Borrow to Buy Bitcoin is Not Advisable.Consider the Factors Before Doing That.

[Viscore]

In all risky investments, borrowing your capital is obviously the worst option. Some may have profited from it but a lot are actually losing in the end from doing it. That is why borrowing or taking a loan is a big NO especially that you are still starting to learn to invest and you could experience more losses at first than expecting instant gains. So buy at your own risk using your spare money, not from the money of other people.

[_BlackStar]

If you want to live the peaceful life,you should avoid of borrowing the money.Because it's not an advisable one,because you can get into trouble to pay the interest for the loan.At the time of interest,if you don't have any money.You may sell the holding bitcoin for the loan interest, it give you loss and the additional burden.So it's essential to don't borrow until you need money for emergency.Even you can do saving for your future,when the money was saved in crypto currency.It will give you more profit as compared to holding the money at the bank.

For a no-interest secured loan solution - I think the OP might need to take an approach like just borrowing from friends, parents or anyone who trusts him with money ^[non-bank]. The OP can enter into an agreement between the lenders - but of course he will responsibly return the loan when he gets a return on his investment later.

But instead of making a loan - I also think there are alternative solutions that could be considered. One of the many solutions is selling valuable items that you rarely use on a daily basis.

[serjent05]

If you want to live the peaceful life,you should avoid of borrowing the money.Because it's not an advisable one,because you can get into trouble to pay the interest for the loan.At the time of interest,if you don't have any money.You may sell the holding bitcoin for the loan interest, it give you loss and the additional burden.So it's essential to don't borrow until you need money for emergency.Even you can do saving for your future,when the money was saved in crypto currency.It will give you more profit as compared to holding the money at the bank.

For a no-interest secured loan solution - I think the OP might need to take an approach like just borrowing from friends, parents or anyone who trusts him with money ^[non-bank]. The OP can enter into an agreement between the lenders - but of course he will responsibly return the loan when he gets a return on his investment later.

This is a better approach than asking for a loan from someone that charges interest.  Though this action is dependent on how well we manage to pay our previous debt to them if somehow we have prior experience of borrowing money from them.

But instead of making a loan - I also think there are alternative solutions that could be considered. One of the many solutions is selling valuable items that you rarely use on a daily basis.

In addition, one might look for an extra source of income and allocate that extra income to buying BTC.  Using this approach solves two things, the fund for investing in BTC without resorting to loans and extra money for future savings.

[Bushdark]

In all risky investments, borrowing your capital is obviously the worst option. Some may have profited from it but a lot are actually losing in the end from doing it. That is why borrowing or taking a loan is a big NO especially that you are still starting to learn to invest and you could experience more losses at first than expecting instant gains. So buy at your own risk using your spare money, not from the money of other people.

Borrowing - you are owning
Investing in Bitcoin(Cryptocurrency) - taking risk
Outcome of investment = Amount borrowed and invested -+ Possibility of Market bull or bear

Example one:
If you borrowed $15,000 from the bank with interest rate of 10% per annum(tax inclusive). If you invested the whole fund to buy Bitcoin at the price of $30k, what will be the outcome of investing in Bitcoin

Parameters
Amount borrow and invested: $15k
Worth of Bitcoin: 0.5btc at $15k
Interest payable per annum: 10%
Note: 10% of $15k is $1500 to be paid as interest annum.

If the market goes bear(downward direction)
If the price of Bitcoin falls by 20% after a year(annum)

Outcome of investment = Amount borrowed and invested - Rate of the bear(%)
Outcome of investment =             $15k                                    - 20%(worth $3k)
Outcome of investment =             $12k balance
Outcome of investment =             $12k - 10%($1500) interest payable
Outcome of investment =             $ 10,500
Outcome of investment =            -$4500
A total lose of -$4500 leading to more debt incurred.

