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Greetings Everyone,... I want to open a discussion on a very controversial question which is that: Are there situations whereby it is advisable to invest in Bitcoin using a loan?.
The idea sounds of taking a loan and investing in Bitcoin sound kind of attractive, when you think about it this way: You take a loan and invest in Bitcoin when the price is down and sell off to repay when the price goes up. But the honest truth is that when we take a closer look at the idea there are some risks attached to it. One of such risk is Emotional Stress. Now owing someone( debt) is already stressful and burdensome on it's own, now combining it with Bitcoin's volatility can make an investor feel pressured and lose sight of the bigger picture which is that Bitcoin reward comes in the long term and then that investor may be forced into panicking, and even selling off at the wrong time.
But if we take a look at this matter carefully, I believe that there are situations where taking a loan for Bitcoin's investment may not really be a bad idea, infact it may even be a smart idea. For example, when an investor want to invest aggressively during dip, and he already haas his discretionary income for it coupled with a steady income that can comfortably repay the loan irrespective of the price of Bitcoin or maybe the loan has little or no interest, like money borrowed from a close friend or family member or even a cooperative society.....
So my own view of the matter is that there are circumstances whereby taking a loan to invest in Bitcoin isn't a bad idea if that loan you took isn't dependantt or tied to your Bitcoin investment, meaning that even though the price of Bitcoin depreciates, you as an investor can still comfortably repay the loan....... So what do you think guys
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You raised some important points OP, but then don't you think it would have been better for you to have added a link for us to read further, anyways here is a link that we can read up on- SEC sees crypto as an economic growth engine says Chainliink cofounderIn addition, cryptocurrency is also creating new ways for people to engage in business without the need of middlemen orr third party through things like smart contracts. This makes transactions more faster, cheaper, and somewhat easier, which is another reason regulators are begiinning to see it as an opportunity for growth...... However everything that has an advantage will definitely have a disadvantagee |
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Day 14
Code:
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NODE CHALLENGE COMPLETED
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You can also get started without understanding it all
Dude let's say you're a teacher for instance, can you tell your students to write exams without preparing to an extent for the exams, I guess the answer is no, let's then relate this to bitcoin investment, if I understand you very well, were you trying to say newbies or intending investors should start up their investment without preliminary knowledge which is the basic knowledge we talk about here now and then, do you feel that there no reason for the basic knowledge, man if you think so then you don't understand the reason for the basic knowledge, you don't just jump into what you don't espacially when it has to do with investment such as bitcoin, there are little things you need to know not too hyper but basics to enable you start first and other extensive or further knowledge can come later and I believe that's how things are suppose to be done. What is this basic knowledge that you proclaim is needed? I doubt that your exam analogy is very fitting. Why cannot a beginner to bitcoin just adjust his position size to be smaller while he is getting started and getting more familiar with bitcoin and perhaps to increase his position size as he becomes more familiar and more knowledgable about bitcoin, to the extent that he believes that his greater familiarity justifies increasing his bitcoin position size? As simple as that not something you should stress yourself with. First time wait for no man and as time goes that’s how prices changes . As a newbie that’s really interested in bitcoin investment I don’t see any reason why you need any complex knowledge before going in . There’s time for that (to know about bitcoin more) you can choose to know the basic first which is where to buy , how to buy and secure your assets. Then as time goes you may choose to expand your knowledge more as you accumulate it will literally make things more fun though and you do both Procrastination or waiting for the perfect time has psychological trapped so many newbies from kickstarting their Bitcoin accumulation journey. They keep waiting for the perfect time, a time where they must have been well knowledgeable and had a huge source of income( discretionary income) before they start. What many of them fails to understand is that you don't need to have all the knowledge or the money in the world before kickstarting your investment journey. What you basically do need is to start with the little knowledge and discretionary income you have, learn more along the way and then grow your investment percentage over time as your knowledge and confidence increases. |
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that the bitcoin price can go down a lot, and we are waiting for that, but this is also another mistake. i don't think Bitcoin price can drop below $80-90k on dip season.
