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

[peter0425]

there are threads such this in the past , and being mentioned sometimes and indeed , why need to borrow from a investment that you will never have an assurance  and perfect time frame to gather profit?

though Investing is far different from Gambling yet these are two the same thing when talking about borrowing when you wanted to increase your money.
try not to get involved in something with multiple risk. borrowing is obligation to pay and investing is also obligation to wait.

so what will you do if Bitcoin did not bring you the amount you expect in certain time? how could you cover paying your borrowed money with interests?

This is the problem, because if you end up not getting it on time then you are going to end up getting worse and worse. It's not the type of situation where you are going to end up being that much in trouble, I am talking about getting to a point where it's not going to be easy at all, you will not make it back even after you lose it once. So that is why the best way to invest is to save some money aside.

People are not living properly even with the money they have, let alone saving it, but always try to put some aside whenever you can and you should be able to save some aside, that way you would be able to actually do something that is better. I understand it's not going to be easy, but I hope it gets a bit easier by the end.

yups, because the market such as crypto assures us nothing specially in time frame while borrowing needs exact date when to be paid or else the penalty will increase .
so why need to borrow when you will only be putting another Stupid act on it? when we can just use what resources we have to invest for.

[BVeyron]

Yes as the subject said, using borrowed money to buy bitcoin is not good idea because the interest is accumulating every week/month and you don't know when the bull will come and even if you know, you will not know how much it will be. And assuming you took a loan of $400 to pay back within 3 years and the interest rate is $2 weekly and in the 3 years period, bitcoin has not reach the speculated price to sold your bitcoin to pay your loan. Or when you sell, you get the exact amount of the loan, or 1% profit from the sell and you pay off the loan and there is nothing left for you to start over. Is that a good investment? No. So there are many factors one can consider before using borrow money for bitcoin investment. You have to consider the duration of the loan, the probability outcome of bitcoin at the end of the loan year, and the interest rate accumulated at the time to pay back the loan.

When you have done your homework well and you see that you can use the loan to invest on bitcoin and there will be no problem at the end and you will have some changes remain in your wallet then you are free but if not, it will shock you and you will be frustrated so prevention is better than cure as they said. Therefore using loan for investment is not advisable. Ordinarily, you cannot just come to the cryptocurrency Ecosystem space without proper planning and started investing, it is not done in that way, at least calm down to study how things are done in the environment, making some analysis, compare and contrast some of the risk involved then if it is good then you key into it and if it is not then you look for an alternative way to invest in bitcoin.

I came up with this topic because I was planning to borrow money to invest in bitcoin but when I looked at the risk involved, I have to give up the borrowing plan.

I strongly agree with you! Borrowing money is always a risk, even if the sum is not large. As for BTC, the only strategy of making profit is long tem hodl, so if the money was borrowed, then the only way to pay the debt is to have another source of fiat income. And due to the fact that adoption level is still low, the situation looks like taking a loan to buy air. So, BTC should always be bought with money that is not borrowed.

[BlackBoss_]

I strongly agree with you! Borrowing money is always a risk, even if the sum is not large. As for BTC, the only strategy of making profit is long tem hodl, so if the money was borrowed, then the only way to pay the debt is to have another source of fiat income. And due to the fact that adoption level is still low, the situation looks like taking a loan to buy air. So, BTC should always be bought with money that is not borrowed.

Investment is risky and if you invest with your money, you must think of two things, loss and profit. What will you do if that investment leads to profit, it is easy in this case.

A harder thinking is what will you do if the investment causes a loss?
It's not easy to answer but before you start your investment, with your money, thinking about it is important. It is more seriously important if you borrow money to invest, because if you don't think of it, when loss comes, you will be in panic mode and make many bad decisions.

With your own money, no margin call, no loan repayment call, you even have to face with selling your coins if you don't have savings for expenses. So thinking about secondary plan, have savings for emergency. Investment does not always give you profit at any point of time.

[fuguebtc]

I strongly agree with you! Borrowing money is always a risk, even if the sum is not large. As for BTC, the only strategy of making profit is long tem hodl, so if the money was borrowed, then the only way to pay the debt is to have another source of fiat income. And due to the fact that adoption level is still low, the situation looks like taking a loan to buy air. So, BTC should always be bought with money that is not borrowed.

Investment is risky and if you invest with your money, you must think of two things, loss and profit. What will you do if that investment leads to profit, it is easy in this case.

A harder thinking is what will you do if the investment causes a loss?
It's not easy to answer but before you start your investment, with your money, thinking about it is important. It is more seriously important if you borrow money to invest, because if you don't think of it, when loss comes, you will be in panic mode and make many bad decisions.

