Know your limit

[m2017]

Avoid ending up like a friend, who used all the money he has to invest in bitcoin and also took a loan, promising the lender that he will pay back when he gets paid in a month, after a month he never received the salary, I warned him doing this, because he has no doubt mixed investment with 'whatever it takes', is it safe to call this greed? I don't know.

Now he wants me to lend him some money to at least pay the loaner back and later settle me, there is more, now I have to send him some money to buy some food.

You don't have to use all your money to invest, even if you are not married yet or have other responsibilities, the best approach when planning to invest in Bitcoin is to buy with some percentage of the money you earning, maybe through business or a job.

If you do this weekly or monthly you won't feel any pressure, always remember that health is wealth.

You don't refuse to help your friend: if he really needs money, then give it to him. On his bitcoin bail. It seems to me that this is fair. If you don't spare money for a friend, then he should not spare bitcoin for you. Otherwise, there will be an imbalance.

Your friend didn't calculate his strength and now shifts the responsibility and consequences of his decisions to you.

I also believe that investing should be approached wisely and absolutely should not be bought bitcoin with all or the last money. Your friend is an anti-example of how to act.

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[Raflesia]

Unless you promise the same thing to your friend then it's only natural that a little help there. because indeed the initial condition that your friend made was the mistake of doing everything on investment and borrowing for the sake of it as if crypto was an instant way to get rich.
This is clearly not justified, let alone borrowing money with the promise that you will pay back from the profits.

However, everyone here is also aware that investing in crypto is quite risky, so you don't need to do anything really too over the top to be here because it will only kill yourself.

[Nrcewker]

Golden rule of investment is 30:30:40. I mean 30% of your earnings should be spent on investments(it doesn’t matter cryptos or mutual funds or anything), 30% for monthly expenses and 40% should be your savings. Now if a person fails to follow this, then definitely he gonna land up in troubles. Investing in any asset or Bitcoins, doesn’t mean that it will give you profits. This is a pure example of carelessness that your friend has shown the world. Always remember invest in limit and calculate all the possibilities.

[coinerer]

Everyone is responsible for his own investment so everyone should invest according to his own strategy and ability. And investing the entire wealth in only one thing is the biggest folly. By doing this, a person will either suddenly become very rich or else the mistake will make him a street beggar. So of course it is better to adopt a limit for investment and everyone should follow a calculation to invest in different things which have less chance of loss on average. If my friend or any other person invests his entire money only in Bitcoin then he has to take responsibility but if I am inspired by him to do the same mistake then it will be a big mistake for me.

[aylabadia05]

You don't have to use all your money to invest, even if you are not married yet or have other responsibilities, the best approach when planning to invest in Bitcoin is to buy with some percentage of the money you earning, maybe through business or a job.

I think it's wise in an investment to avoid things that can bring burdens. Investing is better not in a forced situation because it can have an impact that can cause problems.

From the case you conveyed, for me it is one of the things that need to be avoided in investing. Any type or form of investment activity by borrowing other people's money is not the right choice.
This is as short as it gets in my opinion because we don't want a relationship to be damaged because of a loan even though the borrower is a close friend.

[imamusma]

Unless you promise the same thing to your friend then it's only natural that a little help there. because indeed the initial condition that your friend made was the mistake of doing everything on investment and borrowing for the sake of it as if crypto was an instant way to get rich.
This is clearly not justified, let alone borrowing money with the promise that you will pay back from the profits.

However, everyone here is also aware that investing in crypto is quite risky, so you don't need to do anything really too over the top to be here because it will only kill yourself.

It is always wise to think that there are risks to be considered when one wants to invest in crypto. Everyone has an acceptable level of risk threshold, and of course that includes budget amounts and origins. If they can only afford to lose $10K on their investment then that should be the maximum budget amount to invest, but if they can afford to risk $1M that should be fine too.

One just has to be aware that crypto investing is not a way to get rich quick, but behind the possible profits, there is a potential loss that they are very likely to experience due to market fluctuations. Even if they can afford to be responsible for their investment risks, it is always wise not to believe 100% in crypto without an emergency budget.

[_musab-scorpion_]

Yes I completely agree with u !!!
One should take any money from others to invest in stuff like that…
A job person should deposit dollars $ and buy crypto coins or btc only with the money by which he haven’t to buy foods for his childrens or pay any allowances…
After paying for everything in his daily routine the money which just left at him for savings…he should invest them in btc …

[Dickiy]

Avoid ending up like a friend, who used all the money he has to invest in bitcoin and also took a loan, promising the lender that he will pay back when he gets paid in a month, after a month he never received the salary, I warned him doing this, because he has no doubt mixed investment with 'whatever it takes', is it safe to call this greed? I don't know.

