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

[Mahanton]

I need did this recently when I buy my team on Axie and yeah, this is too risky especially if you don’t have extra fund to pay for that loan when the project you invest with was a scam, fortunately I did the right decision and now I already paid my loan and still earning with my investment, sometimes its ok to borrow if you know you can make money out of it, but if not better not to do so. This is not advisable though, only a risk taker should do this and make sure that you can still pay that money even if you lose your capital.

What you did is too risky.

AFAIK, it's still risky and the same as borrowing for buying bitcoin. But with what I knew about that investment you got in, the return was good before and during the hype.

And if you just did that a few weeks ago, you're going to have a long time before your ROI.

Not many people can take the same risk because you have no idea if the project will succeed or not. Good thing for him, Axie is gaining its momentum and those early investors are really getting their profits already. However, this situation is not for all. I won't advise taking a loan even if it is for bitcoin investment. As you don't know the time when you are going to cash out, if that time period is favorable to you or not, you may end up selling the investments at a loss, who knows?

Investing into something which you do see that it would be having some potential then its a personal choice because not all would be risk takers which means that there might be some who do consider and there might be some who do just simply skip because they arent sure on what they are doing or just simply doesnt see any reason on why they do need to invest.There are people who are really good on looking potential projects
which it did really pay off but nothing is assured because no matter how good it looks it would still vary on the demand on the community to be considered to be successful.

[1714048805]

1714048805

[1714048805]

1714048805

[1714048805]

1714048805

[Vaculin]

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.

Personally, it wasn't wrong to borrow money and put it into an investment but the problem is that you may have to pay the interest of the loan monthly or depending on your mutual conversation. I consider this as a problem especially when you don't have another source of income that could help you to cover and pay the interest as we know that crypto investments have no fixed profit to receive nor we are sure that we can generate some returns every month. If only we were sure about it, then we were able to pay for that even without another source of income but that was impossible and that is why I don't advise doing this (loan).

[CapGelatik]

~

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.

It's certainly not a good decision to borrow money to invest in bitcoin,
and most likely it can cause new problems because on the one hand the investment is not necessarily profitable and on the other hand we have to pay the money we borrowed.

[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.
(....)

+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.

Our future is the most priority here, and having a crazy idea like this was only for irresponsible person who only think about present without having any visionary on their finances. Treating this investment as a gambling won't work 100% that's why everyone should learn something effective alternatives which can be used to purchase Bitcoin without any debts behind them.

[Dewi Aries]

From that i know, even professional trader sometimes made mistake. Maybe with that we know that trading with loan money really have big risk. In trading we don't know when market will againts us and if we use loan money and lose we will be very miserable. But maybe it is only suggestion, decision is on themself, because there are trader success who start with loan money. But in here we talk about what mostly happen to people, use loan money and lose in trading.

[TelolettOm]

When the price drops and it is known to rise up,
It is very tempting to get a high profit from the Bitcoin sales itself. Sometimes our profits can be many times and many have proven it. However, is our momentum fit to buy it and the possibility for increasing in the future is very big?
Because if not, we will actually lose a lot of money and also still have to pay money (maybe along with the interest too).

[fullhdpixel]

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.

[wahyu wida]

for someone who is just filled with lust that he should buy now and try to borrow money, I think this is a bad thing to do. especially if he is not good at trading, resulting in future losses, not to mention he has to panic sell and must return the loan on time We must be able to think clearly, because every business requires a process

[Victorycoin]

It is a bad habit to take a loan for investment the risk here is much higher than needed if you can't repay on time the interest rate is higher bitcoin investments have a long wait no one can say when the price will go up the interest rate on personal loans is slightly higher than other loans while the interest rate on short term loans is also lower. But bitcoin is a longterm investment it is better to refrain from taking loans.

[Strongkored]

I need did this recently when I buy my team on Axie and yeah, this is too risky especially if you don’t have extra fund to pay for that loan when the project you invest with was a scam, fortunately I did the right decision and now I already paid my loan and still earning with my investment, sometimes its ok to borrow if you know you can make money out of it, but if not better not to do so. This is not advisable though, only a risk taker should do this and make sure that you can still pay that money even if you lose your capital.

Lucky you for this one decision, but I'm not sure it will work well too if you intend to repeat it.
Investing or trading with borrowed money is very risky, and even if you can succeed, the profits will also decrease because you have to pay interest on the loan.
Expect profit from trading for living expenses then this will be a problem because trading can go wrong you lose and also still need to pay the loan and interest if any.