History has taught us that bitcoin can drop to any price in bear season and also rise to any price in a bullish season. Same way we are expecting that bitcoin can rise to any price in the future, let's also have it at the back of our mind that bitcoin can drop to any price as well. We have seen that happened in that past when bitcoin dropped from $68k to$16k thereabout. That's to tell investors to be open minded about bitcoin investment, and expect price to rise and fall to any amount. It's true that Bitcoin can rise and fall due to it volatility, but that doesn't mean that bitcoin might drop to 1k dollars. Looking at bitcoin and is great potential, their is a higher tendency that it might go as high as a million dollar or more in the future, so what we should be doing now is to accumulate as much as possible according to how much you can afford to do away with for a very long period of time. What most bitcoin investor don't know presently, is that bitcoin is no were near it peak price, and due to it limited supply, there's a higher possibility that it will keep on rising as the days goes by, so it will be very unwise of us not to accumulate it now that it is still very cheap, but in all we do, we should try as much as possible to accumulate according to how much they can do away with, so that they can hold very strong into the future. Bitcoin is a highly volatile asset and the changes in price are affected by so many factors and most of these factors are unknown to us, nothing is really guaranteed. It is very much true that Bitcoin is a volatile asset, but should we really say that the factors that affect its price are unknown to us? Well I dont really think so.... In fact, there are quite a good number of these factors that directly influences the movement of price of Bitcoin.... For example, we haave supply and demand, news headlines, government regulations, institutional adoption, global financial crisis, fear caused by rumors can make people rush to buy or sell, etc.... So therefore it is importaant that we note that what makes Bitcoin unpredictable is not that we do not know the factors(( coz we do), but rather that we cannot always predict when they will come into play, or how strongly the market will be affected when they do come...That uncertainty is what triggers Bitcoin's volatility. |
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Day 13
Code:
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The idea of borrowing to invest in Bitcoin just sounds like placing yourself in double risk, because not only are you relying on the uncertainty of the market, you are also dragging in a liability that must be serviced whether profit comes or not.. People forget that Bitcoin does not move at our command, it does not care if you borrowed or not, it will do what it does and if it decides to dip for months, the lender would not care that you’re still HODLing, they’ll want their money back. That pressure alone can make someone panic sell at the worst possible time, losing both the Bitcoin and still being stuck with the repayment stress..
Another thing is, Bitcoin in its real sense is not even designed for quick money rescue missions, it’s more of a long term preservation tool. When you look at people who succeeded big in Bitcoin, it is mostly those that bought with money they could forget about for a while, not money they needed back next month. Borrowing for such an investment is like planting a tree today and hoping to chop it for firewood tomorrow, it just doesn’t work that way. Even if luck shines and it pumps right after you borrow, that gamble is not sustainable as a strategy, because the same market that went up in your favor can just as easily dump next time..
In my opinion, the smarter way is to always use disposable income, the kind of money you would not cry over if the market takes its time. That way, you give yourself peace of mind and also allow Bitcoin to do its natural growth over the years without forcing your hand. The truth is, investing should never put you in a corner where you are sleepless thinking of how to balance a loan. It is better to miss a move than to force it with debt, because another opportunity will always come. Bitcoin always have opportunities, but your financial peace of mind should not be gambled away just because of fear of missing out…
Although it might look tempting to borrow and jump into Bitcoin, the real issue isn’t just about whether you can repay the loan, but also what kind of mindset it builds. Borrowing makes people treat Bitcoin like a get rich quick scheme because there’s pressure to see fast results. That goes against the whole idea of Bitcoin as a long-term savings technology. If every dip starts to look like a threat to paying back a loan, then the person isn’t really investing anymore, they’re gambling with borrowed time. The real strength of Bitcoin comes when you buy with calm money, the type you don’t need for survival or obligations. That’s what allows someone to hold through cycles without fear. Even if the market stalls or drops, there’s no creditor breathing down their neck. Borrowing might get you in faster, but it also sets you up for panic decisions that erase the very benefits of holding.In the links below, I think JJG has already emphasized in details on this and the bone of contention is that taking a a loan isn't a bad idea if you have the means of repaying that loan( that's certain ). It only become dangerous if that loan is tied or depends on your Bitcoin investments. For instance a guy takes a loan and plans on repaying the loan if Bitcoin appreciates and yield him good profit..... Connecting this idea with the part I bolded out, the panic decisions you mentioned only comes if an investor's loan is dependant on his Bitcoin investment or maybe there is an uncertainty in the means he plans on repaying that loan |
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[Edited out]
What is hindering most of us to getting to such point (being a profitable trader) is our emotion which is greed and fear ,
We all are human beings and because of that, it is very difficult to completely remove emotions from our decision making.....Be it in trading or even in our daily choices, emotions like fear and greed will allways be there, and because of that as traders, we shouldn't spend our time trying to kill or remove these emotions but rather learning how to manage them and utilize it for the bettter. [Edited out]
To make it big. You need greed. To cut off losses you need fear.
Both emotions help as well as they destroy
What matters is been able to manage them and be confident in your strategy.
Make plans for failure.
