get a loan and reinvest it

[Wilhelm]

Borrowing money is a bad idea unless you have the means to pay it back over time (say mortgage).
No matter how certain the investment looks.

THERE IS A NO SUCH THING AS A FREE LUNCH! _{(Except HODL Bitcoin)}

Such a bad idea with a high risk because let say you use your borrowed money or loan coin to reinvest in cryptocurrency like bitcoin while you're with it you will be emotional because you're focus was to generate a profit out of the borrowed money, you're being too curious and greedy at the same time because your main focus was to make the best investment especially if your borrowed money has a specific range of time to return with interest and additional burden if you don't have a source or means to pay it back (mortgage).

Exactly.

I was referring to a mortgage because it has intrinsic value as long as you insure it. You want to consume it whilst paying for it.

But borrowing for a purely speculative good is just waiting for disaster. And bitcoin is only going up 1 in the 4 years of a cycle. This will indeed have you up all night for three plus years.

If anyone wants to do something like this then sell your house and car. Live off scraps. Buy a trailer and a crappy car. Then invest everything in bitcoin one year after an ATH and in three years you will have atleast 20x your money if history repeats. (DISCLAIMER: DOING THIS CAN COST YOU EVERYTHING!!). DO AT OWN RISK!!!)

[1714493445]

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[slaman29]

I don't know why people get into these problems. Bitcoin is going to go to at least $100k this cycle (maybe quite a bit more) and will easily hit $500k to $1M next cycle. What do you want more profitability for? Just buy with the money you save and don't put your bitcoin at risk for a little more profitability.

Yeah that's why I never understood all this yield farming and defi too. I know ppl talk about 100% APYs and shit but after fees and risk, and if you only talk about wrapped bitcoin I believe it's about 8% or so APY for Bitcoin. Is it worth getting rugpulled and hacked or scammed? I really don't think so.

[adaseb]

Seems that 80% of people in here did nothing but read the topic and didn’t read the entire post. He is not borrowing money to buy crypto. He is just borrowing fiat and taking that fiat to refinance it at a larger interest rate that he is being charged.

So he borrows money at 5% and gets paid 10% by some crypto interest and he pockets the difference. There is no risk here. He doesn’t care if Bitcoin goes up or down. His only risk is counter party and hopes that his exchange doesn’t get hacked or his computer doesn’t let some hacker in.

So there is some degree of risk but not as bad as speculative trading. This is why in 2017 most credit card companies banned people from buyin crypto with credit card because they might default on the loan if price drops.

[Wilhelm]

Seems that 80% of people in here did nothing but read the topic and didn’t read the entire post. He is not borrowing money to buy crypto. He is just borrowing fiat and taking that fiat to refinance it at a larger interest rate that he is being charged.

So he borrows money at 5% and gets paid 10% by some crypto interest and he pockets the difference. There is no risk here. He doesn’t care if Bitcoin goes up or down. His only risk is counter party and hopes that his exchange doesn’t get hacked or his computer doesn’t let some hacker in.

So there is some degree of risk but not as bad as speculative trading. This is why in 2017 most credit card companies banned people from buyin crypto with credit card because they might default on the loan if price drops.

Money not his (loan, he is on the hook = risk)
Interest from crypto by counter party (risk that they run with his money or lower the interest)

Just a recipe for disaster IMO

Either he loses it all or the tables turn and he ends up paying for this construction for a fixed period of time...

[Kong Hey Pakboy]

This is a dangerous thing to do because you will not be able to reap the full benefits of your investment because you have to pay the loan plus the interest and that is if your investment grows really quick because most successful investments takes time and if you consider investing in bitcoin and other cryptocurrency, there is a high chance that you will suffer some losses on the short term which can dishearten someone into selling their investment with losses.

[peter0425]

Hello. I see different platform like nexo, blockifi, etc... that can borrow you crypto or stablecoin. I'm here to ask if you have a strategy for example you borrow btc with an interest rate of 6% and then you use it on defi with 8% APR. Thanks for helpful.

If you Know the Word Suicide , then that is what you are thinking .. Risking a Loan with only 2% profit ? what if the target did not meet rightfully  then your Loan interest will increase to time?

No never Invest a Funds that comes from loan in a market like Crypto with too much volatility , Rather Invest in real life Business that if you are an expert or experienced then you might earn more than what you needed.

