Should I get a loan?

[sujonali1819]

Currently I have $109,750 in Bitcoin and $60k in alts.
 
I'm thinking of getting a loan to buy more alts now and more as Bitcoin goes down. The loan would be from my family and interest free. If the value of my cryptos drop I'm willing and able to wait up to five years to break even.
 
However, I could use some opinions first. What do you guys think I should do?

I will not agree if the loan would be +interest. Yes, If the source of your loan would your family you can take loan from them to invest in alts. But I will suggest don't do loan a high capital and don't buy any shitcoin to get quick profit. Always better if you can keep you all portfolio in Bitcoin.

[tvplus006]

Currently I have $109,750 in Bitcoin and $60k in alts.

I'm thinking of getting a loan to buy more alts now and more as Bitcoin goes down. The loan would be from my family and interest free. If the value of my cryptos drop I'm willing and able to wait up to five years to break even.
 

If you don't have a 100% repayment plan, you can't take out a bank loan. The same goes for an interest-free loan, because you can't risk the money that was raised by your family members, since the cryptocurrency market can't be predictable. I believe that you have enough of your own deposit to trade and invest without putting your family's well-being at risk.

[BITCOIN4X]

But if the money is being borrowed from someone in your family and it's interest free with no certain return period, I can say you can borrow, but don't enter into the market all at once, get a good 25% position at the current price then buy more if it goes down averaging your position size. This way you would be more profitable.

I don't think the OP need to force his will to get a loan from the family even without interest just to buy more of his investment asset. Meanwhile, the current value of the investment is close to $200K, I think that is enough to keep him in the shadows between profit or loss due to market fluctuation. If his investment goal is long term, then I don't think he should lend money in any way. Hold the asset and wait for the right time to take profit.

I will not agree if the loan would be +interest. Yes, If the source of your loan would your family you can take loan from them to invest in alts. But I will suggest don't do loan a high capital and don't buy any shitcoin to get quick profit. Always better if you can keep you all portfolio in Bitcoin.

In the long term, all loan may experience problem even if they are obtained from the family because there are many other unexpected factor such as an urgent need for money. That's why I think investing from loan may never be a good fit even if it's an interest-free loan.

[Fivestar4everMVP]

Well, if you are sure the loan is from your family and comes with absolutely no interest, then it's good, but I will still advice you to let your family know what or where you are investing the money on, so as to avoid future embarrassment, If I was to advice you in person, I did tell you to try to be Okey with what you already have, in time, the market will go up and you make your profit without having to pay anybody part of it, getting a loan to invest in crypto is highly risky most especially now that the government is starting to get interested in the happenings in crypto, we can be optimistic as possible but the truth remains that we can't tell what will happen in the next hour, if you must get a loan, make sure to let your family know exactly how long you are likely to hold it before you are able to pay back.

[feelideb]

Getting a loan for investment into cryptocurrency is not  a good idea!  Cryptocurrency is too volatile, you can not use other people's money and be objective as regard your trade postion, you will make a lots of mistake which would be avoidable if you were using your own money to trade! The rule of thumb here is to trade with money you can afford to lose!

[terrorJR]

Bitcoin is being dumped again today, and it is reported that bitcoin will retest to support again at $33k or $30k,
so just in case you can buy in that area, if there is no money then get a loan, because I believe the price will bounce back again.
but if you want to loan money, make sure you can pay it at a later date

although the temptation is to make big profits, sometimes people think of borrowing. that's what crossed my mind too. However, due to unstable market conditions, I gave up my intention to make a loan. because I prefer to use personal finance as it is and not leave too big a debt to others. major corrections occur at any time, perhaps in the long term, while the interest on the loans we invest will continue to grow every month. what if the price of Bitcoin falls like a proven pattern every 4 years. is it worth the interest that keeps piling up?

[livingfree]

Getting a loan for investment into cryptocurrency is not  a good idea! 

It has never been a good idea.

Cryptocurrency is too volatile, you can not use other people's money and be objective as regard your trade postion, you will make a lots of mistake which would be avoidable if you were using your own money to trade! The rule of thumb here is to trade with money you can afford to lose!

Even if someone defends himself that he can pay that on time. Still, I won't take those interests that will be put upon my loan. Because if you can take a loan and you say that you can pay it on time.

You should save instead which is a better strategy than taking a loan. When you save enough, you will use it for buying bitcoin or any alts of your choice.

[imstillthebest]

your money is huge .
 why need a loan ? why not hodl and see your money grow when the bull returns and you can use the profit when you sell your btc to buy altcoins .
 your family can use the money on important ocassions that lending it you for a risky investment . be a good child and dont give headache to your family

[Stedsm]

Loan from your family? But why do you really want it? Did you lose during the crash and is your capital affected due to buying higher? If that's the reason, please don't take a loan (even if it's interest free) to trap yourself into a situation where you may not be able to repay full 100% even after 5 years because crypto works on speculation, and when the hype will exhaust, everything will go red. I believe this have not yet hit the ground and there's more room for all of them to get down before taking off again. Wait till (possible) 20k and then buy if you'd like to.

[dunfida]

Loan from your family? But why do you really want it? Did you lose during the crash and is your capital affected due to buying higher? If that's the reason, please don't take a loan (even if it's interest free) to trap yourself into a situation where you may not be able to repay full 100% even after 5 years because crypto works on speculation, and when the hype will exhaust, everything will go red. I believe this have not yet hit the ground and there's more room for all of them to get down before taking off again. Wait till (possible) 20k and then buy if you'd like to.

