Taking Loans - Is it ideal?

[Wakate]

Taking loan is idea but not the best as an advise especially when it comes to crypto loan. The crypto market is not certain and taken loan for an investment in crypto can be frustrating when the market is not turning positive. I know I have taking small scale loan before and I know how challenging it was having to pay with large interest rate and if the reason for the loan is not achieved then things might go wrong. Collecting loan is not the problem but paying the loan can be challenging to most persons.

[darxiaomi]

I will say ever NO, but the only way for me to do this its if you have the money to cover the loan plus the interest rate.

Let me explain. If you borrow 1000 you have in you saves 1100 so if all gone wrong you dont go bankrup, yes you lost your saves but you can sleep without a sword over your head.

I know the lecture its "correct" we are bottom deep and we have to go upside, but not always works. And like a few say before, this can take time , and maybe you need to cover that loan before that bull runing.

In other thinks you never know when you can have an emergency and need the money.

[aioc]

Just a mere fact that he is asking, your friend is not sure if taking a loan to buy Bitcoin is a good idea, it's not a good idea and I myself discourage this to all my friends not even using your family saving to invest in the market in a bear trend is a good idea, the market volatility is very high in the bear period it could go down further for an indefinite period of time and if you take a loan to invest you'll end up having to pay interest and the principal with your own money while you're waiting for the market to improve.

[KingsDen]

It is a nice idea to get a loan and buy bitcoin now. The idea is cool but you must have to put some things into consideration. Things such as;
The longevity of the loan: If you can get a company that will give you a loan of 5 to 7yrs duration, it is fine. Buy bitcoin now and you can't regret it by then.
While still going for the loan, ensure you don't go against the rule of not investing more than you can loose. There is no harm, take your loan and do 3 times DCA. Buy 50% now, few months time Buy 30% and later buy 20%, then wait for your testimony in 2027.

[Viscore]

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 you have a stable job that can repay it, then why not? However, taking loans is something that should be wisely planned because it won't just for only a month or two, but you should deal with it for even a year or two, so it's always better to plan its payment ahead so it won't create troubles on your part. Although investments is a good choice over just safekeeping your money in a bank, but it won't always guarantee profits in the end, sometimes even if you do your best with your own strategies, it still fails in the end and lose your money. But having to invest in the right choice of investments will probably create more profits than losses, and crypto investment is never an exception.

[Davidvictorson]

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

Well, your friend might be a dare-devil risk-taking life-is-too short Rambo. He or she may believe that their money will 100x and they will be able to repay the loan and while they make a huge profit. I can't blame them. Bitcoin means different things to different people and we are therefore driven by it.  In my estimation, he should go for it. We might end up reading a blog post of his experience no matter the out.

[BIT-BENDER]

Well this won’t be old news for experienced members and members that choose to do their research, it’s never top of the list advice to encourage anyone to take a loan to invest in Crypto-currency, most loans has duration periods, thats period of loan pay back and although this varies it’s most likely there especially is it’s an official loan, as we all know the volatile nature of Crypto-currency, it’s unpredictable and you can’t tell what financial position your crypto-currency investment would be at the time the loan expires.

[Rockstarguy]

It is a nice idea to get a loan and buy bitcoin now. The idea is cool but you must have to put some things into consideration. Things such as;
The longevity of the loan: If you can get a company that will give you a loan of 5 to 7yrs duration, it is fine. Buy bitcoin now and you can't regret it by then.
While still going for the loan, ensure you don't go against the rule of not investing more than you can loose. There is no harm, take your loan and do 3 times DCA. Buy 50% now, few months time Buy 30% and later buy 20%, then wait for your testimony in 2027.

Collecting loan to buy bitcoin simply mean investing amount of money that cannot be afforded. Taking loan to invest bitcoin can work for some people and it can also not work for some people. But it is not a good idea for one to think of taking a loan to invest because of the risk and volatility that is involved in bitcoin.  Planning to invest in bitcoin their supposed to be a source of income to always back the investment up, than not having anything and the next step to take is to take a loan to buy bitcoin.

[Taskford]

Taking loans will be ideal if you have stable source of income and can able to full repay your debt if something bad to your investment. But if you just ride the hype  and take loan since you want to risk without having an assurance that you can pay and just think about you can profit then pay your debt later then this is totally BS after all because in times of disaster for sure this could give us a huge problem.

[2stout]

If one has the disposable income to do so and is at peace that all of it could be lost, then I would say now is as good a time as any to do it.  If the market was at or near peak, I would recommend not now/hold off/wait to avoid the potential wipeout that could follow if/when the price drops.

[qwertyup23]

<...snip....>
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.

I do agree with your posts, OP.

The problem with loans is that you are exchanging a guaranteed liability to something that is absolutely risky on itself. The proceeds that you may earn in a high-risk investment can be potentially dangerous especially if you have no other means to repay the said loan. Though I know a handful of people who had successfully done this kind of venture, I still highly advise all to do so as it will most likely lead to more liabilities.

If you want to utilize your loan, at least use them on things that are relatively risky- not on high-risk investments such as cryptocurrencies.

