Bitcoin Forum

Yes as the subject said, using borrowed money to buy bitcoin is not good idea because the interest is accumulating every week/month and you don't know when the bull will come and even if you know, you will not know how much it will be. And assuming you took a loan of $400 to pay back within 3 years and the interest rate is $2 weekly and in the 3 years period, bitcoin has not reach the speculated price to sold your bitcoin to pay your loan. Or when you sell, you get the exact amount of the loan, or 1% profit from the sell and you pay off the loan and there is nothing left for you to start over. Is that a good investment? No. So there are many factors one can consider before using borrow money for bitcoin investment. You have to consider the duration of the loan, the probability outcome of bitcoin at the end of the loan year, and the interest rate accumulated at the time to pay back the loan.

When you have done your homework well and you see that you can use the loan to invest on bitcoin and there will be no problem at the end and you will have some changes remain in your wallet then you are free but if not, it will shock you and you will be frustrated so prevention is better than cure as they said. Therefore using loan for investment is not advisable. Ordinarily, you cannot just come to the cryptocurrency Ecosystem space without proper planning and started investing, it is not done in that way, at least calm down to study how things are done in the environment, making some analysis, compare and contrast some of the risk involved then if it is good then you key into it and if it is not then you look for an alternative way to invest in bitcoin.

I came up with this topic because I was planning to borrow money to invest in bitcoin but when I looked at the risk involved, I have to give up the borrowing plan.

That was a good decision. The very first thing I learned about investing is that you should only invest what you can afford to lose. It’s definitely a good thing to think about investing and wanting to do it as soon as possible but learning when to enter the market should definitely be carefully thought of first. Props to you for realizing what should be done!

Borrowing money to invest in bitcoin is really not recommended "for people who are not ready for the risks". Because indeed there will be risks that must be faced in the future, if investment in bitcoin does not go according to expectations. Therefore, avoiding borrowing money to invest in bitcoin, for me, is absolutely mandatory to avoid. Why did I avoid it, it's because I was not able to overcome all the risks that might occur in the future. I see my inability in terms of my income every month. So it's better to invest in bitcoin, in a slow way and there's no need to rush to get huge profits.

But for people who are ready with all the risks and consequences, maybe borrowing money to invest in bitcoin is fine. But with conditions must be prepared to bear all the risks. Because actually if you look at the potential of bitcoin from what has been passed until now. Bitcoin is always profitable, as long as you can patiently wait until the bull run market comes. So even though investing is using borrowed money, but can be patient waiting for the bull market to run, I believe that in the end it is likely to experience profits.

But even so, there are a number of things that must be prepared when using borrowed money to invest in bitcoin, so that it can run smoothly. One of them, namely, must have a fixed income every month, in order to be able to pay bills that must be paid every month and to finance daily life.

If you feel you are unable to face all the risks that might occur, it is better to cancel your plan.

If you borrow money for the purpose of Bitcoin investment, it presupposes that you don't have an extra money, that which you can afford to lose. So that's basically it. The advice has always been to invest only what you can afford to lose so that whatever happens you're not left with nothing and you can still move on with your life. So, notwithstanding Bitcoin's track record, since it remains risky and that it does not have any guarantee whatsoever that it will rise in the following year or years, you better just use extra savings.

As a general idea, I think it is better to avoid debt, but if you are going to go into debt, it is better to do it to buy bitcoin or a house than to take a trip to the Caribbean. An investment loan whose repayments are a low percentage of your income is not bad at all.

Although people generally take loans to buy bitcoin and crypto would say that they do not have a rational plan, but are left to carry around the fashionable moment, thinking that they will stick the ball and when they see that the plans do not come out as expected they have just sold losses and still have to pay the loan for the difference.

Borrow money has two big risks.

Paying loan interest and if you let the loan is active for too long, you will have to pay higher loan interest. If you have no idea when you have to exit the market even to save your capital, reduce loss, minimize loan interest, you should not borrow money to buy bitcoin.

What you do next after buying bitcoin is important too. Do you plan to hold it on exchange or in non custodial wallet.
Store your bitcoin on exchanges is risky and it is better to store it in non custodial wallet.

The bad way to use bitcoin you bought is to deposit it as a collaterall for Margin or Futures trading. Your bitcoin can be forced liquidated by exchange. Then you lose most of it and also have to find money from some other sources to pay loan interest.

Bitcoin is an investment that if you don't have your own money to invest in,it is better that you wait till you have your own funds instead of taking to loan to invest. The best way to make profit is when you hodli for a very long time,this will make you relax and not bothered about the price of bitcoin,either pumping or dumping. If you borrow money to invest, this can give the investor a sleepless night because he will be checking at the price of bitcoin often. If bitcoin price dumps below what he bought that person can sell out of panic and make losses. Bitcoin price is unpredictable due to its volatile that is why one don't need to get a loan to buy bitcoin. Taking loans is a setback in life.

It is a very basic learning of investment and applicable to all market linked investment products. Borrowing is not at all advisable. I remember back in 2017 when the market touched 20k for the first time, a lot of my colleagues had used their credit card to buy Bitcoin out of pure FOMO. For next couple of years, they had a hard time paying that debt to the credit card company because in my country, the interest on credit card borrowing is around 48% annually. I have seen them taking loan from banks at lower rate to pay off their credit card dues. Which essentially means, they had taken a loan to pay off the previous loan. Investment should happen with your own money and not on borrowed funds. That's a thumb rule of personal investment.

Borrowing money is never a good idea for any type of investing. I know way too many people in the past who basically bought Bitcoin on a credit card which had an interest rate of 20%.

They said that 20% is cheap because Bitcoin will go 1000%. And for some who got in early and got out before the top got lucky but for many they are bag holders and are basically paying interest on a losing investment. Which is an awful thing to do.

It's a good thing that you're doing a good math right there and was able to understand the risk involved. Buy hey, $2 per week in a 3-year term is a very high interest, that's $228 in total more than half of what you have owed them. Also, a 3-year term for a $400 is quite long, therefore it'll make the interest rate even more higher. The longer you pay the loan, the more you're paying for the interest.
So, first of, you need to find a good company or bank that will give you lesser interest and cut the payment term to at least 1 year, depends on your monthly income the early you paid everything off, much better.
Look, borrowing money to invest in bitcoin may not be advisable for many people, but for the most experienced one, they could take advantage of it. Especially when you're trying to get into the bull train before bitcoin priced at more $50k some time in the future.
Borrowing isn't always bad as long as you have a comfortable extra income to pay off these debts no matter how long bitcoin you're holding.

I've been where you are - in the trenches of business - and I can tell you that nothing beats having cash on hand. Bitcoin and other cryptocurrencies are extremely volatile, so borrowing money to invest in them is like playing Russian roulette with your money. Lets figure this out. Borrowing $400 at $2 per week in interest for 3 years results in a total interest payment of $312. Now, if Bitcoin's value doesnt soar as you anticipate, all you have left to do is repay a sizable loan. Its all agony and no reward.

There's also the nagging worry of being indebted and the anger at watching your hard-earned cash go into interest rather than a nest egg. Woah, this is perilous! Financial strategy calls for cold hard facts, not wishful thinking. The cryptocurrency exchange is not a game, but rather a war zone. Stay away from the debt trap unless you've thought it through and have a safety net in place.

In finance, as in life, you cant expect anything for nothing. You should always be willing to incur a loss if you want to invest with your own money. If you need to borrow money to invest, don't do it, especially in something as volatile as Bitcoin. Dont be a dunce; use your brain.

I think the plan can work, assuming Bitcoin has gone through the previous bull run phase and now is the recovery period. If your payback period is 3 years from now, maybe you can witness the bull run returning to the market so you can sell the Bitcoin you have bought at the highest price.

But that's just an assumption because we never know when a bull run will come. So borrowing money is not a good plan unless you can repay the loan from other sources of income so you don't have to think about when the bulls will come. You need to focus on buying Bitcoin in the present moment while paying off the loan every month.

It's better for you to invest in Bitcoin using money from your source of income so you don't have to think about repaying the loan money. It will also be safer for you but everything will come back to you because you have to decide.

All borrowing side have higher loan interest and not recommended for investing in bitcoin, all borrowing need repayment in every month and how possibility paying loan interest without get much profit from Bitcoin. You can have planning borrowing money and use it for investing in Bitcoin if you have other income or working on company, have chance for repayment loan interest from your salary and Bitcoin investment keep holding for long term until all loan interest pay full. If you want to try with method repayment loan interest from Bitcoin profit I think difficult, every month Bitcoin can't guarantee on higher price and enough for long term investment and use half for loan payment interest.