I agree. Our emotion like greed and fear are indeed like a two double-edged. sword, meaning that they can help or even destroy, depending on how we handle them..... Leet's consider this example: For instance, a trader who sees a coin he invested in depreciating in price at a very acccelerated rate, fear can push the trader to sell everything at a loss, only for the market to recover shortly afterwards. In this case emotion( fear) can push the trader into making a very costly mistake. On the other hand, let's imagine that that same trader had a clear plan from the onset.....Let’s say beforehand he had decided that: “If he secures a 10% profit, he will take it and not get greedy." In this very case, fear and greed are still present owing to the fact that he is a human being, but he properly managed it through his discipline and strategyy. That’s how emotions, instead of being destructive, can help us make better decisions if properly managed |
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Day 12
Code:
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Many of our new users are mostly fond of rushing to create threads/post without first taking their time to read, observe, and understand how this forum works, I personally made those mistakes when I first started out.....But the simple and honest truth is that newbies should first of observe and read before you contribute or even create topics. I am not saying these things because newbies don’t have anything meaningful to contribute, it's jjust that when you take your time to first read, you will better understand where to post, how discussions flow, and even what has already been answered. That way, you will not fall into the trap of spamming the forum or even repeating same questions or writing in the wrong section. This Bitcointalk forum is a huge fountain of knowledge, and many of the answers you maybe seeking for has already being written and answered by those of higher ranks.... Here are some of the useful threads that can guide our newbies and bring out the very best in them... |
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Day 11
Code:
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Day 10
Code:
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Today is the day that I've been saying would be the top for Bitcoin for quite some time. I've actually been eyeballing today for basically the last 4 years. Now that it is here I don't want to sell any Bitcoin, but I may sell a tiny bit just to stick to the plan... There's a ton of bullish news out there and with December looking like it will be the MSTR inclusion period, I have mentally begun making excuses that my sell date should be moved to December 16th. We will see how that plays out for me, but I've definitely started watching the exits.
I respect your ddiscipline and enthusiasm.......Whether it is today or in December you decide to sell, what matters is that you have prepared yourself ahead of time. In the end, Bitcoin as we know always has the habit of rewarding patience and a good strategy over unnecessary impulse |
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Borrowing is a financial instrument of choice. Sometimes borrowing can make you particularly financially strong. Not long ago, a Bitcoin investor I knew borrowed $1k to buy Bitcoin. At that time, Bitcoin was going through a price decline. Although his reasoning was that he would hold Bitcoin for the long term. Moreover, he had engaged in Bitcoin accumulation DCA strategy. He tried to increase his holdings by buying additional Bitcoin. Later he paid off the loan from his alternative own sources but during the bearish period the additional Bitcoin buy increased the size of his portfolio. And he remains steadfast in his long term goals.
I gave this example to show that if you have a source of timely repayment, it would be great and smart to increase your Bitcoin holdings by borrowing during bearish periods.
Yes, you can invest with a loan in one way. For example, if the market has fallen, you have money to buy aggressively. But you have kept your money in the bank but your bank account has been locked for some reason. In such a situation, you can invest with a loan if you want. But you have to know exactly how many days you can repay the loan in between Whatever the situation is, taking loans to invest in Biitcoin is very risky.....Bitcoin as we all know is a long-term asset, and also price fluctuation is a normal part of its cycle, now if you invest using borrowed money and the market movs against you, that investor will be left not just with losses, but also with the burden of repaying debt often with interest. Now let's use the bank scenario you talked about imagine you borrowed money from someone and promised to repay when the bank releases your funds the following week, but due to some reasons beyond their control, there was a delay (nothing is really certain with banks). If something like this happens honestly speaking as an investor you will be under a lot of pressure especially when the person you are owing begins asking for his/her money. And this pressure will definitely intoxicate you and push you into making a veryy costly decision. That is why the safest and most sustainable way to build your Bitcoin portfolio without being pressured is to use your Discretionary Income ( not borrowed funds) to invest little by little, month after month, than to borrow a large money and expose yourself to unnecessary risks, pressure and even maybe humiliation. Over time, those small and steady investments stacks up into something tangible and meaningful... |
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Day 9
Code:
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I used Watermelon, Cucumber, Pawpaw, and groundnut to put this together in order to celebrate both Bitcoin and our Naija spirit God bless the OP for this opportunity God bless every member of the forum God bless Bitcointalk    |
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I used Cardboard, Plain paper, Pencil, Crayon, Broomstick, Pencil, Biro, and Nigerian Currency note to bring this to life  This is my own way of celebrating Nigeria's independence through my love for art. God bless the OP for this opportunity God bless every member of the forum Good bless the moderator and co.. God bless Bitcointalk God bless Nigeria    |
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Well in Bitcoin investment no money is made permanent for a particular usage, the usage of this funds are not rigid but flexible and adjustable base on situation and or circumstances. There could be times when emergency fund can be used in the place of discretion fund when there is no discretion but that doesn't mean that it will remain permanent but these only happens when there is a financial difficulty or mismanagement of fund or when our source of income are whimpy. But However I don't mean to say yhat it is advisable to misplace the usage of each of this funds but we just need to know that sometimea we just need to be flexible in our investment approach in other not to follow a wrong investment approach expecialy anything that will leed to selling of Bitcoin when our target has not been met.
