Taking a loan to invest in DCA method

[justinlamode]

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.

Are you talking about the DCA method for long term investment or trading which is short term deal? Well for either of them, don't borrow money to invest and don't lend money to anyone who wants to use it for investment, especially your friends because that might lead to the end of your friendship. Money have spoilt so many relationships I know of so I don't support lending money to a friend for the purpose of investment. Let your friend build with whatever he has because borrowing to invest is a sign of greed.

[free-bit.co.in]

While borrowing money to invest is risky and not recommended, in my opinion we don't need to stay away from it completely and it's not necessarily a bad idea. It depends.
If we have a good source of income but for some reason, temporarily do not have enough money to invest, there is nothing wrong with borrowing money. As long as we can be sure that we can repay the loan regardless of the outcome of that investment, we can consider it. On the contrary, if we are unemployed, have no guarantee of paying off debt and are dependent on investments, borrowing money would be a bad idea.

so please guys how do i go about it should i give him or i shouldn't.

He is your friend, not ours and the decision is up to you.

[hyudien]

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'm curious if your friend is trading or investing long-term. But since you said your friend is making progress, it's likely trading. If I'm wrong please correct me.
Regarding loans, it really comes down to you. If you can afford the consequences if your friend defaults or worse fails in their investment then it's fine to lend. Conversely, if you don't want to be involved in that worst-case scenario, it's better not to lend.
Essentially you should remind your friend to invest within their means.

[philipma1957]

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.

DCA and loan are a terrible mix.

In fact they do not mix at all.

I lend 12,000

I get paid 250 a week for a year. I get 13,000 back


The borrower  pays me the 250.

but he has 12,000 if it is for dca and he buys 250 a week in btc he did not need the loan.

at all.  He could just buy 250 a week instead of giving me the 250 a week,

 So it is not a proper mix or use of terms. he wants 12,000 for big buy in and hodl.

and he can't afford it as he needs a loan to do it.

[yixichloro2xx]

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.

DCA and loan are a terrible mix.

In fact they do not mix at all.

I lend 12,000

I get paid 250 a week for a year. I get 13,000 back


The borrower  pays me the 250.

but he has 12,000 if it is for dca and he buys 250 a week in btc he did not need the loan.

at all.  He could just buy 250 a week instead of giving me the 250 a week,

 So it is not a proper mix or use of terms. he wants 12,000 for big buy in and hodl.

and he can't afford it as he needs a loan to do it.

You're absolutely right ,  DCA  and taking out a loan don’t belong in the same conversation. DCA is all about gradual, consistent investing over time using money you already have or earn regularly. It is designed to reduce risk and avoid the stress of timing the market. Borrowing a lump sum to invest defeats the whole purpose.

If someone takes a $12,000 loan and then pays it back at $250 a week, they are essentially doing what they could’ve done without the loan,  just buying $250 worth of Bitcoin each week. So why borrow at all because the  loan  must surely adds interest, obligation, and risk, especially if the market dips and they are  stuck repaying debt while their investment is underwater.

What they are really trying to do is make a big buy in upfront and hold, hoping for long term gains. But if they need a loan to do that, it is a clear sign they can’t afford it. And investing with borrowed money,  especially in something as volatile as Bitcoin is not a good idea. Because It is not strategic, iti s speculative....DCA works best when it is  funded by disposable income, not debt. Mixing it with loans just muddies the waters and puts unnecessary pressure on the investor. Smart investing is about patience and sustainability  not rushing in with borrowed cash.

[harapan]

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.

That's not a good one and i advice you don't do so cause this is how it usually generate from.. things as this are similar to gambling, one one or two turn ups you start thinking you can make it all at once since luck is on your aide but it's not as favourable as he may see it. Cause it involves high risks and at such a more reason he needs to hold back.

[Republikcoin.com]

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.

As for whether or not to give money to a friend for a specific reason, I think that's up to you, because people here don't know how your friend behaves and behaves when they have money. So, only you can decide that because you know your friend better and what he does for a living, so you can make a decision without having to ask. And one more thing, the DCA method will be even more beneficial with maximum results if it's consistently used in Bitcoin investments, not just in Bitcoin trading, because Bitcoin is more suitable for long-term holding than short-term trading.

[passwordnow]

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 support him continuing DCA but in not that term of loaning him money. That is one kind of action for being irresponsible. If you want to end up breaking up with each other and cutting off your friendship then loan him. But if you want to keep him as your friend, don't loan him money to DCA. He has to do his own thing to be able to succeed in DCA, if he won't experience the hardship of where to get money, he won't give its worth with the loan that you're going to give him. Easily obtained, easily going to release after all since it's not his personal money if you allow.

[Odusko]

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.

For you information, DCA is not trading Bitcoin, if you are trading you are doing a different thing entirely and you should know that DCA is a way of steadily buying Bitcoin at regular intervals and the goal is to accumulate enough Bitcoin for the long term goals, traders are just short market takers and their have to keep taking actions at regular intervals to keep up with their profits merging.

[ShowOff]

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.

Whether or not to lend is entirely up to you, but the bottom line is that you must be prepared to lose two things: your friend and your money. Imagine, if Bitcoin doesn't reach the desired price within the desired timeframe, I think that's where the first problem will arise, you might want your money back. Furthermore, if you ever need the money for an emergency, you clearly have to be prepared for the various risks.

In the long term, Bitcoin price will certainly grow and provide significant profits. If you lend, you may also need to agree on how to share those profits. I might be inclined to advise against lending, but it all depends on how much you value the friendship and your willingness to accept the risks.

[irhact]

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.

