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

[faithupgrade]

People who did this is like gambler who mortgage his house not thinking if he will be loss in trade. It happens to the people way back 2018. Where many sold their houses and decided to live in their cars. Imagine the whole family bet bitcoin will rally from 15k to 100k, but happened is Bitcoin crashed from 19k to $2k. Not sure what happened to those who sold their houses , did they live in their cars from 2018 to 2021?

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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[lienfaye]

Its not advisable to borrow money or have a loan just to invest on bitcoin because we never holds the future, anything unexpected can happen in this highly volatile market.

Even we know investing in bitcoin is profitable, but still, we dont suggest to invest the money that you cant afford to lose, so what more if it is borrowed? Definitely its not a wise decision to do.

The profit is not guaranteed here and there's no timeframe when we can profit because it can take a long period. Thus think before investing and plan using your own money that you can afford to lose if ever something went wrong.

[tokyohd]

It's too risky and what will the borrower do if he lost the borrowed money ?
It's like gambling

[Kelvinid]

For most of us here, that is really weird since it was not advisable but then, you can still do it if you want. That was your choice either and we can't stop you from doing as it was for legal purposes but don't just ignore what we/people are saying around you. As investing takes months or somewhat it takes years to have a decent return and from that long gap where we don't have income, it is certainly a struggle on your part. Well, if you have some side hustle that will find and could help to cover-ups but if you are solely relying on the profit of your investment, absolutely not a great idea.

[JayJuanGee]

First of all, there have been a lot of posters here posting about crypto or talking about crypto, and we are not talking about "crypto" in this thread.

Op specifically asked about bitcoin, so fuck the nonsense talk about crypto, even if some of the similar principles regarding use of credit could be applied.

Surely, it is not weird to borrow money to invest, whether we are referring to investing in bitcoin or anything else, but it would be irresponsible (and unduly) risky to borrow without some kind of decently concrete plan regarding how the money is paid back, and having some back up ways to pay back, in the event that the investment goes south.

Of course, many forum members are likely familiar with various terms that Michael Saylor created or structured with various Microstrategy loans that were 4 years or more and some of his financing went to 7 years or did not constitute a loan at all but a possible dilution of MSTR share prices.  With bitcoin as the underlying investment there can be a lot more confidence that having loans that play out for 4 years or longer will have much higher likelihoods of being able to pay back the loan with the proceeds in the investment itself (referring to bitcoin, here)..

There are surely advantages and likely more options when having enough credit or collateral to be able to structure loans for longer periods of time.

The three most sound ways to buy/accumulate bitcoin is to lump sum invest, DCA and buy on dips.  Many times normies do not have a lot of money in order to lump sum invest into bitcoin or anything else, so they will resort to a combination of DCA and buying on dips, and even buying on dips requires some holding of value in reserves in order to take advantage of price drops when (or if) they occur.

Surely, getting a loan does allow people to leverage more of the ability to lump sum invest and buy on dips, and perhaps there would be a tendency to attempt to use the money for lump sum investing or frontloading, but there might also be some utility that could come from holding some value in reserve to buy on dips, even though we can never really have a lot of confidence if a dip will occur, how far it will go or how long it will last.

As far as use of loan money to buttress a cashflow or investment, there should be some need to consider cashflow for the term of the loan and back-up payback resources, and surely the terms of the interest rate of the loan should also be considered, so if someone is able to land a loan for $24k for 2 years with an annual interest rate of 6%, the minimum monthly payments may well be over $150 per month, and at the end of the two years of monthly minimum payments, nearly $3k would have gone towards interest, and $23.3k would still be needed to pay off the balance of the loan at the end of the two year term.

There are a variety of ways to attempt to assess whether such a loan would be valuable, and surely any loan can help with managing of cashflow, and some loans might require payments to be spread out through the term of the loan rather than allowing for a lump sum payment at the end, so the same loan for $24k might require $1,064 monthly payments in order to fully service the loan by the end of the 24 month period.

Terms of the loan may well depend on your credit, and surely some loan terms are going to cause the loan to be more manageable and potentially profitable than other terms, and I don't mind the idea of using leverage so long as you sufficiently understand the payback obligations and you account for the ability to pay back the loan in its entirety without relying on upwards performance of the asset.

I do also understand and appreciate the shorter-term scenario (and loan) of only 4 months set forth by Arriemoller in his earlier post in this thread, and surely there is a bit of gambling on a short-term theory that is described, and sure the odds could be a wee bit in his favor, and if he is prepared to pay back the loan from other sources in the event that his gamble does not pay off, then he is preparing himself financially and perhaps psychologically for the risk that he is undertaking..