[el kaka22]

I would say that it depends on your income, or what type of income you are expecting from bitcoin. At the end of the day if you get 10k loan, and buy 10k worth of bitcoin, and you need to pay let's say $300 per month for 3 years? That means each month you need to make more money while your amount drops, first month you will not have 10k, you will have 9.7k, so it needs to cover that difference, second month it is 9.4k and you need to cover that difference.

Basically if bitcoin goes up a lot, then you can profit, like how we did in the last month, if you could get bitcoin to 50%+ increase? Then yeah you will be in profit and that is a good thing. However the right thing to do is get that 10k, and spend it on something that will get you 300 dollars per month, I don't know what it is, I don't care if it is non-crypto, it should pay you $300 or it is a bad debt, that's it.

[blockman]

I agree about borrowing is part of a business but investing in bitcoin shouldn't be part of the borrowing. Like most investments, they're not really advisable if you're going to borrow the money that you'll invest. And it's entirely different from running an operating business that has a better way to pay off loans. While knowing when it is the best time to pick bitcoin, there's no one that can do that. All are random and it's hard to predict for someone new if it's going to be up unless you've been here for quite a while as you'll always going to see the method of buying at the lows.

[Karish2return]

As bitcoin is pumping  now and we can expect that it would touch $100k very near, because it is going to the moon now, and as far as it will come to dip, the trader should by it and if you have the ability to hold then hold it for some time, then only it will give you much profit in the coming days, as it is the only coin that we didn't expect that what it will do next.

[checkmatesir]

The top traders, which are interesting in bitcoin can hold it for a right time. Even some have holding capacity of the coins and even most of the traders didn't know how to hold and when is to sell? It all depends upon the trader own strategies that how can he manage it and which coins is going to trade.

[michellee]

The top traders, which are interesting in bitcoin can hold it for a right time. Even some have holding capacity of the coins and even most of the traders didn't know how to hold and when is to sell? It all depends upon the trader own strategies that how can he manage it and which coins is going to trade.

When those traders do not know how to hold and when to sell, they will confuse determining the right time to take action related to the market situation. It is why traders need to have a plan and strategy for their investment so they can make a profit many times.

If you want to borrow money, you need to think about how you will repay the money and how long you the term for borrows that money to make a plan how you can make a profit from that borrows money. If you do not know how to do that, you will not have a chance to make a profit or repay the money.

[sujonali1819]

I am totally against the decision of taking loan for investing in Bitcoin or as well as in the Crypto. Investing in crypto is a big risk but return could be profitable if the investor know what actually he is doing. (I mean the must have the knowledge of trading/investing). And if you borrow you can not guarantee when you sent back the money. Because you don't know when this the project will pump. And for example if you do lose in that investment it will affect you huge. First of all investing in crypto is very risky, also taking loan from someone also risky. So I don't support this. I will only suggest the investor to invest a amount what actually they afford to lose.

[DarkDays]

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.

[conected]

~

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.

It's certainly not a good decision to borrow money to invest in bitcoin,
and most likely it can cause new problems because on the one hand the investment is not necessarily profitable and on the other hand we have to pay the money we borrowed.

- If you are a person who opens a loan service, before lending money to someone, their economic situation is clearly the detail you need to pay the most attention to, it means borrowers need to prove their ability to repay the loan, this is not a charity service, if you don't have the right profile you won't be able to participate. Similarly, you are a person who wants to borrow money, as long as you meet the requirements of the service, the lending world will come to you and be honest with you, before borrowing money, we also know the risk and rate of return, this is a large amount of money and no one is subjective and reckless.

[Panxora_COO]

It is not wise to take a loan to put money into a highly volatile asset like Bitcoin. It is likely that the market will remain volatile for quite some time. I mean years, many years.
That means it is very easy to get underwater on a loan so its a bad idea.
Still a bad idea to borrow capital unless you are quite wealthy and can easily assume the cost of the loan but unless you have some way of risk managing your holdings you have uncovered risk. To give some context. When bitcoin started falling after hitting its peak Dec 2017, it took 40 months to recover to that Dec 2017 price. Then it skyrocketed 300% to peak in April 2021 when it came off again.
I run the RMAAS risk management service on my bitcoins. Bitcoin is still below the April 2021 peak, but because the RMAAS software hedged my position, by May 11 my entire BTC position was hedged in USD. The RMAAS model bought back in last month and my account hit new highs, and bitcoin is still $10,000 below its new highs.
I'm not advising anyone, but for me this is the right choice.

[Maslate]

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.