[Q]To take a loan or not to

[libert19]

In bloodbath times, I tend to think to take a loan and invest in few prominent currencies and leave it for few years. Then I realize what happened to Luna and realize there is nothing surefire here.

So, there is risk in taking loan but then reward is high, and there is sense of safety in not taking loan. You would be kind of free? Yes you didn't make much/took advantage of market downturn but you are free, you have nothing to worry for?

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[mk4]

Taking loans for asset investments you mostly have no control of is kinda dumb.

1. Markets can drop far further than we think it can
2. It can take longer than expected to go back up
3. Especially when talking about crypto outside of bitcoin, you're taking so much risk that it's multiples of magnitudes dumber

If I were to take a loan, it would mostly be for something like a business that I've deeply thought of and strategically planned for already.

[pooya87]

In bloodbath times, I tend to think to take a loan and invest in few prominent currencies and leave it for few years. Then I realize what happened to Luna and realize there is nothing surefire here.

The only "prominent currency" is bitcoin, everything else is either useless or aren't even currencies and are guaranteed to dump as the example you used (Luna) proved it.

So, there is risk in taking loan but then reward is high, and there is sense of safety in not taking loan. You would be kind of free? Yes you didn't make much/took advantage of market downturn but you are free, you have nothing to worry for?

Investing the money you can not afford to lose is never a good idea. When the risk is high, it is even a more worse idea. You should try to come up with extra cash to buy bitcoin with instead of borrowing it. For example you could look around your house and see if there is anything you don't need anymore which you could sell. Like an old laptop that you are never going to use. Then use the money to buy bitcoin.

[Maus0728]

Sure bitcoin is the safest crypto in this space to invest in, however, it could still shit on your pants. Taking a loan for an extremely volatile asset is a surefire recipe for a disaster.

Is buying bitcoin with your paycheck isn't enough? You don't want to imitate over-leveraged big boys, do you?

[Beparanf]

In bloodbath times, I tend to think to take a loan and invest in few prominent currencies and leave it for few years. Then I realize what happened to Luna and realize there is nothing surefire here.

So, there is risk in taking loan but then reward is high, and there is sense of safety in not taking loan. You would be kind of free? Yes you didn't make much/took advantage of market downturn but you are free, you have nothing to worry for?

This is a good idea if you have a very good source of income that you can use to pay it without relying on the profit of your investment using the loan because you will in a lot of trouble if you are just gambling the money that you can't using other source of income.

I once do that and I end up burning the money by investing on altcoins during 2017 bear market. I was forced to liquidate the remaining asset since the interest is of the loan is increasing while I don't see any future to my investment. After few years, The market pump including all the altcoins that I purchased before into astronomical level, I regret that part and probably I will hold if there's no interest pressuring me for my investment.

[Apocollapse]

Bitcoin which are the safest cryptocurrency is still considered as high risk investment and altcoins is worse than Bitcoin itself. Taking a loan for investing in high risk investment is really bad option, it's not like a business where you can calculate how much the net profit if you calculate about anything e.g. cost of production, cost of distribution, operating expenses, gross profit etc. Bitcoin is still a speculation asset and we can't know how long it will worth in the future.

[Kalchef]

In bloodbath times, I tend to think to take a loan and invest in few prominent currencies and leave it for few years. Then I realize what happened to Luna and realize there is nothing surefire here.

So, there is risk in taking loan but then reward is high, and there is sense of safety in not taking loan. You would be kind of free? Yes you didn't make much/took advantage of market downturn but you are free, you have nothing to worry for?

Wait till you get punish for not taking risk, what are you waiting for? I believe this is the season to start taking those risky investment for long term because this is when millionaires are born, the only advice I can give you is invest only what you can afford to lose, take loan that you can pay back easily no matter what happens.

[cryptoaddictchie]

So, there is risk in taking loan but then reward is high, and there is sense of safety in not taking loan. You would be kind of free? Yes you didn't make much/took advantage of market downturn but you are free, you have nothing to worry for?

Yes it is. Could it really be a free actually when you can pulled of a good use of that loan.

These whales are taking advantage of those loan in a sense they are just using those loan to profit at an expense of free money. How? By their corrective measure of applying of defi or trading. I kinda bit amaze on how these people do it easily and taking those risk as piece of cake task.

[kudosinitchi]

If i were going to loan, i'll definitely put it in a small business. Though, you can also invest in crypto but it should be you in your control so that when the market is unstable or in a downtrend the loss is minimal. The choice between investing in small businesses or crypto comes down to your own financial goals, desired portfolio, and risk tolerance. Small businesses can be more exciting and may provide a chance to support your daily needs. Each has its risks, and the best scenario is to invest in a variety of opportunities.

[Charles-Tim]

Taking loan should be better for doing business that can guarantee you return and in a way you will be able to pay back the laon. Some people, even rich people do take loan for businesses, that is normal, but taking loan to invest in cryptocurrencies is very risky, it is not advisable in any way. I better just remain not investing on cryptocurrencies than taking a loan for it.

In this period, we have not known yet what could be the bottom price, I mean if the price of cryptocurrencies will continue to fall further or not. It is good to be patient, use your own money to invest, if you do not have money to invest, then better not take a loan because crypto market is so risky. Also, donalwqys consider altcoins very risky, like gambling.

[Poker Player]

In bloodbath times, I tend to think to take a loan and invest in few prominent currencies and leave it for few years. Then I realize what happened to Luna and realize there is nothing surefire here.

So, there is risk in taking loan but then reward is high, and there is sense of safety in not taking loan. You would be kind of free? Yes you didn't make much/took advantage of market downturn but you are free, you have nothing to worry for?

