do not invest in crypto from loans.

[lionheart78]

so in my opinion, don't invest from borrowed money because there will be potential losses, what do you think, do you agree with me?

I agree that we should avoid loan as much as possible especially when we are investing in a risky venture.  It is better to invest our own money and lost than having our funds coming from a loan and got lost because not only we lost the initial capital, we need to pay for the interest too.  Meaning if we invest and lost the loan money, we have to pay more amount due to the interest rate attached to the loan amount.  This means we have lost our money twice already.  One is from the investment capital and the other one is from paying interest on the loaned money.

No you can not invest in crypto with borrowed money, it is not a get rich quick scheme. Invest in bitcoin or crypto for a long time, but if anyone borrowed money he/she has to pay interest every month. I don't see any way to repay the loan from the profit of crypto. Eventually, you end up in debt where you don't have a way to repay the loan.

It is not advisable but you can still loan and invest in cryptocurrency.  There is no rule or regulation that forbids us to invest our loaned amount in cryptocurrency.  It is that many financial experts and gurus do not advise this kind of approach. 

If you have the job and be able to pay for the loaned amount in time without selling your investment then Iam ok with loaning and investing it on Bitcoin.  In investment there is always a risk whether you own your money or not, but if you are good with risk management then by all means you can have a loan to fund your Bitcoin investment venture.

Invest only what you can afford as always we advise it here.
Don't gamble in altcoins if you don't have proper research on them because it's a risk, don't believe in high risk which means high profit, no it's likely to lose your assets in that way.

Stick to Bitcoin if I were you.

Does this mean it is ok to have a loan and invest it in Bitcoin?

[pooya87]

They always say "never invest what you can not afford to lose" for any market that you want to invest in. Loans and borrowed money is almost always money that people can not afford to lose even though some may still want to take bigger risks and try their luck in this market, these are the same people who are usually investing in altcoins (aka gambling) their money away.

I personally don't see anything bad in taking a loan to invest in crypto, particularly bitcoin. For it's just same as taking a loan to invest into normal conventional business which you're not still promised of making profits at the long run cause losses can take place too should business go wrong.
The only issue we should direct our point to is that for you to take a loan to invest into crypto make sure you're well skilled and strategic about the crypto industry not just blindly jumping in with a loan out of believe that by luck it might work. That's when it's bad.

There are a couple of problems with this way of thinking. First it depends heavily on market conditions. For example taking a loan and investing in bitcoin during 2017 when price was going up every month would have been a good risk to take but the same thing in 2022 would have ended badly, although an investor who is not investing borrowed money can hold but not someone who has to pay back the loan.

It is even worse when we are talking about the altcoin market. What you call "skilled:" is not defined there because we are facing a very manipulated market and no amount of skill can really be reliable in manipulated markets that are being pumped and dumped for no reason.

[Z390]

Some people claim they don't see anything bad in taking loan to invest in crypto, how come? Because panic and emotional is part of the game, how can your mind be at peace when you knew the money you invested is not yours? You won't be able to have peace of mind, whatever is happening on the news about crypto you will always want to know, because its a risk you aren't ready to take, you take loan because it's your only option left.

[pawanjain]

Some people claim they don't see anything bad in taking loan to invest in crypto, how come? Because panic and emotional is part of the game, how can your mind be at peace when you knew the money you invested is not yours? You won't be able to have peace of mind, whatever is happening on the news about crypto you will always want to know, because its a risk you aren't ready to take, you take loan because it's your only option left.

Those people take the loan mostly because they are over confident that they will beat the market and gain profits out of it.
But crypto is highly unpredictable which is why many times these people lose their money.
The problem is not taking the loans but paying them back with high interest rates.
It becomes a major problem when the trader has not used a stop loss or has not taken an exit from his trade.
He keeps losing money and eventually sells off at lower prices or has to keep holding until the prices recover.
The banks benefits from such situations where the person is not able to payback the loan for a longer time since heavy interest rates are then imposed on the loan amount.
This is the only reason why they say NEVER take loans to invest in crytpo/stocks.

[Raceonsucced]

I think as one of the beginners. when you want to invest, you better use your own money, rather than using borrowed money. because when you lose when investing using borrowed money, you will also get dizzy 2 times. In my opinion, the investment must be careful not too hasty.

but for example, if we lose but use our own money, of course we will feel bad. but using borrowed money feels bad more. and yes, we can take this as a lesson that, before we do something / invest, we must think carefully and find out all the information about the coin.