Not recommended if you don't have any passive income for borrowing money and invest in Bitcoin, better waiting have good job and use half with your salary for investing in bitcoin by borrowing money.

I agree that using borrowed money to buy bitcoin is not a good idea for the reasons you mentioned. Another factor to consider is the volatility of bitcoin’s price, which can make it hard to predict when you will be able to sell at a profit or break even. Bitcoin’s price can fluctuate by thousands of dollars in a matter of hours or days, and sometimes it can enter prolonged periods of decline or stagnation.

If you borrow money to buy bitcoin, you are exposing yourself to the risk of losing more than you invested, especially if you use leverage or margin trading. You may also face additional fees or penalties from your lender if you fail to repay the loan on time or if your collateral value drops below a certain threshold.

Borrowing to start a business is not a bad idea if you have done your planning properly. Such a business should be the type that you have some level of control over. At least your inputs should be able to determine the profitability of the business to some extent. If you take a loan to start up a poultry farm for example. You are sure that if you put in your best, there are chances that you will achieve your profit target.

But investing in a business that you have no level of control over is risky. The bitcoin market is not predictable. The price is controlled by some external forces that many investors don't have any control over. So taking a loan to invest in this volatile sector is not advisable because anything can happen. You might not be able to calculate how to repay the loan with profit from bitcoin because the future price of bitcoin is not predictable.

I will never borrow money to buy bitcoin. Don't be to haste to buy bitcoin, I suggest all people who have intention to borrow money to buy bitcoin to be patient. Rather than borrow money to buy bitcoin, it will be better if they just do DCA. Although I am doing lump sump to buy bitcoin but if I borrow money for it then it is not so good for me, I think the purpose of lump sum buying is to maximize the capital to get maximum amount of BTC at lower price, interest rate will make it none sense. that's my opinion.

Good. It is not the best option to be able to invest in bitcoin. Borrowing money to be able to invest in bitcoin is something that needs to be avoided and at first glance you have found reasons why it needs to be avoided. The risk is quite high. One of them is that the profit target is not in accordance with the loan deadline that you have agreed on.

Try another approach that avoids the negative effects of borrowing to invest in bitcoin, such as using the amount of money available to trade with other coins that have the potential to bring quick profits that you can do and you can divert the profits to buy bitcoins even if the amount is not you get a lot.

It is never a smart idea to borrow money to invest in Bitcoin because we can never predict what will happen to the price of Bitcoin in the future. According to the history of Bitcoin, bull runs typically occur following halving periods that occur after four years, however it is true that even then, no one can predict how long a bull run will go.

Although Bitcoin has shown to be a profitable investment, it is never a smart idea to spend funds that you cannot afford to lose due to the risk in cryptocurrency sector. I'm not even clear why someone would borrow money to invest in something with no assurance of what would happen in the future due to volatile nature of Bitcoin which simply means that its price can fluctuate quickly either go up or down. With the knowledge that anything is possible to happen to the price of Bitcoin, I will never advocate for anyone to invest money they cannot afford to lose.

Please don't allow us be overly eager to benefit from the cryptocurrency sector just because we see or hear about others doing so by investing in Bitcoin with borrowed money. You will undoubtedly feel dissatisfied if you borrow money to invest in Bitcoin at a time when its value is falling since you cannot afford to lose it. Given how difficult it is to predict when the price of bitcoin will increase, let's be cautious about how much money we should put into it.

If you borrow money to invest in Bitcoin, that shows you have no other option left and this also means that you are trying to invest what you can't afford to lose because you borrowed the money, Bitcoin investment is not for such people, if all you can do is borrow money, brother go out and look for jobs, this is not a matter of when to buy or when to sell, you are doing it completely wrong.

Your money or no Bitcoin investment, doing this will put you under pressure and unease mind, it's money you borrow, and there will be a max time for you to pay back the money, I can promise you that it's not going to be a pleasant investment in the end.

I mean the main reason was just that cryptocurrency or Bitcoin is just a risky investment and it wasn't recommended to do a loan just to invest in something that is risky it just wasn't worth it because if you lose your money on Bitcoin then you get a debt as well which is a big problem by chance. If we are just going to invest in Bitcoin we already know that we should have liquidated or fiat money that we have in our savings because if you're going to invest but it is already all of our funds I just wouldn't really going to recommend that because what funds are you going to use when the market is down? Your just gonna end up selling your holding and lose money because you didn't have the plan to invest. Most traders are just going to recommend you invest only 10% of your funds in cryptocurrency because it is just way too risky to put everything on it.

Taking a loan wasn't actually that bad if you know what you're doing loans could easily help you with your problems and probably it could help you buy assets that could generate your income, but if you just doesnt have funds just dont invest on cryptocurrency just invest it on something that is more guarantee to give income.


Agree with that, when I started working I realize that its actually easy to save your money, just dont buy something that you cant afford, so if you cant afford to invest on Bitcoin just dont invest on it!.

I have encountered a lot of my friends, relatives, colleagues, etc., who are trying to open up about borrowing money just to buy Bitcoin.

But I educated them about the greater risks if they do insist to borrow money in buying Bitcoin and other cryptocurrencies and it is totally up to them if they want to take the risk or not.

I have never borrowed money just for the sake of buying Bitcoin while I was broke years ago. I earned it by just contributing in an esports blog who paid me a few bucks worth of BTC for every post until it stopped.

Never say borrow money to buy Bitcoin is an investment, call it as gambling.

Investment is where you have some money which you don't know what you need to use, so you use it to buy a commodity that the price may growth after some period of times. While gambling is where many people used it to make quick profit by taking a big risk, borrowing money has a risk and Bitcoin price has a risk too, that's why it's fit to gambling.

Investing in Bitcoin is a wise financial decision. Even when investing with your own money, the market is quite volatile. The goal is long-term rather than short-term. It is not advised to invest (whatever the investment) with a loan. If you want to invest in Bitcoin with a loan, the loan should be long-term, say 3-4 years.

Bitcoin is on the rise. However, there will inevitably be severe setbacks along the route that will endure for an extended period of time. Don't forget about your tax obligations. Even if you make a profit on the loan, you will still have to pay Capital Gains Tax. I've never taken out a loan to buy anything, but I do have 0% interest credit cards.for a period of 15 months. So I periodically buy when bitcoin is at a low, but I have almost a year to pay it back with no interest. Still a risk, but not as serious. You should think about it the next time. However, it only works for modest quantities.

If you do not have a way to pay back the money, it is a bad idea and that is when it is not good.

Let us take this for example. You are collecting $1000 every month as salary and you want to invest $500 in bitcoin and you believe that time is the right moment because the price of bitcoin has dropped for many days or weeks significantly. Some people may predict already that the bull market is near. Because of that, you can borrow the $500 which you know that you can easily pay back from another source of income which is your salary.

If you are able to pay back the money, that is not a problem. The problem is to depend on the profit of what you want to invest the money on which are risky investment. If you do not depend on the profit from the risky investment, I do not see anything bad to borrow.

I am not referring to trading.

You have made the right choice, but if you could able to borrow money where you don't have to pay interest then it's not a bad idea. Many relatives, friends could lend you interest free loan. But that's not for sure because in our culture and religion most of the relatives and friends do not lend loan to each other with interest. But, still my suggestion is not to take loan for investment either it's the investment in BTC or in any other project.

Things could turn up side down if the price didn't turn up as you have calculated. So, to live a relaxed life you have to think from all angles at least from some.

I back in 2018 thought of borrowing some money and to invest in BTC, and the interesting thing is loan would be interest free but still i dropped the idea. But i would took the risk i would have a lot of profits now because the price of BTC at that time was too low. Hmm What we can do if a gain is not in our luck. So do not regret while you are still in the profit.

You made the right decision, I am glad you are aware of the risks of investing in bitcoin by borrowing money. Borrowing money is something to avoid no matter what you use it for. And you should abandon that thought even more if you intend to borrow money to invest in bitcoin, a highly volatile asset and the future is still uncertain.

Yes, bitcoin has a lot of potential and the opportunity to make money from it is huge but not by borrowing money to invest in it. Only invest with idle money, the amount can be lost without affecting your life, the higher the return, the higher the risk.

