Taking Loans - Is it ideal?

[uchegod-21]

If you can borrow money to start a business, you can borrow money to invest in bitcoin. Why did I say so, it is obvious bitcoin will give you the profit that you desire. Then the point to note will be the conditions behind the loan. How long and what is the interest rate. The profit that bitcoin may give you in 3 to 4yrs time, will it be able to cover for the interest of the loan and then you still have enough after you subtract your capital. If it doesn't worth it please don't do it.

Also remember the trauma that you will have to face waiting for bitcoin to rise. You will keep checking your portfolio for years and not have rest of mind. If you are able to bear this, you can borrow abs invest

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[Fivestar4everMVP]

This is indeed a very good advice and things to consider before taking a loan for the purpose of investing in bitcoin or any other crypto currency.
To be honest, I've seen a lot of loans taken and invested in crypto that did not end well,  many have lost valuable assets they used as collateral in the process of taking a loan.
I, personally would rather not invest in a coin than to take a loan for that purpose, investing my own personal money gives me peace of mind, for I know that, even if at the end of the day, the investment didn't pay off, I have no body to come knocking on my door to pay them their money back.
On a very rare occasion will I borrow or take a loan to invest in crypto, and when I do, I must make sure it is somebody I know personally, maybe a  close relative or friend, whom, if at the end of the day, am unable to repay the loan on time due to some reasons, the persons would understand and not use that as an avenue to rip me off.

[Hyphen(-)]

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?

Taking out a loan to invest in Bitcoin or cryptocurrency is never a good idea, and should be the last option an investor considers. As we can see right now, the cryptocurrency market can never be predicted; the market is sinking deeper every day. If you took a loan to invest when Bitcoin was around $30k, you will now be regretting that decision. The simple analogy is that you should only invest what you can afford to lose.

[Doan9269]

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?

All these listed by OP are essentially important to put into consideration before applying for a loan, I'd thought about some reasons behind taking a loan as unnecessary and unsolicited, why take a loan in the first place, the best reason why a loan must be taken is for business expansion, in which it is aim at a particular target to be met, but the other reason that is not genuine at all that warrant for taking a loan makes the debtors suffers a payback of the loan.

[ms-bit]

You can never know for 100% if crypto is going to rise or drop... even though if's really cheap right now, i would say taking loans is very risky, you can remain with nothing at the end

[sunsilk]

You can never know for 100% if crypto is going to rise or drop... even though if's really cheap right now, i would say taking loans is very risky, you can remain with nothing at the end

Has always been risky. Riskier than the market.

For those that has other means of earning and they can repay the loan by that source of income, they'll really consider that it's okay for them to take a loan because they can easily repay it.

But those that have plan to pay it from the result of the market 2-5 years from now, that's the riskiest thing to do and the lender will have you sum up all of those interests that you might be surprised of paying it in total of accrued and accumulated.

[xSkylarx]

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.

Taking a loan for investing on something that is very volatile will not always be a good decision. How will he pay that loan? Is he thinking that he will just wait for bitcoin to pump then pay it? What if the market takes longer to recover than the deadline of his loan? What if it's just breakeven when you sold it, then you just wasted your time buying and holding that bitcoin.

For me, take a loan only if you have other source of income to pay it. Bitcoin is a good investment for long term but is very volatile so don't be in debt just because of its increasing value that you see.

[ms-bit]

You can never know for 100% if crypto is going to rise or drop... even though if's really cheap right now, i would say taking loans is very risky, you can remain with nothing at the end

Has always been risky. Riskier than the market.

For those that has other means of earning and they can repay the loan by that source of income, they'll really consider that it's okay for them to take a loan because they can easily repay it.

But those that have plan to pay it from the result of the market 2-5 years from now, that's the riskiest thing to do and the lender will have you sum up all of those interests that you might be surprised of paying it in total of accrued and accumulated.

sure, for people who can easily pay off loans they take, it is risky but not fatal. otherwise, it's just stupidity i would say

[sunsilk]

Has always been risky. Riskier than the market.

For those that has other means of earning and they can repay the loan by that source of income, they'll really consider that it's okay for them to take a loan because they can easily repay it.

But those that have plan to pay it from the result of the market 2-5 years from now, that's the riskiest thing to do and the lender will have you sum up all of those interests that you might be surprised of paying it in total of accrued and accumulated.

sure, for people who can easily pay off loans they take, it is risky but not fatal. otherwise, it's just stupidity i would say

Definitely, for those that have a lot of sources to pay and cover that debt, that wouldn't be a problem to them as much as those that have taken loans without even planning it well.

Learn it from those who had done it before and they've encountered a problem hardly and badly. You don't want to happen that yourself if somebody is planning to do it.

