How weird is it to borrow money and invest into Bitcoin?

[sana54210]

The trick is, to simply not take such gamble. Easy to say "I wish I could've" and "I wish I should've" because we already saw how the market moved. Whereas in fact, it could have easily easily went the other way. Hindsight is 20-20.

I agree, plus having the mentality that borrowing money to invest into a market you know little about it is never a good idea!

Essentially you're gambling with someone else's money where the risks could be higher because it is not your money, and because the market can go either way. Yes, it is true that BTC is projected to do very well in the FUTURE but what if it doesn't perform within the period agreed to return the amount borrowed?

Hopefully, OP you get to see the different sides of the argument and why borrowing to invest is not a tangible option -especially in a market where there're no guarantees, and a limited knowledge.

In that case what you do is basically just put all that investment into bitcoin, and you pay the loan back with your income. Everyone "usually" has an income, and if you do not then getting a loan will be even harder, so in this assumption it is someone who has an income that can get a loan.

So, you make 60k a month (median for USA) and you get 10k loan, you divide that to 3 years, you pay back 12k, you pay 4k a year and now your salary is 56k instead of 60k and you got yourself a "free" loan basically, of course it is not free, you just paid 2k extra over 3 years, but with inflation and the fact that 10k bitcoin today will likely be 12k+ in 3 years, we are talking about a smart move. The only downside to your proposal is that if bitcoin drops? And I would say that you already paid your loan back with your salary, so it doesn't matter, you will be fine, wait some more and you will be in profit.

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[SirLancelot]

Well in the end, you still need to repay that money. The risk at the table in here is whether you can pay or not, regardless if the OP's family needs the money or not. Here, I don't consider borrowing money from any of my relatives just yet unless it is really needed and now that we're talking about risking something that you'll still need to repay elevates the risk into higher level.

Personally, when I take loans from banks, I ask myself a very simple question; Will I be able to earn more than I will pay to the bank?

If the answer is "yes" I proceed with the loan else I abort the idea.

Taking loans is never a good feeling because it creates extra pressure on your head for no reason. But like during the pandemic times,

even I took a loan and mind you, I am not someone who takes loans easily or casually.

Taking a loan just to buy bitcoins because you FEEL the price will go upwards is a very risky idea regardless of how it turns out.

[LUCKMCFLY]

In these moments of the market, where there is a high probability that at least $ 50k will be reached, it does not sound so crazy that a loan is made to buy BTC, of course the risk management is high, but it must be taken into account that in the long run term the price of BTC will reach at least + $ 60k and taking into account some prediction models that are quite accurate, such is the case of S2F, personally I would trust it and would not hesitate to lend money, I would also study the payment plans, If it is a reasonable plan under which I can pay it, I take it, now if I am very tight and I see that the payment conditions are very strong, I would not take such a risk.

In my personal opinion, making a loan at this time, that is, now, I would do it without thinking, because when reviewing the volume of BTC it is seen that it is very bullish, however it is up to the person to take it.

[milewilda]

If someone who have the guts to borrow money just for this sake, I believe he/she also has the guts to repay it. But if he/she won't have the capabilities to do anything other than just to rely on the profit they get from trading, definitely, it is a big NO-NO. If I were on that person, I don't force myself to do it as this might only compromise me in the future once the result is not good and have no sustainable market gains.

Not totally a weird thing but that was a crazy decision to be made. Why not wait the moment to have enough capital? Maybe we could find a way to have some without borrowing money, just don't need to rush as surely it will come if we want to.

There are people who do make out such decisions which they dont even know if they do really able to repay and just thinking off ahead that they could make money and presume that they could really repay
the debts which is really a very wrong mindset because if things turns out to be opposite then this is where big problem do start.  Borrowing money is just a last resort because there are people whom arent
that capable in terms of finances and thats why they do really be having this kind of option on borrowing because they've seen some opportunity which they can potentially make out profits
if it turns out to be good. Borrow on the amount that you do think that you can repay on.