Making loans for all forms of investment is indeed very risky and also not a good way, because if it doesn't match expectations, it will be disastrous for you.
and my advice if there is this question I would rather suggest, it's better to sell something expensive for an investment that you think will be profitable. And if it's bitcoin, I think that's the only best way besides you investing money you can afford to lose. And if your goal is bitcoin for the long term, it's definitely profitable. And you can buy back the expensive items you sell when you make a profit because bitcoin is sure to bring you great profits in the long run provided you have patience and solid faith.

there are threads such this in the past , and being mentioned sometimes and indeed , why need to borrow from a investment that you will never have an assurance  and perfect time frame to gather profit?

though Investing is far different from Gambling yet these are two the same thing when talking about borrowing when you wanted to increase your money.
try not to get involved in something with multiple risk. borrowing is obligation to pay and investing is also obligation to wait.

so what will you do if Bitcoin did not bring you the amount you expect in certain time? how could you cover paying your borrowed money with interests?

At least you've done the right thing. i.e. you decide to cancel to take out a loan to start investing in Bitcoin. Although I am also a person who invests in Bitcoin even continues to accumulate as if fearlessly with the DCA strategy. But I avoid loans when it comes to investing. In any field. Not only in bitcoin but also in other things that have risks that can make us potentially lose the money we invest. Remember investing in Bitcoin is for the long term. And borrowed money, of course, has a limited payment deadline which means you won't be able to keep the money in a bitcoin investment in the long term. So Avoiding borrowed money is the right move. And only investing with really cold money is all we can do if we want to invest in Bitcoin. We don't need to rush into bitcoin accumulation. because long-term investment must be based on analysis or research and also careful preparation.

There are plenty of discussions on this topic, and I'm confident that no one would recommend investing with borrowed money. I, too, wouldn't consider borrowing money and using it for investments. It's not an urgent matter that needs hastening. Investments should only be pursued when our financial situation is stable.

If you're wise, I believe you would avoid such a path and exercise more patience to buy Bitcoin with your disposable income.

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Unless, of course, you possess the ability to foresee the future accurately. Like being able to time travel to the future, including knowing the price of Bitcoin at that time. Borrowing money might then become a reasonable step to catch up. My imagination is truly running wild today.

Borrowing money just to buy bitcoin or any crypto will never be a good decision considering how risky it is knowing that market is unpredictable. It will be more worse if you don't know how to multiply your borrowed bitcoin and you just do this decision because you are hype or FOMO on something you aren't sure if you can get a profit. So maybe best always to use the money you got on hand and the one you can afford to lose so no big stress will accumulated if everything fail on your side.

Bitcoins are the only thing that shouldn’t be considered here. Be it any type of investment. Never ever borrow money and invest it. Investment have always risks of losing the money. So if you are investing other person’s money, then you are just risking his money. You should always invest your hard earned money, as this will only limit the risk to yourself. As op mentioned the consequences, yes that can happen when you borrow coins and invest in Bitcoins or anywhere else.

No, it's just too risky to borrow money in order to buy bitcoin. This is not advisable and it stays like that over time. Generally, when you are into investing especially in a very unpredictable market, you are not even supposed to use funds that are not part of your savings. And even savings funds should not be totally invested into just one basket like bitcoin, stocks, bonds, etc. A part of your savings is also intended as your emergency fund.

I know there are some people that break the general rule of investing. And I am tempted in doing so, I felt like I need more funds for the coming 2025 bull run. But I know very well the risks of doing so. Maybe a small amount that I can also afford to pay? ;D

People only get hype by the market, and also influenced of other people, reason why they are afraid to get late with those investments and one of the best thing they can analyze is they can make a loan to buy a bitcoin but it is really ideal, for me somehow yes and no. Yes because if you are an investor at the bull run that time the chance of getting profit + return of the net amount makes you more profitable and pay the debt, it could be a No because if there's any chance you don't have any extra asset to paid for the amount you borrow and you failed the investment position this ruins your investment.

Well, it’s a good thing that you had quickly reconsidered your options to borrow money in order to invest in bitcoin. Borrowing money to invest in bitcoin is a no no for me. Generally, borrowing money in my opinion to invest is not really ideal. Keep aside for a moment the interest rate on the loan taken out, investments could also incur losses and what do you do after you’ve incurred heavy losses after borrowing?

When Investing in bitcoin as well as other investments opportunities, it’s always important to use your own money kept aside for such ventures. So you alone would incur either losses or profits from your investments and won’t have the bank or whoever coming for your collateral.
Save up some money and invest if you want to. That way, you won’t have to worry about paying anyone back.

Depending on the agreement of both parties, I did this last year before ATH and the results were mutually beneficial. Even the people I lent to offered loans again this year. So basically, specifically for Bitcoin, I'm not reckless in asking for a loan. The first thing I did was explain the risk picture of Bitcoin to the lender (in this case he is my brother and already understands how Bitcoin and halving cycles work). Because my initial goal was to borrow for the Halving moment so that the results would not be too disappointing.

So the conclusion that you need to emphasize from the start other than the implied or stated agreement is that if a business is to invest in Bitcoin, it would be better to explain everything related to the risks. To minimize the occurrence of misunderstandings, and in the end we can accept each other.

Borrowing money to invest is certainly not good advice, but it's not necessarily a bad decision either. I mean, depending on your situation, if you see an opportunity but you don't have the money right away then you can borrow money so you don't miss the opportunity. But you need to make sure that you can pay off that loan with other sources of income easily. If you are unemployed, or have a job that is not enough to save and spend on a daily basis, you should give up the idea of borrowing money to invest. It won't make you better, it will even make you poorer.

It's a bad idea to use a loan for bitcoin investment.

1. Bitcoin is not a stable asset like Fiat or USDT and others.

2. You are advised to use only what you can afford to lose, the money you borrowed doesn't belong to you, it means you are investing what you can't afford to lose.

3. You will still pay some interest on the loan you took to invest in Bitcoin, whether you make a big profit or not.

4. You are in a race against time, every loan must be paid back within a certain time and you don't even know how Bitcoin will perform

Let's forget the past performance of Bitcoin, Bitcoin may play out differently, and this is why the loan isn't good for Bitcoin investment.

Doing this is literally as intelligent as using borrowed money to gamble. It’s just an upcoming regret, lol. You can only do this a few times if lucky before you start losing and going insane about it. Borrow money from relatives and the entire situation becomes about impossible to manage.

I’ve seen people in my life who’ve done this. Borrow to gamble. It never went well in any of these cases. Better be semi-broke than trying literally the worst thing you can try to get out of brokeness.

The question is, is it bad to borrow? If you know for yourself that you are responsible for borrowing and paying, I see nothing wrong. Now, like the title said, is it really bad for you to buy bitcoin from debt?

If there were people who were doing that, I would have been one, because I couldn't buy bitcoin for 250$ in one shot I just borrowed and I just held the bitcoin in my wallet, but I did that because I had a lot expenses to do. And even so I did that I paid off my debt before my due date. And now the bitcoin that I owed the purchase that I was paid. This means that borrowing money is not bad, ...it only gets bad when you don't pay off your debt.

Good decision.

This is like one of the many times that we've seen people have this thought of borrowing money to invest in Bitcoin. It's not really a good idea to do such because if you've got spare money and you're able to invest in Bitcoin, that's the best thing to do.

But if you'll literally borrow money to do that and you don't have any other money left and you'll rely on it, that's such a terrible idea that you'll experience the worst from it.

We all want people to invest in Bitcoin but not with loan money.

There are many negative factors caused by using borrowed money to invest in Bitcoin, this action is really not recommended. Don't push yourself too hard to invest in Bitcoin if you don't have capital, let you miss the best opportunity (according to each individual) to make a profit, maybe your prediction at that time could be wrong.
Start with small things like collecting money little by little to buy Bitcoin, you can accumulate a number of assets when you have extra money. Investing using your own capital is more comfortable than forcing yourself to borrow money from other parties.

Many people always consider borrowing money to be bad, we should stay away, but I agree with you. If everything is under our control, then borrowing money to invest in bitcoin is not entirely a bad thing. I have never borrowed money to invest in bitcoin, but I have also borrowed money for business, and the results are as I expected, not as bad as people are saying. There is no success without trade-offs, borrowing money is not bad if we have a perfect plan.