Now he wants me to lend him some money to at least pay the loaner back and later settle me, there is more, now I have to send him some money to buy some food.

You don't have to use all your money to invest, even if you are not married yet or have other responsibilities, the best approach when planning to invest in Bitcoin is to buy with some percentage of the money you earning, maybe through business or a job.

If you do this weekly or monthly you won't feel any pressure, always remember that health is wealth.

In this case, financial management is the most important thing to learn, whoever you are and whatever your condition, being good at financial management will have a very good impact on making decisions. Risk management is also needed in terms of investment decisions considering daily needs and price fluctuations in bitcoin which cause it to be out of sync with what is planned and result in pressure that attacks mental and financial.

Actually borrowing money to invest can be a good decision if you are able to manage it properly, things that become risks must be a concern if targets do not meet expectations and savings funds for solving problems that may occur must be prepared.

In this case, DCA is the wisest strategy as a strategy to ease the psychological burden imposed on the market and to maintain financial stability.

[Issa56]

Avoid ending up like a friend, who used all the money he has to invest in bitcoin and also took a loan, promising the lender that he will pay back when he gets paid in a month, after a month he never received the salary, I warned him doing this, because he has no doubt mixed investment with 'whatever it takes', is it safe to call this greed? I don't know.

Now he wants me to lend him some money to at least pay the loaner back and later settle me, there is more, now I have to send him some money to buy some food.

You don't have to use all your money to invest, even if you are not married yet or have other responsibilities, the best approach when planning to invest in Bitcoin is to buy with some percentage of the money you earning, maybe through business or a job.

If you do this weekly or monthly you won't feel any pressure, always remember that health is wealth.

I think your friend is new to cryptocurrency what's why he made this kind of mistake, and I think he those not have proper orientation about bitcoin and cryptocurrency in general, he just heard that people are making money from bitcoin and he also want to make money.

Since your friend is having loan to pay back and he those not have money to pay it back, and he those not have money to feed, then I think it will be better if your friend sell the bitcoin and settle the necessary things which he has to, how long will he countinue to take loan just to settle another loan he took, and how long will you countinue to feed him? The best thing is for him to sell the bitcoin then whenever he is having any money he won't be using for long term, then he can invest back in bitcoin.

[Maestro75]

Now he wants me to lend him some money to at least pay the loaner back and later settle me, there is more, now I have to send him some money to buy some food.

That is what true friendship is for. You help each other when in need. Good you did the much you can do for your friend and that should be unconditional. If it had gone well and he made serious profit am sure he would have spent part of the money with you too as his friend. Another thing is that you have to sit your friend down and  educate him on why he should not over invest in cryptocurrency. There should be something set aside and not to put everything into it. It is part of financial discipline.

[panganib999]

Knowing how far you can go in this industry is paramount. Wins are wins regardless of how big they are. Losses on the other hand are more destructive the harder it is to recover from them. To that regard one must ensure that the losses they would incur in the future are of the manageable kind, because just like what happened with your friend OP, that spells great doom mentally and socially for him, the fact that he couldn't pay and is practically at everyone's mercy and pity now because he doesn't even have money to buy essential stuff like food is just something that my prideful ass wouldn't be able to take. In any case, take every wins you can get, forget being greedy and always put your losses at a manageable rate. Recovery is very important in this industry. That's what separates the good investors from the bad ones.

[Lucius]

Avoid ending up like a friend, who used all the money he has to invest in bitcoin and also took a loan, promising the lender that he will pay back when he gets paid in a month, after a month he never received the salary...
~snip~

So he invested all his savings and borrowed money to buy Bitcoin, and then he didn't receive the monthly salary with which he was supposed to repay the loan? Well, the solution is simple - why not sell Bitcoin and pay off the debt? He can't possibly be at a loss as far as the price is concerned, because if your story is true, it happened this year and he could only increase his investment.

[ethereumhunter]

That is why in investing, we must know the amount we want to use and not use all the money just to invest. We still have other needs besides investing. If we can manage expenses and investments simultaneously, we can achieve what we want in investing and won't bother with money for daily expenses.

You have to remind him by suggesting limiting his investments and setting aside money for his monthly expenses. By investing in bitcoin, he can prepare for his future, but that needs to do well and correctly. And don't invest by borrowing money because you have to repay the loan.

[kryptqnick]

Taking a loan is often a bad idea, but especially if a person isn't 100% confident about being able to pay it back, and when it's taken not out of necessity but out of a whim. I don't think you should lend him the money unless you are ready to lose that money.
But if a person bought BTC, can't he at least sell that and repay a part of the loan?
Op, you're correct, of course, that one should only invest out of the money one is earning, and it should be a sum that a person is ready to lose. It can be different percentage based on how much a person is earning and how much is required to cover monthly expenses, but the investment should not come from money required to cover basic expenses.

