Loan to buy Bitcoin?

[ChrisPop]

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?

You say that "you will be paying this loan for about 3 years". Will you be paying it by lowering your lifestyle or you will just use to extra money you would have invested anyway?
I think you need to sleep on it for a few days, $20k is not a low amount and the fact that you can pay it only 3 years sounds a lot to me. Bitcoin is still a wild west with this violent swings. Don't forget that we're in a pandemic and things are worsening. Are you confident that you can keep your job if the COVID crisis persists for another 1 year?

I don't know how your portfolio is spread out aka what other investments you have and your overall financial status, but I wouldn't borrow this much. Maybe think about getting only a half or a quarter of that sum.

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[Zanab247]

 Anything loan I don't get myself involve in any transaction. Using loan to buy bitcoin is like someone is adding fuel to fire because interest involved in loan is too big. Bitcoin can decide to go up or down.i don't advise anyone to use loan to purchase bitcoin in the market.

[Ratash]

Its best to save part of your salary every month and then wait for the bitcoin price to go down because at 10k you have a risk that bitcoin will not go up immediatly and you will have to wait a long period and you will start panicking and sell at a lower  price.

[milani]

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?

You know, it is only uour personal choice what to do with your assets and money. And may be you are quite right in theory. But very often the scenario that we imagine in our heads appears quite another in yhe real life. I know personally people that tried to sell cars or something else in order to buy BTC and in such a way to earn more snd even to buy new car and so on. And circumstances changed and yhey lost assets, jobs, and opportunities to get back it again. So there is a risk to lose and it is high. You should think twice before taking loans and so on. The golden rule for investor - to invest assets that are not the last on your wallet and it is better to invest such an amount that you are ready to lose without any pain in your heart or headache 😉

[Blackrain13]

Loan to buy bitcoin is not a good idea because investing in bitcoin includes high risk. What if you will  lose your bitcoin investment and your loan interest are still on and you need to pay it of course...instead of earning what if you lose. It's very risky that's why you need to think not only twice just to make sure that you have a right decision.

[Debonaire217]

Loan to buy bitcoin is not a good idea because investing in bitcoin includes high risk. What if you will  lose your bitcoin investment and your loan interest are still on and you need to pay it of course...instead of earning what if you lose. It's very risky that's why you need to think not only twice just to make sure that you have a right decision.

That is when you don't believe in the value of bitcoin. Actually, a loan to buy bitcoin is okay if you have collateral, just to make sure that you can repay the loan if ever you can't pay back on the date of your agreement. The idea here is loaning bitcoin when its price is accessible and low, meaning, you should still have an income from your job but you will just loan to have more funds to take advantage of the market. I can say that there will be more chances that you can pay the loan from the profit of your bitcoin it's bullish as Bitcoin in long term will be so valuable. Companies are already putting their backup funds to bitcoin, PayPal integration, and more market adoption will follow soon.

[bitbunnny]

No matter the current favourable situation, taking the loan to buy the Bitcoin is no good idea.
First rule of investing is that you invest extra money that you don't need and not to invest money that you don't have.
Bitcoin is volatile and price changes, there is always possiblity that you will lose and not be able to return the loss or that will cost you a lot. So, always bare that in mind before making decision to take the loan.

[NotFuzzyWarm]

No matter the current favourable situation, taking the loan to buy the Bitcoin is no good idea.
First rule of investing is that you invest extra money that you don't need and not to invest money that you don't have.
Bitcoin is volatile and price changes, there is always possibility that you will lose and not be able to return the loss or that will cost you a lot. So, always bare that in mind before making decision to take the loan.

Exactly!
Always remember that hindsight is a 2-edged sword: Looking back you will either regret 'missing out' - but still no harm or financial hardship created or you will be kicking yourself hard as you pay off your losses + interest...

Personally, I'd take the regret any day over the alternative.

[kawetsriyanto]

Actually, it purely depends on your own view and how well you know crypto. But if I were you, I never think to get a loan for buying Bitcoin as it is too risky and no guarantee at all. Why don't you try to have the funds from the extra money you got from your job? You can set aside money every month to buy Bitcoin, right? I think it is more than enough if you want to have money for buying Bitcoin.

In my view, you only can take a bigger risk by using a bigger amount of money once you already experienced many years in crypto investment/trading. In this matter, you already know well how to invest/trade properly. But if you are just a beginner or have a lack of experience, you don't need a big amount of money. So, why you need to have a loan? 

[elisabetheva]

I almost did this two years ago, and honestly, I regret I didn't.  I wanted to take a $5000 loan and invest in bitcoin, but I was afraid, and now I really regret it. The bitcoin market has ups and downs but I would recover my investment in just a few months if I decided.

wherever regrets will come later, because they can not take advantage of the time that is actually available in front of the eye and can execute. but if you only continue to regret, of course there will be no benefit either, therefore you must continue to do ways in any way you can enjoy the increase from bitcoin, even with the smallest value prefix and then try to increase.

