Taking Loans - Is it ideal?

[isaac_clarke22]

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mk4 summed up pretty much everything and what your "friend" should need to know.
Adding up to his point, consider also thinking about that you still need to pay the loan in the end. Think about it, if the market went bullish one day and all those returns you're going to get are purely for only paying the interest from your loans.
While loaning comes always with a risk, the stakes are high when it comes to crypto.

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[Coyster]

Personally i can't take a loan to invest in Bitcoin, i hardly ever take loans, and the few times i have ever taken one i knew the sort of pressure i wan under when i tried to raise money to repay my creditor and things were not going according to plan, one time it led me to take another loan, as i had to borrow from a different person to complete the due sum of my first loan. You can imagine eh?

Now imagine if i took a loan to invest in Bitcoin few weeks back and this dump came, that will definitely drive me nuts, and it will indeed affect my peace in RL and my relationship with my family and loved ones, that is not something i want, thus i will only buy Bitcoin with my money, with the understanding that this is money i can afford to lose, and whatever should happen i will take full responsibility for.

[dansus021]

this is just my opinion base, that taking loan for investment is really not a good idea, i mean maybe crypto right now is plummeting and really worth to buy but we dont know is this the real dip or not. and crypto is self is high risk 

but if your friend really know with what his doing it still fine because life is choice 

[dbc23]

I have a friend who are keep on asking me if taking loans just to buy Bitcoin is ideal thing to do so?
I understand the market is very cheap right now, and because of this I just want to share some tips especially to those newbies who are also considering the same thing.

Before you apply for a loan make sure to consider this first.

1. How much money you can afford to take the risk?
2. Is the profit enough to repay the loan, is there any guarantee?
3. Can you still repay the loan even if the market continues to drop?
4. Is your collateral enough to cover your loans?
5. Are you confident about your investment decision?

These are the common questions for myself before taking loan for the purpose of reinvesting, I know this can be a good opportunity to increase your holdings but if you don't have the funds yet, better not to rush yourself and just wait for the right moment. Taking loans is good if you are responsible enough to repay it, but if you think you can't better not to apply at all.

If i go by collateral worth covering up for the loan in case the price keeps falling then it isn't worth risking. I will rather work with a loan that my income can offset. If it is Bitcoin i want to buy i will feel the risk is worth taking but at the current market situation i will rather wait a little more before i make my decision on buying. Bitcoin might look cheap at the moment but who knows it could even go cheaper than this

[Bhig Daddy]

I wouldn't advice anyone to take loan just to invest in bitcoin, the current economy is awful and taking Loans something which is not sure is not ideal. Taking this decision might set up for life when it actually goes your way but what if it don't?

[CryptoHeadlineNews]

Taking loans from bank is not a bad idea, but taking loans from bank to invest blindfully is where the problem comes. Because taking loans from bank to invest in Bitcoin, I will consider it a blind investment... Ask me why.
Reason been that;
1. You don't know how long it will take the price of Bitcoin to rise so you could take your profits and pay back the loan.
2. The loan interest rate will keep counting daily, not minding if the price of Bitcoin rise or not
3. The longer the loan duration, the higher the interest rate you will pay to the bank.


So taking loan from bank to invest in Bitcoin is risky because no one knows yet when the price of Bitcoin will rise, and how long it could take for the price to good up
to a significant profitable value.

[Japinat]

I have a friend who are keep on asking me if taking loans just to buy Bitcoin is ideal thing to do so?
I understand the market is very cheap right now, and because of this I just want to share some tips especially to those newbies who are also considering the same thing.

Before you apply for a loan make sure to consider this first.

1. How much money you can afford to take the risk?
2. Is the profit enough to repay the loan, is there any guarantee?
3. Can you still repay the loan even if the market continues to drop?
4. Is your collateral enough to cover your loans?
5. Are you confident about your investment decision?

These are the common questions for myself before taking loan for the purpose of reinvesting, I know this can be a good opportunity to increase your holdings but if you don't have the funds yet, better not to rush yourself and just wait for the right moment. Taking loans is good if you are responsible enough to repay it, but if you think you can't better not to apply at all.

Taking loans is not that bad i guess if you have a stable job that can sustain its payment, or another investment that is already doing good. However, if you are still a newbie in investing and you just want to take advantage of the bearish market, i think that is still not reasonable. You only have to invest if you have extra money already, and that are not intended to pay your bills or for emergency purposes. Otherwise, taking loans will only create future circumstances that you will have to regret.

