Trading With Borrowed Funds!!!

[onecall123]

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 money to invest is generally a bad idea. It is a fact that you will have to pay interest on a loan that you take out to invest money. You may lose profits as a result. Investing with borrowed money can lead to debt. Investing in cryptocurrencies such as bitcoin, ether, and cryptocurrencies, in general, is a highly volatile process, with price fluctuations occurring frequently.

[coinerer]

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 personally don't like trading with borrowed money.  Because trading is very risky.  But in this case if you don't have personal money and you trade by borrowing money from other places.  So if you lose your money then it will create a big pressure on you on one hand the pressure of losing trading and on the other hand the pressure of repaying the loan.  So it can't be a wise move by any means

[SOKO-DEKE]

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 saw a statement in your post that said, "Trading includes high risk. Given the word high risk, you should be aware that it is not at all advisable.no Crypto professionals will advise you to put all of your life savings in crypto, talk less of borrowing money to trade. Just be aware that anything is possible in the cryptocurrency industry despite the trust we place in it. For example, what would you do if you borrowed money to trade and crypto market conditions turn down, and now it's time to return their money? It is advised that you use your own money as capital, but only the amount that you can afford to lose owing to the inherent risk.

[LogitechMouse]

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?

Trading with borrowed funds? You can do it but with your question that is it wise to trade using borrowed funds, I don't think so.

I mean many of users here are against that one because of the risk that it may cause to the trader. You might lose your money especially if you are just started trading and after you lose, you will think of paying the capital plus the interest of the money you borrowed.

Maybe just borrow if you will invest it into an asset that is appreciating in the long run like in Real Estate or maybe in Stock Market. Even though many are against into it, it isn't illegal so you can just do it, but be ready with the consequences that you will face if you lose your money.

[TheUltraElite]

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?

Trading with borrowed funds is risky as hell.

You are essentially gambling with your luck/skill/whateveryoucallit at trading with a debt that can go wrong at any time. You might be a pro-trader but even they know the risks associated with taking a loan for trading. No to mention the mental trauma that will go on with losing those funds on you and your family.

For amateur traders, this is essentially suicide. Your returns are not confirmed and neither is the time frame in which the money comes back if you are doing spot trading. Forget about the other modes of trading because anything other than spot trading is a chance based play/gambling.

Hence dont do it. Ever.

[Nrcewker]

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?

Trading isn’t sure money. There are no doubts risks involved in this. And if we talk about borrowed money, then for that, we keep something as mortgage or collateral and then only we get the money. Now think of a circumstance when you will lose the money, now along with the money, you will also lose the collateral that you offered. And also as you failed to repay the borrowed money, so your cibil score or reputation will also go down. Now think yourself practically, which is better. It’s always best to work a bit and save some money. Invest 30% of your earnings on trading, save 20% and spend 50% of your earnings on daily use.

[Jody.Drummer]

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?

Actually, saying that you are experienced and have no experience trading with borrowed money is not a good idea to do. What's more, if you trade with borrowed money without experience and knowledge, it's the same as burning your money. You also realize that trading has a high risk, from there it should have provided answers to the questions you asked.
We are talking about psychology, with personal money that we don't have to return even our psychology in trading sometimes makes our fears grow bigger, especially this, with trading we have to return the money to the person who gave us a loan, it will make us mentally destroyed 2x fold. So it's best to avoid doing this.

[|MINER|]

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?

While the first rule of trading is to invest as much as you can afford to lose.There is extra level of stupidity to invest in trading by borrowing. As you already mentioned that trading is a high risk investment cause you can loose your fund at once if your investment on wrong places. So if you wanna trade then Gain the knowledge and invest as much as you can afford to loss.

[Cling18]

It is true that some people have become rich through crypto trading in 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?

Not everyone can have the same luck just like those who borrowed funds to do trading and got rich. Trading is risky and there's always a possibility that you could lose your funds in it so borrowing will be risky since you won't have an assurance of paying back your borrowed money. It will be better to save and allocate enough funds for trading than borrowing it. I haven't tried using borrowed funds in trading because I don't want to face conflicts and consequences in the end.

[samcoin]

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 think it's bad idea to use borrowed fund for trading during a bear market because the volatility of the market sets at its lowest level so your trade will probably take too long to excute. Oppositely, I support using borrowed fund to perform medium or short term investment in a bull market since there will be a lot of opportunities for experienced traders/investors who has been in the market for years. Generally, borrowing money is popular in all sorts of business, and Crypto isn't an exception, but Crypto markets have one difference from other markets which is the higher risk of losing many for unexpected reasons as it's still unregulated.