If the market goes bull(upward direction)
If the price of Bitcoin rise by 20% after a year(annum)

Outcome of investment = Amount borrowed and invested + Rate of the bull(%)
Outcome of investment =             $15k                                    + 20%(worth $3k)
Outcome of investment =             $18k balance
Outcome of investment =             $18k - 10%($1500) interest payable
Outcome of investment =             $ 16,500
Outcome of investment =            +$1,500 after amount borrowed + interest is refunded(total: $16,500)
A total profits of +$1,500 leading to more debt incurred.

Conclusion
We need to wiegh our decisions whenever we want to go borrowing to invest in cryptocurrency. This should help us to understand the risks we are taking whenever we invest in cryptocurrency.

[wxa7115]

In all risky investments, borrowing your capital is obviously the worst option. Some may have profited from it but a lot are actually losing in the end from doing it. That is why borrowing or taking a loan is a big NO especially that you are still starting to learn to invest and you could experience more losses at first than expecting instant gains. So buy at your own risk using your spare money, not from the money of other people.

It is a known fact the majority of the traders out there lose their money after a relatively short amount of time after they start their trading journey, now losing money they have saved over the years is bad enough, but losing money which is not even theirs and from which they will need to pay high interests is simply a terrible outcome.

The only ones which should even consider doing this are the traders that have proved they have succeed as profitable traders and the ones which can get a loan with low interest rates.

[lienfaye]

The question is, is it bad to borrow? If you know for yourself that you are responsible for borrowing and paying, I see nothing wrong. Now, like the title said, is it really bad for you to buy bitcoin from debt?

If there were people who were doing that, I would have been one, because I couldn't buy bitcoin for 250$ in one shot I just borrowed and I just held the bitcoin in my wallet, but I did that because I had a lot expenses to do. And even so I did that I paid off my debt before my due date. And now the bitcoin that I owed the purchase that I was paid. This means that borrowing money is not bad, ...it only gets bad when you don't pay off your debt.

You have a point. It's not wrong to borrow if you can repay the money regardless of the result of your investment to Bitcoin. That means you're not relying on your profit from the investment to be able to pay the borrowed money. Now, if that's the case I don't see any problem.

However, for people who take a risk of borrowing just to invest (in general). Believing they can gain if they did that and will rely the repayment money on the income of their investment, then that's different. It's like gambling since you're not certain what might be the outcome. We always advice, just invest what you can afford to lose, it's very clear. Use your own money since investing is risky, if you'll borrow to invest, make sure that you can repay your loan because that's your responsibility.

[dothebeats]

The question is, is it bad to borrow? If you know for yourself that you are responsible for borrowing and paying, I see nothing wrong. Now, like the title said, is it really bad for you to buy bitcoin from debt?

If there were people who were doing that, I would have been one, because I couldn't buy bitcoin for 250$ in one shot I just borrowed and I just held the bitcoin in my wallet, but I did that because I had a lot expenses to do. And even so I did that I paid off my debt before my due date. And now the bitcoin that I owed the purchase that I was paid. This means that borrowing money is not bad, ...it only gets bad when you don't pay off your debt.

You have a point. It's not wrong to borrow if you can repay the money regardless of the result of your investment to Bitcoin. That means you're not relying on your profit from the investment to be able to pay the borrowed money. Now, if that's the case I don't see any problem.

However, for people who take a risk of borrowing just to invest (in general). Believing they can gain if they did that and will rely the repayment money on the income of their investment, then that's different. It's like gambling since you're not certain what might be the outcome. We always advice, just invest what you can afford to lose, it's very clear. Use your own money since investing is risky, if you'll borrow to invest, make sure that you can repay your loan because that's your responsibility.

I agree. Investing or not you need to ensure that you are doing your end of the loan agreement. It is your responsibility to pay what you borrowed no matter how good or bad your financial standing is. Hence, it is true and I have always agreed that we should only invest what you can afford to lose as an investment can go anywhere at anytime. It will be hard for you to borrow money and then invest it with the hopes that you'll get more than what you invested so you can pay your loan. You are not only making a big problem for yourself but to the person/system you have loaned from.