[Eureka_07]

<snip>

Regardless of whether you borrowed the money or not, the potential of losing is always there.
The negative side of a loan to invest in a crypto is if you lose, you will lose the money, plus, you will also worry about the loan interest. Personally, I believe we should only use borrowed money if it has very low interest, otherwise, hold your self up. Of course, where you will invest matters, for this case in crypto, investors should have knowledge of it before proceeding.

[Rigon]

I heard that there were people who invested in crypto, and ended up buying crypto and their money from loans, but it's a shame they suffered losses because they invested in altcoins, but they lacked knowledge and lessons about crypto. but with this incident it made me think that investing in crypto should not result from loans because,,,
will make the mind uneasy, and always in the shadow of the deposit every month.

so in my opinion, don't invest from borrowed money because there will be potential losses, what do you think, do you agree with me?

Investing with borrowing is the most stupid thing to do. Those who have invested in loans have been destroyed in one way or another. Be it Bitcoin or Altcoin, it must be remembered that investing cannot be done by borrowing. Market dumping can happen at any moment after investment. Then you may not find any way to repay the loan. Meanwhile, you have to pay off your loan, then you have to sell your house and land to pay off the loan.

Those who are thinking of investing by borrowing should remove this thought from their mind. If you want to invest, invest with your own money. You won't break even if the market is dumping.

[redsun114]

Not only in crypto, but even loans taken for business needs to be put to work very carefully. You cannot just invest your borrowed capital into something that you are not sure of running profitable, since you need to pay that back - with interest.

About crypto, it is only recommended to invest only what you think will not affect you or anyone in any way if it's lost.
So, it is definitely not recommended to borrow money and trade cryptocurrencies with it, unless you are a 1000% sure that you will get some profit out of it which is very rare.

[lionheart78]

Those who are thinking of investing by borrowing should remove this thought from their mind. If you want to invest, invest with your own money. You won't break even if the market is dumping.

But it can go the other way if the market is pumping.

In short whether to loan or not depends on the:

Person's ability to pay
Person's ability to assess the risk
Person's knowledge of risk management
when the person is seeking a higher yield than the traditional fixed income
when the person is comfortable with the risk invovled in the investment
when then the person has a strong credit history and the loan is well-secured
when the loan purpose and terms align with his investment goals
when the interest rates are favorable
when the person knows how to diversify

All in all getting loan for investment has its pros and cons, though many advise against a loan in investing, there are moments when having a loan to fund a person's investment goal is a good thing and can be a life-changing event.   I happen to know a friend who setup a restaurant, his investment came from a loan, and he was able to pay the loan in 1 year's time, and after 3 years of operation, his restaurant has several branches all over the region. 

This might sound different but in the same time the same.  If a person is able to identify risk and has knowledge of risk management and is familiar with the risk involved in the market, even with a loan as starting funds in a cryptocurrency venture, I believe there is a chance of success.

I still believe that investing with our own money is the best thing but loaning can be an alternative if we know what we are doing else just forget about the loan idea for investment.

[tvplus006]

...so in my opinion, don't invest from borrowed money because there will be potential losses, what do you think, do you agree with me?

You can take out a loan only if you can reliably predict a profit, which is impossible in the cryptocurrency market. So if you take out a loan to invest in cryptocurrencies, it will be similar to a casino: you either guess and get a profit, or you lose and lose the deposit.

[Oceat]

If they won't be able to pay the monthly payment they shouldn't be investing on crypto.

Taking loans need a stable job in order to pay the monthly mortgage plus not to mention what kind of collateral you are putting if you failed to pay. I don't understand how people would just suddenly act fast without considering that second thought of having a "what if".

In most worst cases, there are even people who suddenly quit their job or sold their house just to invest in Bitcoin during those bullish days. I bet they are struggling these days and having a tons of regret after of what they've done due to their impulsive reaction. This type of behavior can be avoided if they truly understand the risk.

[BIT-BENDER]

Personally I don’t invest in any Crypto-currency even bitcoin with loaned money really an uneducated risk. Yea it’s possible you know someone who has taken up loans and invested in Crypto-currency and got good returns on investment.