[Shenzou]

Bitcoin price is increasing so fast such that some people wish they borrowed and bought bitcoin at 29k some weeks ago

I want to know if it's much risk to borrow and purchase bitcoin like it is to trade bitcoin. However, the market is pumping, and it may seem like a good move if the loan is not for lunch, rent, and family bills which account for our daily needs (That is, my daily needs have been taken care of). Thus, timing is another criterion to discuss. How can someone know the perfect time to pick such a desperate gamble? We win or lose in trading or holding bitcoin but, I presume with the help of experts in this forum who have gone through thick and thins in this market, good guides or rules can be shared for users and newbies in the forum to have a grip on the market and know if borrowing is appropriate. It does sound thoughtless but, borrowing is part of the business. And we must prepare for the best as well.

Thanks, I'm ready to learn.

I feel that people take investing as a serious thing and not buying now you will miss out on everything, you don't need a fortune to invest in bitcoin and get some good profit from it so if you don't have money now you don't need to borrow or risk you life savings in order to invest, bitcoin is here to stay and for the next years the price is going to keep on increasing.

[Oceat]

I feel that people take investing as a serious thing and not buying now you will miss out on everything, you don't need a fortune to invest in bitcoin and get some good profit from it so if you don't have money now you don't need to borrow or risk you life savings in order to invest, bitcoin is here to stay and for the next years the price is going to keep on increasing.

I think the point of OP is whether it's safe to borrow money to invest in Bitcoin. It doesn't matter if they were late in investing as long as they know what they are doing they should be fine but taking a loan just to invest on Bitcoin is a gamble and too risky. We always said here that to minimize the risk of losing not to increase and besides of that trading and gambling are two different things but almost the same in terms of getting profit.

We don't need luck in trading because that only applies in gambling. All we need is an experience, an experience that suffer from losses but never lose their mind when losing but instead they learned from their mistakes, that's what a trader should learn first.

[Sweetbtc]

Of course bitcoin is now pumping and can go again 70k$. But why you want to borrow now? Why you have not buy bitcoin when price was only 30k. I will recommend borrow money. You can invest only extra money on it and hold until you get profit.

[Marvell1]

Too risky. Investing in bitcoin is good and certainly profitable in the long run. But with the volatility of the market, no one can tell when bitcoin will rise and fall. Not only bitcoin but any investment, investment is like a gamble, only invest with the amount you are willing to lose and it can't affect your current life.

[Dread Pirate Roberts]

Bitcoin price is increasing so fast such that some people wish they borrowed and bought bitcoin at 29k some weeks ago

Simply because nobody knows what will happen in the future . if keep saying " if "  . just imagine what happens now that the price of bitcoin is down by 50% ( and this not impossible too ) is there still that regret? or even grateful? so this statement is relative on the basis of yes indeed the price of bitcoin is volatile. if with your own money you might be able to hold for as long as possible. but with borrowed money you will definitely find many new problems that must be faced especially repay what you borrow including the interest.

[tvplus006]

...It does sound thoughtless but, borrowing is part of the business. And we must prepare for the best as well.

A loan is possible only if you can get a guaranteed profit on the invested funds. But there can be no guarantees in the cryptocurrency market that your investment in cryptocurrency will bring profit. And if the market becomes bearish, then you will get a loss, and besides, you will have to pay interest on the loan.

[YOSHIE]

My personal opinion.

Not the right decision to make a loan at this time, the money will be used to invest in Bitcoin, you know Bitcoin for now the price is unstable, the risk is very big for you, if I may suggest you to borrow, wait for the Bitcoin price to fall and really stabilize in the lows, indeed you need a long time for that, patience.

But it's just a suggestion, it all comes back to yourself to make a loan, what is clear you have to really understand the current crypto market conditions, the chances are slim for you to achieve a good profile.

[Questat]

It was noticed that the majority of the replies are not recommending taking a loan, I hope OP might open up his mind or that someone who has a plan of doing this thing will also be aware of the possible problems that will occur in the future.

As just like them, I was not also preferred of borrowing money for this sake. We just have to invest the amount that we can afford. As trading won't give us assurance for a profit, might not know if you just lose it all and the hardest part is if you can't able to pay it back.

[barbara44]

Bitcoin price is increasing so fast such that some people wish they borrowed and bought bitcoin at 29k some weeks ago

Hindsight is a beautiful thing, there were some people who were looking to get rid of their BTC when the price was hovering around $29-30k.

How can someone know the perfect time to pick such a desperate gamble?

