Taking Loans - Is it ideal?

[Doan9269]

Taking a loan to invest is never a good idea

We need to understand that it's not about taking the kian that matters vut if not the adequate plan for how to execute the loan into a profitable means, it's not a bad thing to go for a loan on an investment but some conditions must be met that warrant taking the loan, i believe loan is not for everyone but only the established businesses seek for loan service in other to create an expansion of which they have alternative sources to make a payback as well unlike an individual that does not understand the whole concept.

[Nicholas Schaefer]

Taking a loan is not a good idea because the market is volatile and there is no guarantee how it will turn out to be. Take the recent example. Imagine those who invested in Bitcoin by taking a loan. Today, they are facing losses and also have to pay their debts.

[Gosgosking]

Taking a loan is not a good idea because the market is volatile and there is no guarantee how it will turn out to be. Take the recent example. Imagine those who invested in Bitcoin by taking a loan. Today, they are facing losses and also have to pay their debts.

They are not really facing loses only if they can hodl but it seems impossible because it is expected to use the profit made from bitcoin to pay back the loan. Taking loan to invest in bitcoin is a big parasite that even if you tried to hodl the bitcoin,  you will be in tension and panic to quickly pay debt. Its never nice to take loan for investment.

[freedomgo]

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.

I am personally taking loans if its really necessary, but when it comes to investing, i don't think its gonna work. Although we know that there's always better future in bitcoin, but knowing when to make profits in a very unpredictable market will always be uncertain. So if you take a loan for a mere investing, i guess that will give a lot of pressures on your part especially if you have no stable source of income other than your investment.

Bitcoin is a good investment, but taking loans to create bigger opportunities to accumulate more bitcoin is something that i don't see its ideal to do.

[Bhig Daddy]

I wouldn't say it ideal to take loans just to invest in bitcoin, what I do tell people who want to invest in bitcoin is that always try to put in the money you can afford to loose, because with bitcoin there are no guarantees. So always try to put in what will never be setback to you even when the market falls.

[Florin Lambert]

It is never a good idea to take loans, and use it to invest in financial markets. Moreover, crypto is a volatile market. Look at the current scenario. Only invest the extra money you have. Do not invest anything beyond that.

[Russlenat]

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.

I still don’t suggest taking a loan as much as possible even if you are capable enough to repay it from your other sources of income. Although your intention is to increase your profits through having another investment, but the fact that you have to pay the capital plus its high interest, that really sucks. You may gain profits out from your investment, but I think the profits will only cover the interest instead. This is why it’s better to save for it than just being in a rush and commit into a loan.

[isaac_clarke22]

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Coming back to this thread, I read that some people would do this kind of stuff just to "contribute" to their credit score so that they would be flexible in the future in terms of availing such loans, though for me, I would not risk that loan over something volatile.
The stakes are high for this and your credit score would depend on how much crypto goes in couple of months or depending on the time that you are required to repay the loan.

[masulum]

I would not risk that loan over something volatile.
The stakes are high for this and your credit score would depend on how much crypto goes in couple of months or depending on the time that you are required to repay the loan.

Yup, it's best not to borrow for highly volatile investments like Crypto. it's good if predictions and analysis are in accordance with market conditions, when it wrong, what happens? The borrower will experience 2x losses, capital loss and a loss because interest is not deducted. Actually, I am a borrower, and this is bad. When we borrow money that requires interest, this can add to the interest itself which can trap us. Avoid as much as possible, because this will be very complicated. I can say this, because i have an experience with similar conditions.

[alik111]

Beginners must avoid taking loans for the investment in Crypto.But someone who knows how to make proper investment and have enough technical analysis can take loans. But I will suggest when you aren't a pro trader don't take any loan otherwise it will be the worst decision because of high volatility in Crypto market.

[Luzin]

Yup, it's best not to borrow for highly volatile investments like Crypto. it's good if predictions and analysis are in accordance with market conditions, when it wrong, what happens? The borrower will experience 2x losses, capital loss and a loss because interest is not deducted. Actually, I am a borrower, and this is bad. When we borrow money that requires interest, this can add to the interest itself which can trap us. Avoid as much as possible, because this will be very complicated. I can say this, because i have an experience with similar conditions.

Whatever the investment if we use our own funds it will be calmer. Even though I think indeed everyone's thinking is different. They are free to choose but they must take responsibility for their choices. I agree with you, I think using the funds you have does not need to be in debt. Make the most of what we have, because I believe big starts small. We must be able to make the most of it. I think it's the best option. But in reality there are also those who owe debts. Some succeed, some fail. So just adjust our abilities and be prepared to bear the risks.