You know that everyone cannot agree on one opinion; that's what makes us human. Some people think they can just get favours from some big risks that they take, but it's not always right for one to be in debt that they know will affect them. although it depends. There are cases where someone wanted to invest in Bitcoin but had no money at that very moment, but the price of Bitcoin was so low that he really needed to buy it at that moment, so he took a loan and invested in Bitcoin while he had a job he was doing, so he is gradually repaying his loan with his salary and not hoping to pay it back with the profit from Bitcoin. There's also another case where someone took a zero-interest loan from a family relative and invested in Bitcoin.


Well, those two kinds of loans described above are not really bad ones, but having to take a interest loan where your hope of repayment is only based on the profit you get from your BTC investment is a bad risk. With such an investment, the person's mind will not even be at peace because the person will really be anticipating when to make a profit and repay his or her debt. The person will always keep track of the Bitcoin price and market volatility and might not really be feeling so happy any time the market is dropping.

This is the problem, because if you end up not getting it on time then you are going to end up getting worse and worse. It's not the type of situation where you are going to end up being that much in trouble, I am talking about getting to a point where it's not going to be easy at all, you will not make it back even after you lose it once. So that is why the best way to invest is to save some money aside.

People are not living properly even with the money they have, let alone saving it, but always try to put some aside whenever you can and you should be able to save some aside, that way you would be able to actually do something that is better. I understand it's not going to be easy, but I hope it gets a bit easier by the end.

It's certainly a gamble. Borrowing in a highly volatile investment is a no-no thing that shouldn't be done. We're all bitcoin advocates and investors here but don't encourage that to be done by someone who's gone that far. Too many people have gone that much and made a wrong decision because just after borrowed, they've done a pretty bad timing. But even with good timing, it's a gamble that one should be willing to take as a risk but much better not to. I doubt that if someone tells a lender that you're in need of money and they need to approve it because you'll invest it in something else like bitcoin, you'll get approve. It's much more likely that they'll decline that loan you're gonna ask them to do.

Borrowing money is not a bad thing but the fact must be clear about what actually you are borrowing the money for and if like you said it is intended for an investment in bitcoin then probably not the best idea because
1. Bitcoin is a volatile currency and therefore can fluctuate at any given time.
2. Time factor of the loan collected,
3. The percentage of you acquiring loss is bigger than profits so that type of risk is a no go for me.

Borrowing money is like a cycle that never ends. You should never take loan or borrow money from others to invest. Every investment carries risks and it's not only just Bitcoin investment. As you said in the OP, the market is unpredictable and we can never be sure when we will be in a uptrend market where we can make profits from our investment. Even if you are sure that bulls are back in the market, never invest with borrowed money. Bulls are back, yes, but they will be gone again. So invest what you can afford to lose. You may think that people are making money from borrowed money, then why can't I do it? Well if you keep making money with borrowed money, it will become a habit. One loss can lead you to your doom. Imagine you made 5-6 profits. But then you made one loss. You will have to pay that borrowed money back and you are now in a loss. So what will you do? Use other money to pay back the borrowed money or borrow some from somewhere else and pay that back?
It becomes a cycle and in the end you lose everything. If you have enough money to invest then do it.. otherwise never use borrowed money.

So basing up on the example which $8 per month kind of interest then it do plays around on 2% on monthly and 24% on yearly basis on which these kind of increase could really be wiped up if you do really know on how to play with that 400 bucks of yours in this volatile market but since not all would really be capable on doing so and this is why they would really be making out such choice on simply holding it up which it is true that its never been that good or wise decision on taking a loan for you to make out some long term investment specially on something which there's no assurance that it would really be making out such huge leap into its price.
Yes, we can really be able to say about its potential but its not guaranteed. This is why always just consider on investing on something the amount that you can afford to lose or something that would be your extra.
Dont put yourself into some deep debt just because you are really that eager on making investment just because you've seen anyone is doing it but always take precautionary measures on the time that you would
be stepping your foot into this space.

Loaning to fund your investments isn't necessarily a bad thing, as many billionaires in the past got their massive bags thanks to this tactic. It's all about building a great credit, and then borrowing only what you can afford to lose. Take for example people who invest to buy real estates, When you buy real estate with your own money, it's money that's coming from your own pocket, which yields you less money, sure at the end of it if you decide to rent out the property you get all the profits back willy-nilly but it would be wiser to actually take out a loan in the bank and let them pay for your investment, then pay them with a dividend of the money you earn from the whole investment process and you basically made the bank pay for your investment!

There's risks to this as with all investment schemes but at the same time, this type of investment process gives you more money to work with to expand your wealth faster, than if you bought stuff with your own money.

I think you made a wise move and made a good decision because you found out first and considered what risks would occur and what risks would be faced if you made a loan to buy Bitcoin.
Several times I have seen and heard of someone who dared to make a loan to invest in Bitcoin and most of them are too sure of their calculations and they underestimate the risks they will face.
I think they are too blinded by greed to get a lot of profit so they ignore the reason and rationality they have, what they do is only dare to take risks without thinking about and considering the impact of the risks of what they are going to do for themselves.
I don't know, even though there is someone who has succeeded in improving his finances and economy because he gets a lot of profit investing in Bitcoin from borrowing results, but we really never fully know about that person's success story, of course there are many factors that influence his success and we don't necessarily have those factors the same as that person.

Bitcoin is a high risk asset so should only invest at an amount that you can afford to lose, and not by borrowing money or taking a loan just to own a portion of it. Because if you do that, you are already losing even before you take profits. The monthly interest might be very annoying so instead of investing bitcoin for long term, you might do it for short term and sell some of them for immediate profits so you can pay your loan. That way, your investment might not work because you tend to panic instead of patiently waiting when its price will skyrocket.

Taking a loan to do business is not a set back. All determine what you use the loan for. When you use the loan for a progressive business, you can pay the loan at the said time. Many people have taken loan to start business and succeed in life. When you take loan and use it to do business and have interest daily then you can pay back the loan so I didn't see any setback in it. But my concern is on bitcoin investment because of it volatile nature.

It won't be a setback if the person knows what he is doing, and know how to achieve success in his chosen business.
That is true, some people can attain success by taking a loan for their respective business.
But one should really be careful in doing so because you can easily be in deep debt if your business is not earning.
As much as possible, pay your debts once you are already generating income, so you won't be tied to the loan sharks.

You took the right decision, it is easy to think that if you borrow money you can increase the amount of bitcoin you can buy and with it your profits, but rarely things are so straightforward, using a loan to buy more bitcoin than what you could normally do is nothing more but to use leverage trading, and in that case you might as well use exchanges for that, not something I recommend, but at least they are specialized on those kind of maneuvers, while taking such a loan on your own is a big mistake, especially if you are using a credit card to make that purchase, since where I live the interest rates for that kind of loan are incredibly high.

Yes, in all types of investments, there are risks so we should at least learn to invest at our own risk. That means we should avoid borrowing money as much as possible especially that bitcoin investment has no guarantees when will its value will grow and reach an all time high. The safest method is just to invest your money at a minimal amount so that if you lose, your finances will not be greatly affected. Invest some of your hard-earned money but only at an amount that you can manage to lose.

I agree that borrowing to invest in Bitcoin is not advisable especially when there is no need to rush things out to buy BTC.  Even if we have a stable job, it is not advisable to borrow money and pay for it with our day job salaries. I believe that there should be conditions before saying that borrowing to buy BTC is ok like:

1. If there is a sudden crash in the BTC market where we will not see the same price again.
2. We have a stable job that can pay the borrowed money in the shortest possible time.
3.  The event of a crash is near the event of the Bitcoin market transitioning to a bull run.
4.  Our financial capability is still ok even while paying our debt and interest.

I am a bit open-minded and favor flexibility so borrowing money for Bitcoin investment is somehow ok for me but with certain conditions.

I believe any cryptocurrency investor that borrows money just to invest in the market if not for an emergency is greedy because the fundamental concept of crypto investment is to invest the amount we can afford to lose not borrowing to invest in the market that's full of uncertainty and there's no guarantee of making a profit until the end result is known.

