Taking a loan to invest in DCA method

[mid9tclaw02]

Ever since i introduced my friend to the DCA method of trading in btc he has been having some good turn up but he was asking me if i can loan him some money so he can add up to boost his staking so please guys how do i go about it should i give him or i shouldn't.

[bitbollo]

No I would avoid it. It is always a gambling activity. This is just an useless risk.
First of all, even if we are ultra-optimistic in this forum you cannot know more about "the future".
If something goes wrong (and this is always possible) there is a loan to be paid back plus no investment available (imagine a big dip or whatever).
This is only an un-necessary risk... also because you can have extra expenses and liquidate your investment will become an huge failure.
Big investors are aware of people trying to get these jackpots and collapse of the prices are always possible.

[SATWAT]

I have to be agreed with @bitbollo because taking loan for any purpose like trading or gambling has never been recommended this always give serious setback which is surely having serious impact on family as well.
Crypto is all about hype just because of this in last few years I read too many peoples have their ends worst due to taking risk with loans or with their own savings which never been recoverable for them after losing.

Try to avoid this at any cost and try to manage things with your own income because this always give better stability and chance of survive having loan for any trading or trading strategy is avoidable for all never do this if you have family.

[BitMaxz]

I think it depends on how much you trust your friend. Even if he/she is doing a DCA method in Bitcoin or anything related to investment, if your friend can be trusted and has a job salary and is able to pay you, why not?  You can have the interest and make a profit from him. If you can't trust, then ask for a collateral just in case.

However, if he/she promise to pay you once s/he made a profit from DCA in BTC, then you should decline because there's a high risk if he/she loses, they won't pay you.

[Distinctin]

Ever since i introduced my friend to the DCA method of trading in btc he has been having some good turn up but he was asking me if i can loan him some money so he can add up to boost his staking so please guys how do i go about it should i give him or i shouldn't.

You should have known the answer because you are the one who introduced DCA to him. Now tell him that while DCA should be done regularly regardless of its price, but one should only DCA with an amount that he can afford to lose. Now if he has no sufficient amount at the moment, then ignore DCA for now, and just do it when he’s already able to.

Taking a loan is not that bad, but it’s neither not good also if you take some risk while using other people’s money, regardless if you’re capable to pay or not.

[kawetsriyanto]

No, just don't give him a loan. It possibly brings a problem between you and your friend in the future.

By the way, does your friend apply the DCA method in trading or in investment? This should be clear first. If it is for investment, it makes no sense to take a loan for DCA. DCA is a method to accumulate BTC if you have small money. So, it is not a must to buy BTC with certain number, just buy BTC with any amount of money you have.

[fuguebtc]

If your friend is really using the DCA strategy, why would he need to borrow money to do so?
That means either you and your friend don't understand the DCA strategy well, or you both have Fomo and are on your way to becoming gamblers instead of investing long term with the DCA strategy.


As to whether you should lend money to your friend, it depends on your relationship and how much you trust that person. We can't help you decide because we're not you and don't know what kind of person your friend is.

Additionally, borrowing money to invest in volatile and unpredictable assets like bitcoin is risky and not recommended.

[btc_angela]

Ever since i introduced my friend to the DCA method of trading in btc he has been having some good turn up but he was asking me if i can loan him some money so he can add up to boost his staking so please guys how do i go about it should i give him or i shouldn't.

I do agree with what most of the members here, it's not a good idea to borrow or take a loan to invest and do DCA. It outweigh the risk of it so I wouldn't advise for anyone to try this method. Specially if you are like going to pay greater than 5% interest? it's going to be bad. And you have to consider a lot of factors as well, like the current situation of the market.

Worst case scenario:

1. You took a loan at certain interest rate
2. Market goes down hard in a year
3. Now you own money + interest

So how can you recover from that?

[@nn@_pen9]

Ever since i introduced my friend to the DCA method of trading in btc he has been having some good turn up but he was asking me if i can loan him some money so he can add up to boost his staking so please guys how do i go about it should i give him or i shouldn't.

Is your understanding good enough in this field that your friend taught you?For the matter of borrowing and lending, we must consider your friend's ability to repay and you must be aware of the potential losses that may occur, and also whether you are ready to face the possible tension if there are problems with payments in the future. If you already understand how your friend's dca investment works, why don't you start it yourself? Why should you lend your money to your friend? Moreover, you see your friends making good progress in this matter.