[Note3]

Also remember the trauma that you will have to face waiting for bitcoin to rise. You will keep checking your portfolio for years and not have rest of mind. If you are able to bear this, you can borrow abs invest

This is the most difficult part that people who buy bitcoins have to go through with borrowed money especially if there is interest, seeing the value in usd continue to fall and have to keep paying debts with interest, only experts who understand the btc cycle can survive if they don't understand it will be very possible to be very stressed and lose a lot, sell btc cheaply and pay debts with interest.

[stadus]

It's not ideal but if you are willing to take the risk, it's up to you.

I know some people who are successful when it comes to investing in crypto and they borrow money or sell their property to reach the success they are enjoying now. They are risk-takers but I would not suggest following the same decision especially if you are not ready to accept the losses in case things won't go based on your expectation.

Invest what you can afford only, which means don't borrow to invest.

[Masplanc]

It's not ideal but if you are willing to take the risk, it's up to you.

I know some people who are successful when it comes to investing in crypto and they borrow money or sell their property to reach the success they are enjoying now. They are risk-takers but I would not suggest following the same decision especially if you are not ready to accept the losses in case things won't go based on your expectation.

Invest what you can afford only, which means don't borrow to invest.

On a norms it is not advisable to take a loan for trading or investment because of the volatility in cryptocurrency. For those who think making a decision like this will be better for them, they can make their decision because it may eventually work for them for good. But in the crytocurrency world taking for investment is a serious risk.

[samcrypto]

You can never know for 100% if crypto is going to rise or drop... even though if's really cheap right now, i would say taking loans is very risky, you can remain with nothing at the end

There’s always a risk with taking loans and we should only take advantage of this if you are confident about your investment strategy and not because of the market situation. There’s still a chance that the coins/tokens you are planning to buy will not be able to survive and that could be a big mistake for you. This is good suggestion OP, and always a good reminder to those who are planning to take such risk, better to consider this first.

[Natalim]

Well, the idea isn't totally wrong as it has a reason and intended for good. But the question is if there is another source of income to cover up once we fail in crypto or once the profit is delayed? This is the thing we need to consider first before taking a loan as many people missed that and that compromise their finances leading to committing more debts.

I don't say we won't but just I've said " we have to consider our capabilities to repay it in time", otherwise.

[Zlantann]

Taking loan to invest is any form of business is not advisable because business is a risk. Although most businesses are using borrowed funds to run some successful ventures. But the crypto business is very risky because of its fast and unpredictable volatility. Hence, taking loan to invest in Bitcoin and any other cryptocurrency might not be ideal. I can only take a loan to invest or buy a house if I don't have one because that house would serve as an investment while also meeting my accommodation need.     

[SuperMariob]

Usually is not a good idea to invest money that you can't afford to lose.
And in crypto this rule is even more important.
I would recommend your friend to invest jsut what he actually has and what he can afford to lose.
The time frame between a bear and a bull market can be quite long.

[Falconer]

To be honest, I haven't considered taking out a loan in the past year for any need. This is not a good time for me to think about it especially because of rising inflation. My country has experienced more than a 4% increase in annual inflation and that's the worst percentage for the past few years, so I'll be ignoring a loan or something while I can afford to make ends meet.

The idea of ​​applying for a loan for investment had actually crossed my mind a few years before, but it was only a hope that did not materialize, especially in the very bad financial condition of the Covid 19 pandemic. Now and for next year, I still will not do it even though I currently have a number of collateral.

[abel1337]

It's not an ideal thing to do in order to purchase some bitcoins. Bitcoin is a volatile asset, if you loan now there's a good chance that bitcoin can go on more lower prices on a short term that can make your loan a headache. Most of us expect bitcoin will rise again but it will take years before it enters bull market again so Investing on crypto should be done using your own money that you can afford to lose because on how much volatile crypto market are.

There's a great risk but also there a good chance you can take advantage such as reducing tax and also profiting out in your loan as long as responsible on paying it. But my personal take is not to loan for the means of purchasing some crypto. 

[Stacaato]

Taking a loan to invest is never a good idea. Just think about it, you will have to repay with interest or not, that’s secondary. Isn’t it better to just invest with the money you already have? If you don’t have the funds, just be patient until you earn it. Until then, you can spend some time learning. When you do have your own funds, that’s when you invest. See, the market is already a risky place to be in, you do not want to make your journey harder than it already may be! Good luck!

[Gosgosking]

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?

Taking out a loan to invest in Bitcoin or cryptocurrency is never a good idea, and should be the last option an investor considers. As we can see right now, the cryptocurrency market can never be predicted; the market is sinking deeper every day. If you took a loan to invest when Bitcoin was around $30k, you will now be regretting that decision. The simple analogy is that you should only invest what you can afford to lose.

It should never even an opinion,  what is the point of taking a loan to invest or trade and maybe the market becomes so bearish , that will be so stressful to come out from the lose of paying the loan and trying to be fine emotionally from the lose. Taking loan to invest or trade is a wrong decision to think about honestly.