Taking a loan to buy Bitcoin?

[ubercool]

I have been asked these types of questions in the past and even today by my friends/relatives.

The answer is NO. Never invest in anything by taking loans. There were people 2-3 years ago who did this, and most of them are bankrupt now. It's not easy to pass the correction period if you don't have reliable financial support on your back. I believe in crypto and Bitcoin, but I know the real-life conditions when you don't have anything in the pocket and have to pay back EMI before the end of the month. It is not as easy as you imagine.

I think most of the people have given the same suggestion. Invest only what you afford to lose.  

[Issa56]

I can't really read all your post but I just glance true it but from the experience am having in crypto I will definitely tell you not to borrow money to buy any coin. In Cryptocurrency don't every try to borrow money to invest in any coin or don't even invest all your funds in Cryptocurrency always make sure you in invest like 30-50% of you funds in Cryptocurrency. Am talking from experience there was on of my friend who borrowed money few years ago to invest in Cryptocurrency the coin he bought ended up dumping and was unable to rise again the money he invested was a hug amount and he lost all his funds and got bankrupted, he have to be using his salary to pay back for the loan he took. So I won't advise anybody to take loan just because you want to invest in any cryptocurrency and always trade or invest what you can afford to loose. Don't invest all your funds and always invest what you can afford to loose don't invest all your capital in Cryptocurrency.

[ethereumhunter]

Taking loan is not the answer for you to buy bitcoin, because you buy bitcoin without taking any loan there is a some way you can you can save some money and if you think your money is enough you should buy and start earning, it is very dangerous for the person for them to do loan and taking investing because there is no assurance that you will earn what if the money you use is from loan and you lose it how you gonna pay your loan if you are not earning money.

Maybe the first thing that he needs to know is about managing his money, so he can see that he will have some money to invest in bitcoin by managing his finances. If he can have some money, he does not need to take a loan bitcoin because he can buy bitcoin with his own money and hold it for some time. After his bitcoin can grow by always investing when the price is down, he will have a chance to profit in the future. And if he sells his bitcoin at a high price, he will see that his profit will be bigger.

[sana54210]

Do you think taking out a loan makes any sense? The problem is that right now I can not do it because due to the lockdown my income is too low. I would have to wait for the lockdown to end. Then I can work night and day for a month so that I end up making like $7000 within a single month. With that I will easily get a loan of 20K maybe even 50K who knows?

Do you think it is worth it? This might be a once in a lifetime chance.

Fortunately everyone talks about how this should not be done, and I agree that this should not be done as well, I find it very wrong and nobody should even attempt it. However I also want to point out something that would be a bit understandable why others do it, not that I approve but I want to show why they think it is okay.

First of all if you are taking much bigger amounts then you can afford, you are going to end up losing a lot of money, and that is not okay, that is going to hurt you a lot, however a person I know took out 30k, paid in 600 dollars per month, and he makes 5k per month, he can live with that debt even all of the loan he took becomes zero, he can pay that. So what did he do? He invested into AMM type things on binance smart chain, specifically on bdollar.fi and he made that money into 4x more plus the income he made from it as well. So, I think I understand why they do, not that I agree with them but at least this method makes more sense than some crazy people who take max loans they can't pay and go into crypto.

[goinmerry]

Even with the bright, good, stunning, and positive speculation about the future of bitcoin, you are just making another problem.

Loans have payment terms and you need to follow them to avoid paying more interest. What if things have gone wrong on the way? Are you willing to gamble everything? Calmly think about what's the best thing to do. Try to be patient and you can found work someday. Seek any possible opportunities either on day jobs or online. You can also try to open a small business based on what you think is the better.

[livingfree]

There were people 2-3 years ago who did this, and most of them are bankrupt now. It's not easy to pass the correction period if you don't have reliable financial support on your back.

I have never heard any single of those people that did this in the past that have managed to take the risk that we have managed to overcome for the past years.

That is the reason why an investor shouldn't take this type of risk. It's fine to take all the risk as long as you own the money and it's from your savings or profits from other resource but not from loans. Very risky move that someone will regret just as those who did it before.

[aesma]

Regular people take loans all the time to buy stuff, and much more rarely for business. "Investing" in Bitcoin as in a business is indeed the wrong approach, as Bitcoin doesn't offer a return, let alone a guaranteed return.

Now, if you were going to take a consumer loan to buy a TV, a car loan to buy a new car, or a home loan to buy a new home, then you should be able to take a loan to buy BTC, for example by keeping your current TV or car. You should be able to repay it whatever happens to BTC's price.

Now, is that a good idea, I don't know, but it's not the worst idea I've heard, at least.

[sayaya17]

Bitcoin shows better  prices from  week to  week. Of  course  with  the  state of this  lucrative  market a lot  of  FOMO,
even to invest there are still people who invest from loans. I'm not actually suggesting looking for a loan just because
you want to invest in bitcoin, but no matter what capital you have it is the best, not the loan.