Yes, indeed this is very risky when we are going to invest in Bitcoin by borrowing money, especially from banks. This is high risk and highly not recommended. The reason is, indeed, as you said, the price of Bitcoin is very volatile. Even though there will be a bullish era later, who can guarantee 100% that it will happen at the time we are targeting? what's more, usually when borrowing money from a bank or from anyone, they don't ask for monthly installment payments, right? then where does the money come from to pay the installments, which usually have quite high interest. Or if someone provides a loan with a maturity of several years, it's like it's hard to find a loan like this.
So, just be wise and self-aware of our ability to invest. never force yourself to invest in an amount that you cannot afford.

If you want to live the peaceful life,you should avoid of borrowing the money.Because it's not an advisable one,because you can get into trouble to pay the interest for the loan.At the time of interest,if you don't have any money.You may sell the holding bitcoin for the loan interest, it give you loss and the additional burden.So it's essential to don't borrow until you need money for emergency.Even you can do saving for your future,when the money was saved in crypto currency.It will give you more profit as compared to holding the money at the bank.

In all risky investments, borrowing your capital is obviously the worst option. Some may have profited from it but a lot are actually losing in the end from doing it. That is why borrowing or taking a loan is a big NO especially that you are still starting to learn to invest and you could experience more losses at first than expecting instant gains. So buy at your own risk using your spare money, not from the money of other people.

For a no-interest secured loan solution - I think the OP might need to take an approach like just borrowing from friends, parents or anyone who trusts him with money ^[non-bank]. The OP can enter into an agreement between the lenders - but of course he will responsibly return the loan when he gets a return on his investment later.

But instead of making a loan - I also think there are alternative solutions that could be considered. One of the many solutions is selling valuable items that you rarely use on a daily basis.

This is a better approach than asking for a loan from someone that charges interest.  Though this action is dependent on how well we manage to pay our previous debt to them if somehow we have prior experience of borrowing money from them.



In addition, one might look for an extra source of income and allocate that extra income to buying BTC.  Using this approach solves two things, the fund for investing in BTC without resorting to loans and extra money for future savings.

Borrowing - you are owning
Investing in Bitcoin(Cryptocurrency) - taking risk
Outcome of investment = Amount borrowed and invested -+ Possibility of Market bull or bear

Example one:
If you borrowed $15,000 from the bank with interest rate of 10% per annum(tax inclusive). If you invested the whole fund to buy Bitcoin at the price of $30k, what will be the outcome of investing in Bitcoin

Parameters
Amount borrow and invested: $15k
Worth of Bitcoin: 0.5btc at $15k
Interest payable per annum: 10%
Note: 10% of $15k is $1500 to be paid as interest annum.

If the market goes bear(downward direction)
If the price of Bitcoin falls by 20% after a year(annum)

Outcome of investment = Amount borrowed and invested - Rate of the bear(%)
Outcome of investment =             $15k                                    - 20%(worth $3k)
Outcome of investment =             $12k balance
Outcome of investment =             $12k - 10%($1500) interest payable
Outcome of investment =             $ 10,500
Outcome of investment =            -$4500
A total lose of -$4500 leading to more debt incurred.

If the market goes bull(upward direction)
If the price of Bitcoin rise by 20% after a year(annum)

Outcome of investment = Amount borrowed and invested + Rate of the bull(%)
Outcome of investment =             $15k                                    + 20%(worth $3k)
Outcome of investment =             $18k balance
Outcome of investment =             $18k - 10%($1500) interest payable
Outcome of investment =             $ 16,500
Outcome of investment =            +$1,500 after amount borrowed + interest is refunded(total: $16,500)
A total profits of +$1,500 leading to more debt incurred.

Conclusion
We need to wiegh our decisions whenever we want to go borrowing to invest in cryptocurrency. This should help us to understand the risks we are taking whenever we invest in cryptocurrency.

It is a known fact the majority of the traders out there lose their money after a relatively short amount of time after they start their trading journey, now losing money they have saved over the years is bad enough, but losing money which is not even theirs and from which they will need to pay high interests is simply a terrible outcome.

The only ones which should even consider doing this are the traders that have proved they have succeed as profitable traders and the ones which can get a loan with low interest rates.

You have a point. It's not wrong to borrow if you can repay the money regardless of the result of your investment to Bitcoin. That means you're not relying on your profit from the investment to be able to pay the borrowed money. Now, if that's the case I don't see any problem.

However, for people who take a risk of borrowing just to invest (in general). Believing they can gain if they did that and will rely the repayment money on the income of their investment, then that's different. It's like gambling since you're not certain what might be the outcome. We always advice, just invest what you can afford to lose, it's very clear. Use your own money since investing is risky, if you'll borrow to invest, make sure that you can repay your loan because that's your responsibility.

I agree. Investing or not you need to ensure that you are doing your end of the loan agreement. It is your responsibility to pay what you borrowed no matter how good or bad your financial standing is. Hence, it is true and I have always agreed that we should only invest what you can afford to lose as an investment can go anywhere at anytime. It will be hard for you to borrow money and then invest it with the hopes that you'll get more than what you invested so you can pay your loan. You are not only making a big problem for yourself but to the person/system you have loaned from.

When responding to whether to borrow money or not to buy bitcoin, I think we should look at the two sides of the argument. First if you know that you can afford to do that and be able to bear the risk then nothing stops the individual from taking out the loan. We all have different risks appetite, and it varies from person to person. In one of his interviews, Michael Saylor recommends using debt to your gain in certain monetary environments. Now remember the risk appetite I talked about, he suggests that if anyone ones to borrow money, first, they should endure that it has low interest rates, and it should be used to buy tangible assets that will potentially appreciate in value. Lastly, if you are going to borrow money to buy bitcoin, please do it because you want to hold for the long term.

I agree with your thinking, we do not need to be too strict in borrowing capital for investment or business if we have the ability to accept risks as well as repay debt in other ways.  to be successful, we need to step out of our comfort zone, not be too shy and expect a good outcome by doing nothing. But not so that we defy everything and invest blindly.  i mean, we need to plan and prepare everything carefully because life is full of surprises, so always have a plan for the worst case scenario.

It's the conscience and guilt itself for borrowing money that you couldn't even pay in time. If you don't have the money to invest in Bitcoin why bother using a loan in a risky situation right? Even using your spare money can be stressful already imagine when it comes to loan right? Don't ever risk money that you can't afford to lose especially you just borrowed it. It will just worsen your situation of course there are some cases that they actually succeed profited from their loan, but that is just risky as hell that could destroy your financial status. Spare money would work like for example in your extra part time job income then you could invest it since you have the money to provide your needs plus extra money for investment.


In my country in Philippines when you're gonna borrow money, normally they would interview you and ask for your occupation they would check if you can meet up the requirements to apply for a loan like your salary are applicable in borrowing money. So if you couldn't pay in time or you intentionally didn't pay, they would just contact your company or agency so they could just deduct the debt to your salary plus the negative credit score that could cause you to get banned in taking a long for another time. Person/system are also smart in this loans so the people who borrowed would be get affected from this.

Actually borrowing money to buy Bitcoin is not a problem as long as someone understands the actions they are taking, as is done by some companies/individuals who collect funds from the public/investors to invest back in instruments like Bitcoin or others and expect profit from it. What needs to be considered is that at the time of investment they must be prepared that their investment can lose and how do they overcome this problem if it occurs. However, if you are not ready, you should avoid borrowing money to invest in Bitcoin because it is very risky.

Will never be advisable. It is like gambling with a borrowed money. Indeed Bitcoin investment is different from gambling but will profit come in an instant once you invested in Bitcoin? Will it be consistent in the first place? Bitcoin is profitable indeed but for long term investment 'coz anything could happen in a sudden, with regards to its market value and that could push you at edge if the money you have invested is not totally yours. Much better is to save or use only an amount you can disregard. In such way you'd be worry-free no matter what direction the market price go. It'll only be a partial loss if you'd choose to hold for a long time. And that is something you won't be able to do if the money you have used is not yours 'coz you'd be needing to pay it on a specific timeframe.

Taking a loan for a risky and volatile market is a dangerous business or investment idea as no one can predict the next swing and direction of the market that is why we are advised to use our spare cash or money we can afford to lose but a loan is not a money you can afford to lose neither is it a spare cash. For the sake of your peace it is a loan and accrued debt on your side you which means if you burn it up possibly you can not pay back because before you borrowed it, you have nothing on you and you took the loan with the mindset of paying it back with profit. It is better you avoid it than giving yourself some stress to paying back if things go sour.

People take risk even high risk because base on their predictions, the market will go up and give them profit so risk is worthy to take.

