Taking loan to trade is a risky task

[Slow death]

The biggest problem in trading with borrowed money is the pressure that the person is under to return the money within the agreed period and this forces the person to have to trade with greater risk in order to have a higher return to meet the loan repayment term. as we know there are days when trading profits are low but when you have a loan to pay the person will have to be forced to have high profits even on days when you had low profits because there is a deadline that you must meet to pay the loan

[TelolettOm]

Of course. taking a loan is very risky moreover if we are willing to invest in the crypto or trade this crypto. The interest of loans will be always continuing due to time and we cannot get guarantee whether our investment will earn more and more money or not. If the codnitionof the market is opposite with what our epxectation, the market goes dropped and dropped, what we will do to pay the loan and its interests? Even it is only by step on step payment monthly, it will be very risksy.
Many people panic about this situation and the taking loan to invest in Bitcoin when the price is at that ATH or when it was skyrocketing But after investing, the price goes down like right now happening in the crypto market currently.

[Rruchi man]

The joy in trading is when the money which is been used to trade is owned by the trader.

If you call yourself a good trader, and it so happens that you have no money to trade, what i think of you is that you are

- Just a fresh out Demo trader that thinks he has mastered demo trading and he is super confident that with a few bucks, he can can start making money, so he just looks for any means possible to get the money to start trading, or

- A trader who is not good enough. It may be possible that you have lost all your money maybe to a bad trade or something, but that's not excuse enough, because a good trader understands risk management.

I understand that there may be some extreme cases where maybe a domestic crisis or emergency may push you to liquidate your accounts to raise cash, when bouncing back from such situations, an experienced and good trader knows that even considering to borrow to start trading is stupidity in disguise.

[markdario112616]

Im quite unsure on this, Isn't this a huge risk not only for the one lending but also for the lender? Let's say, Tne lender is just a mere person or a friend or a family. Without a security this could be something that can break them a part. But why loan just to trade? Why not trade alone using your savings? I mean, I get a lot are not capable to do that but still this isnt advisable. It's like you gamble away, which is the one we are trying to point out. Trading isn't supposed to be a some sort of gambling. It should be considered as Investment.

[Tashana]

Yes, it is undoubtedly a very good channel to make money when the trend is rising, but when the trend is not obvious, it is very likely to lose your principal.

[Aurorra]

Loan transactions are indeed very risky. Although cryptocurrency is profitable, the more money you invest when the price rises, the more profit you get. But when the price drops, you have to bear more economic losses. So don't choose loan transactions, and trade within the range of funds you can afford.

[Rafae]

Perhaps it makes sense to take out a loan when you already have some experience and real income, but at the initial stage, in my opinion, this is unreasonable.

[tygeade]

Yes you are right, borrowing money to trade when you are not sure of the outcome of the trading is very risky. If you’re going to be trading you need your own money to do that, because in a situation whereby you lose that money you will have to start looking for a means to raise the money again and pay back to the person who you borrowed it from.

But when it is your own money, you wouldn't have to worry about that. A borrowed money has a time when you are meant to pay it back, and you have to be worried to make up that payment before the time comes. So, trading with a borrowed money is a huge risk, and it should be avoided.

[slaman29]

The biggest problem in trading with borrowed money is the pressure that the person is under to return the money within the agreed period and this forces the person to have to trade with greater risk in order to have a higher return to meet the loan repayment term. as we know there are days when trading profits are low but when you have a loan to pay the person will have to be forced to have high profits even on days when you had low profits because there is a deadline that you must meet to pay the loan

I always think borrowed money should only be in necessity. To study, to live, to get a house, etc, backed by something stable so you know you can always service the loan.

The real problem isn't the borrowed money used in investment and trading, but the individual belief that crypto has a low risk and a high chance to earn more to pay it all back (plus interest).

[Yamifoud]

Yes you are right, borrowing money to trade when you are not sure of the outcome of the trading is very risky. If you’re going to be trading you need your own money to do that, because in a situation whereby you lose that money you will have to start looking for a means to raise the money again and pay back to the person who you borrowed it from.

They don't have the capital to start that is why they decided to make a loan/borrow money but somehow they neglected to think about what will be its returns especially when that their trader isn't successful. Maybe if we are a pro-trader, this was not a big problem but for the beginners, that seems not advisable.
That is better to start the amount that only we have (not from others) and so we have no obligations when we fail. $50, $100, that seems so small but if that only we got, then that is what we have to use. Besides, trading is not all about having a huge capital or not, it is all about knowledge and skills.

[24Kt]

Yes you are right, borrowing money to trade when you are not sure of the outcome of the trading is very risky. If you’re going to be trading you need your own money to do that, because in a situation whereby you lose that money you will have to start looking for a means to raise the money again and pay back to the person who you borrowed it from.

They don't have the capital to start that is why they decided to make a loan/borrow money but somehow they neglected to think about what will be its returns especially when that their trader isn't successful. Maybe if we are a pro-trader, this was not a big problem but for the beginners, that seems not advisable.
That is better to start the amount that only we have (not from others) and so we have no obligations when we fail. $50, $100, that seems so small but if that only we got, then that is what we have to use. Besides, trading is not all about having a huge capital or not, it is all about knowledge and skills.

It is better to stick on trading with your own funds. Even if you are a pro, the risk is always there. Unless, you have other resources that you can use in case your trading failed. And put it as a collateral. Otherwise, just be contented on what you have as you can increase that capital if you really know the market.

