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

[Accardo]

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.

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[israt1@]

I want to know if it's much risk to borrow and purchase bitcoin like it is to trade bitcoin.

If you have an idea about Bitcoin, you would never think so. You look at the value of Bitcoin a few years ago and now.Not long ago, Bitcoin was $ 60k, which dropped to $ 29k. Now it is $ 50k again.I mean BTC is one of the best tokens on the market. You can buy it without any worries.


Your topic is not for this thread. move the topic according to the thread

[mk4]

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.

[Eureka_07]

<snip>
 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.

We have our own thinking, and we differ on how we perceive an investment idea. If you think that the bitcoin investment is a good investment, it's fine if you will borrow money for it, just take note that it has higher risk compared to traditional investment that we're used to.  Some people also take loan in order to invest on some of their ideas/companies that they like to start.

[Accardo]

I want to know if it's much risk to borrow and purchase bitcoin like it is to trade bitcoin.

If you have an idea about Bitcoin, you would never think so. You look at the value of Bitcoin a few years ago and now.Not long ago, Bitcoin was $ 60k, which dropped to $ 29k. Now it is $ 50k again.I mean BTC is one of the best tokens on the market. You can buy it without any worries.


Your topic is not for this thread. move the topic according to the thread

I don't understand what you mean about my topic and the thread. Please explain further and I will do as you said. Is it misleading?

[Yogee]

..., 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.

One of the best suggestions you could get is to never borrow money to invest in a highly volatile market. You can see a lot of these "experts" make their predictions like $100K this year but none of them can actually guarantee that it will happen.

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

Do not compare borrowing money to start a business with buying bitcoin since you have more control on the former.

...

I don't understand what you mean about my topic and the thread. Please explain further and I will do as you said. Is it misleading?

I think he's saying your topic does not belong here but on Bitcoin board.

[DdmrDdmr]

<…>

You’d essentially be borrowing money to gamble. Despite the market recent trend being favourable, leading one to believe that he’s counted the cards and thinking that odds are in favour, there is absolutely no guarantee.

Of course one has to ponder into the equation how much he is willing to borrow, what period of time he has to give the lean back, interest type, mafia potential retaliation (if applicable), whether the plan can be altered or pushed back if needed, and so forth.

Nevertheless, the risk is notorious, and even more so if the payment period is shortish (i.e. someone taking a loan during mid-December 2017 and purchasing bitcoin at 20k$, needing to repay it a year later, when bitcoin was under 4k$). You could easily move the timeline and find hundreds of counterexamples, but the key question is could you really take the loss? (and always assume it could really happen). For the most, it’s generally not going to be a good idea.

[projapoti]

I mean BTC is one of the best tokens on the market.

Bitcoin is not a token like airdrop or bounty token. It is the most trusted coin on the crypto market. There is a difference between token and coin.

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

I do not like to borrow and invest in Bitcoin. Because the market is highly volatile. It is very difficult to predict in advance. Although in this case the investment has been worthy. I want to invest as much of my income in Bitcoin as there is in surplus.

[ShowOff]

I want to know if it's much risk to borrow and purchase bitcoin like it is to trade bitcoin.

I'm sure you know what the risks of trading and investing in bitcoin are even if you try to get forum users' opinions through the questions I've quoted.

There is definitely no risk-free investment including bitcoin investment. In the future I believe that you will hear that "the risk of investing in bitcoin will be worth the return you will get" through user comments. You must know that price can go up and down at any time and you also need to know that these fluctuation will never go away. Borrowing money to invest in bitcoin in my opinion will never be banned, you can do it. But are you really sure that you can pay off your loan at maturity when the price of the bitcoin you bought has dropped by a few percent? It's a good idea to invest only with money that you don't need in the near future, it doesn't matter if it's a small amount but you won't be burdened when the market doesn't match your expectations.

[isaac_clarke22]

~
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.
~

No matter how you look at it, it is a desperate gamble and there isn't perfect time for it so don't just do it because you are scared to miss the opportunity to buy. Time by time, the price of Bitcoin corrects anyway and shouldn't that the opportunity for you to buy? You're risking something that you might not be able to pay after the due of loaned/borrowed money is up.
There's a blind "what ifs" in that.

I wouldn't loan ever for the sake of investment. You could just use that borrowed money to build your business and just use whatever amount you earned from that for investment.

It's not that I discourage you, but this is where "stakes are high" comes into play.
I think this thread fits more in Trading Discussion.