There's never a good time to make moves out of desperation. You have used the right word, it's similar to gambling.

We win or lose in trading or holding bitcoin but, I presume with the help of experts in this forum who have gone through thick and thins in this market

No doubt this forum has some of the biggest names in the community but I really doubt whether we have the best traders in this forum. A lot of traders are making money quietly and don't have enough time to help others. Also, not everyone wants to share their ideas because a trader earns money only until they keep their secrets to themselves.

[ItsCrafty]

Only one thing i have to tell you about bitcoin is that it can give you much profit if some traders have much patience, A trader in hurry can't get much profit from  bitcoin as it has many recent news that it will reach 100$ very soon. And adding to this it can give you a lot of profit if you are a holder.

[Silberman]

I don't like borrowing money to invest in bitcoin because the crypto market is not stable. If the price goes up you can repay the loan but if the price goes down you will be at risk you have to make a profit by investing in what you have even if the price goes down, there will be no tension. If you wait for a long time you will get more profit than this. There is a set time for borrowing and you will lose more than you can afford if the market delays.

The decision to borrow money and invest in Bitcoins also depends on the kind of interest you are paying. If you get a loan with a very low interest rate then it is not a bad idea to invest some money into Bitcoins during a bull run. It may backfire but there's no profit opportunity that comes without a risk. Not buying Bitcoins at the right time is in itself a huge risk.

If the money you are borrowing carries a standard interest rate, it's not a good idea to take the extra risk. In both cases it can be profitable or disastrously bad but at least with the low interest, you get more time to sell the coins.

You are only thinking about the risk you are incurring due to the interest rate that you need to pay but this is not enough, a trader that does not know how is he going to react to those adverse conditions is putting himself at a huge disadvantage, after all if the price immediately dips down after you buy those coins with that loan then do you think many people will be able to hold their coins and wait until a recovery happens? Because that is going to be very unlikely and people will accumulate huge losses, debt and they will have nothing to show for it when all is said and done.

[Boov]

It's weird in sense that borrowing money for investments on bitcoin with a volatile market needs assurance for huge returns.
But if you just borrowed money from a lending firm, I don't think you'll be able to pay back at the soonest time since btc market goes up and down. Most probably you'll going to suffer some struggles before you've fully paid that money. Situation became similar to gambling l, you're about to bet for a some lucky picks that has less assurance of winning.

[Lanatsa]

It's weird in sense that borrowing money for investments on bitcoin with a volatile market needs assurance for huge returns.
But if you just borrowed money from a lending firm, I don't think you'll be able to pay back at the soonest time since btc market goes up and down. Most probably you'll going to suffer some struggles before you've fully paid that money. Situation became similar to gambling l, you're about to bet for a some lucky picks that has less assurance of winning.

If you do only rely with this kind of source on where you do depend on your crypto profit then its never been advisable that you do really need to take a loan for your crypto investment.

You wouldn't know on when you would make profit, what if you would lost instead? for sure it would really be a double problem since you would need to take those losses to break even and
would need to pay up some interest.

This is why I do never consider on taking up some loan unless if its really that appealing or tempting to dive in with the risk if you do really see some potential of profiting.

[john_nautica]

Not weird actually but risky, imagine you borrowed money to invest in Bitcoin and of course when you borrow money there will be a collateral or probably a interest rate and if the Bitcoin's price crash you lose your investment and you have to pay the loan money and interest so it will really give you too much trouble if you are not careful.

[Woodie]

Borrowing money to invest is something I would consider as doubling your risk and not being weird about it.  We all know that  these are volatile markets which can go either way for your investment but if you have an asset that you can afford to let go and have the money that's a better option so that you have a piece of mind and avoid other obligations of finding funds to payback especially if it has a payback period attached to it.
But if you are a strong believer and don't want to miss out you have to do something to get funded, get a loan or something.

[bct-user]

I don't think it is a good idea to borrow money for Bitcoin. Bitcoin price isn't easy to predict, we don't know how long Bitcoin increasing during the bullish season. The beginning of bearish can come at any time, you will be in big trouble if you buy Bitcoin with loan money. Because when we borrow money, there should be a deadline to give back the money to the owner. While we don't know when Bitcoin price can increase again as expected.