[yhiaali3]

Accumulating debt upon debt is the biggest mistake, he will never be able to get out of this circle.

I know a lot of people who get into debt and then when they can't pay off the debt they borrow from someone else to pay off the first debt, and so they get into a cycle that never ends.

The investment is only by part of the capital that you can leave for a long time in the first place and secondly you can afford to lose it, you have to take the loss into account first of all.

I do not mind investing a large part of my savings in Bitcoin, but borrowing in order to invest in Bitcoin carries a very high risk.

[Crypt0Gore]

It sounds like your friend is very confident that he can make a profit every day or monthly that promises to the loaner that he can pay on time. He actually underestimates the market and that he thinks that he controls the situation but unfortunately, he ended up asking for help as he fails. He is your friend but I think there is a limitation to such word "help" otherwise, he will take advantage of your weaknesses and would rely on you for everything. In this case, a decline should be delivered, it is not being rude to him but this is helping him realize the unstable situation of the market which couldn't assure a fixed profit, and stop relying on the crypto as collateral for loans.

He was very confident with the decision, but he made me feel like I was blocking his way to success or something, he knew I went through a lot with crypto and I told him what I have went through in the past, he was aware that I lost some money, I believe he failed to believe me because he 100% trusted his monthly salary, he was a good friend that's why I can't leave him be in this situation right now, but a man got to do what a man got to do, I can only help with what I can.

[summonerrk]

Accumulating debt upon debt is the biggest mistake, he will never be able to get out of this circle.

I know a lot of people who get into debt and then when they can't pay off the debt they borrow from someone else to pay off the first debt, and so they get into a cycle that never ends.

The investment is only by part of the capital that you can leave for a long time in the first place and secondly you can afford to lose it, you have to take the loss into account first of all.

I do not mind investing a large part of my savings in Bitcoin, but borrowing in order to invest in Bitcoin carries a very high risk.

There is a concept of Maslow's pyramid. The pyramid of human needs, based on which what a person needs in his position is determined. In the first place is warmth and food, then safety, etc. And one of the levels is self-realization. Unfortunately, many people do not see trading as a dangerous game, but an opportunity to realize themselves financially. They hope for a miracle like in roulette. And they are ready to risk all other levels (food, shelter, security) for the sake of chances of success. This is fundamentally not the right attitude. Our needs must be met, they cannot be risked. Therefore, you can enter only Extra money on the exchange.

[Marykeller]

What information about bitcoin did your friend learn that inspired him to put all of his money in it with such conviction and even take out a loan on top of that to ensure he did so(invested in bitcoin)? Will I label it greedy or what? Anyway, if I were to pinpoint the origin of everything, I would look for and point the finger at the person who first encouraged and introduce him to invest in bitcoin. Your friend was given a poor explanation of the situation. He was simply uninformed about what the individual told him about investing in bitcoin.

Anyway, the deed has been done. People make mistakes in life, and we must correct them while always remaining as our friends. Please help him if you can.

[GideonGono]

Avoid ending up like a friend, who used all the money he has to invest in bitcoin and also took a loan, promising the lender that he will pay back when he gets paid in a month, after a month he never received the salary, I warned him doing this, because he has no doubt mixed investment with 'whatever it takes', is it safe to call this greed? I don't know.

Now he wants me to lend him some money to at least pay the loaner back and later settle me, there is more, now I have to send him some money to buy some food.

You don't have to use all your money to invest, even if you are not married yet or have other responsibilities, the best approach when planning to invest in Bitcoin is to buy with some percentage of the money you earning, maybe through business or a job.

If you do this weekly or monthly you won't feel any pressure, always remember that health is wealth.

This is like an addiction your friend destroyed his life with his greed or obsession.
And you supporting him could be considered like you are tolerating his addiction.
I know that you just want to help your friend on his darkest time but you should also know how to limit on how you help him.
This is a great example for all of those who want to invest in crypto to invest only what you could afford.

[Oceat]

Your friend basically risk it all without knowing the consequences I guess since he's like gambling and not actually trading. Perhaps, it's the greed that pushes him to do that stuff thinking he could get it back without expecting the unexpected and then boom, surprise!

People tend to do this kind of stuff if they were overwhelmed with the feeling that they could get it back without considering the consequences and unexpected things to happen. I've seen these kind of people during the bull run and I can't believe they just did that like selling their house to invest in Bitcoin or taking a loan while Bitcoin was in bull run already and by the time Bitcoin price starting to dump they are forced to sell their investment even though it's a loss.

The key here is to learn to control yourself.