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

[savetheFORUM]

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.

Borrowing money for trading is nothing new, there are lots of people who do it but it’s best to avoid it. Why it may be a problem is that you are not sure of the outcome of your trading, you might end up losing the thread and that will result to a big problem for you because you will have to pay back the money you have borrowed and also pay interest on top of it.

So, it’s usually best to start up trading with your own personal money and not borrow from people. And when you are trading you trade with minimum amounts you can afford to risk so that when you lose it, it wouldn’t be a problem to you as well.

With that said I’ve also seen people who have borrowed money and invested in crypto currency trading and made a lot of profits to the extent that they paid back the money they borrowed and then continued with their profits that was made.

But, before you take a risks like this you have to be sure of the actions you about to take and also have a backup plan in case it doesn’t work.

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[shield132]

It's simply going on VA bank, all or nothing. Don't do this kind of risk, look at crypto as a long-term investment option and I'll prove why: I want to remind you that back in 2017 when price hit 20K, a lot of people took loans, sold their houses, apartments but wait, what? Wouldn't they profit if they wait 4 years? Sure, they would triple their money but when taking the loan, you have to keep in mind that you have duty to pay loan according to terms. No one will give you the loan for 4 years and more without paying single cent each month, or quarterly at least.

Personally, I would only take risk if price has skyrocketed - then I would open short position in futures trading and 2nd - I would take a loan after halving (not immediately, after some months).
Be cautious! Not risk your life!

[JayJuanGee]

It's simply going on VA bank, all or nothing. Don't do this kind of risk, look at crypto as a long-term investment option and I'll prove why: I want to remind you that back in 2017 when price hit 20K, a lot of people took loans, sold their houses, apartments but wait, what? Wouldn't they profit if they wait 4 years? Sure, they would triple their money but when taking the loan, you have to keep in mind that you have duty to pay loan according to terms. No one will give you the loan for 4 years and more without paying single cent each month, or quarterly at least.

Personally, I would only take risk if price has skyrocketed - then I would open short position in futures trading and 2nd - I would take a loan after halving (not immediately, after some months).
Be cautious! Not risk your life!

Don't take a loan to long bitcoin, but take a loan to short it.

That makes a lot of sense.

 

The damnedest things that people come up with.   

[Emitdama]

Don't take a loan to long bitcoin, but take a loan to short it.

That makes a lot of sense.

 

The damnedest things that people come up with.   

Taking loan and investing into bitcoin crypto or any investment is never been good idea until you have all information's about product and team where are you investing because this can ruin your life forever I have many examples because they're done mistakes and pay for this. But on other side, if you have all your homework, and you know about all side effects of this then you can take some but still just invest which you can afford to lost because sometime these things can pay some good for better future but still it's never been good to do things like this without proper work.

[JayJuanGee]

It's common for people to think that borrowing is a terrible thing, but it's actually a two-way street that has both advantages and drawbacks when it comes to investing in cryptocurrencies because a cryptocurrency is what it's insurance is up to 100%. ( percent 100) You can borrow to invest in digital currency like crypto and profit within a period of three (3) months because of the cryptocurrency market sphere, but the disadvantages are that you can also borrow to invest in crypto and lose more than the capital after a few hours. This is a risk investment in my opinion. So if you want to escape heartbreak and early death, you should start a bitcoin investment with your own money.

I know that you use bitcoin in your last sentence, but the rest of your post is mentioning "crypto"...

fuck crypto.


this thread is not asking about crypto, so why get distracted into such loose framing of the matter...

focus on bitcoin and attempt to answer the question again.

Now if you are using the term "crypto" and bitcoin interchangeably, then it likely shows that you don't really understand bitcoin or at least your thinking is a bit muddled on the topic.

[Quidat]

Now if you are using the term "crypto" and bitcoin interchangeably, then it likely shows that you don't really understand bitcoin or at least your thinking is a bit muddled on the topic.

Not surprising for a noob to mention up and saying bitcoin and crypto might really be just the same thats why he do said about and speaking in related to topic then
its not a new thing that they do lose track.

For on topic reply then borrowing up money for the sake of investment isnt bad as long you are really that mindful on repaying those and wont be a hindrance
or a big problem later on for you.

Dont depend on your investment profits because your monthly interest or due do really comes but if you do have other sources then it wont really
be a problem.

[rby]

You can be successful when you borrow money and invest in crypto and you can fail too. The most important thing is being able to know when to enter the market. If you enter the market at high you may lose but if you enter at low you will gain. For anyone to take such risk you must have much knowledge of the market

[Renampun]

...

not always bad borrow money for bitcoin investment...

it's just that we can't predict is "time" (when is the right time to buy after borrowing), however in this life you have to be willing to take risks, even though borrowing money from the bank for bitcoin investment is not recommended but who knows you might be profitable, the important thing is that you must be able to find the right time to buy.

[Peanutswar]

I guess you must to make an investment at your knowledge first again the market is volatile there Are a lot of factors to make it pump or dump add to consider too having a technical analysis on the trade you want to do. Do you going for a long term or short term again invest what you afford to lose if you know the trend gives you a profit go ahead but if you still doubt make a play safe investment. Still its all about the risk to do it those borrow money can double your earning or makes additional debt.

[blatchcorn]

You can be successful when you borrow money and invest in crypto and you can fail too. The most important thing is being able to know when to enter the market. If you enter the market at high you may lose but if you enter at low you will gain. For anyone to take such risk you must have much knowledge of the market

There is no way we can certain that whats the best time to enter and exit market, as crypto market is based on speculations and takes wild swings very often. There is golden rule of trading, Invest as much as you can afford to lose. I guarantee an experienced trader never do such mistake of investing with borrowed money only newbies do that silly mistake. 