[JeffBrad12]

Ever since i introduced my friend to the DCA method of trading in btc he has been having some good turn up but he was asking me if i can loan him some money so he can add up to boost his staking so please guys how do i go about it should i give him or i shouldn't.

Do yourself a favor and use the money for yourself and buy bitcoin.
Why should he get the capital growth while you're sitting in uncertain condition whether you gonna get your money back or not, not to mention its gonna get eaten up by inflation over the year.
Just use it to invest on your own dude.

[traderethereum]

Never invest using loan money. That is not advisable because you never know if you can profit at the right time. Investing is something that you should use your own money that you have prepared. That money should not interfere with your primary needs. Otherwise, all things in your life will be disrupted.

You don't have to give him the money but explain to him that he needs to allocate his income into the investment. He should separate his income into all the needs he has including his investment. It is no problem if his money to invest is not much because he should fulfill his primary needs.

[Glen Hoddle]

Ever since i introduced my friend to the DCA method of trading in btc he has been having some good turn up but he was asking me if i can loan him some money so he can add up to boost his staking so please guys how do i go about it should i give him or i shouldn't.

I forbid you from giving money, you should never lend money. Because it is basically extra risk, if he faces losses in trading then he will hesitate to return your money and even if he returns the money to you after a long time then it can disrupt the relationship between the two of you. So do not expose your friend to danger by lending money, because it is basically focused like gambling.

[adaseb]

Ever since i introduced my friend to the DCA method of trading in btc he has been having some good turn up but he was asking me if i can loan him some money so he can add up to boost his staking so please guys how do i go about it should i give him or i shouldn't.

No this is a bad idea. You never loan out any money to your friends or family. Especially if its for investment purposes. If it was for food it would be one thing but for investment it doesnt make sense.

Say you give him money and bitcoin goes down, what happens then? Does he pay you back? Probably not.
What if bitcoin goes to $1M, and he pays you back your initial investment but you want a bonus? What happens then? Its best to leave loaning people money. And you should never invest with borrowed money.

[Lidger]

This is always a wrong decision and I will always oppose such a decision. Taking a loan to invest is never a good plan.

Suppose you take a loan from a very trusted person and start investing consistently with the loan. Initially, everything was fine with you and you got more motivated and invested more money but when the financial needs of that person arise i.e. the person from whom you took the loan and he asks you for the money he owes then what will you do. Then you will have no choice and will be forced to sell your investment and pay his money. At the time you sell your investment, your investment may not have any profit and if there is a comparative loss then you will have to pay that loan with that loss, which will break your heart as well as your relationship with that person will be ruined due to financial transactions.

So the right decision will always be to continuously invest a part of the amount of money you are earning in Bitcoin, this will protect your investment and you will be able to plan for the long term with this investment.

[Bitcoin_people]

Ever since i introduced my friend to the DCA method of trading in btc he has been having some good turn up but he was asking me if i can loan him some money so he can add up to boost his staking so please guys how do i go about it should i give him or i shouldn't.

In my opinion, if you lend money to your friend for trading or gambling, it is not a good sign at all. He can lose it at any time and he will definitely hesitate to return it to you later and may not return it because there is no certainty whether he will be able to make a profit and whether he will be able to return your money later. However, if he makes a profit constantly using the DCA method, he can increase his staking from that profit. So I think you should never lend money in trading, and if your friend trades on credit, it is risky for him, you must explain this to him. If you want to trade, you should start with a little from your own source of income, and no one should ever take such a risk by borrowing.

[POPOLUV]

Ever since i introduced my friend to the DCA method of trading in btc he has been having some good turn up but he was asking me if i can loan him some money so he can add up to boost his staking so please guys how do i go about it should i give him or i shouldn't.

It is not very advisable to be taken loan in anywhere just to invest using DCA method or any other methods that can be used for Bitcoin investments, because if such investors eventually take loan or you as an investor given loan to your friend to invest because he has see the benefits of using DCA method you introduced him when it comes to Bitcoin investments, believe me that if eventually give the loan to your friend, you wouldn't know that you have just help in promoting him to be gambling because he will be monitoring the market price just to get small profits from the money he borrowed him, for him to trade immediately and give you back your money you loaned him within a short period of time.

