Taking a loan to buy Bitcoin?

[doctor877]

taking a loan is a two way thing, not advisable because you can not afford to lose it. but sometimes you would have a big conviction to do some crazy things like this and it would pay off. but you should keep at the back of your mind that it can go negatively. this definetly not advisable thing to do.

[Webetcoins]

I have actually been trying to take out a loan since yesterday and I have failed miserably :d I never realized that I needed to actually end up taking out a loan when I didn't even needed it, and repay it so that banks would give me a loan, or need to have a credit card at least, so that I could make a debt to banks and repay it so that they would think I am a good person to loan money to.

However what they do not realize is that, I never had any credit card or any loans before because I never needed, not like I "needed" it today neither, I didn't because I have enough money as always to live, but I wanted to take out a huge sum so that I could repay that whenever I want, not like I would be in trouble if I failed to make profit, I could have paid it with my income anyway, so if all the loan I took out and put into crypto becomes zero, I would still be capable of paying anyway, but they thought I was someone who didn't had money lol.

[Findingnemo]

To be a successful investor, avoiding FOMO is very important which means you never take loans to make investments because cryptos are not giving dividends then how you are going to pay the interest rates? What if your investment become total failure.

On the contrary, I believe if people are doing margin trading or futures then they are already taking bigger risks because taking 3x leverage means your portfolio will be emptied if the price falls by 33% and considering the volatility of the crypto market it can actually happen within days or even a single night.

I always think that better than taking money on leverage and risk losing everything, it is better to take loans in real life and pay yearly interest because it gives you much more time and the assets/coins you buy are going to be yours 100% without any risk of marketing being down or up.

Consider this as an example:

Trader 1: A trader bought Bitcoins at 8k last year February and he took only 2x leverage, in march as the price dropped below 4k he lost everything he hold.

Trader 2: Another trader took a loan of 8k and bought bitcoins with it, market went ballistic and as low as 3k but he lost nothing and somehow market recovered and now an year later he turned his 8k into 45k now.

So, it might not be the worst idea to take loans for buying Bitcoins, given you have back up plan and good strategy.

Its better than leverage but not completely practiced by someone who can't able to find few hundred dollars in their bank account, basically these people don't have any backup plan and they planned to pay the monthly interest with the earnings made from trading every month which will put us in horrible condition when the market get crash and most likely these people will sell for the loss rather than waiting.

[Renampun]

I don't think it's a problem with you making a loan to buy Bitcoin...
but remember, you have to estimate everything, you must be able to have a main job to pay the installments, don't cheat the bank, you will just go to jail.

[isaac_clarke22]

~

This is what I was trying to emphasize previously. I am not sure why would people think of adding liability into their finance then letting the lady luck decide their fate.
It's gonna be hella depressing for me if I was to do that then Bitcoin plummeted. I think I would go really really insane.
Plus from what you mentioned, interest rates.

[Mahanton]

~

This is what I was trying to emphasize previously. I am not sure why would people think of adding liability into their finance then letting the lady luck decide their fate.
It's gonna be hella depressing for me if I was to do that then Bitcoin plummeted. I think I would go really really insane.
Plus from what you mentioned, interest rates.

That would indeed a very stressful thing is that you do mind off about those interest rates in due dates plus you would also be stressed on looking on the price as well if it did
increase or decrease which is really a very mental boggling thing if you do really just rely into those investment for you to be able to pay.It isnt really that ideal to take loans
and deal with crypto market if you dont know and aware on what you are doing because you would be putting up yourself into a very big deep trouble if you do such thing.
If you do have some bit spare of money to spent out on investment then that should be your first consideration before making any loans or making this as a last resort
if you do see some opportunity.

[uneng]

I don't recommend this to anyone. Keep in mind by taking a loan to invest in bitcoin you will be risking yourself in double. First because you will have to pay exorbitant interest rates to banks or lenders and second because bitcoin might enter a bearish market suddenly. Personally I prefer to invest slowly, step by step, accumulating maximum coins as possible in crypto currency, but never contracting debts with third party services for this goal.