By the way, I am surely familiar when guys assign probability values to their expected scenarios that are quite a bit higher than reality, so in the cases in which the bet (BTC price in this case) moves against them, then they end up being damaged both financially and psychologically ... surely having the financial preparations in place can help with the psychology in the event that the market were to move opposite of expectations.

[rhodelmabanal]

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.

Bitcoin is high on volatility its price always moved and changing, you must know how hard to hit a moving object because Bitcoin is something like that it always moved and you need to hit it with you're limit price to win it, I believe in Bitcoin and holding it is really profitable if you have patience, but if you are greedy and lack of patience just find another ways to earn.

[JayJuanGee]

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.

Bitcoin is high on volatility its price always moved and changing, you must know how hard to hit a moving object because Bitcoin is something like that it always moved and you need to hit it with you're limit price to win it, I believe in Bitcoin and holding it is really profitable if you have patience, but if you are greedy and lack of patience just find another ways to earn.

Actually, you seem to be making another decent point, rhodelmabanal.  There is a certain aspect of bitcoin in which you do not need to use any kind of leverage in order to have the potential of profiting stupendously from even being involved in bitcoin. 

There are so many normies who have failed/refused to take any kind of meaningful stake in bitcoin, so even a less aggressive BTC accumulation strategy may well end up contributing a lot of UPside in the future.  Of course, more aggressive BTC accumulation strategies are likely to fair somewhat better, but there are not guarantees of course, but the nature of an asymmetric bet does involve appreciating the asymmetric nature of it allows for multiples of possible price appreciation based on whatever value does end up getting put into it.

[adzino]

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.

It is not weird, but it is very risky. The first rule of investing in crypto currencies (bitcoin) is to make sure you can afford any losses. But since you are borrowing money, it means you don't have any extra money that you can lose. You are just gambling and trying out your luck. There is a chance you might lose a portion of your investment and then fail to return the money. If you are very confident that you can pay back the money you have borrowed, then go ahead and invest. Or else, just return the money. Try saving some and then invest.

[JayJuanGee]

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.

It is not weird, but it is very risky. The first rule of investing in crypto currencies (bitcoin) is to make sure you can afford any losses. But since you are borrowing money, it means you don't have any extra money that you can lose. You are just gambling and trying out your luck. There is a chance you might lose a portion of your investment and then fail to return the money. If you are very confident that you can pay back the money you have borrowed, then go ahead and invest. Or else, just return the money. Try saving some and then invest.

There's something strange about your framing of the issue, adzino. The future is not known and is not knowable, especially regarding some kind of dynamic (BTC price performance) that relies on a variety of happenings and the behavior of many other humans.  The best that any of us could do is to assign some kind of a percentage probability, and sure there could be a 90% likelihood that the BTC price had been 12% or more higher ($52,864) in two years (as compared to what it was at the time of the origination of the loan (let's say $47,200)), but most likely the odds are not even going to be close to 90%, they are going to be more like 45% at best, but maybe out of the range of possibilities, 45% seems quite high.. because there might be a 24% chance that the price goes down, and 31% chance that BTC price goes sideways or UP and never sufficiently surpasses supra 12% levels for a long enough period that OP ends up cashing out in such a way to make his loan profitable.  Of course, the plan should be to be able to pay pack the loan no matter how bitcoin performs in the next two years, and surely the calculation of odds might be that the BTC price is likely to be high enough to be profitable.

Let's take the 45% chance of UP more than 12%, and I am not even sure if that is a realistic number, but if the odds can be divided up that the BTC price could get to:

$52,864 or higher = 45%

Between $53k and $80k = 9%

Between $80k and $120k = 15%

Between $120k and $300k = 9.5%

Between $300k and $600k = 6.5%

Between $600k and $1.5million = 3.5%

$1.5million or higher = 0.5%

So, even with these kinds of odds, there is potential that such employment of a loan could pay off stupendously, even though the odds for getting 12% or greater higher than today's price might only be around 45%, but those odds of getting above $52,864 might be considered amongst the most likely of all of the possible scenarios with some potential of achieving some way higher price points to the upside, but still far from guaranteed for any of this, because there are down scenarios, too.. but just based on a series of possibilities that ultimately are not known currently the scenarios end up becoming known after the next two years plays out.

[Kasabus]

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.