[MWesterweele]

-snip-
Do you think it is worth it? This might be a once in a lifetime chance.

No, I don't think it is worth it. Don't forget "Invest what you can afford to lose". Since you can't afford to invest, and you have to take loans, you can't afford to lose those loans. Hence, don't invest! It is not worth at all since its a high risk investment unless you are planning to invest for long term.
Why take loan in the first place? How about you save some money and instead of keeping those in bank, invest in bitcoin and keep holding for long term? You will make some nice profit in the long run!

Indeed planning to become a trader or investor first and foremost you should have your own capital that you can use to start your plan investment but the idea of taking a loan to buy bitcoin was a total kind of risk taking. First, because here in cryptocurrency we should always keep in mind to invest what we can afford to lose but first thing was you didn't have your available principal to buy bitcoin then literally whenever you may get lose expect that you may fall on debt.

[Kelvinid]

Bitcoin shows better  prices from  week to  week. Of  course  with  the  state of this  lucrative  market a lot  of  FOMO,
even to invest there are still people who invest from loans. I'm not actually suggesting looking for a loan just because
you want to invest in bitcoin, but no matter what capital you have it is the best, not the loan.

I'd never a negative insight to this, committing loan for investment, that seems good because there is a purpose, in fact, some people are getting a loan for fancy things, buying luxury items, we don't get any money from this unlike if you are putting this into business or something like an investment.
I support you OP and those people who are doing this but see to it that you are willing to do this and you should have to take responsibility for your loan. And before deciding this, ask your self first if you are fullest ready to what will happen along your trading journey, think about that this gonna be tough.

[semobo]

There were people 2-3 years ago who did this, and most of them are bankrupt now. It's not easy to pass the correction period if you don't have reliable financial support on your back.

I have never heard any single of those people that did this in the past that have managed to take the risk that we have managed to overcome for the past years.

That is the reason why an investor shouldn't take this type of risk. It's fine to take all the risk as long as you own the money and it's from your savings or profits from other resource but not from loans. Very risky move that someone will regret just as those who did it before.

Investors can use the money from a loan on risky investment but only when they have a lot other sources of income other than salary and crypto earnings because the life of an investor never going to get safe because they are investing based on speculations which may or may not work but at least they need to be prepared to face the possible outcomes is recommended.

[FanEagle]

Do you think taking out a loan makes any sense? The problem is that right now I can not do it because due to the lockdown my income is too low. I would have to wait for the lockdown to end. Then I can work night and day for a month so that I end up making like $7000 within a single month. With that I will easily get a loan of 20K maybe even 50K who knows?

Do you think it is worth it? This might be a once in a lifetime chance.

Not everyone can save too much money, so to get the money as a whole to try to outpace the debt is a smarter move for some people who think they could pay the loan back. I for example had a problem like that, when I had the money I just spent it, but when I was forced to pay a debt that I suddenly had (health related thing) I paid it and never really had a problem with it, which means that I actually had enough money to put that money aside before the situation and I didn't, I was only capable of paying it because I was forced to, but given the chance I didn't just saved it aside.

Afterwards I learned my lesson and put it aside for a bit, then took out a very small loan, and tested if I can pay it, I did and now I know that I can take a loan if I want to, small amount like 100 bucks per month and I can pay that loan back 100 bucks a month while the combined would be like 6k dollars or so, which isn't a small amount in my nation but I will be capable of investing that 6k and make it more if I want to.

[Oilacris]

There were people 2-3 years ago who did this, and most of them are bankrupt now. It's not easy to pass the correction period if you don't have reliable financial support on your back.

I have never heard any single of those people that did this in the past that have managed to take the risk that we have managed to overcome for the past years.

That is the reason why an investor shouldn't take this type of risk. It's fine to take all the risk as long as you own the money and it's from your savings or profits from other resource but not from loans. Very risky move that someone will regret just as those who did it before.

Investors can use the money from a loan on risky investment but only when they have a lot other sources of income other than salary and crypto earnings because the life of an investor never going to get safe because they are investing based on speculations which may or may not work but at least they need to be prepared to face the possible outcomes is recommended.

Plan B's is a must or even more when you do make an investment and there's always a risk accompanied with that and you should really be aware and also

taking some loan because you do tend to make an investment here on crypto would really be involving a lots of risk and as mentioned that you should consider
that you do able to pay up those debts without relying into your crypto investment.

Simply talks about other sources of income that would able to patch up or compensate on what you had borrowed.If thats the case then i dont see any
problems at all as long you do know  that you are able to repay those back.

