Loan to buy Bitcoin?

[MFahad]

I'm buying ~500$ in Bitcoin every month with part of my salary. I have a stable job and my company is doing good. I'm wondering if it worth to take 20.000$ to buy 2 BTC now and pay the 500$ as loan installment instead of buying sats every month. I believe in the potential of Bitcoin to reach 50k in a couple years, but it wouldn't be possible to buy near half of BTC at the 500$ rate, so this would be something like an "advance". Hypothetically (but still possible in some probability), if BTC collapses and never recover from 8k, I would still be paying this loan for about 3 years but wouldn't starve or something like that, it would just sux for a while, since I still have another source of income. I know it's not the place to ask I will do whatever I think it's best, but if you were in my position, would you do it?

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Yes, this is a better decision if you can take the loan now and buy the BTC. Although it is not sure if Bitcoin will move up or down in the short term but in the long term duration, you will be save. Also by doing this, you will be save from the worry of looking at the Bitcoin price every month and get tensed.
Just make sure if you can get an interest free loan or a loan with low interest.
I am happy to see people having confidence in BTC and when most of people have this mindset, the demand of bitcoin will increase automatically.

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[gunhell16]

Please don't do so, Bitcoin is a good cryptocurrency and an investment.
But as always tell and must be done. you will always invest in what you only can without any risking of your daily life.
The idea is brilliant but i do not recommend it. Don't get your house a stake or anything. just put your extra money on an investment.

[metallica101]

I'm buying ~500$ in Bitcoin every month with part of my salary. I have a stable job and my company is doing good. I'm wondering if it worth to take 20.000$ to buy 2 BTC now and pay the 500$ as loan installment instead of buying sats every month. I believe in the potential of Bitcoin to reach 50k in a couple years, but it wouldn't be possible to buy near half of BTC at the 500$ rate, so this would be something like an "advance". Hypothetically (but still possible in some probability), if BTC collapses and never recover from 8k, I would still be paying this loan for about 3 years but wouldn't starve or something like that, it would just sux for a while, since I still have another source of income. I know it's not the place to ask I will do whatever I think it's best, but if you were in my position, would you do it?

The choice is yours, but I wouldn't recommend it. Buying a bit at a time is actually better, which is one reason why you should continue doing what you are doing imo. Another thing that you may not get a loan if you say that you want it so that you could invest in BTC. Finally, always invest only as much as you can afford to lose, so while you say that you can pay it back in a few years, it is still a long time to plan a large loan for something like that. As you said, you do what you think is best, but I wouldn't do it if i were you. But, that's just me, and i prefer to play it safe, so, you know...

[Naughty Princess]

Please don't do so, Bitcoin is a good cryptocurrency and an investment.
But as always tell and must be done. you will always invest in what you only can without any risking of your daily life.
The idea is brilliant but i do not recommend it. Don't get your house a stake or anything. just put your extra money on an investment.

I agree. It is very risky to loan and invest it especially if the price is not growing time to time. Better to find ways where you can earn bitcoin instead of loaning, even little by little you can save it. Market circulation is not that good however, it is your decision and your ways. hopefully that works successfully.

[Eclipse26]

Practically speaking, it could also be great to buy bitcoin at this time. You also have a point why you want to loan money to buy btc. Since you're buying every month but since we don't know when it will increase, it's better to buy while it's at its low price...

I don't suggest you to loan just to buy bitcoin but it's fine unless you know you're capable of paying what you have loaned. Sooner, bitcoin's price will rise again so he can also get it back. It's just a matter of time and patience.

[Golftech]

Please don't do so, Bitcoin is a good cryptocurrency and an investment.
But as always tell and must be done. you will always invest in what you only can without any risking of your daily life.
The idea is brilliant but i do not recommend it. Don't get your house a stake or anything. just put your extra money on an investment.

I agree. It is very risky to loan and invest it especially if the price is not growing time to time. Better to find ways where you can earn bitcoin instead of loaning, even little by little you can save it. Market circulation is not that good however, it is your decision and your ways. hopefully that works successfully.

The decision making regarding to this concern will be depends from how a person understand and believe the future success of this system. If you are willing to wait for the big growth of this market and you are not going to collapse once you see more downfall, you can achieved things only if you are optimistic and you always have the patience to keep yourself up even there's some cycle with falling market.