Taking a loan is never been ideal as long you dont need it for emergency purposes then dont make such step.

Nothing beats out the feeling on having no loan or you arent owed something on others and theres no need to repay something.

If you do intent for the sake of investment then its up to you on taking up a risk but be mindful on repaying it on.

[IGRev]

Hello,

Before thinking about taking a loan, you should check the tax laws of your country.
I am a tax paralegal and most of countries have a rule regarding loans and stock exchange.

If you borrow money to buy stocks, and obviously cryptos, you can be treated as a professionnal trader.

I'm not sure where do you live but if you are in USA or UK you may have those very same rules.

Regards.

[boyptc]

In Cryptocurrency I believe is really a bad idea to borrow money to buy a coin but since you are getting it from a family member and is interest free and the person can even wait for 5 year I really that's not bad but I will advise you to do your research very well first before buying a coin and don't even try to invest in any shit coin or any upcoming coming make sure you invest in coin that you believe they will never fail you like ETH, BNB, LTC etc. I believe coins like that won't fail you but if you invest in upcoming coins anything can happen because you might endup losing your money.

Even if it's from his family. Although there's the favor that will be given to him being part of the family but money matters for some families.

In general of this, it's not really a good option to borrow money for investing in cryptocurrencies. But if he understands all the huge risk that he's taking and it's totally fine.

If he has the capacity and source for paying it, make sure that he understands what he does.

Well, the family should also know the risks involved when it comes to crypto investments. He should laid out possible scenarios to them and be transparent. With the money that he has invested on crypto right now, I believe, he has the capacity to pay his family in case something goes wrong. And if he is willing to wait long term, better invest on rock solid projects like ETH and BNB. But if there is another choice, better not get a loan even if it is from your family, stick to you own financial capability.

That is another thing. If the family is going to be oriented where he's going to invest then they should have two thoughts on it. They might not give it as soon as he ask it when they understand the risk about cryptocurrencies.

And if they've learned that the risk of its volatility is there, they might not really give the loan to him.

[jambul_kribo]

Currently I have $109,750 in Bitcoin and $60k in alts.
 
I'm thinking of getting a loan to buy more alts now and more as Bitcoin goes down. The loan would be from my family and interest free. If the value of my cryptos drop I'm willing and able to wait up to five years to break even.
 
However, I could use some opinions first. What do you guys think I should do?

have you thinking about worst scenario if your plan didnt work well ? using loan for crypto trading was not good for our mental and psychology, we could easily be panic when see your assets value drop hard. have you thinking how to pay it back if your plan didnt work and you loss alot ?our family should not be victim someday due our decision .

[Kelvinid]

As I've read the entire thread, the majority are suggesting not to take a loan. I voted for that as well.
We can take some loan for a reason and even for trading but because this is too risky and less assurance that we can make a good profit (or even to lose all of it), it is not really a good option to take.

Anyways,
I hope OP has to come back in this thread and read our opinion. But of course, it's up to you if you consider our opinion or not as the final decision is yours.

[GeorgeJohn]

Since you intend getting a loan to invest in crypto, fine it's not a bad idea but you need to time the market so as to buy at the bottom or close to prevent draw down. Well i believe Bitcoin is still going to fall below 30k so you don't have to rush in and buy now.  You can decide to buy at some specific prices so as to prevent buying too early.

Getting a loan could be as easy as possible to you but you still have to draw a scale of preference with one or two research to know the exact altocoins that will be much more profitable at later run.

[taufik123]

Getting a loan from a bank is a big responsibility and must be matched with passive income every month.
Taking a loan for investment capital in crypto is indeed very risky, but if you are sure and definitely taking a loan can be one way to get fresh funds. Op has to pawn some certificates to be able to get a loan and it is the responsibility of the OP to be able to pay the installments and interest every month.
I do not recommend taking a loan, if you have property or other valuables, it is better to sell it as capital. but if it is urgent and absolutely sure there is no way.

[apityeh71]

Your total balance of investment is high already, its no need to take loan to increasing the ROI. Now is more important to analysis the trend of crypto market, to predict when good times to sell your BTC and alltcoins and then quit from the bearish market. And then enter to others instrument of asset, like stocks or commodities, because when bearish market on crypto market, all coins will possible dump more than 90%. And we can enter again in crypto market after that. This compounding is way to increase the ROI of investment.

[bittraffic]

You got to have the mindset of Micheal Saylor to get a loan to invest in BTC. Saylor is already in debt because he buys more BTC while the prices are running down. If he keeps buying BTC while the price is just getting this low, he might just be the pushiest guy in crypto. So we'll never know how things could go if this bear will continue. He's bullish on Bitcoin so its a good that he has tons of BTC now, hope it works well soon for his business to keep up.

[boyptc]

It's been 2 days since OP posted this question and with the vast replies that this thread got, still he's not yet online. Hoping to read some good news from him and wise decision when he's back on this thread.

I'm sure that most of the suggestions that he had on this thread will be very valuable to him and could influence his decision making.

[Yatsan]

If you are talking about taking a loan from family bank with no interest, then maybe you should go for it then, but it seems like you have already tons of money to spend with so I think that will be enough. Even though there will be no interest upon taking up a loan, still it is money related and you have no assurance on when you can turn back what you have borrowed. You could at least make another way possible to obtain funds if you want to, but borrowing for the sake of investing is not really a good idea and it will just stress you out thinking that what you are spending is not your own money.