[xSkylarx]

Getting a loan to invest in something that has no guaranteed return is a big risk. You are digging your own grave if things don't go well on that platform where you will invest. If that platform is not good then you can just earn money again without being in debt. You won't suffer for a long time if you will invest your own money. Maybe you are just tempted now because some people you know earned from DeFi platforms, if you don't have enough money to risk or lose then don't bother investing in it.

[The Sceptical Chymist]

Guys he is not talking about buying/selling anything.

I don't know jack shit about DeFi, but I'm pretty sure you're right--but even with my professed ignorance, I still think it's super-risky to be borrowing any amount of money in order to speculate in any aspect of crypto right now (or at any time for that matter).  Maybe there's some magic to all this that makes it less risky to do so, but I seriously doubt it.  I sure as hell wouldn't be taking out a loan to put into DeFi projects--or buying any crypto on margin or otherwise taking out loans to do that either.  Lots of people tend to not care about the risks involved when an asset like bitcoin is at its all-time high, and those are the people who get burned in the end.

As an aside, this freaked me out until I realized what today's date was (just woke up):

[virasog]

I was thinking about it too, but now I realise it is not a great idea, yea...

Good that you change your idea for getting loan to invest in crypto. If it was a stock or forex market, perhaps you could have tried your luck, but a market as volatile as crypto, this would have been a very risky decision.

[traderethereum]

I was thinking about it too, but now I realise it is not a great idea, yea...

Good that you change your idea for getting loan to invest in crypto. If it was a stock or forex market, perhaps you could have tried your luck, but a market as volatile as crypto, this would have been a very risky decision.

Invest in crypto or forex or stock will have the same risk, but if she can learn what she wants to do, she can minimize the risk and might have a chance to make a profit.
I hope she understands that getting a loan and reinvesting it in crypto, forex, or stock will not be good and have a big risk.
I suggest she invest in crypto using the other income if she now has that, which will be safe for her.
Before she invests in crypto, she needs to learn how to pick the right coins, and I suggest she select bitcoin.

[arufox]

Hello. I see different platform like nexo, blockifi, etc... that can borrow you crypto or stablecoin. I'm here to ask if you have a strategy for example you borrow btc with an interest rate of 6% and then you use it on defi with 8% APR. Thanks for helpful.

NO, get a loan to reinvest in cryptocurrency is a bad idea, you don't know what will happen in the future, what happens if you choose the wrong coins?? And I see you are a newbie, so go learn about the risks, don't just learn about profits. And you must know a rule of investment, only using side funds, not main funds not loan funds

[Fortify]

It is a very bad idea to take a loan when your expectation is making a 2% profit margin. There are too many things that can go wrong and unexpected fees (e.g. trading or withdrawal) can quickly wiped out any benefit. There are certain situations where loans can be useful, like if you had taken one out after the big drop in stock markets at the start of Covid. You could easily be sitting on 30%+ gains by now, but it is having the knowledge and stomach to make the right commitments when the opportunities are there. It is certainly not worth it for a 2% spread and after everything is done, you will be lucky if you actually break even. The best advice to your question is avoid this idea altogether, it will not be worth the stress.

[batang_bitcoin]

I was thinking about it too, but now I realise it is not a great idea, yea...

Not really a good idea. You're just putting yourself a lot of things to work for and to worry for. You hold it at ease and you don't have to think about APR or so. You can make more if you hold it or add more if you're one of those people who do cost averaging.
Profit will be taken only by the fees and net will be like a piece of cake which might put you into a frustration.

[BuNga_cute]

Hello. I see different platform like nexo, blockifi, etc... that can borrow you crypto or stablecoin. I'm here to ask if you have a strategy for example you borrow btc with an interest rate of 6% and then you use it on defi with 8% APR. Thanks for helpful.

NO, get a loan to reinvest in cryptocurrency is a bad idea, you don't know what will happen in the future, what happens if you choose the wrong coins?? And I see you are a newbie, so go learn about the risks, don't just learn about profits. And you must know a rule of investment, only using side funds, not main funds not loan funds

With crypto prices still in a bullish trend, many people only focus on profit, does not take into account the risks that will occur if we use borrowed
money for investment. I agree that should avoid investing using borrowed money it will only be a problem in the future. Especially if we choose
the wrong coins for investment and we experience a loss, this will only make the problem bigger and ultimately stress us out. Use the extra money
we have for investing in cryptocurrency, so if the market crashes, we won't panic and can be more patient waiting for the market to recover.

[Vaculin]

Hello. I see different platform like nexo, blockifi, etc... that can borrow you crypto or stablecoin. I'm here to ask if you have a strategy for example you borrow btc with an interest rate of 6% and then you use it on defi with 8% APR. Thanks for helpful.