[lovesmayfamilis]

For me, taking a loan is tantamount to the fact that I completely lose peace of mind during the period of my debt. And even more so, we are talking about buying bitcoins, which do not have their own stable price. What to say about a person who can decently lose his psychological health? This is that with every step, he will make even more mistakes... For such loans, you need to have a stable income, which, in spite of everything, will be able to replenish the monthly interest, as well as strong nerves. But in my country, unfortunately, and indeed in the whole world, there has been no stability for a long time.
Therefore, it is better to sleep well than to twitch at every bad financial news.

[Taskford]

For me, taking a loan is tantamount to the fact that I completely lose peace of mind during the period of my debt. And even more so, we are talking about buying bitcoins, which do not have their own stable price. What to say about a person who can decently lose his psychological health? This is that with every step, he will make even more mistakes... For such loans, you need to have a stable income, which, in spite of everything, will be able to replenish the monthly interest, as well as strong nerves. But in my country, unfortunately, and indeed in the whole world, there has been no stability for a long time.
Therefore, it is better to sleep well than to twitch at every bad financial news.

You might get worried on 3 things first is if you can able to pay what you borrow, second is can I get a roi/profit on that lended amount and 3rd one for sure you get worried about volatility since if the price of borrowed altcoin or bitcoin pump up for sure we will pay more higher price and that is so stressful action to do that's why borrowing is not a good option to do in any case upon buying crypto.

[Hypnosis00]

Taking loans will be ideal if you have stable source of income and can able to full repay your debt if something bad to your investment. But if you just ride the hype  and take loan since you want to risk without having an assurance that you can pay and just think about you can profit then pay your debt later then this is totally BS after all because in times of disaster for sure this could give us a huge problem.

That is a big factor to consider but even if there is nothing for as long as your business is running and already in profit, taking a loan isn't wrong. However, if the purpose of taking a loan is to invest in crypto, I don't recommend someone to do that, especially if you just rely on the profit that you will get to pay for the debt. I know it was a good attempt but putting in crypto is a wrong decision. We can't assure profit from here, that is why many people will not say it is okay as this possibly compromise yourselves in the day's coming.

[Crypto Library]

The matter was for once but this  given to my  hand a  calculator. For some time I thought of mortgaging the land and buying 1 BTC . But after this I saw  these questions

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?

And also understood that being to much greedy it's not good.

[Lida93]

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 a loan to feed an investment is really not a bad idea only if you're taking such loan for the right investment and with a higher certainty of a return investment based on what, where and how you're investing.

I remember a relative of mine that took a loan to invest it in his line if business, today he's a Big Short in the sense that his area of investment paid off, but when it comes to cryto trading, involving loan in it to be used as the means of investment I will advise everyone should avoid.
The market is not your mate!

[lovesmayfamilis]

That is a big factor to consider but even if there is nothing for as long as your business is running and already in profit, taking a loan isn't wrong. However, if the purpose of taking a loan is to invest in crypto, I don't recommend someone to do that, especially if you just rely on the profit that you will get to pay for the debt. I know it was a good attempt but putting in crypto is a wrong decision. We can't assure profit from here, that is why many people will not say it is okay as this possibly compromise yourselves in the day's coming.

That's exactly what I meant. By itself, a loan is meant as temporary assistance so that a person can start their own business and eventually pay off their debts. For example, I pay interest on a loan I took out to buy my own home. For many citizens of my country, this is a fairly common occupation. But risking buying cryptocurrencies on credit would be a very ill-advised move.

But I do not reject those moments when a person has a lot of experience in trading as well as a financial strategy. I think a person can expect ruin without this.

[Poker Player]

In line with the discussion, I must remind you that the number one business in the world is debt. Selling debt in all its forms, personal loans, mortgages, credit cards, deferred payments for consumer goods, etc.

I meant. By itself, a loan is meant as temporary assistance so that a person can start their own business and eventually pay off their debts. For example, I pay interest on a loan I took out to buy my own home.

In other theads I have commented that the ideal for a person or family is to get into debt just to buy a house to live in. Nowadays it is common to get into debt for other things, like buying a car for example, but consumer loans are a financial ruin.

Better a mortgage for your house and the consumption: cars, washing machines, trips, etc. pay it with cash. And investments, which is what this thread is about too. It is a question of percentages and risk: on average an individual investor will do much better if he invests with money from his own pocket than if he takes a loan, and he will be more relaxed, as your previous message reflects.

For me, taking a loan is tantamount to the fact that I completely lose peace of mind during the period of my debt.

[Fireebrand]

This is definitely not the best idea. Borrowing money to invest only keeps you in debt. You aren’t really investing then, because why the impulse? If you have FOMO, just wait until you have sufficient funds. Until then, use the time to learn about the market a bit more. Good luck!

[Marvell1]

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.

I also don't like to take out a loan to invest, especially in high-risk investments. Even though I can afford to repay those loans, it seems that every time I invest money borrowed from my loan, it puts pressure on me and makes me wonder where to invest to earn soon profit.

Bitcoin can be considered a good investment but with its volatility and unpredictability, we never know when it will rise again. So I just invest with the money I have.