[abel1337]

I think what we are seeing right now is a rocket that is launching. I want to get on this rocket and I think any minute it could be too late as there is already all kind of heat shooting out of the rocket. It is hard to get on at this time. So I am considering to take out a loan of say 20.000 Euros. It wouldn't kill me if it fails but I don't think it will fail. Even if it crashes it will come back 2 or 3 years later. And yes we might eventually end up seeing prices of $100M per Bitcoin or maybe $1B. I am saying this not so much because I think Bitcoin is a great invention. I am saying it because I think the Euro and the USD are currently collapsing. Now since Elon has gotten on others will get on. And eventually the government can not make Bitcoin illegal anymore because too many people are heavily invested.

Do you think taking out a loan makes any sense? The problem is that right now I can not do it because due to the lockdown my income is too low. I would have to wait for the lockdown to end. Then I can work night and day for a month so that I end up making like $7000 within a single month. With that I will easily get a loan of 20K maybe even 50K who knows?

Do you think it is worth it? This might be a once in a lifetime chance.

In my personal opinion, This is a very big no-no for me. Loaning to buy crypto is not the way. Getting into debt is risky knowing that you don't have a stable income today because of the pandemic, you don't have an assurance to pay for it or your plan might be go upside down. I know that you know that his plan is risky but consider your own quality of life if your plan fails.

Your speculation is very positive towards bitcoin but today we are nearing the correction period and it might not the time to accumulate some.

Remember to just invest what you can afford to lose.

[livingfree]

There were people 2-3 years ago who did this, and most of them are bankrupt now. It's not easy to pass the correction period if you don't have reliable financial support on your back.

I have never heard any single of those people that did this in the past that have managed to take the risk that we have managed to overcome for the past years.

That is the reason why an investor shouldn't take this type of risk. It's fine to take all the risk as long as you own the money and it's from your savings or profits from other resource but not from loans. Very risky move that someone will regret just as those who did it before.

Investors can use the money from a loan on risky investment but only when they have a lot other sources of income other than salary and crypto earnings because the life of an investor never going to get safe because they are investing based on speculations which may or may not work but at least they need to be prepared to face the possible outcomes is recommended.

They may not anticipate how hard it is to catch up the volatility of bitcoin.

It is the main reason why those loan takers who did it on 2017 got burned. They thought that it was an unstoppable train on the next year but we've seen what's next.

I'm a bitcoin bull but with that risk that they invest the money that they own plus the interest that they'll have to pay, it's not really a good idea.

[EdwardM290]

Well, it makes quite a lot of sense IF AND ONLY IF you're thinking in the long term man...
Just be sure that your interest rate isn't too high!

[Pamadar]

There were people 2-3 years ago who did this, and most of them are bankrupt now. It's not easy to pass the correction period if you don't have reliable financial support on your back.

I have never heard any single of those people that did this in the past that have managed to take the risk that we have managed to overcome for the past years.

That is the reason why an investor shouldn't take this type of risk. It's fine to take all the risk as long as you own the money and it's from your savings or profits from other resource but not from loans. Very risky move that someone will regret just as those who did it before.

Investors can use the money from a loan on risky investment but only when they have a lot other sources of income other than salary and crypto earnings because the life of an investor never going to get safe because they are investing based on speculations which may or may not work but at least they need to be prepared to face the possible outcomes is recommended.

If they have it then yes, Other sources of income means that they are  capable of paying the loan.

Whatever happened with their risky investment, they have money to pay for it coming from he's own pocket, it's worse if he'll loan then if he failed he'll look for another lenders just to pay his previous loan, either use your  spare money or you have many sources of income and not just your monhtly or weekly salary that you are using for your family or your own personal needs.

[ice18]

I will rather sell some of my property to invest in crypto instead of borrowing into lending or banks with very high interest rate the market condition right now is so bullish that you can really think of having a loan if you have no enough money to invest in crypto but its too risky you will end up losing more money or you will also earn huge and paid your loan in advance if the market favors you this is like a gamble you really dont know what will happen always think 100x before spending huge money in crypto.   

[FIFA worldcup]

Well, it makes quite a lot of sense IF AND ONLY IF you're thinking in the long term man...
Just be sure that your interest rate isn't too high!

It is risky to get loan to buy bitcoin at this time. Bitcoin is about to reach and this is a psychological level and we can see a pull back once bitcoin touches 50K. If you take loan to buy bitcoin and then bitcoin dumps, you will be in a big loss. I would never recommend anyone to buy a volatile currency like bitcoin by taking loan. You should only buy bitcoin with your own money which you can invest for long term.

[semobo]

Simply talks about other sources of income that would able to patch up or compensate on what you had borrowed.If thats the case then i dont see any
problems at all as long you do know  that you are able to repay those back.

This is what I said about facing possible results and since they have multiple sources of income they can be able to repay the loan without defaulting it and they can make the lost money with their other investment profits later on.