This could never help you but instead, this will only compromise in the end especially when you can't manage to generate profit from your trades.

Almost all of us here are asking not to do that, if you will listen to us, you save your life. Don't get brag by many people talking about trading is really profitable, it maybe it works with them but not sure if it works with you. You may this work for you, Trading isn't for everyone" and don't force yourselves to do that if that is really not meant for you.

[carlfebz2]

Hello. I see different platform like nexo, blockifi, etc... that can borrow you crypto or stablecoin. I'm here to ask if you have a strategy for example you borrow btc with an interest rate of 6% and then you use it on defi with 8% APR. Thanks for helpful.

It would be wise if you put it up on bitcoin instead rather than defi.I would have that confidence that percentage gain on a year is much more worth but honestly taking up some loan just for you to invest it again
in crypto isnt really that much of a good deal because you wouldnt know on when things would be increasing and also due date is just too short.You cant just simply wait until they do increase before you
do repay those.

So i wont really be considering this kind of option because it is just way too risky but if you can handle out the risk then go ahead but if not then better dont mind it off.

Getting some loan for the sole purpose of investment here on crypto is never a really good idea to take but well its your choice.

[Silberman]

Hello. I see different platform like nexo, blockifi, etc... that can borrow you crypto or stablecoin. I'm here to ask if you have a strategy for example you borrow btc with an interest rate of 6% and then you use it on defi with 8% APR. Thanks for helpful.

Do not bother, take a step back and begin to think, when it comes to banks who do you think wins when they give a loan the bank or the person receiving the loan? It is obvious the winner is always the bank, if you ask for such loan with interest rates that are that high then you are adding even more handicap to your trades, it is going to be almost impossible to win that way and even if you do a great deal of those profits will go towards the person giving you the loan, do not do it, it is simply not worth it.

[jaberwock]

Hello. I see different platform like nexo, blockifi, etc... that can borrow you crypto or stablecoin. I'm here to ask if you have a strategy for example you borrow btc with an interest rate of 6% and then you use it on defi with 8% APR. Thanks for helpful.

Do not bother, take a step back and begin to think, when it comes to banks who do you think wins when they give a loan the bank or the person receiving the loan? It is obvious the winner is always the bank, if you ask for such loan with interest rates that are that high then you are adding even more handicap to your trades, it is going to be almost impossible to win that way and even if you do a great deal of those profits will go towards the person giving you the loan, do not do it, it is simply not worth it.

The scary part is that, even if we do not pay our loan back, governments bail them out while screwing us over.
That's something I have talked about during 2008 as well, well it was 2009 and 2010 when these talks increased, but I said the same thing.

If the crisis happened, and if 800+ billion dollars printed to help those banks, and the reason why those banks were bankrupting was people not paying their mortgages, shouldn't it mean that when that 800 billion dollars were given it should have been covering the unpaid mortgages as well?

I can understand people who paid their mortgages being mad if people got their houses for free, so instead of banks this would mean people would keep their houses and pay their mortgages to government. That could have seriously happened if you ask me and it would have fixed a lot of common issues in banking versus people fight.

[uneng]

Hello. I see different platform like nexo, blockifi, etc... that can borrow you crypto or stablecoin. I'm here to ask if you have a strategy for example you borrow btc with an interest rate of 6% and then you use it on defi with 8% APR. Thanks for helpful.

Keep in mind that to receive the maximum annual interest promised by these platforms you have to acquire a decent percentage of your total investment in the platform own's currency. It means you aren't going only to invest in stablecoins, but also in nexo coins in Nexo platform, for an example. And nexo coins aren't stable, so your investment is under constant volatility risk.
Let's say the platform works perfectly and the interest rates don't change (what isn't 100% sure), you would still face market volatility over your invested coins.

[molsewid]

This could never help you but instead, this will only compromise in the end especially when you can't manage to generate profit from your trades.

Almost all of us here are asking not to do that, if you will listen to us, you save your life. Don't get brag by many people talking about trading is really profitable, it maybe it works with them but not sure if it works with you. You may this work for you, Trading isn't for everyone" and don't force yourselves to do that if that is really not meant for you.

I'm afraid but this is what it could surely gave to a person, a compromise that you need to pay it on due time either you have a money in your hand to pay or not because this is what the agreement of taking a loan isn't it? Well in fact I bet that there are some of us here or even in the real world of businesses that considering of taking a loan to start their business, to trade, to invest it could help but yep things might just get worst without a proper management of the principle been get as a loan.