Trading With Borrowed Funds!!!

[Okereke]

It is true that some people have become rich through crypto trading in the recent times. But considering the high risk involved in trading, do you think it's proper/wise to trade with borrowed funds as your capital irrespective of your trading experience?

[Maus0728]

Why not if you're willing to gamble and the loan amount is within your personal risk tolerance? The problem is that having yet to learn what to do with borrowed money is a prime example of ignorance and a surefire recipe for disaster.

But who knows? Maybe one day you'll also become a crazy rich person OR become someone who will post their losses on a forum like this.

[Plaguedeath]

I advice to you and everyone else to not trade using borrowed funds!

In trading only 5% are making money while the rest e.g. 95% are keep losing because they don't know how to trade and analysis doesn't help at all, now you're borrowing your funds with the terms and interest you will need to pay, the risk would be higher than 95%.

You need to think what will you do if all goes wrong than your speculation.

[Poker Player]

It is true that some people have become rich through crypto trading in the recent times.

It is as true as there are people who have become rich playing the lottery, which does not mean that it is a good system to earn money. In fact, it is the opposite, a good system to lose it and end up much worse off than when you started.

The best ways to get rich are usually slow and boring, with some exceptions.

[jossiel]

It is true that some people have become rich through crypto trading in the recent times.

Most likely by being an investor and at the same time a trader.

But considering the high risk involved in trading, do you think it's proper/wise to trade with borrowed funds as your capital irrespective of your trading experience?

Simply and big NO!

You know that the risk is big and yet you're considering to borrow money just to trade. It's a risky thing to do and if you want to trade, trade only with your own money that you afford to lose.

[Adbitco]

Make sure to utilized the borrowed money otherwise you might regret borrowing funds to start trading, i have always shared a very bad experience of my closest friend who went ahead borrowing about ~$1500 in conversion to our currency then was about 1m, after which he funded his trading account with it and started trading to my greatest surprised he said of losing the whole fund within 1 to 3 weeks and fell sicked thinking on how to repay the loan he took this was the lockdown period (covid-19).

My word to you is that you can only borrow to invest in bitcoin but do not borrow to trade or gamble because they are extremely dangerous why? because if you trade you lost all your money, if you gamble you lost all your money but if you investing in bitcoin the money can either reduced in value or appreciate in value as bitcoin price keep soaring.

[Helena Yu]

Borrow money to invest is already bad decision, how about borrow money to trade? it's really the worst decision ever and you will loss more.

[noorman0]

-snip-
But considering the high risk involved in trading, do you think it's proper/wise to trade with borrowed funds as your capital irrespective of your trading experience?

Conversely, if you pay attention to your experience first, then you will be more careful in coming to conclusions on loans to increase capital.
Remember that crypto is very volatile, certain types of trading can wipe out your entire portfolio like day trading. Borrowing capital is actually a difficult choice. The shorter the trading term, the greater your risk, on the other hand, you will be charged more interest if you increase the tenor.

[xSkylarx]

It is true that some people have become rich through crypto trading in the recent times. But considering the high risk involved in trading, do you think it's proper/wise to trade with borrowed funds as your capital irrespective of your trading experience?

It depends, since if you don't have money or capital to start trading, then your only solution is to borrow funds, and if you wouldn't borrow, you wouldn't have anything with which to start. As I previously stated, taking risks can lead to success, but in this case, it is a do-or-die situation because if you lose it all in trading, you will undoubtedly be in debt that will be difficult to repay unless you have another source of income. I know most of you will say it's risky, so only spend your money or spend what you can afford to lose, but what if you are a talented person and your path is truly trading? How would you know if you won't borrow money to begin trading? 

[Beparanf]

It is true that some people have become rich through crypto trading in the recent times. But considering the high risk involved in trading, do you think it's proper/wise to trade with borrowed funds as your capital irrespective of your trading experience?

If you knew exactly how to manage risk then borrowing funds to increase your capital is a wise choice for more profit opportunity. Billionaires and all successful businessman do loans to fund there business. They use other people money that stuck in the bank to use on there own business to earn more then just pay the small interest rate for the capital borrowed. Loan can be helpful and at the same time very dangerous if you invest on something that is very risky.

It’s better to make sure that you have another source of income for paying the loans as back up plan in case your investment/trading didn’t go as plan because interest rate will gonna eat you alive in the long run.

[palle11]

It is true that some people have become rich through crypto trading in the recent times. But considering the high risk involved in trading, do you think it's proper/wise to trade with borrowed funds as your capital irrespective of your trading experience?

Borrowing is not totally bad if you can return the money because it will serve as capital for you and you can use that as stepping stone to grow and nobody will know if you borrowed money to start your business or not, and the talk of borrowing money will become in the past. However in trading, there are kinds of borrowing. You can borrow money directly from someone that you know to fund your account to trade and there is another kind of borrowing which is same thing as leverage. With leverage trading, you are allowed some amount of additional money which you don't own in your trading platform but the broker allow that for you. You have to be careful with leverage not to borrow in high leverage that will eventually destroy your account at the time of high volatility.

[Zilon]

It will obviously end in gamble. Even pro traders are advised not to trade with borrowed funds because crypto trading has high risk. It is better to trade with personal funds, no matter how small it might seem. In trading experience is best practiced with personal funds because there are high chances emotions and greed will set in and greed is mostly associated with borrowed funds.

[Ziskinberg]

It is true that some people have become rich through crypto trading in the recent times.