[mvdheuvel1983]

When responding to whether to borrow money or not to buy bitcoin, I think we should look at the two sides of the argument. First if you know that you can afford to do that and be able to bear the risk then nothing stops the individual from taking out the loan. We all have different risks appetite, and it varies from person to person. In one of his interviews, Michael Saylor recommends using debt to your gain in certain monetary environments. Now remember the risk appetite I talked about, he suggests that if anyone ones to borrow money, first, they should endure that it has low interest rates, and it should be used to buy tangible assets that will potentially appreciate in value. Lastly, if you are going to borrow money to buy bitcoin, please do it because you want to hold for the long term.

[Texac]

When responding to whether to borrow money or not to buy bitcoin, I think we should look at the two sides of the argument. First if you know that you can afford to do that and be able to bear the risk then nothing stops the individual from taking out the loan. We all have different risks appetite, and it varies from person to person. In one of his interviews, Michael Saylor recommends using debt to your gain in certain monetary environments. Now remember the risk appetite I talked about, he suggests that if anyone ones to borrow money, first, they should endure that it has low interest rates, and it should be used to buy tangible assets that will potentially appreciate in value. Lastly, if you are going to borrow money to buy bitcoin, please do it because you want to hold for the long term.

I agree with your thinking, we do not need to be too strict in borrowing capital for investment or business if we have the ability to accept risks as well as repay debt in other ways.  to be successful, we need to step out of our comfort zone, not be too shy and expect a good outcome by doing nothing. But not so that we defy everything and invest blindly.  i mean, we need to plan and prepare everything carefully because life is full of surprises, so always have a plan for the worst case scenario.

[Lorence.xD]

The question is, is it bad to borrow? If you know for yourself that you are responsible for borrowing and paying, I see nothing wrong. Now, like the title said, is it really bad for you to buy bitcoin from debt?

If there were people who were doing that, I would have been one, because I couldn't buy bitcoin for 250$ in one shot I just borrowed and I just held the bitcoin in my wallet, but I did that because I had a lot expenses to do. And even so I did that I paid off my debt before my due date. And now the bitcoin that I owed the purchase that I was paid. This means that borrowing money is not bad, ...it only gets bad when you don't pay off your debt.

You have a point. It's not wrong to borrow if you can repay the money regardless of the result of your investment to Bitcoin. That means you're not relying on your profit from the investment to be able to pay the borrowed money. Now, if that's the case I don't see any problem.

However, for people who take a risk of borrowing just to invest (in general). Believing they can gain if they did that and will rely the repayment money on the income of their investment, then that's different. It's like gambling since you're not certain what might be the outcome. We always advice, just invest what you can afford to lose, it's very clear. Use your own money since investing is risky, if you'll borrow to invest, make sure that you can repay your loan because that's your responsibility.

I agree. Investing or not you need to ensure that you are doing your end of the loan agreement. It is your responsibility to pay what you borrowed no matter how good or bad your financial standing is. Hence, it is true and I have always agreed that we should only invest what you can afford to lose as an investment can go anywhere at anytime.

It's the conscience and guilt itself for borrowing money that you couldn't even pay in time. If you don't have the money to invest in Bitcoin why bother using a loan in a risky situation right? Even using your spare money can be stressful already imagine when it comes to loan right? Don't ever risk money that you can't afford to lose especially you just borrowed it. It will just worsen your situation of course there are some cases that they actually succeed profited from their loan, but that is just risky as hell that could destroy your financial status. Spare money would work like for example in your extra part time job income then you could invest it since you have the money to provide your needs plus extra money for investment.

 It will be hard for you to borrow money and then invest it with the hopes that you'll get more than what you invested so you can pay your loan. You are not only making a big problem for yourself but to the person/system you have loaned from.

In my country in Philippines when you're gonna borrow money, normally they would interview you and ask for your occupation they would check if you can meet up the requirements to apply for a loan like your salary are applicable in borrowing money. So if you couldn't pay in time or you intentionally didn't pay, they would just contact your company or agency so they could just deduct the debt to your salary plus the negative credit score that could cause you to get banned in taking a long for another time. Person/system are also smart in this loans so the people who borrowed would be get affected from this.