That is true. Using your own money and more important spare cash is safer than borrowing money. It does not mean you will get profit from the market because it depends on other factors but at least, you won't have pressure like borrowing money.

Borrowing money has more pressure because you will have to always think of loan interest repayment, collateral liquidation, market volatility and risk of losing money by the market and the loan position.

Thanks dude where at least you got my point in some other angle of it. I won't deny that a lot of people borrowed money but they didn't use it wisely, i understand why a lot of here saying it is not a good idea.

It is very seldom for the community here to use the money they borrow where in the end it goes into nothing.And that is really a bad thing.. If they can't handle it properly borrowing is not the best solution for this matter. As much as they can avoid it, they must do it now.

Like spinning the wheel of fortune, you never know where it will fall. Bitcoin is a long-term business. It could soar tomorrow or drop like a hot potato nobody wants. Right, its not a get-rich-quick scam. Instead of investing borrowed money, what if thats all someone has? Yeah, its risky, but so is life. If the stars align, that borrowed Bitcoin may become a golden goose. Wouldnt that interesting?

I have to agree with this. Borrowing is not bad unless your intention is to run from it. So if that’s your plan, never take the risk of borrowing from the start. However, we all have different situations in life that will somehow push us into taking loans or borrow money from certain friends. That is never a wrong decision. What makes it wrong is that if you borrow money to chase immediate profits from your investment. Know that any investment brings certain risk, and if you grab the chance to borrow your capital, that will add more risk and increases the risk of losing from your investment.

As it has always been said, it is not a very good idea to invest in bitcoin with a borrowed, but if you know what you are doing, there is nothing wrong with using a borrowed money for bitcoin investment. However, there are some calculations and timing you need to certify before you take the risk.

•  You have to ensure that the loan duration should be long term
• You have to consider timing, such that you will take the loan by the ending of a bear market.  You should not take a loan at the end of a bull run
• You also ensure that the interest rate is not high  
• Everything is about calculations. Instead of you to sell your landed properties in order to bull bitcoin, use the landed property as a collateral, get money and invest in bitcoin. Even if your collateral goes, bitcoin will surely answer you one day

Borrowing is not actually bad if you can benefit from it in times of emergency, but know that investing is not an urgent condition that needs immediate action. There should be a plan prior to investing, and that includes where to get your funds to invest. So if your plan is to borrow for your capital, that is a very wrong move towards your investment’s success. Before you will receive your profits, you are already pressured to pay the interest so it must be very annoying on the part of the investor. So my advice is to always save before investing. And start investing with a small amount since there’s still no guarantee if your investment will immediately work or you may encounter some losses at first before seeing significant profits.

But in reality, people who borrow money to invest may expect to profit quickly, so they don't consider the risks in detail. And as we know, the bitcoin market often goes up and down, making many people quickly panic. And this can result in them experiencing a loss if they then sell their bitcoins at a low price.

But if they have a mature plan, they can do every step in their plan and won't panic about anything that happens in the market. And the most important thing is that they can repay the loan on time. We recommend not borrowing money to invest in bitcoin, especially if we don't have the money to repay the loan. Investing with enough money is better, and we can routinely make that investment.

yups, because the market such as crypto assures us nothing specially in time frame while borrowing needs exact date when to be paid or else the penalty will increase .
so why need to borrow when you will only be putting another Stupid act on it? when we can just use what resources we have to invest for.

I strongly agree with you! Borrowing money is always a risk, even if the sum is not large. As for BTC, the only strategy of making profit is long tem hodl, so if the money was borrowed, then the only way to pay the debt is to have another source of fiat income. And due to the fact that adoption level is still low, the situation looks like taking a loan to buy air. So, BTC should always be bought with money that is not borrowed.

Investment is risky and if you invest with your money, you must think of two things, loss and profit. What will you do if that investment leads to profit, it is easy in this case.

A harder thinking is what will you do if the investment causes a loss?
It's not easy to answer but before you start your investment, with your money, thinking about it is important. It is more seriously important if you borrow money to invest, because if you don't think of it, when loss comes, you will be in panic mode and make many bad decisions.

With your own money, no margin call, no loan repayment call, you even have to face with selling your coins if you don't have savings for expenses. So thinking about secondary plan, have savings for emergency. Investment does not always give you profit at any point of time.

I love this idea and it's something I've always done and maintained to this day. In addition to limiting borrowing money to invest, I always prepare myself some savings for emergencies before thinking about investing. Life has many surprises and unpredictable things, so we must always have a backup plan, don't be too subjective and think that everything will always happen according to your thoughts.

Investment is a double-edged sword, it can bring us prosperity but will also make us worse off without careful planning and preparation. Investment includes profit and risk, no investment has only profit without risk, especially bitcoin.

It is very risky to borrow money to invest in bitcoin because the markets is volatile and no one can predict the market. Because of the nature of the market of bitcoin it is not  just advisable to loan money to invest bitcoin,  it is  meaningless to take loan on Bitcoin because what is the need of investing in Bitcoin and still owing debt. Investing in Bitcoin should be nothing to do with debt and while investing in Bitcoin one is suppose to be financially stable where by their is a source of income to fund the investment,  that is why it is good to invest accordingly to what one earns.

Most people do not support the idea of borrowing money to invest, it is really risky and not recommended. But if someone can be sure that they will be able to repay that loan even if they don't need the profit from that investment, should they consider borrowing money to invest?

Success always requires trade-offs and we need to step out of our comfort zone to face bigger challenges to reap greater results. Borrowing money is not really recommended but it is not a bad idea if we have a backup plan for the worst case scenario if that happens. I also used to borrow money to do business, so I partly understand what it is like to borrow money to invest or do business.

Of course I also never thought that there are some of them who are desperate to borrow just to invest. Yes that's right, as we know the benefits in investing are very large and it is clear that there is also a very high level of risk there, therefore some experts and professionals always advise to always learn more deeply and try to use money that will not be disturbed by other needs, none other than this advice so that investors can invest with peace of mind and implement their best plans. Honestly, I never think of borrowing money to invest, because obviously with the risks that are there even if for example we use personal money there is still always pressure that we feel, well especially if you use money from loans, of course it will make you even more depressed and all you think about is probably only profit so you can pay off your debt, and obviously indirectly it will greatly interfere with your mental and psychological calm when investing.

Of course they should not be rash in this decision and should always consider it. If there are indeed some who do this way then I say they will only waste time and money, because it is very unlikely to succeed with all the great pressure they face, and yes it is true that to get to success there must be sacrifice first, but not by borrowing too, it is not a good alternative and should be avoided.

That's absolutely true, that's the point that everyone should be aware of. That first we must have a source of income that meets our needs. and when there is money left over, then we can invest it or we set aside a little of the money we earn to put into investments. Because after all investment is for long-term goals. So we have to use cold money that we can afford to lose. Because after all crypto assets do have quite high risks. So we have to invest as much as we can afford to lose and don't force ourselves into high-risk investments. I personally only put a few percent in bitcoin. But because it is quite consistent, it doesn't feel like the number will increase over time. So keep DCA regularly and don't force yourself.

Borrowing money to spend, especially in a volatile market like cryptocurrencies, is risky. Its like starting a project that was meant to fail from the start. You are right about pressure and its effects. Desperate to pay off debts might lead to haste, unwise decisions that worsen the situation.

We'll ignore crypto's hidden concerns like computer theft, changing rules, and market manipulation. Working behind the scenes and pulling strings from the dark is popular here. Poor folks who need to borrow money should not come here. Borrowing money to spend absolutely defeats the purpose of investing and creates a weak foundation.

Another consideration that is seldom pondered is the matter of privacy. When someone takes out a loan, they must provide personal information to the lender (in the conventional manner) in order to gain their trust. For some individuals, sharing this information might not be a concern. However, I contemplate how debt collectors come to one's residence and influence one's psychology.

Some people might overlook this issue, but I am someone who feels uneasy when my identity is treated as that of a delinquent debtor. All of this genuinely affects our reputation and security. Because it's possible that debt collectors might send something we dislike to our home address. And isn't that quite vexing?

Generally, investing into bitcoin using borrowed money is a big mistake. It could even lead you to your worst nightmare. Bitcoin is a high risk asset so if your goal is to accumulate some of it, never take a loan but use your spare money and do DCA instead. That way, you will store a lot of bitcoin in the future and make massive profits. However, if you really insist to take a loan, just make sure that you have a stable job that you can rely to pay your loan.