It can't be denied but just a few of them while many are still struggling hard due to the current condition of the market.

But considering the high risk involved in trading, do you think it's proper/wise to trade with borrowed funds as your capital irrespective of your trading experience?

It can be but it was not advisable especially if you are new to this (trading).
Huge capital - can possibly earn more but also it corresponds to high risk. If you are just new, better to start in small amounts and use your own money. Only just think about borrowing if you are capable enough and sure that you can make a profit from trading.

Besides, it was not all about capital but also, it is how a trader manages their trades and the strategies that are used.

[dothebeats]

Rich people always use borrowed funds to expand their businesses. The difference between rich people and average people like us is that they make their debts work for them, and for us we just use it as an extension of our budget or to buy things that won't make us money. Of course. trading with borrowed funds will always be riskier, and this should only be done when you are already established in the industry of trading and you have already amassed enough experience for you to handle such pressure. Same with investing with borrowed funds; it should only be done when you already have a good business model and you're sure that your business will be a hit.

[DanWalker]

It is true that some people have become rich through crypto trading in the recent times. But considering the high risk involved in trading, do you think it's proper/wise to trade with borrowed funds as your capital irrespective of your trading experience?

It depends, since if you don't have money or capital to start trading, then your only solution is to borrow funds, and if you wouldn't borrow, you wouldn't have anything with which to start. As I previously stated, taking risks can lead to success, but in this case, it is a do-or-die situation because if you lose it all in trading, you will undoubtedly be in debt that will be difficult to repay unless you have another source of income. I know most of you will say it's risky, so only spend your money or spend what you can afford to lose, but what if you are a talented person and your path is truly trading? How would you know if you won't borrow money to begin trading?

I totally object, why don't we start with the smallest amount and in case you don't have the money, you can also work a short time to get it as capital? Although trading is not gambling, but I can say its risk is almost the same, you can lose it all overnight. Its too high a risk to try, while I believe we all have better solutions to begin with. It is not wrong to take risks for the sake of success, but it is not the right thing to do in every case.

[jrrsparkles]

It is true that some people have become rich through crypto trading in the recent times. But considering the high risk involved in trading, do you think it's proper/wise to trade with borrowed funds as your capital irrespective of your trading experience?

Always someone is getting richer by doing something it doesn't mean that can ve replicated by everyone so don't get wrong understanding. You can become rich only via skills and experience and first thing is never borrow money to invest or trade which put you under high pressure situations.

[BitDane]

It is true that some people have become rich through crypto trading in the recent times. But considering the high risk involved in trading, do you think it's proper/wise to trade with borrowed funds as your capital irrespective of your trading experience?

You already stated it, trading is considered high risk so trading with borrowed fund isn't advisable.  There is always an advice that only invest what you can afford to lose.  Trading with extra money saves you from lots of headaches when trading goes wrong.  While trading with borrowed money may give you headache when your trading performance fail.  You lost the money plus you have to pay for the interest if the lender charges interest per month.

So it isn't wise to trade when you have no money to begin with.

It is true that some people have become rich through crypto trading in the recent times. But considering the high risk involved in trading, do you think it's proper/wise to trade with borrowed funds as your capital irrespective of your trading experience?

Borrowing is not totally bad if you can return the money because it will serve as capital for you and you can use that as stepping stone to grow and nobody will know if you borrowed money to start your business or not, and the talk of borrowing money will become in the past. However in trading, there are kinds of borrowing. You can borrow money directly from someone that you know to fund your account to trade and there is another kind of borrowing which is same thing as leverage. With leverage trading, you are allowed some amount of additional money which you don't own in your trading platform but the broker allow that for you. You have to be careful with leverage not to borrow in high leverage that will eventually destroy your account at the time of high volatility.

I do agree, borrowing money can give us the opportunity that we might miss because we don't have fund for it but one of the condition of @OP is irrespective of trading experience so it covers newbies and starters, and we know that newbies and starters often mess up their trading strategy so I am on the not wise stance.

[maikrothaman]

It is true that some people have become rich through crypto trading in the recent times. But considering the high risk involved in trading, do you think it's proper/wise to trade with borrowed funds as your capital irrespective of your trading experience?

Simple answer YES. Borrowed funds may be used for trading. Just make sure you have enough collateral and be very comfortable in case the trade doesn't work out.

[mindrust]

It is true that some people have become rich through crypto trading in the recent times. But considering the high risk involved in trading, do you think it's proper/wise to trade with borrowed funds as your capital irrespective of your trading experience?

That's called leverage and it is never a good practice especially when you don't have any funds to cover your loan.

It is like borrowing money from your friend and gambling with them funds.

What happens when you lose them games?

That's right, you will be in a biiig trouble.

Borrow money only if you are going to buy something worthwhile like buying a house. Other than that, avoid it.

[fuguebtc]

It is true that some people have become rich through crypto trading in the recent times. But considering the high risk involved in trading, do you think it's proper/wise to trade with borrowed funds as your capital irrespective of your trading experience?

I don't know if you are a newbie or a professional trader, but if you ask me about it, I will tell you that absolutely never borrow to invest, especially with cryptocurrencies. A market that can bring a lot of profit but is also full of risks because of manipulations, scams... always lurking around us.
Use the idle money, if you don't have money, go to work, do any job to have money, and then it's not too late to start. The market is always there and the opportunity is always there, don't be in a hurry to pay dearly.