With your own money, no margin call, no loan repayment call, you even have to face with selling your coins if you don't have savings for expenses. So thinking about secondary plan, have savings for emergency. Investment does not always give you profit at any point of time.

I love this idea and it's something I've always done and maintained to this day. In addition to limiting borrowing money to invest, I always prepare myself some savings for emergencies before thinking about investing. Life has many surprises and unpredictable things, so we must always have a backup plan, don't be too subjective and think that everything will always happen according to your thoughts.

Investment is a double-edged sword, it can bring us prosperity but will also make us worse off without careful planning and preparation. Investment includes profit and risk, no investment has only profit without risk, especially bitcoin.

[Y3shot]

If you borrow money for the purpose of Bitcoin investment, it presupposes that you don't have an extra money, that which you can afford to lose. So that's basically it. The advice has always been to invest only what you can afford to lose so that whatever happens you're not left with nothing and you can still move on with your life. So, notwithstanding Bitcoin's track record, since it remains risky and that it does not have any guarantee whatsoever that it will rise in the following year or years, you better just use extra savings.

It is very risky to borrow money to invest in bitcoin because the markets is volatile and no one can predict the market. Because of the nature of the market of bitcoin it is not  just advisable to loan money to invest bitcoin,  it is  meaningless to take loan on Bitcoin because what is the need of investing in Bitcoin and still owing debt. Investing in Bitcoin should be nothing to do with debt and while investing in Bitcoin one is suppose to be financially stable where by their is a source of income to fund the investment,  that is why it is good to invest accordingly to what one earns.

[BALIK]

If you borrow money for the purpose of Bitcoin investment, it presupposes that you don't have an extra money, that which you can afford to lose. So that's basically it. The advice has always been to invest only what you can afford to lose so that whatever happens you're not left with nothing and you can still move on with your life. So, notwithstanding Bitcoin's track record, since it remains risky and that it does not have any guarantee whatsoever that it will rise in the following year or years, you better just use extra savings.

It is very risky to borrow money to invest in bitcoin because the markets is volatile and no one can predict the market. Because of the nature of the market of bitcoin it is not  just advisable to loan money to invest bitcoin,  it is  meaningless to take loan on Bitcoin because what is the need of investing in Bitcoin and still owing debt. Investing in Bitcoin should be nothing to do with debt and while investing in Bitcoin one is suppose to be financially stable where by their is a source of income to fund the investment,  that is why it is good to invest accordingly to what one earns.

Most people do not support the idea of borrowing money to invest, it is really risky and not recommended. But if someone can be sure that they will be able to repay that loan even if they don't need the profit from that investment, should they consider borrowing money to invest?

Success always requires trade-offs and we need to step out of our comfort zone to face bigger challenges to reap greater results. Borrowing money is not really recommended but it is not a bad idea if we have a backup plan for the worst case scenario if that happens. I also used to borrow money to do business, so I partly understand what it is like to borrow money to invest or do business.

[Dickiy]

It is very risky to borrow money to invest in bitcoin because the markets is volatile and no one can predict the market. Because of the nature of the market of bitcoin it is not  just advisable to loan money to invest bitcoin,  it is  meaningless to take loan on Bitcoin because what is the need of investing in Bitcoin and still owing debt. Investing in Bitcoin should be nothing to do with debt and while investing in Bitcoin one is suppose to be financially stable where by their is a source of income to fund the investment,  that is why it is good to invest accordingly to what one earns.

Most people do not support the idea of borrowing money to invest, it is really risky and not recommended. But if someone can be sure that they will be able to repay that loan even if they don't need the profit from that investment, should they consider borrowing money to invest?

Success always requires trade-offs and we need to step out of our comfort zone to face bigger challenges to reap greater results. Borrowing money is not really recommended but it is not a bad idea if we have a backup plan for the worst case scenario if that happens. I also used to borrow money to do business, so I partly understand what it is like to borrow money to invest or do business.

Of course I also never thought that there are some of them who are desperate to borrow just to invest. Yes that's right, as we know the benefits in investing are very large and it is clear that there is also a very high level of risk there, therefore some experts and professionals always advise to always learn more deeply and try to use money that will not be disturbed by other needs, none other than this advice so that investors can invest with peace of mind and implement their best plans. Honestly, I never think of borrowing money to invest, because obviously with the risks that are there even if for example we use personal money there is still always pressure that we feel, well especially if you use money from loans, of course it will make you even more depressed and all you think about is probably only profit so you can pay off your debt, and obviously indirectly it will greatly interfere with your mental and psychological calm when investing.