If he's taking a loan to invest then he's doing it in the wrong way and when he's trying to accumulate Bitcoin through DCa but not being able to do that instead, he's now borrowing money to do that than that isn't DCA. DCA is supposed to remove the pressure from buying a large amount of Bitcoin and instead be buying Bitcoin in your capacity. It doesn't matter how little you're investing but you should be consistent with investing and you'll get to your goals of how much quantity of Bitcoin that you want to have. My advice to your friend is to go and look for a job that can be giving him a good quantity of money to DCA and not take loans.

[Odusko]

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'm curious if your friend is trading or investing long-term. But since you said your friend is making progress, it's likely trading. If I'm wrong please correct me.
Regarding loans, it really comes down to you. If you can afford the consequences if your friend defaults or worse fails in their investment then it's fine to lend. Conversely, if you don't want to be involved in that worst-case scenario, it's better not to lend.
Essentially you should remind your friend to invest within their means.

For both trading or long term investments, taking loans is never a good option for high risk investment like cryptocurrency, since you may not know which direction the market of the crypto asset will go and for that you need to give yourself a lot of time, because that is the determinant factor in Bitcoin/cryptocurrency investment, and taking a loan won't give you that luxury of time to see your Bitcoin investments getting really mature to get the right profits.

[MainIbem]

DCA and loan are a terrible mix.

In fact they do not mix at all.

You're very right mate they're never a good mix and someone like me would never support being in debt to embark on a long-term investment cause things like that could attract shameful insults, instead of that his friend should get a job then from there he can get discretionary funds for investment, like I said Bitcoin is a long-term investment that's held for a long period of like 4 years or more to get profit in the future, now the big question is, can the lender wait for that period if the person can then taking loans is not bad but if not it's never a good decision left for me I don't even buy the idea of taking loans to start up an investment.

[Sticky Bomb]

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 would not take that option if I was your friend considering the fact that we are currently in a bull season coupled with the volatility. Your friend should know that the bear season is around the corner and then the prices would crash, so even if he is considering taking a loan to increase his investment amounts, my candid advise is that he waits for the bear season proper so he can get more amounts for the updated price.

Again is he capable of paying the loan by himself or is he hoping to sell his bitcoin investment to repay? If he is capable of paying the loan + interest on his own, then he has no problem else he should not approach bitcoin with borrowed funds.

I would still tell you not to give him the loan, if things don't go as he planned, your money is gone

[Obulis]

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.

Well saying gambling somehow reduces the status of Bitcoin as an asset. However, borrowing cash into DCA is a kind of uncomfortable approach. Better and easy when it is based on as much as u can afford....
A proper self analysis will reveal his friend to be gamble minded which for sure unhealthy so far as DCA is concerned.
DCA can't be embarked on by borrowing, u invest as much as you can provide not otherwise since after all it is a long term investment approach...

[Ishicryptic]

There is no need for anybody to take a loan for DCA method of accumulating Bitcoin because the strategy is to be buying periodically from your discretionary fund so there is no need to put yourself under pressure to take a loan. It is also not advisable to take a loan to buy Bitcoin because it is volatile, you don't know when it will rally or dip. It is best to buy with your own money so you won't be under pressure to repay the loan when it is not profitable for you to you sell. I won't be comfortable to give loan to somebody to buy cryptocurrency because the market is not predictable, if they lose their money they won't be happy to repay it and it can affect our relationship.

[Republikcoin.com]

Well saying gambling somehow reduces the status of Bitcoin as an asset. However, borrowing cash into DCA is a kind of uncomfortable approach. Better and easy when it is based on as much as u can afford....
A proper self analysis will reveal his friend to be gamble minded which for sure unhealthy so far as DCA is concerned.
DCA can't be embarked on by borrowing, u invest as much as you can provide not otherwise since after all it is a long term investment approach...

Obviously, it wouldn't be very comfortable for someone who borrows money to invest, because they would ultimately have to repay the money to their friend according to the initial agreement. So, if it can be done with their own money, I think it would be much better than taking out a loan to do it recklessly, even if the chosen option is a good one, namely investing in Bitcoin. However, it would be better not to make loans the primary option in any activity, including trading and investing, if we are still concerned about our own comfort.

[LogitechMouse]

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's pretty much normal for a person to ask for more money if they're making money into something already because they want to maximize the profits that they can get. That's what most of businessmen are doing. Asking for a loan on a bank or whatever establishment it is then will use that money to expand their business.

While there's nothing wrong in taking a loan just to use it for DCA, I don't think that this time is the perfect time to do DCA. Bitcoin is at it's peak already (or at least near it's peak), so for me, the risk is way higher than the reward that he can get. As with regards to if you will give him or not, it's up to you. If you have spare money and if you think that he's a good borrower meaning he's paying on time with his loans then you can. It's your decision and not ours. We can say give him, and we can say don't give him. In the end, it's your decision.

If I'm in your shoes though. I'd rather use that money to invest into Bitcoin instead of giving it to other people.

[bangjoe]

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.

There is no investment advice for those who do not have money. Their thinking is wrong in this case. It is best to stay away from such loans because investing involves risk. Even if we believe in Bitcoin, it is not a wise move.

If I were you, I would certainly refuse. I would not lend money to such a person. It is better to invest my money than to lend it to someone who wants to invest in the same asset.

[YOSHIE]

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 want to borrow to your friends, it's your right, it's a decision to be on yourself, the money is yours, of course you are free to give to whom.
My personal speculation, If you have a collateral that can be used as a grip for the future, of course it is not a problem if you want to give it, after all you already know he invests in bitcoin and looks successful.

In essence, where he brought money, of course you don't need to be dizzy, while your collateral is strong, make an agreement with your friends and start considering money for investment.