On the other hand, if you have a near family member in good financial condition you could ask him or her to lend you some money with low or no interest at all. If things go wrong with your btc investment you don't need to panic and you can pay the loan back in smaller portions without abusive extra interest or fixed deadlines.

[boyptc]

I don't think it's a problem with you making a loan to buy Bitcoin...
but remember, you have to estimate everything, you must be able to have a main job to pay the installments, don't cheat the bank, you will just go to jail.

It's a problem if you're doing it because you think that you'll make instant money from buying bitcoin with a loan. Despite we're seeing bitcoin reaching new highs.

That's still not enough reason for one to take loans for buying bitcoin. We all want to have bitcoin and invest on it but depending on your situation, you can choose to buy it in small portion with your own money not with loaned money.

[aesma]

The thread is 10 days old, BTC has gone up more than 10% in that time (despite having had a huge run just before that already). If the OP had taken a loan he would be in nice profit right now.

Just saying.

[lixer]

No wonder so many people are getting greedy now to see the price of Bitcoin continue to rise. But not because we want to get big profits, then do things that are risky. Borrowing money is only for urgent needs, because if we owe mainly to banks, there is an obligation to pay installments.

For sure borrowing money should be the considered when you have no other option and you are sure that the money you are borrowing, you will be able to earn enough with it to pay off the loan and the interest. If you have taken a loan on 15% interest lets say then make sure you are at least earning 16% or more with it otherwise its useless and harmful.

While the Bitcoin price is very volatile, we have to learn from what happened in 2017. Many people become FOMO and finally decide to buy Bitcoin with borrowed money. Then what happens is that many people end up having problems after the Bitcoin dump in 2018. So always buy Bitcoin with the money that we can afford to lose.

Also keep in mind that if the price remain stable for sometime you will lose money because you need to pay interest and how are you going to pay interest when the market hasn't moved much. So better to just buy bitcoins with the amount you own and don't get mad about holding more bitcoins beyond your pocket allows.

[Freddy11]

Loan is worst way to go for anyone, as it not only put push us towards major losses but also takes us to place of tension and stress, it must be avoided at any cost.

[taufik123]

-snip-.Taking a loan isnt bad but you should think or mind all of those things to be considered first before proceeding.
On real talks then taking loan isnt really a good idea at all.

Good risk management will be very useful when deciding to take a loan. In addition, what must be considered is that it is not a matter of how much to make a loan, but how much interest is charged on the loan and how long it will mature. Don't let the interest be too big and the maturity is too short. Because if you don't pay off the loan on time and the interest, it will be a new problem.

[Ryker1]

-snip-.Taking a loan isnt bad but you should think or mind all of those things to be considered first before proceeding.
On real talks then taking loan isnt really a good idea at all.

Good risk management will be very useful when deciding to take a loan. In addition, what must be considered is that it is not a matter of how much to make a loan, but how much interest is charged on the loan and how long it will mature. Don't let the interest be too big and the maturity is too short. Because if you don't pay off the loan on time and the interest, it will be a new problem.

Well, you have a good point, --we should consider that possible outcome that waiting ahead, or let say the negative consequences because once you have failed, it will hit you twice, from paying your debt and the loss in your investment. It is just something like you has hit by a double-edged sword.
Investing is really good in crypto, but don't force yourself if you can't afford what you invest, it is very risky to manage to pay interest in the next month while waiting to gain profit in crypto, it is not a guarantee.

[bitgolden]

I have actually been trying to take out a loan since yesterday and I have failed miserably :d I never realized that I needed to actually end up taking out a loan when I didn't even needed it, and repay it so that banks would give me a loan, or need to have a credit card at least, so that I could make a debt to banks and repay it so that they would think I am a good person to loan money to.

I think when you do something like that and the bank doesn't give you a loan, I see that as a sign. If you were not capable of taking out a loan, that means a good thing, because it probably means if you were capable of it, you would have lost money, I see these things as signs and that is why I am happy with the both situations, if you were capable of taking out a loan, I would have seen that as a sign as well.

Also there is something called "credit score" which means if you take out a small amount of loan and pay it back you get your score higher, and you keep growing bigger and bigger eventually being able to take out a huge loan and pay that back because you have done that so many times even if smaller.