I have been on forums for a long time and I can tell you that posts like yours when there is a market downturn are common, and they don't usually end well.

You can do well, just like going to the casino can do well, which does not mean that it is a good strategy to make money.

I think mk4 has got it right:

Taking loans for asset investments you mostly have no control of is kinda dumb.

1. Markets can drop far further than we think it can
2. It can take longer than expected to go back up
3. Especially when talking about crypto outside of bitcoin, you're taking so much risk that it's multiples of magnitudes dumber

If I were to take a loan, it would mostly be for something like a business that I've deeply thought of and strategically planned for already.

[NeuroticFish]

In bloodbath times, I tend to think to take a loan and invest in few prominent currencies and leave it for few years.

You're here since 2017. I'm sure that you've read a good couple of times "don't invest what you don't afford to lose". And I'm sure you understand that loaned money is greatly in this category.
There are 2 problems I see here:
1. Nothing is guaranteed, even with the "proeminent currencies". What if your investments go down and never recover?
2. A very common situation is big price fluctuations. Maybe the coins you buy would end up very good, but first they can easily and fast go much lower than the price you bought at. Since it's borrowed money there's much better chance you freak out, sell at a loss, and the price recovers only afterwards. (With borrowed money you may be more vulnerable / you may get scared much easier by price drops.)

[Pmalek]

The answer to the question if you should take a loan to buy cryptocurrencies is a very simple one. NO, never!

The money is not yours, and you would be taking too much of a risk putting it into something as volatile as Bitcoin. If you have some savings or you would like to invest a part from your salary, that's OK. Would you take out a loan to play Blackjack? Would you do it to place a bet on a football match? I hope the answer to these questions is NO. 

If you can't pay back on time, the bank will charge you more. Depending on how much you borrowed, they could seize your assets and possessions. Not paying back on time will destroy your credit rating, and if in the future you need a loan for a much more valid reason like the health of you and your family members, it will be harder for you to get one. 

[Darker45]

I guess it depends on the amount of loan and your capacity to pay for it even if your investment doesn't give you a return in a year or two.

I know a lot of people who take advantage of loans because they're offered with low interest rates. Some are also taking loans just to increase their borrowing limit. And many of them take these loans just to buy luxurious stuff which are otherwise unnecessary like the latest iPhone. They go shopping. They travel. They go abroad and watch concerts and play in casinos. In other words, they are taking loans and squander them. So if people can do this, why can't you take a loan and invest? But, again, for as long as you're capable of paying it.

[Pmalek]

But, again, for as long as you're capable of paying it.

No one knows what the future holds. That's why it isn't recommended to do things like that. Sure it looks great now, great job, great wife, beautiful kids, new house. But in the future that all could turn into being laid off, divorce and paying alimony, and no house due to a fire, earthquake, or other disasters. If that wasn't bad enough, the bank is on your ass because your borrowed money to buy Bitcoin. That didn't work out, and you are having problems paying them back.     

[acroman08]

taking a loan to invest in something as volatile as cryptocurrency is never a good idea. sure, the reward might be high if the price went up from the time you bought the coins but If it didn't you are the one who is going to suffer. mk4 listed good points regarding the topic.

this reminds me of a thread where the original poster took a loan and invested it in a meme coin. as you guessed the price of the coin crashed and left him at a negative profit.

[Mpamaegbu]

It sounds a great idea to invest into cryptos at a time like this that we're beginning to think we've hit the bottom and that market will rebound any moment from now. Judging from that, I don't think it's such a bad idea taking a loan to finance a credible crypto investment. However, you should make sure that you've something that can help you repay that loan in case your investment fails and you're distressed. Make sure not to take a loan that will be too huge for you to repay, even spread out on your signature earnings in case you don't have elsewhere you can get cash from. For those saying it's a risk, I hope we all know that life itself is a huge risk too and not taking risk they say is the biggest risk in life.

[16xypjnxlrew]

It is not necessary to take a loan from a bank, you can ask for it on bitcointalk. Since you have MERIT, you will be approved, but unfortunately not more than $1,000. I also spend all day looking for where to get a loan, but no one gives it to me because I have NO MERIT. Today they tried to deceive me and now they demand almost $2000 for a non-existent loan (creditor sent $1,000 to another address and says he is not at fault)

[Welsh]

The thing is, Bitcoin doesn't even have to fail or not go up for you to be burned. Loans are taken out for a period of time. Usually, the longer they're taken out for the more fees associated with it. Interest rates will also go up in the future, and usually loan companies have their terms of service written in such a way that they can change the interest rate that you signed up for.

What I'm trying to say is, even if Bitcoin did go up to one million a coin, if it takes fifty years, you're probably still probably going to get burned because that loan had to be paid off within five years. I don't think gambling on whether or not Bitcoin is going to be successful in the long run is unlikely, and in my opinion is probably one of the more safe investments you can make, but to put a timescale on it, and then have the time pressures from the loan, that's just asking for trouble.

In short, nope don't do it.

[acroman08]

It is not necessary to take a loan from a bank, you can ask for it on bitcointalk. Since you have MERIT, you will be approved, but unfortunately not more than $1,000. I also spend all day looking for where to get a loan, but no one gives it to me because I have NO MERIT. Today they tried to deceive me and now they demand almost $2000 for a non-existent loan (creditor sent $1,000 to another address and says he is not at fault)

lol, your whole tread was a joke and members just went with the flow. not really sure what's your goal here. if it is for the sake of trolling good luck to you, but if it is to try and ruin someone's reputation I think you'll fail with that.

to anyone who might be curious here the thread I am talking about 1,999.91$ Loan Urgent - Are Copper Member •DireWoIfM14• is extortionist?!

also, sorry if the post is off topic.