[dessyhodin97]

if you know you can handle it if it never rises to that level then get the loan,but i'm positive though that in three years btc has the potential go more than double from what it is now

[Darooghe]

Taking a loan is not usually a great strategy. as a advice, I think its a bad idea especially for something as volatile as Crypto. Due to the global impact of Bitcoin it is very difficult to determine when it will be pumping or dumping. try not to fall victim to the low affordable monthly payment. Instead look at how much you are paying total. So if BTC collapses, you can afford $500 a month, but how does it feel losing $20,000 plus interest? Personally I doubt BTC drops to under $8,000. I am bullish and hold long positions. But its also a very volatile thing and I wouldn't be comfortable buying it on loan, but at the end i could say, If you believe in what your investing in then go for it. Having a $500 a month payment for having the slice of a dream is well worth it.

[blckhawk]

I'm buying ~500$ in Bitcoin every month with part of my salary. I have a stable job and my company is doing good. I'm wondering if it worth to take 20.000$ to buy 2 BTC now and pay the 500$ as loan installment instead of buying sats every month. I believe in the potential of Bitcoin to reach 50k in a couple years, but it wouldn't be possible to buy near half of BTC at the 500$ rate, so this would be something like an "advance". Hypothetically (but still possible in some probability), if BTC collapses and never recover from 8k, I would still be paying this loan for about 3 years but wouldn't starve or something like that, it would just sux for a while, since I still have another source of income. I know it's not the place to ask I will do whatever I think it's best, but if you were in my position, would you do it?

It's not recommended to invest on something with loans because you put your money to too much risk without guarantee of returns. Always remember that bitcoins market is volatile, add that to the risk you put by getting that loan. Stock market is a better option for long term investments especially with strong companies since you earn by buying stocks on intervals, just as what you do today. Also, you'll never know what future news would bring to bitcoins future. If such negative news comes and you still hodl your bitcoins, then there's really no hope.

[DabsPoorVersion]

I'm buying ~500$ in Bitcoin every month with part of my salary. I have a stable job and my company is doing good. I'm wondering if it worth to take 20.000$ to buy 2 BTC now and pay the 500$ as loan installment instead of buying sats every month. I believe in the potential of Bitcoin to reach 50k in a couple years, but it wouldn't be possible to buy near half of BTC at the 500$ rate, so this would be something like an "advance". Hypothetically (but still possible in some probability), if BTC collapses and never recover from 8k, I would still be paying this loan for about 3 years but wouldn't starve or something like that, it would just sux for a while, since I still have another source of income. I know it's not the place to ask I will do whatever I think it's best, but if you were in my position, would you do it?

It's not recommended to invest on something with loans because you put your money to too much risk without guarantee of returns. Always remember that bitcoins market is volatile, add that to the risk you put by getting that loan. Stock market is a better option for long term investments especially with strong companies since you earn by buying stocks on intervals, just as what you do today. Also, you'll never know what future news would bring to bitcoins future. If such negative news comes and you still hodl your bitcoins, then there's really no hope.

Investing money using loan would put you a high risk, even in stock market, we know very well that stock market is long term investment, less risk than bitcoin but it is still the same as using your loan to invest. I do believe that investment should come to your own money, the investment you can put to risk is the amount you can afford to lose. Im not saying that you will lose your investment, but thinking the possible scenario will help you to understand and think of a better solution for the future.

[pundit]

The first rule of any investment is "Never invest the amount you really need or cannot afford to lose", since this is not true in you case you can go ahead to take loan, as you said you can easily pay the loan even if you lose it then you should go for buying of BTC at this price. Although $500 every month is also a good amount to invest, if you are looking big profit then bigger amount required to be invested but with bigger investment risk is always bigger. In my opinion this is the right price to buy Bitcoin, if it still seems risky then you can invest half amount at this point and can keep rest of the amount for lower price.

[SummerBliss]

I'm buying ~500$ in Bitcoin every month with part of my salary. I have a stable job and my company is doing good. I'm wondering if it worth to take 20.000$ to buy 2 BTC now and pay the 500$ as loan installment instead of buying sats every month. I believe in the potential of Bitcoin to reach 50k in a couple years, but it wouldn't be possible to buy near half of BTC at the 500$ rate, so this would be something like an "advance". Hypothetically (but still possible in some probability), if BTC collapses and never recover from 8k, I would still be paying this loan for about 3 years but wouldn't starve or something like that, it would just sux for a while, since I still have another source of income. I know it's not the place to ask I will do whatever I think it's best, but if you were in my position, would you do it?

Something similar is available for Mutual Funds, you can either buy funds at one time or pay every month in Systematic Investment Plan.
But the problem in your case is:
1. Bitcoin is much more dynamic than mutual funds. When you buy all funds at once, it guarantees that you will make much more profits than buying every month because CAGR of funds is mostly positive. But in case of bitcoin, you never know when it is 20% positive or when 20% negative. So if you invest whole amount today, it may become very risky if btc fall in near future.