It is not weird, but it is very risky. The first rule of investing in crypto currencies (bitcoin) is to make sure you can afford any losses. But since you are borrowing money, it means you don't have any extra money that you can lose. You are just gambling and trying out your luck. There is a chance you might lose a portion of your investment and then fail to return the money. If you are very confident that you can pay back the money you have borrowed, then go ahead and invest. Or else, just return the money. Try saving some and then invest.

Borrowing money to start with your investment is definitely a normal thing that most investors do but it also depend on what kind of investment you are entering. When it comes to crypto, i don't think it will be a good idea to lend your capital because there is no guarantee as to when you will gain profits and how high it will be. So you are more into gambling than investing to double your profits.

Well, borrowing money might be reasonable too if you have other source of income that can pay your loan but if you are only dependent on crypto, then better earn first before making an investment.

[Pokapoka124]

That's the FOMO effect. People panic when bitcoin is pumping hard and they all want in at that point. Humans are a greedy bunch so whenever we see an opportunity to satisfy our greed we go for it. When there is a dump no one fomo to buy instead they panic sell
 Fomo only pumps price of cryptocurrency, spreading fud has become a tactic for some community managers. Members of the community go on to other groups to spread the fud and boom! An apocalypse

[slaman29]

Has anyone tried the numbers? Looking at one published rate of lending for BTC loans (providing your BTC as collateral), I was wondering if this was a form of DCA by borrowing and investing into more. So instead of buying BTC every day or every month as in DCA. You pay off a loan every day.

So look and tell me if my numbers are bad.

1. Loan 80% of BTC collateral value at APR 12%. So if I put in $10000 of BTC I get $8000 to buy more BTC and I have to pay back daily till I pay back $8960.
2. In total, I am down $960 after a year, which I pay daily $24.55, of which $2.63 is the interest.

But this way I increase rightaway my BTC by 80% and am forced to pay for it every day, like enforced DCA in a roundabout way. I feel like I could consider it, only the problem is locking it in the platform for one whole year.

[JayJuanGee]

Has anyone tried the numbers? Looking at one published rate of lending for BTC loans (providing your BTC as collateral), I was wondering if this was a form of DCA by borrowing and investing into more. So instead of buying BTC every day or every month as in DCA. You pay off a loan every day.

So look and tell me if my numbers are bad.

1. Loan 80% of BTC collateral value at APR 12%. So if I put in $10000 of BTC I get $8000 to buy more BTC and I have to pay back daily till I pay back $8960.
2. In total, I am down $960 after a year, which I pay daily $24.55, of which $2.63 is the interest.

But this way I increase rightaway my BTC by 80% and am forced to pay for it every day, like enforced DCA in a roundabout way. I feel like I could consider it, only the problem is locking it in the platform for one whole year.

I think that the vast majority of the loan programs that allow posting of BTC as collateral are too risky and too expensive.  12% is high as fuck for an interest payment.. especially for such a great asset such as BTC... You should not have to pay that much interest when you are providing such a great asset (of course, volatile and lack of competition might be reasons that they are willing and able to charge such high rates and BTC HODLers end up using those programs).  Risk is high for leaving BTC with a third party, including the amount of collateral that you likely have to post in order to be safe from being  liquidated and risk is high that you could lose those BTC (sudden drop in BTC price causing insufficient collateral or exit scam or just other risks of having a third party hold your BTC)...

I would not do it, personally, even though I am not opposed to getting a loan of perhaps 6% or less interest rate for BTC

For sure I have not been referring to anything other than BTC for what you are investing into, and guys in this thread are continuing to use vague-ass term for investing into crypto whatever the fuck that is.. we are talking about BTC, here.. now if you are using various crypto (not BTC) for your collateral or the various schemes involving a variety of shitcoins, then that adds additional risk that may be stuff that guys might be willing to explore, but maybe it is another topic too because those programs are likely all over the place in terms of their complications and what kinds of risk you would likely be taking.

In essence, I am not opposed to the idea of using a loan in general as a way to buttress your cashflow and to buttress either your lump sum investing or your buying on dips abilities as can be inferred by my above two posts, but don't mix DCA investing up with this because getting a loan likely takes away from your DCA investing abilities, so seems to be muddy thinking to suggest that getting a loan is kind of like forcing you to DCA in terms  of paying back the loan.. blah blah blah.. nonsense...   In any event,  the terms of the loan need to be considered and putting any part of your BTC stash at risk needs to be considered too.. and for me those kinds of risks would outweigh the possible benefits, but surely guys without capital sometimes will engage in risk or leverage to get capital, but then end up with even less capital or no capital if they are taking too many risks (layering risk upon risk) with an already risky asset (referring to BTC)...