If you have zero credit score, the best way to approach that is put a decent sized amount of money in, and asking for a small loan when you have 10x that in your account, banks usually accept that. Do not use this to take out loan to buy crypto though, I just wanted to help for people who might need it for emergency reasons.

[Distinctin]

This is not a good idea but since you are doing this for a good purpose, then why not? At least you were possibly getting returns unlike if you are just to borrow money for nonsense. But one thing you have to be sure of is you can make a payment. That be sure you have other sources of income in the case your trading journey won't succeed ( but I hope it won't). That is why you should have to think about it wisely and don't get rush. Besides, we can make an entry to trading any time as long as you are ready enough.

[Alexmagn84]

I will counsel you not to take a credit. The bitcoin market and crypto market for the most part are instability, credit isn't suggested for it. There isn't any assurance that the benefits that you'll get in crypto will outflank the premium the bank forces on the credit. Also, if your work right currently isn't paying adequately to cover for your costs and your advance, at that point you'd simply be setting yourself in a great deal of pressure.

[SirLancelot]

Good risk management will be very useful when deciding to take a loan. In addition, what must be considered is that it is not a matter of how much to make a loan, but how much interest is charged on the loan and how long it will mature. Don't let the interest be too big and the maturity is too short. Because if you don't pay off the loan on time and the interest, it will be a new problem.

Well, you have a good point, --we should consider that possible outcome that waiting ahead, or let say the negative consequences because once you have failed, it will hit you twice, from paying your debt and the loss in your investment. It is just something like you has hit by a double-edged sword.
Investing is really good in crypto, but don't force yourself if you can't afford what you invest, it is very risky to manage to pay interest in the next month while waiting to gain profit in crypto, it is not a guarantee.

There is one more thing that I always say. Let's say you can "save" 300 dollars a month, there is nothing wrong with taking out a loan that has 300 dollars payments monthly as well. Sure there could be the fact that if something wrong happens and you need money urgently that would be sad but I am sure it will be difficult anyway, whereas if you can take out a loan that you can pay easily no matter what, I suggest doing that anything you can.

I like taking out 1-2k loans for example, that way I pay about 100 bucks a month and be done with it in just few months and I just use that money to invest into things whenever I want instead of waiting for months. Of course do not withdraw loans that you will have hard time paying, I never take out a loan that I would need the investments to pay, I rather pay my loans with my salary and just grow my investments in size.

[taufik123]

-snip-
I like taking out 1-2k loans for example, that way I pay about 100 bucks a month and be done with it in just few months and I just use that money to invest into things whenever I want instead of waiting for months. Of course do not withdraw loans that you will have hard time paying, I never take out a loan that I would need the investments to pay, I rather pay my loans with my salary and just grow my investments in size.

That's a good way when you already have a regular salary from your real job. Loans 1-2k and pay $ 100 every month. and you settle it in just a few months before the final payment is due.
if it's good for you but not good for others.

I agree with the point that you mean about taking loans that are difficult to pay. Taking a loan according to the portion of the payment that you can afford will be better. However, some people take loans regardless of how much they are able to pay them. ordinary people who want to get into crypto will usually do anything to get their first money for investment.

Pay attention to the investment risks with a loan. Loans are a responsibility that must be resolved and do not let what is invested fail or get stuck with an investment scam, it will ruin everything.

[Julien_Olynpic]

A loan to buy a cryptocurrency is not the best solution. I would even say that this is a crime against risk management. However, this can be done by following certain safety rules.
1. Borrow only the amount that you can pay off without any problems, even if you lose all your bitcoins.
2. As soon as after the purchase the value doubles, sell half of your bitcoins and repay the loan.

[pragna]

I do not have to read all about your post before I will tell you taking a loan is not necessary. But if you think you can gain from it, you can try but you can expect gain and lose, this will make it difficult for you. I will advice you not to take a loan. The bitcoin market and crypto market generally are volatility, loan is not recommended for it.

I am fully agree with you because we can not believe on this market. You see market now in big correction like 58k$ to 52k$ and suppose you take a big loan and invest in crypto market and at that time market fall like 2017 than what will be do? If you have family than both will be in great problem. So batter you work slowly and store from that and later go for investment. you will be gainer.