[retreat]

Actually borrowing money to buy Bitcoin is not a problem as long as someone understands the actions they are taking, as is done by some companies/individuals who collect funds from the public/investors to invest back in instruments like Bitcoin or others and expect profit from it. What needs to be considered is that at the time of investment they must be prepared that their investment can lose and how do they overcome this problem if it occurs. However, if you are not ready, you should avoid borrowing money to invest in Bitcoin because it is very risky.

[Yatsan]

Will never be advisable. It is like gambling with a borrowed money. Indeed Bitcoin investment is different from gambling but will profit come in an instant once you invested in Bitcoin? Will it be consistent in the first place? Bitcoin is profitable indeed but for long term investment 'coz anything could happen in a sudden, with regards to its market value and that could push you at edge if the money you have invested is not totally yours. Much better is to save or use only an amount you can disregard. In such way you'd be worry-free no matter what direction the market price go. It'll only be a partial loss if you'd choose to hold for a long time. And that is something you won't be able to do if the money you have used is not yours 'coz you'd be needing to pay it on a specific timeframe.

[DudeAtWork420]

Taking a loan for a risky and volatile market is a dangerous business or investment idea as no one can predict the next swing and direction of the market that is why we are advised to use our spare cash or money we can afford to lose but a loan is not a money you can afford to lose neither is it a spare cash. For the sake of your peace it is a loan and accrued debt on your side you which means if you burn it up possibly you can not pay back because before you borrowed it, you have nothing on you and you took the loan with the mindset of paying it back with profit. It is better you avoid it than giving yourself some stress to paying back if things go sour.

[OcTradism]

Taking a loan for a risky and volatile market is a dangerous business or investment idea as no one can predict the next swing and direction of the market

People take risk even high risk because base on their predictions, the market will go up and give them profit so risk is worthy to take.

that is why we are advised to use our spare cash or money we can afford to lose but a loan is not a money you can afford to lose neither is it a spare cash.

That is true. Using your own money and more important spare cash is safer than borrowing money. It does not mean you will get profit from the market because it depends on other factors but at least, you won't have pressure like borrowing money.

Borrowing money has more pressure because you will have to always think of loan interest repayment, collateral liquidation, market volatility and risk of losing money by the market and the loan position.

[gunhell16]

The question is, is it bad to borrow? If you know for yourself that you are responsible for borrowing and paying, I see nothing wrong. Now, like the title said, is it really bad for you to buy bitcoin from debt?

If there were people who were doing that, I would have been one, because I couldn't buy bitcoin for 250$ in one shot I just borrowed and I just held the bitcoin in my wallet, but I did that because I had a lot expenses to do. And even so I did that I paid off my debt before my due date. And now the bitcoin that I owed the purchase that I was paid. This means that borrowing money is not bad, ...it only gets bad when you don't pay off your debt.

Many people always consider borrowing money to be bad, we should stay away, but I agree with you. If everything is under our control, then borrowing money to invest in bitcoin is not entirely a bad thing. I have never borrowed money to invest in bitcoin, but I have also borrowed money for business, and the results are as I expected, not as bad as people are saying. There is no success without trade-offs, borrowing money is not bad if we have a perfect plan.

Thanks dude where at least you got my point in some other angle of it. I won't deny that a lot of people borrowed money but they didn't use it wisely, i understand why a lot of here saying it is not a good idea.

It is very seldom for the community here to use the money they borrow where in the end it goes into nothing.And that is really a bad thing.. If they can't handle it properly borrowing is not the best solution for this matter. As much as they can avoid it, they must do it now.