...and like I already mentioned too.. the asymmetric nature of bitcoin can allow a lot of folks to get rich as fuck without really having to take a lot of risks, and DCA is one of those methods.. but it still is likely to take time.. and perhaps a bit less time if you have a more aggressive DCA approach (within your means).. so taking risks might end up either preventing you from becoming rich as fuck, or cause your own upside potential with BTC to play out way smaller, even though you are taking the risk because you are attempting to accomplish the opposite (to get rich quicker than you would have without taking such additional risks). 

[lixer]

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.

It is a funny problem to have, and one that I could possibly never have. The reason for that is the fact that I never get a loan, in fact banks stopped offering it to me as well so now if I ever want to get a loan then I can't, because I never got one and for them that means they do not "know" me, and that's why they can't loan it to me. I am fine with that by the way, never got a credit card, never got a loan, never worked with banks aside from the fact that I have to have my money in them, but that's about it really, I even withdraw nearly all my money each time I get a salary.

In my nation you can't get the salary in cash, it has to be deposited to the bank and that's about all there is for me. Long story short banks suck and if you do not want to work with them that's fine, but if you want to get their money and use it to buy bitcoin that's even better lol.

[Emitdama]

Has anyone tried the numbers? Looking at one published rate of lending for BTC loans (providing your BTC as collateral), I was wondering if this was a form of DCA by borrowing and investing into more. So instead of buying BTC every day or every month as in DCA. You pay off a loan every day.

So look and tell me if my numbers are bad.

1. Loan 80% of BTC collateral value at APR 12%. So if I put in $10000 of BTC I get $8000 to buy more BTC and I have to pay back daily till I pay back $8960.
2. In total, I am down $960 after a year, which I pay daily $24.55, of which $2.63 is the interest.

But this way I increase rightaway my BTC by 80% and am forced to pay for it every day, like enforced DCA in a roundabout way. I feel like I could consider it, only the problem is locking it in the platform for one whole year.

I would say consider that with fiat and a bank and you got yourself a great deal, do it with bitcoin collateral place and not so much. Normally in USA banks the interests are much much lower and you never have to lock your money neither, you just take out a 8k loan, pay back much less in a year, like 8.4k total or something (depends on your credit score of course) and then you will end up with a great deal of return over long period of time.

This way you are paying less, getting your DCA sort of, and you can pay less plus the good side is if you have other income the amount is so cheap that you could potentially pay that back with your regular income as well, the upside is that instead of you buying bitcoin directly with your money slow by slow, you are getting in all at the same time so if the price goes up then you are in big profit as well.

[slaman29]

##

For many of the same reasons I have also held off on doing the same, but I know people who did it from 2019 so they are now 2 years into doing it and so far safely. Hence almost tripling their original BTC owned, while paying off the 12% interest easily by selling BTC that has gotten pricier. I guess one has to enter these risky collateral holding during a bear market and then ride the rally as they have been doing the entire year.

I'm also not against borrowing to invest, only problem is the only collateral I have is BTC!

[jasonperez]

##

For many of the same reasons I have also held off on doing the same, but I know people who did it from 2019 so they are now 2 years into doing it and so far safely. Hence almost tripling their original BTC owned, while paying off the 12% interest easily by selling BTC that has gotten pricier. I guess one has to enter these risky collateral holding during a bear market and then ride the rally as they have been doing the entire year.

I'm also not against borrowing to invest, only problem is the only collateral I have is BTC!

Borrowing as much you can afford to pay back is fine. Crypto market is highly volatile, I won't take such risk for investment.

[ultrloa]

##

For many of the same reasons I have also held off on doing the same, but I know people who did it from 2019 so they are now 2 years into doing it and so far safely. Hence almost tripling their original BTC owned, while paying off the 12% interest easily by selling BTC that has gotten pricier. I guess one has to enter these risky collateral holding during a bear market and then ride the rally as they have been doing the entire year.

I'm also not against borrowing to invest, only problem is the only collateral I have is BTC!

Borrowing as much you can afford to pay back is fine. Crypto market is highly volatile, I won't take such risk for investment.

Even if you can afford to pay its still not ideal option to do since you already lost with the interest given from borrowed money plus we can also add up the real time value where there are instsnce that you lose a $ due to volatility thats why this borrowing ideas is not good to and since as stated we can afford then much better to save up some amount and once we reach to target capital then use it for investment on bitcoins.

