Trading With Borrowed Funds!!!

[carlfebz2]

Now answering your question, I will never trade or even use a borrowed fund for anything digital asset, not after my personal experience and I will never advice any other person go into that and beside, it is always warned even by some brokers not to use money we can't afford to lose and as well not borrowing any money.

I wouldn't do it either, but around us, some people do. especially those who think of the crypto market and investing as a job for them.

Not good to be an option just to have money to used for investing on crypto since we don't know what will come and its so risky since we might lose and that will be a big problem to us. Much better if you just stick with the amount you have since even if you lose you will not get any stressed paying someone who sue you for what money you lose from them. Crypto market is so unpredictable so don't risk all with it and always use extra money you have.

Always that recommendable to make use of extra money that you do have when you do make out some crypto investments.Just like the rest been saying that profits arent really that guarantee and if you do make

use of borrowed funds or something that you do took some loan then it isnt something that you could really rely upon on getting those profits on time since market is truly unpredictable.
Borrowed funds is not recommended unless if you could pay it out without relying on your crypto profits then it should be fine but if its not then dont mind yourself on getting one.
You should always consider up the risk factor and considerations.

[darewaller]

Not good to be an option just to have money to used for investing on crypto since we don't know what will come and its so risky since we might lose and that will be a big problem to us. Much better if you just stick with the amount you have since even if you lose you will not get any stressed paying someone who sue you for what money you lose from them. Crypto market is so unpredictable so don't risk all with it and always use extra money you have.

That is the difference, because bitcoin is a long term project and may not go up today, and that is understandable and that's true but that doesn't mean that we should be focusing on how to make any type of money based on borrowed funds that you need to pay back.

Someone I know did exactly that this summer, took funds from friends, asked for loans basically and his friends gave it to him, but he failed to make any money at all and basically his whole year profits are gone, his business works towards paying his debt back. That is why it is totally against my mind to go out and get a loan when you have no idea if you could pay it back, doesn't make sense at all.

[uneng]

Someone I know did exactly that this summer, took funds from friends, asked for loans basically and his friends gave it to him, but he failed to make any money at all and basically his whole year profits are gone, his business works towards paying his debt back. That is why it is totally against my mind to go out and get a loan when you have no idea if you could pay it back, doesn't make sense at all.

Well, at least in the case of your friend he still has a business to generate income to pay the debt back. Although he may lose the income from the entire year to fulfill with this obligation, it's a better situation than some borrowers find themselves. There are people who simply don't have any job or income and borrow money from the bank, using friends or relatives as guarantors, try growing the funds trading with crypto or binary options and end losing everything. Consequently, they not only screw their own lives, but also the lives of their friends or relatives who were used as guarantors on the moment of the borrowing.

I think to borrow money must be a calculated risk. The person must borrow it aware that what he plans doing with the money can go wrong. So he will be prepared for every possible outcomes of this venture, with a possible "Plan B" already in mind.

[Quidat]

Someone I know did exactly that this summer, took funds from friends, asked for loans basically and his friends gave it to him, but he failed to make any money at all and basically his whole year profits are gone, his business works towards paying his debt back. That is why it is totally against my mind to go out and get a loan when you have no idea if you could pay it back, doesn't make sense at all.

Well, at least in the case of your friend he still has a business to generate income to pay the debt back. Although he may lose the income from the entire year to fulfill with this obligation, it's a better situation than some borrowers find themselves. There are people who simply don't have any job or income and borrow money from the bank, using friends or relatives as guarantors, try growing the funds trading with crypto or binary options and end losing everything. Consequently, they not only screw their own lives, but also the lives of their friends or relatives who were used as guarantors on the moment of the borrowing.

I think to borrow money must be a calculated risk. The person must borrow it aware that what he plans doing with the money can go wrong. So he will be prepared for every possible outcomes of this venture, with a possible "Plan B" already in mind.

If you do borrow some money for whatever purposes you would be having then it is really would recommendable that if ever you would took up some loan then you should really make
yourself that prepared on repaying it up without relying into the current investment that you are in to or simply it is really just right that you are obliged to find up ways and if you
do have other sources then these things wont really be that a problem and its true that there are ones who doesnt have sources of income but rather solely focusing
on their current investment profits which its not really that a good idea.

[LUCKMCFLY]

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?

Not it's not at all advised to do this. Trading is pretty risky, especially when you are a beginner the chances of you Winning a trade is just around 50% which even you can further mess up by doing FOMO. So basically you are doing nothing but just gambling. So would you go for gambling with the borrowed money? No, Right? Same is the case with trading as well then. But yes one small exception here is leveraged trading because in that you are not borrowing money directly. In this case it's just that you are trading with higher risk on capital which if you account for in strategy can be a good thing for you.