You are right that when someone takes a loan from someone and the lenders can come to his house and hurt his psyche, but this will happen if someone does not repay the loan even after the due period.If you borrow from someone or borrow from a bank, if you don't pay it back within the specified period, it will reach your house.So I think if a person doesn't want to hurt his self respect then he should repay his loan in due time.Those who ignore the fact that they have to return the loan taken in their fixed period, then they are identified as debtor criminals.


so in such cases there is definitely a risk of people's reputation and security being affected, so I think all these things should be kept in mind before taking a loan that if they are unable to repay the loan amount within the stipulated period, So these matters may come home with him and his privacy may be affected, and of course these things will prove troublesome for him. Therefore, every possible effort should be made not to invest with borrowed money.

People start borrowing only when they have no spare money.  And in this case it solves a financial problem for him for a temporary period but if he has no source of passive income, this loan creates an additional pressure on him. But if he has a good source of income but does not have a large amount of savings to invest. In that case he can take a loan and invest in Bitcoin but he will have to repay the loan from his income. And bitcoins have to be hold for a long time. Investing in Bitcoin with a loan will not be a problem if op follow this strategy

I once heard the expression “never trade certainty for uncertainty”.
This means that when we borrow money, such as borrowing from a bank, friends, margin, online loans and so on, we definitely have to pay it according to the agreement and also have to be on time, otherwise there will be risks.
Meanwhile, if you invest in Bitcoin or others, you could say the profits are uncertain. And who can guarantee if everything doesn't go as expected?
So investing money you can afford to lose is a good choice, do it within your means. And borrowing is much better if you are selling something expensive for your investment capital. Because you don't need to worry about paying off debts or paying installments if you borrow, because this will be very troublesome for you if you don't have money.

If you have a job and have a fixed source of income and that income is somehow more than enough for your family needs, I do not think it is bad to take a loan to invest in Bitcoin.  For the reason:

1.  You are able to pay the monthly dues
2.  You can time the loan and buy Bitcoin when Bitcoin is in its dip giving you the advantage.
3.  If the annual interest rate is lower than 10%, the profit with Bitcoin will outweigh these interest rate

People take loan when they are establishing a business I think it is not different with taking loan to invest in Bitcoin.  One just needs to make sure that they are able to pay the loan monthly dues and still have enough money to cover their family needs.  If that is impossible then I also won't recommend loaning to invest into Bitcoin.

I am against this idea.

Because you can lose your job anytime and your income will be changed or turn to be zero when you lose all your jobs. You will be in trouble to pay your loan interest in that situation.

If you have a job, good income, you can choose a safer way, use part of your income to accumulate Bitcoin. No loan, no loan interest, no loan repayment and if you lose your jobs, you won't have to be burned with loan interest. In that situation you only have to stop your accumulation  but you can always come back when you get a new job.

I think this method also makes sense if someone wants to use it for investment purposes in Bitcoin, because most people who dare to make loans do so because they themselves know that they have a source of passive income that can enable them to cover or pay off the loans they make. But if there is someone who dares to take out a loan, but he doesn't have a source of passive income, I think that kind of person just has reckless capital and has no calculation at all about what he is doing.

Borrowing money to invest in risky assets is not always safe but not generally a bad idea, you can end up having no choice than to borrow money when the opportunity is right in front of you, assuming that Bitcoin dumped to 10k right now, that's a big opportunity that won't last for more than few days, thousands of people are waiting for such opportunity and I don't expect it to last long, if you don't have any spare money at the money, borrowing the money is the only option left.

This is considered a well invested money, mind you, if I have to borrow such money, it will be the amount I can pay back in just a week or two, lets say a month max, know what you are doing, just because Bitcoin dips to 10k doesn't mean I must get 1 BTC, so I have to borrow $10,000, this is wrong because to pay that back will be inconvenient, the goal was to take advantage of the dump, so borrow what you can easily pay back in time.

It's not in my style to borrow money for investment, but if a unexpected opportunity arises up I could end up doing it, I can easily pay back $1000 in few weeks and buying $1000 when Bitcoin dumps to 10k is a very good shot. Don't go over your boundary, to avoid inconvenience.

It reminds me of months ago when I was a guest speaker and panelist of an educational event in the nearby province. There's one guy who asked if it's okay to borrow money just to buy Bitcoin.

I gave him a straight no for that explaining the volatility and the unpredictable movement of Bitcoin. How can you payback the money if BTC's price was crashing down and not recovering for a long while.

If you don't have money but wanted to get in to BTC, much better earn it from side gigs or jobs and just put an amount that you can afford to lose.

Maybe if he listened to your as a speaker he wouldn't think like that. I think that he might considered you as rich since you are knowledgeable enough to teach people, but regardless of the financial status, borrowing money would never be a good option to invest in Bitcoin. This might be applicable to people who have enough salary that could provide their needs, as well payment to their loan. Still it's the risk that were concern since Bitcoin is unpredictable that could worsen someone's life. Explore more the internet or out of your comfort zone, for sure there's a lot of side jobs that people could take to earn for investment

True, investing is very risky, I'm sure you know this and probably have an idea of what percentage of risk is there, but why would you allow yourself to borrow just for the sake of investing, it will only increase your risk and it's like you are creating a trap for yourself. Yes as I said earlier above, this action will only make them feel more pressured to invest, while on the other hand calm is needed there, but are you sure that the borrowed money you bring will be able to keep you calm? obviously not, you can't pretend, the pressure and thoughts of being able to pay off the debt will always be in your mind. And that's right, it will only make the situation worse.


Basically, allocating borrowed money to whatever you are going to do, there must be concerns that you feel, especially here if you borrow money to invest which is clearly high risk and the returns are also difficult to predict. So the point is to avoid it, this is not a solution but will only add to the problem. If you really want to borrow money then use the money for something more certain, I'm not saying investing is not useful but I'm emphasizing the level of risk that you will definitely feel if you do that.

As much as possible, avoid borrowing if it is not that important. Maybe only get a loan when it's really for an emergency purpose, for example, a lack of hospital payment or something else, but not at the point where you sell Bitcoin. Although buying or investing in Bitcoin is not a bad thing, the only way to do it is to buy it out of debt.

It would be fine to borrow money if there is another source of income that is more than dalwa; in this matter, I can understand, but if you are just an employee and you are going to borrow money just for bitcoin investment, there is a risk involved for sure. It's even better to buy little by little; it's better than taking out a loan.

I say borrowing money for investment has its perks and caveats, and it's certainly not for everyone, let alone people who cannot afford to lose more than what they already have. Rich people and those who are above the poverty line are able to take up loans to support their investment ventures, why? because they can afford to lose it all should things go south. What they do is take up these loans, and be approved for it cause they have good credit standing and the banks trust them, invest their money and pay the bank right away with the capital once their investments start to pay off. Essentially this makes them earn money without having to put up a cent to the table, pretty genius but certainly risky.

When investing in bitcoin, there is no amount that you invest that’s too small, you don’t have to invest a large amount before you will be satisfied with your investment. It’s better to invest a small amount and have peace of mind than take out a loan and invest a large amount of money. When investing in bitcoin, there is always uncertainty. Nobody knows when the price is going to pump or dump, everyone is just predicting, and prediction can be wrong. If you take a loan just to invest in bitcoin, and when it’s time to pay back loan and bitcoin price is below the amount which you bought it, how are you going to pay back the loan? You are going to sell at a loss, then look for ways to be able to complete the money so that you can pay back your loan.
 
Loans are not always an option when it comes to bitcoin investment, it’s better to get a job, then you can start investing a little from your salary. Don’t think the amount of bitcoin you are holding is too small,  just keep on holding and keep on accumulating more from the salary that you are receiving. Don’t be deceived or pushed by anyone to take a loan to invest.

Risk always exists around us and I also understand how risky it is to borrow money to invest. But what I am asking is if a person has a plan and is confident enough to repay that loan even without needing the profit from that investment, borrowing money to invest is not so bad.

To me, there is no success without trade-offs and we should accept challenges to achieve success. Not everyone who borrows falls into crisis or deadlock, sometimes debt reinforces their thinking because if they don't work more, they will never be able to repay their debt. Pressure is scary for some people, but sometimes it is a motivation for some people to become stronger. If a person is afraid of pressure and is not willing to accept it, it will be difficult for them to succeed.

