you manufacture something and you get orders a lot bigger than you can produce that quickly, you get a loan and you make your factory twice as big and suddenly you can manufacture five times more products, you could pay the loan back with the constant income you have that is not stopping. Trading is nowhere near that so it makes no sense to get a loan thinking it is a business.

Personally i do not approve of such risks. If your friend really has the ability to trade, then he can easily earn his first capital himself with $ 800, for a certain period. For example, in a year he can easily increase his capital by 10 times if he is really as good as you say about him. However, if he takes money from the bank and something goes wrong, he will fall into a debt hole from which he will get out for a very long time. Let your friend teach you how to trade, or you yourself can borrow money from a bank to sponsor a friend.

Yes i will use trader of %.
In my country if i need bank loan then i need show many statement like earth, house and government service provider.

I know trading one of well for making profits in short time if i have enough skills. Even if i received bank loan then i will include 50% of assets in trading with other 50% in real life business. Although i will repay the bank loan by making profits from trading.

Easy to say but you cant assure things for you to make profits in a short time yet we know that bank loans or dues could be on monthly basis
thats why its really risky if you do just rely on trading earnings yet you cant be sure if you can hit up the amount or not.This is why its always a best option
to take to invest on traditional ones because this can somehow give a chance or guarantee that you can pay up the monthly due but if i were ask
on making such step then i wont really risk out.

When someone is capable of making profits then they should be already having lot of money to continue their trading activity so when someone borrowing money means they are still not yet successful so taking risk with loan money is not advisable.

I would take this risk and borrow from bank if I have the collateral and nobody else depend on me. If otherwise, it is very dangerous and do not advise your friend to take the loan because if it backfires, it will not only affect him but also affect others that depend on him for living. Aside this, trading is also about mentality. When he borrow to trade, he might feel very nervous and anxious thereby taking wrong moves. let him continue trading with what he has started with. I am confident he can make up to the amount you intend telling him to borrow

No matter how good a trader he is! In my opinion, it is not better to pay with a loan from a bank or anywhere, Stock, forex, or crypto trading where you are not 100% safe because technically you are right but many times there are many upheavals in the market due to fundamentals. There is still time, so think carefully about whether investing in a loan is the right decision.

I think it is safe to trade with loans from banks if we have great ability It will all depend on our business If the business is good then it is better to take loans. By doing business we will be able to repay the loan very easily, there will be no problem and we will earn profit from both sides But if you don't have enough capital and the business is not good then there are many risks in taking a loan. The amount of damage will be higher here.

You are on point buddy, a lot of traders do forget the part where veteran traders do advice everyone to trade with either a spare cash or the cash you can afford to lose due to high volatility of trading markets be it crypto, forex or stock. A cash obtain through loan is never a spare cash or a cash anyone can afford to lose so why take loan to start crypto trading? What if the market go against you? I've seen a lot of successful traders who started with literally nothing other than some few airdrops and bounty campaigns. I know airdrop and bounties ain't paying like before again but there still few that turns up once in a while. I against taking loan to start crypto trading

As he is a good trader so he can easily make that much money by himself in a month or couple of months and it will not be a constant pressure on him to make money. But if he takes loan from the bank then he would have to give the bank a collateral of much greater value and if he looses or be unlucky in those trades then he have the risk of getting REKT and this is what I think his reason for not taking a loan for trading.
Also I think the same that taking a loan for trading is just the same as taking a loan for gambling where there is always a high probability of you loosing all your money which is pretty bad situation if that money was borrowed.

To be honest, you really need to trust yourself if you are going to take out a loan from a bank.
I wouldn't personally do it, just because if I was to fail I would be in trouble.

However, I'm not a skilled trader at all, if your friend really trusts his skills and know for a fact that he will make a profit, then why not?

If he has good skills in trading, then it's okey to take little loan. But your friend refused your proposal, that was because he still doesn't think himself an expart trader, accident can be happened anytime. so his decision is right.let him practise more to gain more skill

of course safe...
trading is a skill and prediction, you will quickly repay your loan if you have good trading skills, I have never heard of a bank loaner who made his loan be a capital for trading and made a huge profit, but I'm sure it's good to try if you have good trading skills.

