Other Alternatives to Borrowing Money to Start Trading

[alastantiger]

I am bringing this to the forum because someone asked me this question. I thought I should share and get more insights. According to the individual, while they were considering loaning about $100-$200 (money they know they can pay back within a month) to start their trading, someone advised them against it. Instead, they were told that all they need to do is to compound $10 instead.

For newbies, compounding a $10 crypto trading investment means reinvesting the profit from your initial $10 capital in the same asset, such as bitcoin, to generate an increase in returns over time. So the $10 may compound over time, and you can get $100 in returns. It requires patience, just as trading does.

This is the best alternative to loaning money to kickstart your trading journey. What are the other alternatives you know?

[Oshosondy]

It is not easy to use $10 to make $100 in trading, even if you gain and include the profit in the next trading or position your opened. One of the disadvantages of this is that once there is loss, it would be more because the profit is included. I see this as a way to greediness and a way to lose.

If you want to trade, you have to gain and set aside your profit, or you can set aside some of your profit which you will not be using for trading.

[SamReomo]

I am bringing this to the forum because someone asked me this question. I thought I should share and get more insights. According to the individual, while they were considering loaning about $100-$200 (money they know they can pay back within a month) to start their trading, someone advised them against it. Instead, they were told that all they need to do is to compound $10 instead.

For newbies, compounding a $10 crypto trading investment means reinvesting the profit from your initial $10 capital in the same asset, such as bitcoin, to generate an increase in returns over time. So the $10 may compound over time, and you can get $100 in returns. It requires patience, just as trading does.

This is the best alternative to loaning money to kickstart your trading journey. What are the other alternatives you know?

The advice of compounding that $10 into $100 is not a good one because there are hardly that level of traders who can accomplish 10x with trading. In the world of crypto trading there are wins and losses, and in most cases people lose their initial capital in search of winning. Although, it is possible to 2x or more your capital in crypto but that depends on the condition of the market.

It is even more harder to 2x your capital with Bitcoin trading as there are very few instances where you can earn 5% or more by trading it. The case is different with altcoins as there are some good coins that might get 20% or more of a pump after the market dips. But still there isn't any guarantee that the pump could occur in a week, a month, or even in many months.

If you don't want to have a loan to start crypto trading then sell your old stuff that is of no use to you. And, with that money you can start trading without any worries. Loans aren't given for free you'll have to return it plus the interest. So it's not suitable for everyone to get a loan for the purpose of trading. You can also do a part time job and earn a little extra, then invest those in trading.

[Bananington]

For newbies, compounding a $10 crypto trading investment means reinvesting the profit from your initial $10 capital in the same asset, such as bitcoin, to generate an increase in returns over time. So the $10 may compound over time, and you can get $100 in returns. It requires patience, just as trading does.

This means to me that a new trader should always be patient and not be in a hurry to trade with big amounts. New traders should not borrow a huge amount of money to finance their trading because it can easily be lost. As a new trader, you should start small if you do not have enough money to start big. Even though it is not advisable to borrow funds to finance your trading, it is worse for a new trader to do so than an old trader. If you must borrow to trade, it has to be at a stage where you are very sure of your trading, that is of course after gathering experience. If you are a trader with no experience, avoid borrowing money to trade with.

[teosanru]

I am bringing this to the forum because someone asked me this question. I thought I should share and get more insights. According to the individual, while they were considering loaning about $100-$200 (money they know they can pay back within a month) to start their trading, someone advised them against it. Instead, they were told that all they need to do is to compound $10 instead.

For newbies, compounding a $10 crypto trading investment means reinvesting the profit from your initial $10 capital in the same asset, such as bitcoin, to generate an increase in returns over time. So the $10 may compound over time, and you can get $100 in returns. It requires patience, just as trading does.

This is the best alternative to loaning money to kickstart your trading journey. What are the other alternatives you know?

Start small, this is all I want to say, borrowing is never a solution better to earn from other sources like job or something and after you accumulate certain capital, then go for it. I would say it's easier to get capital through job as compared to taking a debt.

[Hyphen(-)]

For newbies, compounding a $10 crypto trading investment means reinvesting the profit from your initial $10 capital in the same asset, such as bitcoin, to generate an increase in returns over time. So the $10 may compound over time, and you can get $100 in returns. It requires patience, just as trading does.

This is the best alternative to loaning money to kickstart your trading journey. What are the other alternatives you know?

It is not as easy as you think because getting 10x your capital will require a lot of patience, which I am sure a new trader cannot afford to wait for because the money is too small.

Although borrowing money to start your crypto journey is not advisable, instead of going through a lot of patience to raise $100 with $10, I would prefer to borrow some money to start my trading journey and take the little profit I will get as my future capital after paying back the loan.