Whenever we are going to trade, it is better to do it with our own funds and make sure that we will never depend on preset funds to do it, however I know that there are people who can take this risk, but it is something that is not recommended, in my case I have not returned to trading with bitcoin, I am only doing some forex trading, in a relaxed way and with a good lotage, something that allows me not to burn the account. I don't have a lot of capital, but what I have is that every day I can make 4-5 dollars, because my capital is not large, as my capital increases I will increase the batch to obtain more beneficial results, and that they are more at the level, but Trading with borrowed money is high risk, I do not recommend it.

[Nrcewker]

Trading with borrowed funds is not advisable,

you are right, it would be better to trade with the small capital that we have, with the benefits and risks that we can face ourselves rather than borrowing funds from people for trading. this is too big a risk. not to mention if we lose, we have to repay the loan. it's like a double loss.
it may be different if what is intended is to share funds for long-term investments. such as a 50:50 distribution of the profits earned. although also risky. but when the people working together are people we know and know the risks of crypto assets. it can be done. but still, it would be more convenient to stick with our funds.

We shouldn’t take any excuse mate. Lent money should always be avoided. Lent money comes with sleepless nights. And I am saying this from close experience. In trading we take risks and take chance to get profits. So with other’s money it is really hard and frustrating to take risks and make profits. Always lend money for emergencies not for trading or gambling. Trading is also a form of gambling, but here the risk is a bit low. So watch out carefully and trade with own risk.

[Chainsmokers]

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 money is an act that is not wise and very stupid, healthy trading is by using cold money because market situations will always change,
you cannot get profits continuously and you can even experience large losses, just imagine your capital runs out even though it was from a loan, then how can you pay it off?
Yes, avoid that and don't do that!.

[KupaCrypto]

Borrowing to invest is not a good strategy in crypto trading, most times you might be on the profit side and most times you might end up on the loosing side,  The constant rise and fall of crypto value makes it more difficult to actually predict the actual time to invest in crypto trading, and investing in the wrong time will be a great loss to you, imagine the money you invested was borrowed, then questions like how will you pay back comes into consideration and if there is no other means of raising money to pay back then You become a deptor

[Oneandpure]

I don't think good financial advice when using borrowing fund for trading, actually have warning risk when trading or investing in cryptocurrency and I think why not recommended with borrowing fund as capital trading. Have exceptional when moment Bitcoin going dump drastically and take scalping trading or earn profit in daily day how to minimize losses and earn profit as soon possible.

Keep in your hand if urgent and there are close chance trade without borrowing money you have be careful and entry when moment Bitcoin or altcoin are dump drastically, don't take hype moment with several altcoin have reached higher price and difficult for refunding borrowing on time when your altcoin trading price have been drop.

[dunfida]

It seems to me that this is a very big mistake. It is important to understand right away that trading is a risk. And if you did not have money for trading, how then to repay debts?

One of the main things you should have in mind before you do take such action on which you do need to assess.

Can i repay these debts on time?
Do i have other sources which i could depend on?

If these questions do ends up on being answered with NO, then you should avoid on taking such step.
It just that require some simple common sense but there are people who do make out such decision forcibly.

[Tony116]

It seems to me that this is a very big mistake. It is important to understand right away that trading is a risk. And if you did not have money for trading, how then to repay debts?

Newbies think that trading is very simple and easy to make a profit, so they want to borrow money to trade and think they will pay soon after profit. But when they trade, they lose everything, and they start to want to borrow more to take revenge on the market, but the more they trade, the more they lose. From there, they will fall into a deadlock and think the trading is gambling or a scam.

In my experience, it can be said that trading is the riskiest in the market, especially with futures trading as newbies are often tempted by profit. Trading becomes gambling if you have no knowledge of it.

[xSkylarx]

It seems to me that this is a very big mistake. It is important to understand right away that trading is a risk. And if you did not have money for trading, how then to repay debts?

We all make mistakes, but at least you ask first before jumping to conclusions, like taking out a loan, and then try trading. Most newcomers have this mindset, believing that it is simple to earn a profit and repay their loans, but the harsh reality is that it is not. Many people I've known have said that they will lend me money and give it to me so that I can play with it in trading and profit from their money but it was a bad decision so I didn't take it.

[irhact]

Trading with borrowed funds is not advisable, because cryptocurrency investment is different from other business you can use borrow money to expand the business. Those that invested huge amount of borrowed funds in crypto investment last year January 2022, hoping before the end of the year they will pay back the interest but their plan failed at the end, because the price of the coins they purchased remain low till now.

Borrowing comes with very high-risk as it can disorganized you and make you lose focus then start making mistakes that can cause you to lose big time in the market. For example you could exist a trade too early or too late in fear of not losing. When trading you shoudn't be distracted instead focused on the market but with borrowed funds that can't be possible.

Also never trade with the money that you can't afford to lose or more than you. If you trade with personal funds you won't be under tension to not lose those money and you can easily execute your trading strategies to perfection.

[Lanatsa]

It seems to me that this is a very big mistake. It is important to understand right away that trading is a risk. And if you did not have money for trading, how then to repay debts?