[24Kt]

You can be successful when you borrow money and invest in crypto and you can fail too. The most important thing is being able to know when to enter the market. If you enter the market at high you may lose but if you enter at low you will gain. For anyone to take such risk you must have much knowledge of the market

There is no way we can certain that whats the best time to enter and exit market, as crypto market is based on speculations and takes wild swings very often. There is golden rule of trading, Invest as much as you can afford to lose. I guarantee an experienced trader never do such mistake of investing with borrowed money only newbies do that silly mistake. 

It is indeed not advisable to borrow money if you have no assurance of the outcome of your activity. You can't guarantee that you will get out with profits. What if, you failed, where will you get the funds to your lender? Because even if we say bitcoin's market is a very solid one, you can never be sure your entry and exit in this market. If there is a timeframe of your borrowed funds, you are not in luxury to wait long-term. So you need to assess of your situation before plunging into deep debt.

[DoublerHunter]

You can be successful when you borrow money and invest in crypto and you can fail too. The most important thing is being able to know when to enter the market. If you enter the market at high you may lose but if you enter at low you will gain. For anyone to take such risk you must have much knowledge of the market

There is no way we can certain that whats the best time to enter and exit market, as crypto market is based on speculations and takes wild swings very often. There is golden rule of trading, Invest as much as you can afford to lose. I guarantee an experienced trader never do such mistake of investing with borrowed money only newbies do that silly mistake. 

^ Though browsing money to invest in BTC or crypto is not a good decision but I think that is something like you gambled your money and what if BTC will suddenly increase in just a week after you purchased with your borrowed money? There is also a benefit but it is a high risk which is not really advisable.
This is always we remember, invest of what you can afford, it should not always bother your financial budget that supposed to be for your daily consumptions.

[nurilham]

If we borrow money and we can manage it well and the results are profitable, that's good, but if we have borrowed and we even accept the loss, it is called a disaster and we will get losses many times over. In my place there are many cases like this where people will borrow big amounts of money and then invest it in Bitcoin without having sufficient knowledge or experience. It is very risky because it forgets the risk of crypto investment itself where the market can go up and down at any time and cannot be predicted. Here, in addition to skill, the luck factor is also there so don't take it lightly to enter the crypto world, especially without adequate experience.

[lienfaye]

You can be successful when you borrow money and invest in crypto and you can fail too. The most important thing is being able to know when to enter the market. If you enter the market at high you may lose but if you enter at low you will gain. For anyone to take such risk you must have much knowledge of the market

Well, you have a point. But even if you buy during bearish season, there's no guarantee that the timing is right since the price can also plunged further right after you buy. Its a loss already in your part unless if you already expect such situation and willing to wait.

This the reason why its not advisable to use a borrowed money to invest (not only in crypto but in general), it has a risk to lose your money because the market is unpredicted. Thus, aside from knowledge and strategy, it would be better to use your own money, any amount will do as long as you can afford to lose it incase everything didnt go as planned.

[worle1bm]

It's against the market rules because you need to repay the loan in some time limit but in this market there is no guarantee that in particular period you can make good profits so taking loans or borrowing it from your known ones is never advisable.Suppose you loss 70-80% of amount invested during a crash even though the btc prices are anticipated to rise in future but what to do if you have to repay it? You will sell some stuff which is more important to you or some other way you have to figure it out so why go this way? Invest what you can afford to loose.

[AicecreaME]

It's not weird if you're using it on investment and promise to pay it on a certain date. What weird is continuously asking for money on your family or friends without even paying them while using it on things that's not giving any income at all. Borrowing money and investing it to Bitcoin is a boss move, just don't buy at the peak, buy the dip. Also, don't put it all in Bitcoin, because you need money to feed yourself while waiting for the right time to sell your Bitcoin to gain profits.

[UmerIdrees]

Crypto market movements will always move wildly even though basically we have done some technical analysis before entering the market and often what we have predicted with the coin price of course does not always go as we expect, so it is not recommended for anyone to use all the money from the loan to invest with cryptocurrencies, we must always use cold money to invest even though the nominal cold money we have is not too large.

Investment in bitcoins is always profitable but not at the expense of borrowing money or taking loan. There are a few times when the Bitcoin prices may not perform as expected and investment made may be down. Therefore it is never recommended to invest in cryptocurrencies by taking loans rather it is suggested that you only invest that money in cryptocurrency which you can easily to loose.

[ReiMomo]

If the market is good and if the price of the coin invested grows up then yes we are safe and can pay back the borrowed amount from its return. Since often we depend on its return to pay back the debt, we tend to either close off the trade at loss to pay the amount borrowed. Here where everyone gets in risk. Yes borrow and invest but do not depend on returns from crypto currencies you invested. Rather plan to close off the debts from other sources and just leave the coin on a long term trade.

[MCVXYZ]

You can be successful when you borrow money and invest in crypto and you can fail too. The most important thing is being able to know when to enter the market. If you enter the market at high you may lose but if you enter at low you will gain. For anyone to take such risk you must have much knowledge of the market

there is always a big risk when you are investing money in business, especially in crypto sphere. the key here and in every investment is to reduce these risks by analysis and experience. So, I agree with you , But if someone doesn't have experience, I think it would be better to try with small, that's better than not to try something with a fear of risks.

[jhonjhon]

I think this isnt a good idea.Borrowing money to invest in crypto (bitcoin) is not advisable. NEVER! If you have extra money that you're willing to lose then invest it in bitcoin,but do not put yourself in a risk by having a big debt.Cryptocurrencies like bitcoin is unpredictable.Yes bitcoin can make you profitable but in some point,it will also lose your investment capital.And aside from losing your money,you also have to pay your debt back.