[nazmul30]

Currently cryptocurrency has become the equivalent of invested use.  Because now if someone invests in Bitcoin, there will be some benefits, which is why everyone should invest in cryptocurrency.  There are a lot of coins that if you can invest at the right time, you will definitely get benefits from it.

[GeorgeJohn]

Some person's get it wrong, borrowing is not bad but it has two dimensions which involves advantage and disadvantages in terms of borrowing for investment especially into cryptocurrency, because a cryptocurrency is what it's insurance is up to hundred percent (%100) sure, because from my perspective it's a risk investment, the advantages comes to the process that you can as well borrow to invest into digital currency like crypto and be of profit within interval of three (3) months because of cryptocurrency market sphere, likewise it's disadvantages, you can equally borrow and invest in cryptocurrency after some hours the lost get rise than the capital. So it's advice able to start up a cryptocurrency investment with your capital to avoid heart break and early death.

[Rengga Jati]

IMO, it is not about weird or not. but it is about the risks.
I personally never get a loan to buy Bitcoin and then invest it.
My basic investment is only using free money that I can afford to lose if someday the market is very unpredictable and surprising like several months ago.
Fortunately when you got a loan when the price of BTC was around $29k and now it is rising enough to a higher price of more than $50k.
But, how if vice versa?

This is is your own risk-taking nad you have your own decision. But be wise and careful.

[aoluain]

Its all about timing IMO.

I borrowed FIAT and bought Bitcoin back in February 2020, it is currently worth 5 times
more than when I bought it, It was priced at around $10k then but the key was that
it was before the halving of 2020.

The timing meant that the repayments would start before the halving with an aim to
have the loan paid off in 12 months.

Some of the questions I asked myself were:

1./ What are the weekly/monthly repayments going to be?
2./ Can I afford it?
3./ Is my job Safe?
4./ Can I take a pay cut? I.E take part of my wage and redirect it to the loan.

Essentially I pre-bought Bitcoin! instead of buying small amounts every week I bulk
bought at $10k and used those small payments I would have used to buy Bitcoin
to pay the loan.

I wouldnt borrow now to buy Bitcoin though, the reward v's risk is less IMO and there is
risk as many have mentioned.

[livingfree]

It is too risky.

Please don't do that even if those people who have borrowed and bought when the price of bitcoin @ $29k and they're on the profit now. You can't be assured what lies ahead with the price of bitcoin.

We're all believers and holders of bitcoin but it's not that too easy and not recommended to take this solution if you can't buy bitcoin.

[sheenshane]

How weird?  It's a risk not weird.

IMO, borrowing money just to invest in a crypto isn't a good idea, we shouldn't gamble the money that we couldn't afford to lose, it could be a double-edged sword that may hurt your pocket when you can't pay the interest because it isn't the right time yet to sell your Bitcoin.
It's up to you now, at least we warned you about this, if you're willing to risk any amount for your lender, why not.

How many times I experienced this, every time I borrowed Bitcoin, right after several months the price had too much increase.  It's good if you invest fiat if a scenario like this, but if not, the chances of getting a loss are potential will happen.

[Hippocrypto]

That's too risky, I don't recommend borrowing money from lending firm or from banks, because you had no assurance if investment will go successfully. There are times bitcoin goes up and down, you can't be sure if price will take good gains and then your debts will going to increase and remains unpaid.
Better use your extra money for investments instead of taking a dangerous suicide from a money came from loans with amortization.

[GreatArkansas]

That's too risky, I don't recommend borrowing money from lending firm or from banks, because you had no assurance if investment will go successfully.
(....)

+1, this is a crazy idea, this is like you borrow money just to gamble it. It's very risky even which angle you will see.
Famous sayings about investing especially in cryptocurrency are "invest what you afford to lose" which is exactly right, you borrowed money to invest in it, so it literally means you can't afford it to lose.

[crwth]

It's never been something new to borrow some money and invest into an asset or any kind of investment instruments that are available to you. Most of the people who have an idea on making money borrow some so that they could make it larger and profit more from it.

For your question with regards to perfect timing, that's never going to be predictable. It's still best to average down on your investment and invest the amount you are willing to lose in the long run.

Do it if you are 100% confident in your investment venture.

[RokokGudangGaram]

For me first of all you don't borrow to make an investment, you know why? First you are not sure if the price will go up and if goes down you need to find a way to pay that debt of yours. Investing to trading is really risky and you should have capital or money that you are not afraid to lose that's why there's a saying that "Invest only what you can afford to lose".