Of course they should not be rash in this decision and should always consider it. If there are indeed some who do this way then I say they will only waste time and money, because it is very unlikely to succeed with all the great pressure they face, and yes it is true that to get to success there must be sacrifice first, but not by borrowing too, it is not a good alternative and should be avoided.

[Ahli38]

If you borrow money for the purpose of Bitcoin investment, it presupposes that you don't have an extra money, that which you can afford to lose. So that's basically it. The advice has always been to invest only what you can afford to lose so that whatever happens you're not left with nothing and you can still move on with your life. So, notwithstanding Bitcoin's track record, since it remains risky and that it does not have any guarantee whatsoever that it will rise in the following year or years, you better just use extra savings.

It is very risky to borrow money to invest in bitcoin because the markets is volatile and no one can predict the market. Because of the nature of the market of bitcoin it is not  just advisable to loan money to invest bitcoin,  it is  meaningless to take loan on Bitcoin because what is the need of investing in Bitcoin and still owing debt. Investing in Bitcoin should be nothing to do with debt and while investing in Bitcoin one is suppose to be financially stable where by their is a source of income to fund the investment,  that is why it is good to invest accordingly to what one earns.

That's absolutely true, that's the point that everyone should be aware of. That first we must have a source of income that meets our needs. and when there is money left over, then we can invest it or we set aside a little of the money we earn to put into investments. Because after all investment is for long-term goals. So we have to use cold money that we can afford to lose. Because after all crypto assets do have quite high risks. So we have to invest as much as we can afford to lose and don't force ourselves into high-risk investments. I personally only put a few percent in bitcoin. But because it is quite consistent, it doesn't feel like the number will increase over time. So keep DCA regularly and don't force yourself.

[Blitzboy]

It is very risky to borrow money to invest in bitcoin because the markets is volatile and no one can predict the market. Because of the nature of the market of bitcoin it is not  just advisable to loan money to invest bitcoin,  it is  meaningless to take loan on Bitcoin because what is the need of investing in Bitcoin and still owing debt. Investing in Bitcoin should be nothing to do with debt and while investing in Bitcoin one is suppose to be financially stable where by their is a source of income to fund the investment,  that is why it is good to invest accordingly to what one earns.

Most people do not support the idea of borrowing money to invest, it is really risky and not recommended. But if someone can be sure that they will be able to repay that loan even if they don't need the profit from that investment, should they consider borrowing money to invest?

Success always requires trade-offs and we need to step out of our comfort zone to face bigger challenges to reap greater results. Borrowing money is not really recommended but it is not a bad idea if we have a backup plan for the worst case scenario if that happens. I also used to borrow money to do business, so I partly understand what it is like to borrow money to invest or do business.

Of course I also never thought that there are some of them who are desperate to borrow just to invest. Yes that's right, as we know the benefits in investing are very large and it is clear that there is also a very high level of risk there, therefore some experts and professionals always advise to always learn more deeply and try to use money that will not be disturbed by other needs, none other than this advice so that investors can invest with peace of mind and implement their best plans. Honestly, I never think of borrowing money to invest, because obviously with the risks that are there even if for example we use personal money there is still always pressure that we feel, well especially if you use money from loans, of course it will make you even more depressed and all you think about is probably only profit so you can pay off your debt, and obviously indirectly it will greatly interfere with your mental and psychological calm when investing.

Of course they should not be rash in this decision and should always consider it. If there are indeed some who do this way then I say they will only waste time and money, because it is very unlikely to succeed with all the great pressure they face, and yes it is true that to get to success there must be sacrifice first, but not by borrowing too, it is not a good alternative and should be avoided.

Borrowing money to spend, especially in a volatile market like cryptocurrencies, is risky. Its like starting a project that was meant to fail from the start. You are right about pressure and its effects. Desperate to pay off debts might lead to haste, unwise decisions that worsen the situation.

We'll ignore crypto's hidden concerns like computer theft, changing rules, and market manipulation. Working behind the scenes and pulling strings from the dark is popular here. Poor folks who need to borrow money should not come here. Borrowing money to spend absolutely defeats the purpose of investing and creates a weak foundation.

[bayu7adi]

Another consideration that is seldom pondered is the matter of privacy. When someone takes out a loan, they must provide personal information to the lender (in the conventional manner) in order to gain their trust. For some individuals, sharing this information might not be a concern. However, I contemplate how debt collectors come to one's residence and influence one's psychology.

Some people might overlook this issue, but I am someone who feels uneasy when my identity is treated as that of a delinquent debtor. All of this genuinely affects our reputation and security. Because it's possible that debt collectors might send something we dislike to our home address. And isn't that quite vexing?