[salad daging]

It won't be that easy, especially with a small value wanting to make 10x returns then it's very difficult especially from time to time as you said, in fact trading and investing are different unless you wait 10 years maybe you can make 10x from $10.

Trading still has a certain time with a target, so you can earn even though it's small but still trading money from loans is not really recommended, especially for a beginner, of course, there will be a lot of learning where they will experience losses to start with.

The simple steps may be with own money and being able to analyze which coin to trade.

[Franctoshi]

I am bringing this to the forum because someone asked me this question. I thought I should share and get more insights. According to the individual, while they were considering loaning about $100-$200 (money they know they can pay back within a month) to start their trading, someone advised them against it. Instead, they were told that all they need to do is to compound $10 instead.

As a trader I highly discourages the idea of fellow trader to go borrowing money to start up trading regardless of how good you are in trading, because borrowing comes with emotions when trading with the fund. when trading borrowed money you will actually be tensed in losing trades, because whenever you incurred a lose your mind will remind you that the money you just lost is a borrowed fund and this will further results in what we call revenge trading , basically trading to recover the loses and you may further lose more money in this process which is a wrong way to go about trading.

[Awaklara]

This is the best alternative to loaning money to kickstart your trading journey. What are the other alternatives you know?

what if the trade is a loss? Are you okay as a lender? The problem is beginners, things like this are not recommended to do. the concept that you convey is very easy for beginners to do, giving poison to beginners who listen to your story. It sounds so easy to make a profit trading. remind them, that trading crypto assets will always be at risk of losing. so they had to think about it carefully.
there is no problem with teaching trading to anyone. but also teach them the risks before starting as insight for them to make decisions.

[tjtonmoy]

Whoever gave that advice is a good teacher. Because he is absolutely right. The first rule of investment, never invest which is not yours, and you can afford to lose that. Otherwise, sentiments and emotion will be the first obstacles you will face. I don't care if they can make that money back in a short or long period of time to pay back the loan. The fact that it's borrowed money will create problems which could lead to your downfall. And if you are able to make that money back, then why do you need to borrow in the first place? If you can save money, then invest when it's available in your hands. 1-2 months time gap will not create any difference when you think about trading. If you are skilled enough, you can make profits in any market conditions.

Also, the $10 investment idea is not a bad one. We are always told to start low and climb the ladder while increasing our budget. If you are not confident enough with $10, how can you be so sure that you will be successful with $100/200? So follow pro people's advice, create a plan, learn from the best and then execute that plan to get success.

[DoublerHunter]

~snip~
This is the best alternative to loaning money to kickstart your trading journey. What are the other alternatives you know?

^As far as I know, there are other options for how to avoid borrowing money to have a kickstart for your crypto journey.
I think instead of borrowing money, you can allocate a portion of your savings or create a budget to set aside funds specifically for trading. This way, you are using your own money without incurring debt. Another option could be a DCA, if you heard this and understand, this is the best option because this strategy involves regularly investing a fixed amount of money like $10 at regular intervals, regardless of the asset's price. By consistently buying cryptocurrencies over time, you can average out the purchase price and potentially benefit from market fluctuations.

[Hamphser]

I am bringing this to the forum because someone asked me this question. I thought I should share and get more insights. According to the individual, while they were considering loaning about $100-$200 (money they know they can pay back within a month) to start their trading, someone advised them against it. Instead, they were told that all they need to do is to compound $10 instead.

For newbies, compounding a $10 crypto trading investment means reinvesting the profit from your initial $10 capital in the same asset, such as bitcoin, to generate an increase in returns over time. So the $10 may compound over time, and you can get $100 in returns. It requires patience, just as trading does.

This is the best alternative to loaning money to kickstart your trading journey. What are the other alternatives you know?

If you are really that a complete noob then having that $10 start up is something that better rather than on making up some loans and tending to get that $100 directly which you would be making use of it as a

capital on your first ever trade which i would say that those amounts would be most likely to be blown up.So if you are really that someone who doesnt really like to take up some loan but wants to make out that learning or progress then 10 bucks would be a considerable start up.Although it would  really be that something not that easy and it does really need up so much time and patience for you to have considering
that you would be needing to make your capital x10 if you are aiming for $100 out of $10. Just dont make yourself in a hurry because this is where mistakes and errors do happen.
If you do find that $10 is just too small to start with then you do always have the right on taking a loan, just really be that so sure that you could really be able to repay it on time.

[safar1980]

When my neighbors want to borrow money from me, they say that they will give it back in a month, and after a few minutes of conversation they say that they will give it back tomorrow, but they will not give the money back. Trading takes a lot of time to learn and spend money well. If a beginner does not have an initial 500-1000 dollars, then most likely he does not have experience and he will lose.