[Kasabus]

Taking loans is good if you are responsible enough to repay it, but if you think you can't better not to apply at all.

If you're responsible enough to repay the loan, you're already have money at the beginning and you didn't need to take a loan lol. The reason why many people taking a loan is they didn't have any money while their needs or desire force them to do that. They're already calculate how much the profit and how long they can pay, but many scenarios goes wrong and they're begging to their parents or families to repay their loan.

That is where the newbies get wrong from investing because they always anticipate the profits first, not knowing that this crypto market could make them lose their funds in an instant. But they will only get the idea once they start to experience it. Honestly, its not wrong to take a loan because you only want to make profits and progress, but if you are a responsible and practical person, you would not want to enter and invest if you have no other resources that you can rely on when things are not happening based on your expectations.

[Finestream]

I have a friend who are keep on asking me if taking loans just to buy Bitcoin is ideal thing to do so?
I understand the market is very cheap right now, and because of this I just want to share some tips especially to those newbies who are also considering the same thing.

Before you apply for a loan make sure to consider this first.

1. How much money you can afford to take the risk?
2. Is the profit enough to repay the loan, is there any guarantee?
3. Can you still repay the loan even if the market continues to drop?
4. Is your collateral enough to cover your loans?
5. Are you confident about your investment decision?

These are the common questions for myself before taking loan for the purpose of reinvesting, I know this can be a good opportunity to increase your holdings but if you don't have the funds yet, better not to rush yourself and just wait for the right moment. Taking loans is good if you are responsible enough to repay it, but if you think you can't better not to apply at all.

There's always a risk everytime you decide to invest, but there's always a bigger risk if you still take loans just to invest.  So its like you are putting additional pressure on your part, besides not even sure of if your investment is going to click and prosper. I don't see anything wrong if you just wait for the right time first to invest, save a good amount first that you think that you can afford to lose. Also, you can't be approved of any loan if the bank or the lending company do not see any supporting documents that states that you have good income to repay the loan.

[lalabotax]

Personally, I will never take loans as an ideal way to invest in Bitcoin. For me, this is the riskiest way to take it. For, I am not sure that I can hold that high risk, the price of Bitcoin is very volatile. We don't know exactly when it will rise again. Although we believe that Bitcoin can really rise up in the future. Butt, when?
While taking loans need a certain time to turn back. And are you sure that we still have money and get the profits when we must turn back the loans and their interest probably?

[Renampun]

...

These are the common questions for myself before taking loan for the purpose of reinvesting, I know this can be a good opportunity to increase your holdings but if you don't have the funds yet, better not to rush yourself and just wait for the right moment. Taking loans is good if you are responsible enough to repay it, but if you think you can't better not to apply at all.

this is still a consideration for many people today, especially those who do not have cash but want to enter the market because they see the market is bearish...

In managing the loan funds that we borrow, we must have a good strategy;

• make sure first that you have funds that are definitely ready every month to pay the loan
• use the money you borrow gradually (don't spend it all to buy Bitcoin, leave 35%), because if you use it all then it's a bet
• don't invest borrowed money in new investment assets or what you hear from other people, focus only on Bitcoin

[ice18]

Too risky, but many people said you cant be successful without taking the risks also most business owners taking a loan and start a business always a gamble just be responsible on how much you want to loan and the possible outcome if it will not be successful, yeah its a really bad idea but sometimes it can make you a lot of money especially if you bought at the bottom of this bear market and wait for another bull run, In the end its up to your self if you want to loan or not.   

[Rockstarguy]

I have a friend who are keep on asking me if taking loans just to buy Bitcoin is ideal thing to do so?
I understand the market is very cheap right now, and because of this I just want to share some tips especially to those newbies who are also considering the same thing.

Before you apply for a loan make sure to consider this first.

1. How much money you can afford to take the risk?
2. Is the profit enough to repay the loan, is there any guarantee?
3. Can you still repay the loan even if the market continues to drop?
4. Is your collateral enough to cover your loans?
5. Are you confident about your investment decision?

If I should ask why who one think of taking loan to invest in bitcoin?  Generally it is not advisable to borrow money you don't have or can't afford at the moment to invest because every investment has it own risk,  and we all know cryptocurrency in general is risky because of it volatility in  nature, the market can be bearish without anyone expecting it.