[Distinctin]

I strongly agree with you! Borrowing money is always a risk, even if the sum is not large. As for BTC, the only strategy of making profit is long tem hodl, so if the money was borrowed, then the only way to pay the debt is to have another source of fiat income. And due to the fact that adoption level is still low, the situation looks like taking a loan to buy air. So, BTC should always be bought with money that is not borrowed.

Investment is risky and if you invest with your money, you must think of two things, loss and profit. What will you do if that investment leads to profit, it is easy in this case.

A harder thinking is what will you do if the investment causes a loss?
It's not easy to answer but before you start your investment, with your money, thinking about it is important. It is more seriously important if you borrow money to invest, because if you don't think of it, when loss comes, you will be in panic mode and make many bad decisions.

With your own money, no margin call, no loan repayment call, you even have to face with selling your coins if you don't have savings for expenses. So thinking about secondary plan, have savings for emergency. Investment does not always give you profit at any point of time.

Generally, investing into bitcoin using borrowed money is a big mistake. It could even lead you to your worst nightmare. Bitcoin is a high risk asset so if your goal is to accumulate some of it, never take a loan but use your spare money and do DCA instead. That way, you will store a lot of bitcoin in the future and make massive profits. However, if you really insist to take a loan, just make sure that you have a stable job that you can rely to pay your loan.

[HONDACD125]

Another consideration that is seldom pondered is the matter of privacy. When someone takes out a loan, they must provide personal information to the lender (in the conventional manner) in order to gain their trust. For some individuals, sharing this information might not be a concern. However, I contemplate how debt collectors come to one's residence and influence one's psychology.

Some people might overlook this issue, but I am someone who feels uneasy when my identity is treated as that of a delinquent debtor. All of this genuinely affects our reputation and security. Because it's possible that debt collectors might send something we dislike to our home address. And isn't that quite vexing?

You are right that when someone takes a loan from someone and the lenders can come to his house and hurt his psyche, but this will happen if someone does not repay the loan even after the due period.If you borrow from someone or borrow from a bank, if you don't pay it back within the specified period, it will reach your house.So I think if a person doesn't want to hurt his self respect then he should repay his loan in due time.Those who ignore the fact that they have to return the loan taken in their fixed period, then they are identified as debtor criminals.


so in such cases there is definitely a risk of people's reputation and security being affected, so I think all these things should be kept in mind before taking a loan that if they are unable to repay the loan amount within the stipulated period, So these matters may come home with him and his privacy may be affected, and of course these things will prove troublesome for him. Therefore, every possible effort should be made not to invest with borrowed money.

[Z_MBFM]

If you borrow money for the purpose of Bitcoin investment, it presupposes that you don't have an extra money, that which you can afford to lose. So that's basically it. The advice has always been to invest only what you can afford to lose so that whatever happens you're not left with nothing and you can still move on with your life. So, notwithstanding Bitcoin's track record, since it remains risky and that it does not have any guarantee whatsoever that it will rise in the following year or years, you better just use extra savings.

People start borrowing only when they have no spare money.  And in this case it solves a financial problem for him for a temporary period but if he has no source of passive income, this loan creates an additional pressure on him. But if he has a good source of income but does not have a large amount of savings to invest. In that case he can take a loan and invest in Bitcoin but he will have to repay the loan from his income. And bitcoins have to be hold for a long time. Investing in Bitcoin with a loan will not be a problem if op follow this strategy

[bitzizzix]

I once heard the expression “never trade certainty for uncertainty”.
This means that when we borrow money, such as borrowing from a bank, friends, margin, online loans and so on, we definitely have to pay it according to the agreement and also have to be on time, otherwise there will be risks.
Meanwhile, if you invest in Bitcoin or others, you could say the profits are uncertain. And who can guarantee if everything doesn't go as expected?
So investing money you can afford to lose is a good choice, do it within your means. And borrowing is much better if you are selling something expensive for your investment capital. Because you don't need to worry about paying off debts or paying installments if you borrow, because this will be very troublesome for you if you don't have money.

[serjent05]

I came up with this topic because I was planning to borrow money to invest in bitcoin but when I looked at the risk involved, I have to give up the borrowing plan.

If you have a job and have a fixed source of income and that income is somehow more than enough for your family needs, I do not think it is bad to take a loan to invest in Bitcoin.  For the reason:

1.  You are able to pay the monthly dues
2.  You can time the loan and buy Bitcoin when Bitcoin is in its dip giving you the advantage.
3.  If the annual interest rate is lower than 10%, the profit with Bitcoin will outweigh these interest rate

People take loan when they are establishing a business I think it is not different with taking loan to invest in Bitcoin.  One just needs to make sure that they are able to pay the loan monthly dues and still have enough money to cover their family needs.  If that is impossible then I also won't recommend loaning to invest into Bitcoin.