[Zackz5000]

Ever since i introduced my friend to the DCA method of trading in btc he has been having some good turn up but he was asking me if i can loan him some money so he can add up to boost his staking so please guys how do i go about it should i give him or i shouldn't.

You don't trade Bitcoin using the DCA strategy, the DCA strategy is for those who investing in Bitcoin and not traders but investors.

I will advise not to take a loan to invest in bitcoin, Bitcoin is a long time investment unless you have a business you are doing to back the loan but if you are depending from your Bitcoin investment to pay back then you are not ready to start Bitcoin investment because Bitcoin price may drop and you get panic to sell in lost.

Invest in bitcoin with your discretionary income that's money you can afford to loss incase everything goes down it won't affect you mentally.
Having your discretionary income set you can use the DCA strategy to accumulate Bitcoin regularly either weekly or monthly and hodl for long.

[Tonimez]

Ever since i introduced my friend to the DCA method of trading in btc he has been having some good turn up but he was asking me if i can loan him some money so he can add up to boost his staking so please guys how do i go about it should i give him or i shouldn't.

How do you mean that you introduced your friend to a DCA method and he has been having a good turn up?? If you introduced your friend into bitcoin, then it's either you introduced him to bitcoin gambling (Trading) or he got himself involved in bitcoin trading. You have not done your job well as someone who wants to introduce someone into bitcoin investment.

It's not all about introducing someone into bitcoin, what matters is giving the right information about bitcoin investment because any small misinformation in bitcoin investment leads to disaster in the nearest future. Someone who is into DCA method does not count turnups but investments, only Bitcoin traders count turnups. DCA method is a method designed for long-term bitcoin investment holdings.

Collecting loan to invest in the DCA strategy is not right in any form since it endangers your bitcoin stash and creates chances of premature sales. Some people fall into this trap believing that they are expecting money from someone or somewhere and this makes them to venture into collecting loan to invest in bitcoin. This is very wrong because, there are chances that the money you're expecting may not come and you will be forced to sell off your bitcoin to pay back your loan and this time, you may be selling at loss because you are selling prematurely and under duress. Every investor is supposed to be financially prepared and wise enough when it comes to cashflow management. There's no wisdom in borrowing money to invest especially in bitcoin investment. Will you also borrow your emergency funds and back up funds when their needs arise?? Hell No! So it's better to play safe and never borrow money to invest in bitcoin especially if you are aiming for long-term.

Ever since i introduced my friend to the DCA method of trading in btc he has been having some good turn up

The implication of this statement is that he's actually into bitcoin gambling (Trading) and it's even worse if he starts borrowing money to trade. He may end up selling off all his belongings and loosing them all to bitcoin gambling. It is not a wise decision in anyway to borrow money to gamble since it can destroy a person's life in a short time. Bitcoin gambling is risky and it's not very advisable for anyone especially Newbies who knows little or nothing about bitcoin. They only play around with bitcoin until they meet their doom which is probably inevitable. If he chooses to continue Gambling with bitcoin, advise him to only gamble with what he has and not multiply his problem by borrowing money to gamble bitcoin too.

[Out of mind]

OP, you should always think about this issue that lending money to a friend or relative in trading is not entirely my personal opinion. Basically it is a part of gambling where you lend money and he can lose it at any time and later he will hesitate to return the money you borrowed. It is always a risk so never put your friend in such danger by lending money but if possible you can invest some amount yourself using DCA method. If your friend is very interested in investment or trading or stalking then it would be better if he earns his own income and does it with money. However, you should never invest, gamble, trade, stalk with borrowed money, it is always risky.

[davis196]

Ever since i introduced my friend to the DCA method of trading in btc he has been having some good turn up but he was asking me if i can loan him some money so he can add up to boost his staking so please guys how do i go about it should i give him or i shouldn't.

I don't give loans to friends. You do whatever you want. I would become suspicious, if a friend asks me to borrow him money just to buy more crypto in order to "boost his staking". I mean, if you really want to boost your staking, get a better job and make more money.
Doing dollar-cost-averaging with borrowed money isn't a problem, when the BTC price goes up, but what would you do in case of a bear market, that lasts for several months? Would you sell your BTC and give up, or maybe you would keep paying off your loan AND keep buying BTC? The answer is simple. Everything depends on your monthly income. Never invest borrowed money, when your monthly income isn't sufficient enough to cover your loan repayments and other costs.