[mich]

One of the most important things I learned is that when buying Crypto you never buy it with a loan (credit card.)   

If your loan goes down in value and you owe like double the original loan you are going to be in a lot of trouble.

[bitterguy28]

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?

If you still doing that 1 year till now then maybe you are making money just today because the value of Bitcoin climb up high again to 18k$ and that is enough to double your borrowed money now.

Or wait even longer because the next ATH is going to happen so stay Tune.

[Iranus]

If you still doing that 1 year till now then maybe you are making money just today because the value of Bitcoin climb up high again to 18k$ and that is enough to double your borrowed money now.

Or wait even longer because the next ATH is going to happen so stay Tune.

It is a matter of great fortune for him that the price of Bitcoin has reached around 18K, although I do not like to buy Bitcoin with a loan. Now he is able to earn several times more the profit of his borrowed money, so it would be wise to withdraw the profit money.

[catur123]

I do not agree with you to buy bitcoin by borrowing.
But for what has happened, it must have been calculated by you.
Maybe if I was in your position I would buy bitcoin with my money more than the rest of my life expenses in a month.
And henceforth I suggest not to buy bitcoin by borrowing money.

[acener]

Even if I believe in Bitcoin I wouldn't take a loan just to invest on it.
I don't want to borrow money to invest if I would invest in something I want it to come from my own pocket,
If I couldn't afford it then I would save till I could finally be able to invest on it.
If you're going to risk money then do it on your own money don't be too greedy to borrow in order to have a higher profit because it could be the other way around.

[Zanab247]

Bitcoin is still rising in the market which is making other investors, think bitcoin will dump soon since the year is approaching and bitcoin started pumping since we enter pandemic that was causing other cryptocurrencies to reduce in the market.  Buy bitcoin with loan at this season, it will not favour you because this is the time to sell and make a good income. Since bitcoin started pumping which was causing other cryptocurrencies to reduce show that it can dump at anytime to cause some investors to lose their profit.

[aoluain]

Not sure if the OP has done it or not, I say go for it.
A year ago I would have said definitely dont do it
but in life we do have to take risks, business do
it all the time, borrow to invest, ok the circumstances
are different.

We borrow money to buy cars! worst thing you could
buy with a loan but there are never questions asked.

I have already borrowed for Bitcoin!

[shield132]

No matter the current favourable situation, taking the loan to buy the Bitcoin is no good idea.
First rule of investing is that you invest extra money that you don't need and not to invest money that you don't have.
Bitcoin is volatile and price changes, there is always possiblity that you will lose and not be able to return the loss or that will cost you a lot. So, always bare that in mind before making decision to take the loan.

To be fair, that "rule" is the bad "rule". If you aren't a rich person, then you'll never have a business if we follow that rule cause business requires high investment. That rule is probably good at gambling.  You succeed when you invest more than you can afford. Usually, the higher the risk, the higher the potential reward.
Loan to buy a bitcoin is a risky investment but again, reward is very high. If you get a loan for one year with 10% rate and invest in bitcoin, there are two possibilities: 1. Price of bitcoin will go down or stay the same, according to price, you'll have to pay invested bitcoins + rest of the money. 2. If bitcoin's price goes up, depends on the percentage, you may pay that loan and get 1x, 2x and higher amount of money.
1. If you've got $1000 loan in 2011 and bought bitcoins, you would be very rich. But if you've got a loan when the price was 20K, then you would be poor.

[Mahanton]

If you still doing that 1 year till now then maybe you are making money just today because the value of Bitcoin climb up high again to 18k$ and that is enough to double your borrowed money now.

Or wait even longer because the next ATH is going to happen so stay Tune.

It is a matter of great fortune for him that the price of Bitcoin has reached around 18K, although I do not like to buy Bitcoin with a loan. Now he is able to earn several times more the profit of his borrowed money, so it would be wise to withdraw the profit money.

Risky act should i say but if op did really make such thing then it did really paid off since the market had risen compared to the price on where he had posted up this thread.
If he had able to do so then he's now making profits and might able to repay all of the loans that he had borrowed.This is the reward for those who do take the risk but
to say that i wont really recognize to be this a suggested act to be done because we dont know on what would happen ahead.If you do took loan and then
the price crashed afterwards then youre fucked up.

[mnporter2001]

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?

If you don't have to go hungry or lose your place, then you should definitely invest in Bitcoin. Currently, I am still making money every day to buy Bitcoin and implement a plan to hold Bitcoin for 10 years.
In 2020, many financial institutions of large corporations in the US have bought Bitcoin and held respectively. Certainly this investment plan must go through a lot of research by financial experts about the Crypto market. So their investment actions speak for themselves that Bitcoin is more worthy of holding than Gold.