[hd49728]

If you have a job and have a fixed source of income and that income is somehow more than enough for your family needs, I do not think it is bad to take a loan to invest in Bitcoin.  For the reason:

1.  You are able to pay the monthly dues
2.  You can time the loan and buy Bitcoin when Bitcoin is in its dip giving you the advantage.
3.  If the annual interest rate is lower than 10%, the profit with Bitcoin will outweigh these interest rate

People take loan when they are establishing a business I think it is not different with taking loan to invest in Bitcoin.  One just needs to make sure that they are able to pay the loan monthly dues and still have enough money to cover their family needs.  If that is impossible then I also won't recommend loaning to invest into Bitcoin.

I am against this idea.

Because you can lose your job anytime and your income will be changed or turn to be zero when you lose all your jobs. You will be in trouble to pay your loan interest in that situation.

If you have a job, good income, you can choose a safer way, use part of your income to accumulate Bitcoin. No loan, no loan interest, no loan repayment and if you lose your jobs, you won't have to be burned with loan interest. In that situation you only have to stop your accumulation  but you can always come back when you get a new job.

[superman184]

People start borrowing only when they have no spare money.  And in this case it solves a financial problem for him for a temporary period but if he has no source of passive income, this loan creates an additional pressure on him. But if he has a good source of income but does not have a large amount of savings to invest. In that case he can take a loan and invest in Bitcoin but he will have to repay the loan from his income. And bitcoins have to be hold for a long time. Investing in Bitcoin with a loan will not be a problem if op follow this strategy

I think this method also makes sense if someone wants to use it for investment purposes in Bitcoin, because most people who dare to make loans do so because they themselves know that they have a source of passive income that can enable them to cover or pay off the loans they make. But if there is someone who dares to take out a loan, but he doesn't have a source of passive income, I think that kind of person just has reckless capital and has no calculation at all about what he is doing.

[Z390]

Borrowing money to invest in risky assets is not always safe but not generally a bad idea, you can end up having no choice than to borrow money when the opportunity is right in front of you, assuming that Bitcoin dumped to 10k right now, that's a big opportunity that won't last for more than few days, thousands of people are waiting for such opportunity and I don't expect it to last long, if you don't have any spare money at the money, borrowing the money is the only option left.

This is considered a well invested money, mind you, if I have to borrow such money, it will be the amount I can pay back in just a week or two, lets say a month max, know what you are doing, just because Bitcoin dips to 10k doesn't mean I must get 1 BTC, so I have to borrow $10,000, this is wrong because to pay that back will be inconvenient, the goal was to take advantage of the dump, so borrow what you can easily pay back in time.

It's not in my style to borrow money for investment, but if a unexpected opportunity arises up I could end up doing it, I can easily pay back $1000 in few weeks and buying $1000 when Bitcoin dumps to 10k is a very good shot. Don't go over your boundary, to avoid inconvenience.

[cheezcarls]

It reminds me of months ago when I was a guest speaker and panelist of an educational event in the nearby province. There's one guy who asked if it's okay to borrow money just to buy Bitcoin.

I gave him a straight no for that explaining the volatility and the unpredictable movement of Bitcoin. How can you payback the money if BTC's price was crashing down and not recovering for a long while.

If you don't have money but wanted to get in to BTC, much better earn it from side gigs or jobs and just put an amount that you can afford to lose.

[Lorence.xD]

It reminds me of months ago when I was a guest speaker and panelist of an educational event in the nearby province. There's one guy who asked if it's okay to borrow money just to buy Bitcoin.

I gave him a straight no for that explaining the volatility and the unpredictable movement of Bitcoin. How can you payback the money if BTC's price was crashing down and not recovering for a long while.

If you don't have money but wanted to get in to BTC, much better earn it from side gigs or jobs and just put an amount that you can afford to lose.

Maybe if he listened to your as a speaker he wouldn't think like that. I think that he might considered you as rich since you are knowledgeable enough to teach people, but regardless of the financial status, borrowing money would never be a good option to invest in Bitcoin. This might be applicable to people who have enough salary that could provide their needs, as well payment to their loan. Still it's the risk that were concern since Bitcoin is unpredictable that could worsen someone's life. Explore more the internet or out of your comfort zone, for sure there's a lot of side jobs that people could take to earn for investment