[Husires]

What profit do you expect to happen when you invest in bitcoin for the short term? 20% or 30% You can't earn more with the possibility of losing this money.
When you borrow, you expose yourself to a term of repayment, which is specific, and you may have to pay interest at a rate of 3% to 10% according to your financial success. Here, even if you achieve 20% profits, all the return that you will collect is $ 17 for every $ 100 with all the associated risks.
The collection policy is much better, as the accumulation of profits is in the medium and long term, and investing in Bitcoin is less risky in the long term than the short term.

[rat03gopoh]

I thought this thread would give a real "loan" alternative, so it's about the compounding suggestion?
So, any suggestions for raising $100 with $10 on the spot market faster? None of the most recommended coins have an extreme 10x rate of increase in say 1 or up to 3 months, unless you have to bet some shitpump coins.
And don't recommend trading with high leverage, because the object of discussion here is actually novice traders. They need several $10 trials to get to $100.

[Dr.Osh]

even for people who have been trading for a long time it will take time to make $100 from $10. sometimes, people will give advice to learn to trade with $10, and once he really understands, then he might be able to make the most minimal investment to take trading seriously.
Also, based on the story the OP gave, instead of borrowing $100, he would have raised $100 in 1 month. I saw that he could pay it off in a month's time, so it would be better if he waited, and used the $10 to study while waiting for the $100 he would earn in a month's time.

[adaseb]

The reason why nobody lends any money to traders is because since they are asking for a loan means they don’t know how to trade. Since they don’t know how to trade they will lose that money and won’t pay you back.

If all you got is $100 then you can practice with small positions and see if you can actually make any money. After 100 trades or so, if you came out ahead then that $100 should be $500 or $1000 and now you don’t need to borrow money.

[yudi09]

...
-snip-

This is the best alternative to loaning money to kickstart your trading journey. What are the other alternatives you know?

IMO, borrowing money to start trading is not a good idea at all because expecting big returns on trading is not easy like the opinion that has been conveyed because when you experience losses how does the story go.
We have often heard this phrase.
Multiple returns are unlikely to occur in a short time frame because the market is so volatile.

Someone will not be willing that the money given will disappear. Another possible alternative is that people will choose to trade themselves instead of lending someone else to do it.
By doing it yourself, satisfaction will be obtained by the owner of the money even though it does not guarantee 100% that he will always be in a profitable position.

[ancafe]

I am bringing this to the forum because someone asked me this question. I thought I should share and get more insights. According to the individual, while they were considering loaning about $100-$200 (money they know they can pay back within a month) to start their trading, someone advised them against it. Instead, they were told that all they need to do is to compound $10 instead.

It is speculative and how when it is due he cannot pay off the loan. My question is what are the consequences if he is unable to pay off the loan? because I also have a slightly extreme view when there are no consequences for the loan he takes, but in the case of a bank loan it clearly has an impact when unable to pay? so the precision to take this opportunity for trading should be avoided.

For newbies, compounding a $10 crypto trading investment means reinvesting the profit from your initial $10 capital in the same asset, such as bitcoin, to generate an increase in returns over time. So the $10 may compound over time, and you can get $100 in returns. It requires patience, just as trading does.

DCA is one of the best ways a beginner can take and use less money to try to enter the market to buy in, any profit he makes can be bought back any period he wants, this pattern is much healthier for a beginner in placing his money. Trading if it is run regularly $ 10k can go up slowly but it must be consistent and stable at all times.

[avp2306]

I am bringing this to the forum because someone asked me this question. I thought I should share and get more insights. According to the individual, while they were considering loaning about $100-$200 (money they know they can pay back within a month) to start their trading, someone advised them against it. Instead, they were told that all they need to do is to compound $10 instead.

For newbies, compounding a $10 crypto trading investment means reinvesting the profit from your initial $10 capital in the same asset, such as bitcoin, to generate an increase in returns over time. So the $10 may compound over time, and you can get $100 in returns. It requires patience, just as trading does.

This is the best alternative to loaning money to kickstart your trading journey. What are the other alternatives you know?

Are they trading for their selves or they give their funds to other people to trade with them? Since if they are into investing with people who says they can generate good revenue if they invest on their trade then maybe there's nothing to happen on them since possibly it will end up to scamming.

If they are also trading for their selves maybe its quiet risky to do this, especially as said they are newbie. Instead earning they might lose their money for bad decisions or sudden changes of the market movements.

Maybe instead thinking to risk their money or take a loan much better if they could search for a job which pays them  crypto since they can use that as capital for their gambling activities.