[Captain Corporate]

It is clear that not many people would be willing to do something like this because of the added risks. However, we should also remember that wall street does it every single day all the time non-stop. How? Well they get cash injections for each move, they may have 100 million in funds, buy something with it, and get another 20 million in cash injections, a line of credit type of deal in case they may need emergency funds and then they make a profit and pay it back. So its not actually impossible to imagine, it is quite common in fact in the finance world. Why lose your own money? Lose the banks money if something goes wrong, better that way if you ask me.

[Bitstar_coin]

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 is highly not advisable to do so. Nobody can predict thr market nor can be certain that you will be able to turn that money into profit.
It is better you trade with the money that belongs to you and the amount you are willing to part away with should anything happened while trading. Borrowing to trade is not a good idea.

[The Cryptovator]

Borrowing money for trading is never a good idea. Even if you are an experienced trader, I will not do so. Because the entire cryptocurrency market is currently in a state of flux. So many incidents have occurred, and there are a few more rumors floating around. If the market crashes during trading and you lose everything, it's a suicidal decision. So, always trade with funds that you can afford to lose in any case. Otherwise, the lender will panic and demand that you return the money you lost. Before making a financial decision, please be careful.

[goaldigger]

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?

Trading is like a business, you need capital on this and if you are confident enough about your trading skills, then its ok to borrow some funds as long as you can pay for it even if you lose that whole money. I have tried this before and it works better but of course don’t expect much profit if its just a small amount of capital, what matter here is that you can pay that money and you can have the chance to make profit.

[AicecreaME]

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's not that bad if you're going to borrow that from a friend, and if possible, no interest since your friend might be generous or just really wanted to help you out since they are rich, but if you're gonna borrow from a bank? I don't think so. Trading is not an easy way to earn money, I mean not that fast. It will take a lot of time to gain experience, failures, and money before you could make a lot of profits in trading.

If you're thinking you could be rich instantly in trading that's why your brain's giving you a thought of borrowing money from someone or from the bank for your capital, don't do it.

[lalabotax]

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

Where do you know it? Do you just guess it, dude?
I'm not sure if some people become rich through trading crypto coins in the current market situation, but I believe there are many people who lose big money because of some huge drops.

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?

No, using borrowed money is a bad idea. Even if it is in bullish season, never think to use borrowed money for high-risk things like crypto coins. The safest way is to use your extra money for crypto (money that we can afford to lose).

[lionheart78]

It is highly not encouraged to borrow money for trading.  But if you consider yourself a pro trader, then by all means you can take the risk and borrow money to start your trading venture.  This is the reason there is a lending institution to make sure that people won't miss the opportunity to make fortune despite they have no funds in hand.  

For me, it would be a waste if a person has skills and talent but is unable to do so because of limited funds.  So if the person is confident enough that he has all the knowledge to be successful in trading, I do not think it is a bad move to borrow funds to take the opportunity to profit.  

[livingfree]

Ask a real expert in trading and for sure that he'll say the same thing on refrain doing such because it's not a good thing to do.

Don't start trading if that's on your mind that you'll make free money out of someone's money. The accountability of yours is being lessened because it's not your actual money that you're trading even if you say that you'll pay it back with interest.

Soon, you'll find out why many people in here telling you of not doing it.

[MoonOfLife]

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 say that some people have become rich by trading, and you need to clarify the exact number. How many people participate in the market, and how many people become rich by trading? I can assure you, those who succeed with trading are very few. Don't try to copy someone else's success for yourself, it's true for them but not necessarily right for you. You can start with trading but never borrow to do it, that's the dumbest idea many people have, don't follow in the footsteps of the previous people. It only makes you more stuck.

[Mr.right85]

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?

Am not a big fan of borrowing to invest not to mention, borrowing to trade which has proven to come by such a high risk. I have seen several episodes where individuals trade with other users funds and it never ended nicely. Mostly was in the forex market but, this is relational as per the rudiments to trading a currency market. Its a highly professionalised field and the recent crash in FTX should be a fair warning that, you just might not be up to the task. Surely, FTX must have got some highly experienced analyst on there side but still, lost. That's just how risky it could get and when it's not your funds, there is a lot of elements at play and most of that is against you. Borrowing to trade don't make you rich or its just me not buying the idea.