The success rate of the is not always 100% and also with the volatile nature of crypto-currency you can’t be able to determine if you would be successful within the duration of your time of the loan.

[Mr.right85]

I would rather say don't invest in crypto, only in Bitcoin. Or at most 80% Bitcoins and the rest alts if you know what you are doing. Unless you are one of the alt creators or something like that.

I am sure you know what your saying but for the sack of clarity so newbies don't get the wrong idea, I'll like to straight out on this a little bit as your obviously right but,

Crypto is bitcoin and all the other altcoins inclusive. Now, being asked to invest only on bitcoin doenst necessary mean you going about trading it. That's where you might be in for a bumpy ride and it doesn't matter if your a pro trader or not. You can lose as much as you have put out for a trading capital. Its been happening and its still happening.
Because, you put yourself under a different kind of pressure that says, you must make profit or returns from most sessions of your trading and that can lead to bad decisions and that's disastrous with a borrowed fund. It's never idea.

[The Cryptovator]

Don't invest in cryptocurrencies if you can't afford a loss, we frequently advise. In this case, borrowing money to invest in cryptocurrency is completely prohibited. Usually, we invest in cryptocurrencies using our extra funds, which is a smart move. How are we to invest in cryptocurrency with money that isn't our own? This would be a foolish choice. Cryptocurrency prices are extremely volatile and can fall at any time. We either have to wait longer or it won't recover. Thus, the danger is always considerable.

[AakZaki]

Regardless of whether you borrowed the money or not, the potential of losing is always there.
The negative side of a loan to invest in a crypto is if you lose, you will lose the money, plus, you will also worry about the loan interest. Personally, I believe we should only use borrowed money if it has very low interest, otherwise, hold your self up. Of course, where you will invest matters, for this case in crypto, investors should have knowledge of it before proceeding.

Even though the interest is low it is better to stay away from loans when trading skills are still far above average. If you just want to continue trading without qualified skills, it will only accumulate debt and will become a new problem. Loans are only intended for those who already understand and know what the risks will be and have good trading skills. Investments don't have to be forced on borrowed money, using the little money you have on a regular basis can certainly be better.
Some people who force trading using borrowed money and end up losing, have to bear returns along with interest every month or within a certain period of time, it will become even more of a burden.

[mamesso]

On our Local Board, there is already a Thread warning of the dangers of investing/trading using borrowed money. The thread created by one of our seniors (masulum) with the title [Untuk Newbie] Alasan Untuk Tidak Trading Uang Pinjam has made some of our local users avoid investing/trading using money from loans. The contents of the thread are described by attaching points of risks that can arise when investing using borrowed money.

The conclusion of this thread is never to force yourself to enter the market using borrowed money, invest with cold money that is not used for any needs in real life and if a shift occurs you are ready to lose the money.

[tech30338]

Investing have ups and downs, in the real world, investors also borrowed money, from banks and people, as their capital for investment and business, and i think there is no difference, in digital world, I think the only question is how long until you get the profit or tolerate the hodl mentality, and there is always two result from this, but what like other said, spend what are you willing to lose, lenders will lend you money if they see you, as a good payer and check your background, so if they see that you can afford to pay, they will give you the money you need, wise investing should always be your priority and taking profits right there in then.

[libert19]

Wanting to take loan to invest in crypto just couple months back, though market is relatively up since then.

I was thinking to buy ether and hive so even had I taken a loan it would have been ok. But, justified myself with same thoughts, i.e, it would make mind uneasy and in shadow of deposit every month.

I would rather have peace of mind. When markets go south, loan people get f'ed.

[Aliosky]

Never invest money that you cannot afford to lose, as the saying goes. It is not advisable to invest in cryptocurrencies with loans because they are a 50/50 proposition, and if they fail, the issue won't be how to recoup your losses but rather how to repay your debt. This is true for any market that you want to invest in. Because cryptocurrency prices are erratic, it is advisable to invest with your own funds.

[fadhilz123]

indeed, if investing in crypto the result of a loan will certainly have an uncomfortable effect mentally, it is different from the results of our own hard work even though the loss will not have too sad an impact.

Losses will have a very sad impact if the initial capital is the result of a loan, so this is the difference between own funds and borrowed funds. Because borrowed funds always have a greater burden and mental pressure on those who borrow, so when they experience a loss, of course it will be very sad for him. That is why it is not very good to get a loan if you want to do something that has risks.