It is worth noting that the Emergency fund isn't as flexible as every other backup funds, such as the reserve or float funds. Tampering your emergency fund or using it to serve the purpose of the discretionary income would only mean one thing, which is endangering your Bitcoin portfolio. The Emergency Fund should in fact be treated as a rigid cushion as it is the ultimate safety net for your Bitcoin investment. Now imagine a situation where you hit a potential DIP in the market and it's just so attractive that you feel you can't miss buying on that DIP, and maybe in the absence of a reserve fund or discretionary fund, you decide to opt for using your Emergency fund to buy the DIP (leaving your Investment defenceless and vulnerable), with intentions of replenishing it in the coming weeks, and then just after the buy, an unexpected emergency suddenly pops up. Now, there's no emergency fund in place, no reserve or float fund, you're left with nothing but your Bitcoin investment, what do you think would happen in such a case if not to dip into your investment to sort out that emergency... The Emergency fund is just as important as your Investment and should be treated with extreme caution too, the only time one should seek the assistance of the emergency fund is when an actual emergency surfaces, anything other than that could either wait or be attended to by other backup funds. I'm not in support of the idea that the emergency fund should be considered as a flexible fund that could be extended to other areas or financial needs, except actually emergencies. In some cases where you have exhausted your discretionary income for bitcoin investment it's not bad if an investor uses little of his emergency fund to purchase bitcoin and still make a replacement back to your emergency fund when things are alright but emergency fund shouldn't serve the purpose of discretionary income using your emergency in a one time purchase of bitcoin doesn't give you a bad method to invest in bitcoin. Am saying this based on experience, touching your emergency fund for Bitcoin investment is a very dangerous path to take, no matter how little it is....An emergency fund is meant to protect you in times of real life needs(medical bills, loss of job, urgent family issues, or a time where quick cash is needed). If that money is tied up in your Bitcoin holding during a market dip, you may be forced to sell at a loss just to settle that your emergency. See ehn investing in Bitcoin requires patience and then a long term mindset, while an emergency fund is for safety and immediate access. Mixing up the two can put the Investor into an unnecessary pressure. That is why it is far more safer to only invest with your discretionary income, which is extra money left after settling your needs, bills, and responsibilities. |
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What do you think?
I couldn't agree more........Decentralization indeed gives us control but it does not dtop people from using thaat control for their own selfish reasons. The truth is, the more Bitcoin you hold, the more power you have to shake the market. .For example, Strategy (formerly called MicroStrategy), they just bought 525 BTC for about $60.2 million, which brings their total stash to 638,985 BTC That’s great for adoption, but then as a single player they can have bigger influence, simply because they hold so much. Strategy Adds 525 Bitcoin in Latest Purchase |
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Perhaps you should have added financial freedom in the future because Bitcoin is not a get rich quick scheme and so if you limit it to this your view and point, it can make a lot of people especially newbie to believe they can actually get rich in Bitcoin in a short period of time which very wrong because we can not actually make or get a financial freedom in Bitcoin in a short while but rather we can get that in a long term investment and not just in a long term but with a condition that we carried it out properly and following the sequence and principles that it should be done.
It's important to go some prior research before jumping into Bitcoin. It's very simple, if you want short term profit then their are other options available like forex and stock. One can try his luck in these sectors for quick gain. The core idea of Bitcoin investment is to "invest and forget" for at least 4 years and it will be best if you can forget it for 10 years. There will be time when you will be tempted to sell your Bitcoins because you are getting good return but one has to stick with his investment plan and hold Bitcoins until his target value is reached. Since the price of Bitcoin decreases and increases over time, investing in the DCA method is the easiest method. The DCA method is a method of continuous investment without paying attention to the price. Therefore, we should plan long-term investment without thinking about short-term profit. Your statement that I bolded out ended up contradicting everything you said, see ehn the DCA strategy becomes useless if it is done “any time”. What really makes it work is doing it consistently over time. When you DCA consistently, every dip and pumps eventually blends into your overall average cost, and that’s where the true advantage of DCA lies. But if it is treated as something you can just do “any time,” then it loses its meaning, because without consistency, it will be quite difficult to see the long term benefit that DCA promisess. And if discretionary income is very limited or not at all, then it will be difficult to enter the investment.
This very mentality has really limited so many persons from investing in Bitcoin because they have limited discretionary income, but the truth is that you don’t need to start big to get involved. Bitcoin was never about who had the biggest discretionary funds, see ehn a 5% done consistently over time will definitely build into something tangible and meaningful overtime, it's all about patience and consistency. What matters is that you begin, no matter how small you start, instead of waiting for that "perfect time" or "large amount." Many people who are now in huge profit today started with very little amount, but they kept going, and that’s what made the difference... |
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