Risk always exists around us and I also understand how risky it is to borrow money to invest. But what I am asking is if a person has a plan and is confident enough to repay that loan even without needing the profit from that investment, borrowing money to invest is not so bad.

To me, there is no success without trade-offs and we should accept challenges to achieve success. Not everyone who borrows falls into crisis or deadlock, sometimes debt reinforces their thinking because if they don't work more, they will never be able to repay their debt. Pressure is scary for some people, but sometimes it is a motivation for some people to become stronger. If a person is afraid of pressure and is not willing to accept it, it will be difficult for them to succeed.
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If they really understand the various risks in investing, I agree with you that there is nothing wrong if they make the decision to borrow the money because they understand the risks well.

To be successful, everyone does it in various ways, there are many processes they have to go through so they achieve it. You are right, in dealing with pressure there are some people who can deal with it easily because they are experienced in the field they are facing and there are some people who fail to deal with it and fail to get through it. This really depends on a person's personality.

Yeah. Unless you are someone who finds borrowing money a financial strategy like tax benefits or you are certainly expecting higher returns from that money, borrowing is not really a bad idea.

Tho some people have made huge profits from bitcoin, others have lost a lot of money too.  For ordinary people it is typically wiser to use money you can afford to lose and to do so after careful consideration of your financial capability. Invest responsibly and do not take on unnecessary debt, that's it for me.

If a good buying opportunity arises now and it's still not yet the time to get your monthly salary what will you do? Since you are certain that your salary will be paid by the month ending it still feels right to me to take a loan or borrow the exact amount that you will be able to pay back by the month ending from someone.

I don't like taking loans for any investment because there are some risks involved, not too long ago I borrowed some money from someone very close to take part in an IDO project, yeah I know, this is not Bitcoin, I was so sure that the project will do very well, this friend lent me $400 and after the token start trading it dumped so hard that my investment turned into $120 and I have to pay $400 back to my friend.

I had to hold on to this token for the long term, this is one of the risks of investing, but borrowing money can add more to the pain, it's better and more convenient to use your hard earned money, whatever happen after, it's your money, you are not going to pay anyone back.

In my opinion, for people who have a stable income but for some reason do not have enough money to invest, borrowing money can also be considered. It's not as bad as many people are saying because missing an opportunity is very regrettable, good opportunities don't always appear for us to grasp. But we need to make sure that we can repay that loan on time and not rely or depend on our investment. And if we don't have a job or an unstable source of income, borrowing money to invest is not a bad idea. That just proves we are lazy, greedy and want to get rich quickly.

So true. Taking out a loan is not only a no-no to invest in Bitcoin. But also in other things, such as stock investment and starting a business, the success rate is low. The point is that taking a loan to invest in high-risk things is not recommended.

As for some people who start a business from a loan, in fact they already have a mature plan and have seen the very high potential for success that they can obtain which might even make them pay back the loan money before the deadline arrives. An example is young people from my country who are now successful and become billionaires. Because he started the business smartly. Even when he took out loans in a very smart way. You can see the interview in this video (Youtube Video (https://youtu.be/NAFl0KZuV4g?si=40nbssCm-Lpnujxe)). But unfortunately it's in Indonesian.

[quote author=Ayebabara link=topic=5461757.msg62634890#msg62634890 date=1690942254
I came up with this topic because I was planning to borrow money to invest in bitcoin but when  looked at the risk involved, I have to give up the borrowing plan.
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Yeah, and the bank wouldn't even lend you if you say that you are trying to get a loan to buy Bitcoins, except you are going to lie about it, but then you will need to get some proof. Would be better if you get a loan to start a small business then spare some of your profit to invest in Bitcoins, that would make more sense, and your loan could probably got accepted by the Bank.

In any field, especially those that can generate huge profits like this investment, it is clear that behind the big profits there will also be big risks, I think most of them investors already know about this. Therefore as we discussed earlier it is not a good alternative if you borrow just to invest, while on the other hand the risks that are there are very large, so it's like you create problems or traps for yourself. Believe me it is not a good solution, because as I said above maybe you will not focus on your plan but maybe just for profit because you think you have to pay off the debt immediately with the proceeds from winning. Will it work? Not necessarily buddy, and what if you end up losing? very possible.

For the problem of sacrifice to achieve success, I agree with you, basically every field we want to live in, of course there must be sacrifices that we make in the process of the journey, some fail and some succeed and I say success is only for those who are really hardworking. Well actually not all who start with borrowed money will fail in their investment, but on average that usually happens like that, because of the considerable pressure from the debt makes some of them not mentally strong and finally make the wrong decision. But yes, it can be a motivation to be more enthusiastic, and I think only a few succeed in that way.

The risk that involves in borrowing to invest is higher than bitcoin investment itself. When you borrow to invest them you have to prepare yourself to face and dance the music of the two volatiles. And as I said when you borrow and the investment will not favour you then you have enter into a very serious debt though all come from the amount you borrow to invest.

.Yes, youre right, its like your making your risk double. That's why, like we always hear,invest the money that you can afford to lose.It's like ik its like a golden rule in bitcoin or investment. You see, if you invest your money, then you don't have the fear that somebody will be affected if it's lost. You can invest all you want with the dedicated money you have; if it's lost, then only you are affected, but if you invest the money you've borrowed, then it maybe has interest, and what if you lose the money? Then you are in debt? And that's why we are avoiding "debt." We invest to earn, not to have debt, and make ourselves suffer, so if you don't have money of your own, don't make an investment; wait until you have some. It's more rewarding if you earn from your own capital; you are only in the profit.

The thing with borrowing money to invest in Bitcoin isn’t just about when the bull run will come but have you forgotten that volatility goes both ways? So while you’re waiting for the bull run, it is very possible that a bad news could come and even put Bitcoin in a more terrible state. Investing in Bitcoin isn’t compulsory, it’s better you invest your own $20 than invest a borrowed $400.

Impossible, I would never invest in Bitcoin with borrowed money. Different people have different opinions when it comes to Bitcoin investing. If you have a specific plan to invest in Bitcoin by borrowing, you may lose it in such a complicated process and it may hurt you in the future. You must decide your goals on how you will invest in Bitcoin. You don't need to take out a loan even if you have completed your home. Nowadays people can earn a lot of money by renting houses. If you can build a house with four to five floors, you can earn a good monthly income by renting the house and you can invest a part of your house rent in Bitcoin every month.

It’s generally not a good idea to borrow money in order to facilitate bitcoin purchases but there is a time when it can be beneficial. I would always advise against it but if you can time the market right it’s easy profits. If you borrow & buy bitcoin 12-18 months after an all time high, when the market is on the way down then as long as you make minimum payments monthly you can sell during the bull run, pay off the debt fully & still have great profits. It can be seen as free money but it carries a lot of risk.

Well, as long as you're using your own money for investment, even how small it is, the better. Apply DCA strategy on investment, instead of paying the borrowed money with an additional interest. Think of it, without a loan, the interest to be paid to the other people will be directly added to your own investment. Set up a certain amount for the weekly/monthly investment, even with the minimum amount, it will be worth it in the long run.

We all know that DCA is the best strategy for investment. Borrowing money to have a lump sum investment in Bitcoin is not a good idea, your money will only be kept in your account while paying for the loan every month.

Some of the people after attaining seminars about Bitcoin from experts are hyped to invest and some of them even sold their properties in order to join the holders waiting for the price to increase again. They became successful and others became poor because they used the money they could not afford to lose and I see one of them in the Docementary where he borrowed from the bank and used their house for collateral. That was the worst idea you could ever have and you are supposed to turn away from that thought if ever it came to you because the consequences are so serious.

It's too risky to invest using a loan, especially if we deliberately go into debt at the bank to buy bitcoin. This is the same as asking for disease because the price of bitcoin is very volatile, we can't predict for sure when it goes up and when it goes down. Moreover, if the loan has a deadline that must be paid, if our investment has not reached the target and even market conditions are not good then the loss we incur will be doubled.

It's better not to force Bitcoin investment if you don't have savings or cold money. Be a wise investor, don't be an investor without careful calculations who ends up ruining your own finances in the future.

Because investment is uncertain. But the installments are certain, especially if the interest is large. Because people won't give you money unless there is an interest. Even if you have to go into debt, it has to be productive, for example to increase business capital. Even then, we have to be full of calculations and research on our business, so that the returns from our business can be partly paid off the debts.