Safe? Its never been safe because you cant be sure that you will be on profits constantly same as said above by other members of this forum that theres no sureness if you can make money because this market is always been unpredictable where you wouldnt know on when to pump or when to crash if this is the only way for you to repay debts to bank of your loan then you should think twice.
Confidence on your own trading skills isnt bad but going to the point on where you do trust it up too much and taking big loans to fund your trading account then you should accept the risk behind it because once you've
failed then not only losing big amounts of money but you would also face up legal issues when you can able to repay your loan.Its better to borrow to someone (not banks or coops).

No, that's quite risky. Although sometimes we need to do some things so that we can raise enough money to cover up the loan before the deadline comes. But in the case of your friend I really think it's unnecessary. First of all , he or she never requested for it and I believe they are doing fine already and are okay with the money they have, that's why they don't need that loan. Allow them to trade with the little money they have.

No matter how good they are, you can never be so sure, and I don't see anything wrong with the amount he's trading with. If you push him to take a loan from banks, if it doesn't work out tomorrow and they are unable to pay back, you're going to be at the center of it all. So better keep clear.

I don't think it's the right decision to borrow money from a bank and trade in cryptocurrency. People are not above mistakes and no matter how good a trader is, he can make mistakes in business. Trading in cryptocurrency is always very risky even though it is more profitable. If someone is doing a wrong trade, he can lose his maximum asset. For example, those who bought  Bitcoin at 20k USD have not reached their desired goal and have lost more than half assets so far. So the best way to make a profit is to trade patiently, not by taking a loan from a bank and trading with very optimism.

It's a risk that is hard to accept. If i can give you an advice trade the amount you are comfortable with. Because one essential key in trading is being calm and if you trade raise that capital and worst case scenario you liquidate it. Then you would be buried on debt. Crypto market is so volatile that indicators sometimes is false. So if you plan to raise your capital, Just be careful and know what you are doing.

If someone is using loan money for trading then they are forced to make short term profits to pay the monthly due which will make the trading more tough and can ruin your strategies as well so before using this money you need to be careful about your other sources of income, if you don't have any then don't do it.

Yes,of course! Not every trader got that ability, then use it to earn more profit.You can borrow from banks, but make it sure that borrow only what you can pay for ,don't borrow much money that would make you hard to return. Much better if you have other source of income like job or any business for you to sustain your loan if ever you fail n your trading.

I believe OP is talking about start-up capital here. It's the first cash you use in investing. If you don't have it how are you going to trade in the first place to prove you know your game? Saving on one's own will depend on if one has a job and engagements that bring in money. Otherwise, one won't be able to fund an account to start trading with. However, I won't advise anyone to get a loan from a bank to trade with. It's risky and can unsettle one once loss sets in.

Irrespective of how good a trader you are or your confidence level, borrowing to trade is not safe for your healthiness..
The more you worry about loan interest piling up, the more the pressure you get, which could force you to make the weird trade decisions is desperacy

No, it's definitely not the same and I think newbie traders who start off using leverage can and do get themselves into serious trouble by trading (gambling) with other people's money that they're paying interest on.  I've never traded on margin and never intend to--and believe me, I understand that your potential profits can be much higher but I don't like the level of risk associated with it, nor do I like borrowing money.

And in general, even though I do think that bitcoin is going to head much higher in the next year or two, I would not recommend that anyone take out a bank loan or even buy it on margin on an exchange.  That's just me, though.  The crypto world is filled with individuals who have a much higher tolerance for risk than I do, so I wish all of the margin traders--and whoever else borrows money to buy crypto--the best of luck.

But considering the fact, not all traders are same with respect to their skill set, I believe that for some traders it will be okay to go for loans for trading purposes without getting impact on their health level. But, personally I will not go for loans from my crypto trading because I'm not having any confident to make profits by having extra pressure because of loaned capital. I just want peace of mind so that I can focus on my technical analysis which must be the vital thing for making profits in trading.

This must be true because I have experienced this. Moreover, when we are calculating how much we need to make profits so that we can repay loan, then we will start feeling extra pressure to be dominating us which definitely not letting ourselves to think smart which must be more important thing for making profits.

Exactly and thats why its better to trade on the money that you current had which isnt a loan because you wont really be get pressured about interest or due dates since you know that you do only make use of your own money and if you lost then there are no responsibilities left behind.

Unlike when you do get some loan just for you to trade then you will surely have that pressure behind and as a human its really hard to neglect nor not to think of it.You would be minding that
you should profit so that you can repay on said loan.

In result? You would really be lost in track since you are forcing that each trade should be profitable.