[JayJuanGee]

##

For many of the same reasons I have also held off on doing the same, but I know people who did it from 2019 so they are now 2 years into doing it and so far safely. Hence almost tripling their original BTC owned, while paying off the 12% interest easily by selling BTC that has gotten pricier. I guess one has to enter these risky collateral holding during a bear market and then ride the rally as they have been doing the entire year.

I'm also not against borrowing to invest, only problem is the only collateral I have is BTC!

Borrowing as much you can afford to pay back is fine. Crypto market is highly volatile, I won't take such risk for investment.

Even if you can afford to pay its still not ideal option to do since you already lost with the interest given from borrowed money plus we can also add up the real time value where there are instsnce that you lose a $ due to volatility thats why this borrowing ideas is not good to and since as stated we can afford then much better to save up some amount and once we reach to target capital then use it for investment on bitcoins.

First off, in response to jasonperez, we are talking about bitcoin here. .not crypto... what the fuck is crypto?  some vague idea.. if you mean bitcoin, then just say it, if you are talking about something else, then you are in the wrong thread.

Secondly:  overall I agree with the idea of borrowing as much as you can afford to pay back as being an acceptable approach to the matter of investing so long as you have weighed other aspects such as risks and various potential trade-offs.

Sure the interest rate should be considered (in this example 12%) and would not necessarily be a deal breaker in and of itself.  So the questions should be how you would pay back such loan, and hopefully you have funds that would be separate from expecting that your BTC investment is going to necessarily appreciate in value for the duration of the loan (or sometime in the middle) or even appreciate more than 12%, but of course the investment is profitable once it is worth more than 12% (per year) than how much it cost for the loan.  .. so of course, if the loan were for 2 years then it would be 12% for the first year and then another 12% the second year.. so if the loan is longer than a year, then it adds up to more than 12% overall.. so that surely needs to be kept in mind too in terms of how much the loan would be costing you... and frequently loans are compounded daily, weekly or monthly, and they do not give you the luxury of compounding at the end of the year.. which such compounding can cause the real costs to even be more than 12% per year in a kind of theoretical sense.. but most loan providers are going to have minimum payments that require the payment of at least the interest amount... and of course, some of the differing loan arrangements should be considered in terms of trying to understand how much the loan is costing and whether there might be advantages to even balloon paying the loan in the event that the loan provider allows minimum payments to be less than the amount of interest.

Another contemplation should be whether there might be some advantage in getting the loan in order to take advantage of front loading your investment into BTC because getting a loan gives you options to both front load with lump sum investing and it also gives you more abilities to have money for buying on dips . .and sure any DCA investing would have the option of front loading that aspect rather than just investing as the money comes in.. presumably you would have a cashflow.

A part of the proposition that slaman29 made that would be a deal-breaker for me, is putting your BTC up for collateral, and that would be a road too far for this cat... absent some kind of situation that I might consider the BTC price to be in a clear and unambiguous price dip that the market was not then currently recognizing, so in those kinds of circumstances, there might be some justification in terms of putting some of your BTC up for collateral for such a loan.  Another aspect of putting BTC up for collateral would be how much BTC are you putting up for collateral.. is it more than 10%? more than 50%?(holy fuck that's a lot).. 80% to 100%.. (holy holy fuck?) 

Even if I were to conclude that I am willing to put some of my BTC up for collateral, I could not really appreciate putting more than 10% or maybe 20% if I was really risk inclined, and if BTC is the ONLY asset that you have, then that might also be a pretty damned strong sign that you are not in a strong enough financial position to be putting your ONLY asset up for collateral, and what the fuck are you doing?  Are you gambling rather than investing?  I have troubles relating to gambling your way into investing, so maybe if the ONLY asset that you have is BTC, then you need to be fucking building your portfolio more than to be leveraging with the ONLY thing that you have.. and yeah, I know peeps do not want to hear that... but if you maybe are fucking around with 10%-ish of the ONLY asset that you have, then there might be some reasonableness in that. 

In the end, each of us have to decide for ourselves how many risks that we are willing to take, and how to consider the various trade-offs, and surely sometimes some of us might get lazy in terms of considering the risks and trade-offs, so then surely we are getting into gambling rather than investing with that kind of an approach.

[otundebis]

Firstly, gambling with borrowed money is a huge risk and it is not advisable that one should engage in such, why? because trading could go either way, it's a game probability!  Secondly,  desperation will lead to panic, and panic will lead to making trading mistake.  So,  there is no need to FOMO on bitcoin, your entry price is what matter in the short term.  And if you don't have good entry point,  you may not really make much in profit at the end of day!