2. You are taking loan to buy coins. Thus, you will have an additional expenditure of interest rate. It will decrease your profit by certain percentage.

[bitbunnny]

One of the first rules is not to invest money that you don't have. Invested is always extra part of your funds that you don't need.
Taking loan to buy Bitcoin is not smart idea because at the end you might get loss instead of profit. You will pay interests on that loan and meanwhile the price of Bitcoin might fall so you'll get into financial troubles.

[Ibizugbe1]

I have learnt a hard lesson never to take loan to buying any Cryptocurrency. The reason been that: it's very volatile it may dump badly when one needs his fund most, and this will trigger a panic sell order, which will lead to selling in big loss. I hate loan, it has dealt with me on several occasions. I will never advise anyone to use it.

[Mandoy]

Its a good thing to be really positive in bitcoin and to believe that it will really grow in value. But making loans is another thing, if your salary will still be enough to provide for your needs after having to pay monthly payment including the interests then its a good thing. Given that you are saving 500$ to buy bitcoin monthly it means that you can afford to make a loan of 20,000$ to buy bitcoin. Thus I do not discouraged you for doing so except if you have many other things to pay`

[Kyraishi]

Please don't do so, Bitcoin is a good cryptocurrency and an investment.
But as always tell and must be done. you will always invest in what you only can without any risking of your daily life.
The idea is brilliant but i do not recommend it. Don't get your house a stake or anything. just put your extra money on an investment.

Not really a lot of risks involved in the investment though, it's not like the crazy stories we've heard about people remortgaging their house, or liquidating other important assets, just to buy into BTC at the correct time. OP is purely risking his disposable income for a chance at higher profits when he really doesn't need that money for anything important.

Depends on what the interest rate you'll get it, what happens if you get injured and can no longer keep your job, what happens if you surprisingly have a child and $500/month is no longer feasible. Taking loans on crypto is risky but it's something only you can decide. I can't imagine watching the market knowing I'm pay loans on it, talk about a heart attack waiting to happen.

That's true mate, for the first part at least. There's nothing wrong or bad with having savings or emergency money, especially when bad things occur and then you happy to need the money.

[BitBite5]

This is a bad choice. If you can't afford to buy bitcoins, better don't. You can't know in advance if you will make enough profit to repay for loan and to make something for yourself. It's better to wait a while and save something that you will invest in bitcoin.

[boltz]

Taking bitcoins with loans is not a great idea even if you have a stable job you'll need to pay that amount if money in some years so you must be sure it will remain stable in those years. Why not taking a small amount of loan that you could pay back in 2-3 years max so in this way you have better chances to pay it back.

Even if you make a good profit from that loan , remember you'll always have to pay it back so my advice would be to stick to your monthly income, in this way you can keep all the profits.  If you have made the loan when bitcoin has ~3k$ then it would have been a great move but now its risky in my opinion.

[jake zyrus]

Why would you loan money just to buy bitcoin? Bitcoin is a good investment but it's a lot of risk especially when you just borrowed the money you used in investing. And it's a long-term debt you have to pay...

It's better to just continue buying bitcoin every month rather than loaning. Cause I won't do that myself knowing there's a possibility of losing. And if that happens, I might not be able to pay back what I have loaned.

[minersday]

I'm buying ~500$ in Bitcoin every month with part of my salary. I have a stable job and my company is doing good. I'm wondering if it worth to take 20.000$ to buy 2 BTC now and pay the 500$ as loan installment instead of buying sats every month. I believe in the potential of Bitcoin to reach 50k in a couple years, but it wouldn't be possible to buy near half of BTC at the 500$ rate, so this would be something like an "advance". Hypothetically (but still possible in some probability), if BTC collapses and never recover from 8k, I would still be paying this loan for about 3 years but wouldn't starve or something like that, it would just sux for a while, since I still have another source of income. I know it's not the place to ask I will do whatever I think it's best, but if you were in my position, would you do it?

I am no financial adviser but with my little experience in bitcoin investment and trading, it will be better to buy $500 worth of Bitcoin every month rather than going in for a huge loan just to buy 2 BTC.  What if after you took the loan to buy the Bitcoin and months later the price of bitcoin drops to about 40%, you will lose a great amount of your investment capital. But with the monthly purchase, you can easily decide whether to buy or not depending on the patterns of price changes. Please don't make a mistake to acquire a loan just to invest in Bitcoin....