One who thinks of taking loan to invest such person sees bitcoin as fast money making scheme and and investing what cannot be afford. Normally in bitcoin it is not to ideal to invest all one has in the account,  then talk about taking loan to invest. Cryptocurrency should be invested accordingly,  the amount that can suit your income.

[Victorik]

Taking loans to buy cryptocurrency is like walking in the dark with your eyes closed.
Loans are risky venture and now using it to buy cryptocurrency is much more risky.
You don't have control over the market. The price can be up one minute and down the next.
It is always advice for your sanity to invest what you can afford to lose.
I could take a loan to build a house or buy a landed property, but invest a loan in Crypto is a no no for me.

[tvplus006]

I have a friend who are keep on asking me if taking loans just to buy Bitcoin is ideal thing to do so?..

Getting a loan from a traditional bank can be compared to margin trading. In both cases, if the price of bitcoin, contrary to your expectations, continues to decline, you will lose your money. In addition, the price of bitcoin may be in a long accumulation and you will not be able to get a quick profit, but you will have to pay interest on the loan at this time.

[Coyster]

Too risky, but many people said you cant be successful without taking the risks also most business owners taking a loan and start a business always a gamble just be responsible on how much you want to loan and the possible outcome if it will not be successful, yeah its a really bad idea but sometimes it can make you a lot of money especially if you bought at the bottom of this bear market and wait for another bull run, In the end its up to your self if you want to loan or not.  

Cryptocurrencies are too volatile, and taking loans to prolly start or grow your business is quite different. When you take a loan for your business, a large part of the job falls on you to use your skill and knowledge to grow the business so you can pay back before your loan is due, you are at liberty of applying your business skills and make smart moves for the success of your business, mind you i am not saying it is certain that your business will succeed, but part of the responsibility to make it a success is on you.

But it is quite different in crypto, you control nothing, you just buy and see what happens, more like gambling, i know Bitcoin isn't a gamble, but that is if you are talking long term, but in the short term quite a lot can happen to give you a hard time in RL if you invested with borrowed money. Thus what if your loan is a short term one and you have to pay back as soon as possible; I do not consider investing with borrowed money to be a smart risk, you could land yourself in big trouble if you do that.

[ShowOff]

I don't have to think about taking out a loan to invest in crypto especially bitcoin. If I have collateral then I prefer to sell it to get capital without having to think about repaying the loan. The risk may be the same due to a fluctuating market, but I can still minimize the risk of bad credit if the market is not good enough.

In addition to paying interest, you also have to pay the loan principal within the agreed period. This will not be good if you want to invest because the borrower will actually ask you to pay installments every month until the loan is paid off. So the best option if you have collateral is to sell it and invest an amount you can afford to lose.

[isaac_clarke22]

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Even by investing some part of your savings to crypto is already a risk, so I would not want to increase that risk further. The risk that business owners take is entirely different to investors to crypto. There is no volatility and it can be easily managed through research or feasib studies. Sure, we can research good coins out there to invest, but volatility would say otherwise.

[khaled0111]

Borrowing money to invest in such a high volatile market (cryptocurrency) is the same as taking a loan to gamble. It's too risky and I would never recommend any one to do it.

What makes you think that bitcoin is cheap right now! Do you have any guarantees that the price will not drop any further? Just remember what happened few days ago when the price fell from $28k to $22k in few minutes, so what you believe to be cheap right now may become expensive in the next hour. Is your friend ready to take such risk?
"Don't invest more than you can afford to lose! "

[Kelvinid]

Before you apply for a loan make sure to consider this first.

1. How much money you can afford to take the risk?
2. Is the profit enough to repay the loan, is there any guarantee?
3. Can you still repay the loan even if the market continues to drop?
4. Is your collateral enough to cover your loans?
5. Are you confident about your investment decision?

That all being said.
Even though the reason for this loan is good and for the investment plan, we also have to consider our capacity to repay the money. Having some backup like in a form of collateral or other sources of income is very important as in the case that our investment will fail (hope not), there is something we could get. Taking a loan shouldn't be rushed, yet it needs to be planned well.

Well, I see the big risk on the lender side, not those who took the loan. That's up to the lender to asses the capacity of the person, otherwise, he is the one who suffered losses in the end.