We all make mistakes, but at least you ask first before jumping to conclusions, like taking out a loan, and then try trading. Most newcomers have this mindset, believing that it is simple to earn a profit and repay their loans, but the harsh reality is that it is not. Many people I've known have said that they will lend me money and give it to me so that I can play with it in trading and profit from their money but it was a bad decision so I didn't take it.

Just let people do learn up from their mistakes because if they are really that dedicated on taking up a loan then they would definitely be doing it no matter how many times you would really be telling them on not on

doing so because its never been a wise decision on having that borrowed funds to be traded into a very unpredictable market.Just like on what most people been saying up here that you cant really have the guarantees that you could make profits out of those crypto investment which you could be able to repay on the right time which means it would really be causing up more trouble or headache.
If you are really that desperate then you should trade up well with those funds and pay on things that you are obliged to do so.

[shinratensei_]

using borrowed money for trading seems irresponsible enough honestly, you're quite literally just wasting money that way, the pressure that you got definitely gonna be tremendous since as many have said, if you don't have the money for trading, how you could repay debts, then again maybe you have some money but it's just not big enough so you borrowed some but I think sees it as not good decision since you could just quite literally lost all your money all the while repaying your debts.

[Mr.right85]

using borrowed money for trading seems irresponsible enough honestly, you're quite literally just wasting money that way, the pressure that you got definitely gonna be tremendous since as many have said, if you don't have the money for trading, how you could repay debts, then again maybe you have some money but it's just not big enough so you borrowed some but I think sees it as not good decision since you could just quite literally lost all your money all the while repaying your debts.

As irresponsible as it may seem, it's really not much of a choice for some persons. I for one, I don't support the idea of having to use borrowed funds in trading as this comes with an unimaginable or unprotected risk for which, you would find a hard time managing should it not turn in your favour.

Still, some traders can't manage not to as, they some how wants to earn but, lack the funds to do that and don't see a way to do that but to borrow then trade with it.

The question one always have to ask themselves is,
Whats the way around this shod you end up losing all your borrowed funds? Because, you've still got to pay. That's what is obtainable and your losing the money doesn't change that.

[xSkylarx]

It seems to me that this is a very big mistake. It is important to understand right away that trading is a risk. And if you did not have money for trading, how then to repay debts?

We all make mistakes, but at least you ask first before jumping to conclusions, like taking out a loan, and then try trading. Most newcomers have this mindset, believing that it is simple to earn a profit and repay their loans, but the harsh reality is that it is not. Many people I've known have said that they will lend me money and give it to me so that I can play with it in trading and profit from their money but it was a bad decision so I didn't take it.

Just let people do learn up from their mistakes because if they are really that dedicated on taking up a loan then they would definitely be doing it no matter how many times you would really be telling them on not on

doing so because its never been a wise decision on having that borrowed funds to be traded into a very unpredictable market.Just like on what most people been saying up here that you cant really have the guarantees that you could make profits out of those crypto investment which you could be able to repay on the right time which means it would really be causing up more trouble or headache.
If you are really that desperate then you should trade up well with those funds and pay on things that you are obliged to do so.

There are some people who will continue to do it even if you have already told them.I am kind of pissed at that kind of person; when we give advice and they still continue to do it, it is like they listen to you and then forget it after an hour. It is best that they experience those mistakes and learn from them(for sure it will be a painful mistake as it can ruin their life).

On the other side, there is a chance that you can repay your loan in trading by your profits, but only if you are an experienced trader who knows what he is doing and can manage her money and risk well.

[KupaCrypto]

using borrowed money for trading seems irresponsible enough honestly, you're quite literally just wasting money that way, the pressure that you got definitely gonna be tremendous since as many have said, if you don't have the money for trading, how you could repay debts, then again maybe you have some money but it's just not big enough so you borrowed some but I think sees it as not good decision since you could just quite literally lost all your money all the while repaying your debts.

Most times using borrowed money for trading can prove to be a smart decision if you are not on the loosing side of the trade, it all comes down to risk and in life taking risks is not a strange thing to winners,
You might trade with your own money and end up on the loosing side and at the same time you can trade with a borrowed money and end up on the winning side, so its all comes down to risk.

[GeorgeJohn]

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 it's very risk when you see people who come into gamblling without to take an adequate measure, everyone knows very well that trading is not supposed to involve the aspect venturing into the investment with s borrowed money, so i believe that the involvement of borrow and trade may indirectly lead some people into problem.

[BITCOIN4X]

Actually it's very risk when you see people who come into gamblling without to take an adequate measure, everyone knows very well that trading is not supposed to involve the aspect venturing into the investment with s borrowed money, so i believe that the involvement of borrow and trade may indirectly lead some people into problem.

In fact, I think a loan can get someone straight into trouble, especially when the borrower and lender have agreed to a repayment contract. So far I'm not interested in any loan, and I hope I'm not doing it for any purpose including trading. Trading should be a way to gain profit and minimize the risk of loss, but if someone feels he is capable and responsible for repaying his loan on time then I never think it's a problem, especially for himself.