[onecall123]

It is better to stick on trading with your own funds. Even if you are a pro, the risk is always there. Unless, you have other resources that you can use in case your trading failed. And put it as a collateral. Otherwise, just be contented on what you have as you can increase that capital if you really know the market.

Undoubtedly! The cryptocurrency market is not a get rich quick scheme. Don't borrow funds for crypto investment at the initial stage, it's too risky. Investing in crypto isn't a good way to raise emergency funds. Crypto is too volatile. How would you handle it if it was down by 50% the month you needed it for emergency expenses? You need to learn how to day trade and invest before taking any bold steps. Borrow money against your cryptocurrency to earn more.

[NicNacCoin]

There is a risk in every job in life. If you do not take risks in your life, you will never be successful.If you take a loan in cryptocurrency, you will have a lot of risk, but there is hope to get a lot of profit.We take loans with a leverage of 10x-20x-30x the with 200$ when trading. When there is profit, we get enough profit in a short period of time.And if we lose, our profits vanish in a short time. And especially if you can understand, then there is very little chance of loss.

[ReiMomo]

Just invest as much as you can just from your income. Never go for a loan for trading. Market is  volatile and it might move in any direction and we might not able to close off the debt, EMI on time which will put us in trouble. We have plenty of good coins at cheap rates. So go with what you can from your pocket. Never go for loan either from banks, friends or neighbors. 

[pelumi20]

It is not a very smart decision to take a loan or borrow money to trade. You are simply putting yourself in big trouble. Because trading could be unpredictable at times and the result of every single trade is unique, so it is possible to lose all your money. You would also be trading with emotions which is what every trader should avoid.

[GeorgeJohn]

Taking a loan to trade is categorized in two forms which i can classify as positive and negative, the negative aspect of it have a higher point of lost than the positive due to lost, because they is every tendency that a trade may get lost or gain, so therefore the positive aspect is not really sure from my perspective, because before a trade ensure that they will be surplus profit he or she might have study or read the market structure very well before adventuring into it, so the positive aspect is at very risky except its a professional trader who knows the rudiments of trading before taking the a loan for trading investment.

[Shasha80]

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Borrowing money for trading is not only risky, it can also cause problems. Especially for beginners who do not have the knowledge and
experience of trading, if they trade using borrowed money, it is certain that they will be in debt. Because volatile markets are not easy
to predict, even for traders who have good analytical skills there is no guarantee that predictions are made accurately. Then borrow money
must pay installments, while there is no certainty of profit generated. So my advice if we don't have capital we shouldn't need to force trading,
 it's better to collect capital first by working, not by borrowing money.
 

When do talks about risk then it would be always be accompanied with danger but of course it would really be having some benefits if it turns out to be good but if not then expect the opposite.
Taking some loan for you to make out some crypto investment isnt bad as long you do able to repay those interest in other sources which do basically means that you wont really be
relying on those crypto investment for you to repay then i could say that it is really just fine but if you do make it as a main source then this is where problem begins.

I understand your explanation, it is quite safe if we borrow money to trade in crypto, but we have the income to pay the loan money. But sometimes
if the loan money runs out due to a loss when trading, we become lazy to pay the debt. Indeed, not everyone is like that, but it would be better if
the trading capital we use does not come from borrowed money. But back to each person's decision, if that person dares to take risks and dares to
bear the consequences, it's his right to trade with borrowed money.

[Hypnosis00]

It is not a very smart decision to take a loan or borrow money to trade. You are simply putting yourself in big trouble. Because trading could be unpredictable at times and the result of every single trade is unique, so it is possible to lose all your money. You would also be trading with emotions which is what every trader should avoid.

And we don't have to try it, never as this will be the beginning of our problems.
I can figure out what will happen after this and that will lead to a miserable life especially when we only just rely on trading alone. Maybe if we have some sources of income to cover up the payments, that might not a huge problem but still, it was not a smart idea and I dare not do that instead of waiting the time to have enough funds to start.

We have to think first about the consequences it brings back to us, not being too optimistic as we can't escape such reality.

[Mamun74]

Trading is not an easy way to make always take good profit from trading. When you start trading then you need to proper and Higher skill about trading and also you need to patience and control your emotion.I think it is not smart your decision. Loan money is very risky,i Don't agree with your decision. I think the biggest problem is barrow money.Trading is not gambling site.

[stomachgrowls]

It is not a very smart decision to take a loan or borrow money to trade. You are simply putting yourself in big trouble. Because trading could be unpredictable at times and the result of every single trade is unique, so it is possible to lose all your money. You would also be trading with emotions which is what every trader should avoid.

And we don't have to try it, never as this will be the beginning of our problems.
I can figure out what will happen after this and that will lead to a miserable life especially when we only just rely on trading alone. Maybe if we have some sources of income to cover up the payments, that might not a huge problem but still, it was not a smart idea and I dare not do that instead of waiting the time to have enough funds to start.

We have to think first about the consequences it brings back to us, not being too optimistic as we can't escape such reality.

If you are already aware with the possible consequences or experiences then why would really proceed though? You dont need to experience it for you to believe on because this is indeed a real life kind of scenario on where

taking up some loan just for you to make trades is really a risky kind of decision on where you do really need up to be profitable for you to sustain up yourself and able to repay those loans aside on having some other

source of income and to say that trading was never been an easy kind of investment for you to do so.Always consider out the difficulty of such situation before proceeding in.