[Blitzboy]

Will never be advisable. It is like gambling with a borrowed money. Indeed Bitcoin investment is different from gambling but will profit come in an instant once you invested in Bitcoin? Will it be consistent in the first place? Bitcoin is profitable indeed but for long term investment 'coz anything could happen in a sudden, with regards to its market value and that could push you at edge if the money you have invested is not totally yours. Much better is to save or use only an amount you can disregard. In such way you'd be worry-free no matter what direction the market price go. It'll only be a partial loss if you'd choose to hold for a long time. And that is something you won't be able to do if the money you have used is not yours 'coz you'd be needing to pay it on a specific timeframe.

Like spinning the wheel of fortune, you never know where it will fall. Bitcoin is a long-term business. It could soar tomorrow or drop like a hot potato nobody wants. Right, its not a get-rich-quick scam. Instead of investing borrowed money, what if thats all someone has? Yeah, its risky, but so is life. If the stars align, that borrowed Bitcoin may become a golden goose. Wouldnt that interesting?

[Sanitough]

The question is, is it bad to borrow? If you know for yourself that you are responsible for borrowing and paying, I see nothing wrong. Now, like the title said, is it really bad for you to buy bitcoin from debt?

If there were people who were doing that, I would have been one, because I couldn't buy bitcoin for 250$ in one shot I just borrowed and I just held the bitcoin in my wallet, but I did that because I had a lot expenses to do. And even so I did that I paid off my debt before my due date. And now the bitcoin that I owed the purchase that I was paid. This means that borrowing money is not bad, ...it only gets bad when you don't pay off your debt.

I have to agree with this. Borrowing is not bad unless your intention is to run from it. So if that’s your plan, never take the risk of borrowing from the start. However, we all have different situations in life that will somehow push us into taking loans or borrow money from certain friends. That is never a wrong decision. What makes it wrong is that if you borrow money to chase immediate profits from your investment. Know that any investment brings certain risk, and if you grab the chance to borrow your capital, that will add more risk and increases the risk of losing from your investment.

[KingsDen]

As it has always been said, it is not a very good idea to invest in bitcoin with a borrowed, but if you know what you are doing, there is nothing wrong with using a borrowed money for bitcoin investment. However, there are some calculations and timing you need to certify before you take the risk.

•  You have to ensure that the loan duration should be long term
• You have to consider timing, such that you will take the loan by the ending of a bear market.  You should not take a loan at the end of a bull run
• You also ensure that the interest rate is not high  
• Everything is about calculations. Instead of you to sell your landed properties in order to bull bitcoin, use the landed property as a collateral, get money and invest in bitcoin. Even if your collateral goes, bitcoin will surely answer you one day

[Russlenat]

Borrowing is not actually bad if you can benefit from it in times of emergency, but know that investing is not an urgent condition that needs immediate action. There should be a plan prior to investing, and that includes where to get your funds to invest. So if your plan is to borrow for your capital, that is a very wrong move towards your investment’s success. Before you will receive your profits, you are already pressured to pay the interest so it must be very annoying on the part of the investor. So my advice is to always save before investing. And start investing with a small amount since there’s still no guarantee if your investment will immediately work or you may encounter some losses at first before seeing significant profits.

[maydna]

Borrowing is not actually bad if you can benefit from it in times of emergency, but know that investing is not an urgent condition that needs immediate action. There should be a plan prior to investing, and that includes where to get your funds to invest. So if your plan is to borrow for your capital, that is a very wrong move towards your investment’s success. Before you will receive your profits, you are already pressured to pay the interest so it must be very annoying on the part of the investor. So my advice is to always save before investing. And start investing with a small amount since there’s still no guarantee if your investment will immediately work or you may encounter some losses at first before seeing significant profits.

But in reality, people who borrow money to invest may expect to profit quickly, so they don't consider the risks in detail. And as we know, the bitcoin market often goes up and down, making many people quickly panic. And this can result in them experiencing a loss if they then sell their bitcoins at a low price.

But if they have a mature plan, they can do every step in their plan and won't panic about anything that happens in the market. And the most important thing is that they can repay the loan on time. We recommend not borrowing money to invest in bitcoin, especially if we don't have the money to repay the loan. Investing with enough money is better, and we can routinely make that investment.