Taking a loan to invest in DCA method

[2Pizza410000BTC]

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 like lending money at all, be it to friends or relatives. Money improves relationships with people, money ruins relationships with people. Maybe you have a good relationship with your friend, because of which you always have a good time. When you lend money to your friend and he can't pay you back on time, there will be conflict between you and especially when your friend is trading with money, what will you do if your friend loses money on the trading platform? Either you have to forgive him the whole money, or you have to sell something and pay back your money. When your friend can't pay, there can be a lot of trouble between you. So I would say that there is no need to lend money to your friend. If necessary, ask your friend to take a break from trading. When he has enough money, let him continue trading.

[Crypto Library]

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 actually true that if you invest following the DCA method, it is definitely possible to earn profits in the long term, and if we calculate that we can earn much more profit than the interest of the loan. And because of these arguments, we may feel that taking a loan to invest in DCA may be a wise thing to do, but the matter is not so easy.
In most cases, it is possible to be profitable by investing in DCA, but there is no guarantee that you will be able to book your profit at that time. It may also be that the market has gone down in a bad way? Moreover, this type of investment puts us in a lot of stress and panic situations, which leads to us making wrong decisions. So I think that no matter how good the loan strategy is, it should not be invested.

[Su-asa]

No matter how good your friend thinks DCA methods is the best to invest into Bitcoin, he should know that profits is not guaranteed which is why DCA method is advised to be use for a long term. However I would advise you not to borrow that money to your friend because there's no guarantee. Actually Bitcoin is a good store of value but you can not be sure the time you can get profits from it, so which means you and your friends won't be sure when your friend will have the money yo pay back.

[Umulala-alala]

Don't take loan to buy bitcoin if it is interest is free you can take the loan but you should not have it in mind that you will pay back from your bitcoin investment that is if you won't sell soon also have it in mind that profit is not what is certain in bitcoin investment but since bitcoin investment is not like some kind of business i will say you use the little you have to buy bitcoin let it also be that money you can afford to loss.

[sokani]

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, you shouldn't loan him. He should only DCA with what he can afford to lose. Bitcoin accumulation is not a sprint, and he should be content at the pace at which he's DCAing. Borrowing to invest might put him under some sort of pressure if the market is not doing well, especially if he hasn't clear off the debt. He might even sell the bitcoin before it yields meaningful returns.

[GIF-JOBS]

DCA is an effective strategy, it has a high probability of producing positive results in the long run, but there is no guarantee. Bitcoin is an investment that, if managed correctly, can have high long-term potential, but it is never guaranteed, and for this reason, you should not invest money that you cannot afford to lose, here you have to invest with the excess of your income, that is, you have to invest only that money that you do not need, no matter how small it is. There is no guarantee here, so investing with debt is never a good decision, so you should not lend him money, but rather advise him to invest with money that he can afford to lose.

[Bigjoe33]

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.

Yea, I like your view and I feel that's just it. It's not bad if we help out friends, that's if you have to loan out. The trust issues is still very important. How much do you know your friend. Can he be trusted, can you count on his words, is he doing anything(work) which he can fall back on to repay the loan if the DCA investment fails? For me, if all these questions are YES, then I think there's nothing bad to loan a friend. I believe before he would get to this level, he must have known that its all risk, and that it can fail too and he is fully ready to take up the risk and accept whatever the outcome will be.

Promising to pay back after he makes a gain from the investment is totally wrong and a sign of non compliance to the previous agreement and should not been agreed.

But generally, for me I wouldn't encourage taking a loan to accumulate Bitcoin through the DCA. Save up, work with your discretionary income and buy bit by bit and in absolute peace of mind. It would be better and more peaceful when the investment sinks if it's a personal money compared to a loan. It really pains to pay for something that wasn't useful to you at the end.

[lionheart78]

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.

Depends on your financial capacity and how you trust your friend.  In my personal experience, I had been burned too much with the loan without interest, my friends asked.  They failed to pay me, now that I needed the money. One even ignores me on Messenger (he owes me 0.3 BTC), and the other one denies that he owes me money (around $6000,  borrowed the money when he needed fund for his photobooth business, probably mistaken as my investment to his business though I never get any return, he is my close friend, so I did not put it in writing, my mistake.)

I do not say don't trust your friend, but learn from my experience.  If you are really into loaning your friend money, if it is somehow big money in your standard, then make sure you do it in black and white.  The mode of payment, interest if there is any, the date to settle the loan and have it notarized.  This will somehow protect your fund from sudden forgetfulness of your friend.

[GeorgeJohn]

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.

They don't borrow money for trading and I will not support the situation whereby someone borrowed money for trading, the reason being that when trading you're not sure of making profit, and secondly you can lose your capital at anytime, so I know that very well, it's better for a trader not to indebt he or herself because of trading because theirs every tendency that it may experience loss any point in time, that is why I have been emphasing on it, people who borrowed to trade always lost out in trading

[terrific]

DCA is an effective strategy, it has a high probability of producing positive results in the long run, but there is no guarantee. Bitcoin is an investment that, if managed correctly, can have high long-term potential, but it is never guaranteed, and for this reason, you should not invest money that you cannot afford to lose, here you have to invest with the excess of your income, that is, you have to invest only that money that you do not need, no matter how small it is. There is no guarantee here, so investing with debt is never a good decision, so you should not lend him money, but rather advise him to invest with money that he can afford to lose.

There is no guarantee but based on all of our experiences, we're in profit if we've DCAed long time ago and we'll compare the price we have now.
And also the price when we're able to buy all of those Bitcoins in the past. But this is the right thing to do.
We shouldn't guarantee it to people that we talk to if we're discussing about Bitcoin. Because this is one of the craziest thing that they might do upon hearing that it's a guaranteed profit and that's to take a loan so they can invest.

[BitMaxz]

There is no guarantee but based on all of our experiences, we're in profit if we've DCAed long time ago and we'll compare the price we have now.
And also the price when we're able to buy all of those Bitcoins in the past. But this is the right thing to do.
We shouldn't guarantee it to people that we talk to if we're discussing about Bitcoin. Because this is one of the craziest thing that they might do upon hearing that it's a guaranteed profit and that's to take a loan so they can invest.

I don't think it's a good idea to take a loan for doing DCA. We know it would give you a good profit, but it takes 4 years or 5 before you can see the result. Taking a loan needs repayment every month, so how can you survive paying it monthly?
If you cannot pay them on time, you will face penalties, and you will get more negative profit than making profit from doing DCA.
And it might be worth beneficial if you do DCA in a bearish season because you are buying cheaper than randomly buying when the price is near ATH.

So, for me, if you are going to do DCA, only put extra money or a little percentage of your salary into Bitcoin as your crypto savings. Don't take a loan; you could lose more than you can profit from DCA.

[Donneski]

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.

Honestly, I don’t think you should give him that loan. To the best of my knowledge, DCA is powerful only because it relies on discipline and consistency with "what you can afford". Once you start bringing loans into the picture, it literally changes the whole essence of investing. Instead of having peace of mind and riding out volatility, he will start stressing about paying you back or chasing short-term price action just to “justify” the loan. That’s how good strategies turn into gambling.

What I would suggest is this: instead of boosting with borrowed funds, advise him to double down on his consistency. DCA is not a race, it’s a marathon.

[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.

No, you shouldn't loan him. He should only DCA with what he can afford to lose. Bitcoin accumulation is not a sprint, and he should be content at the pace at which he's DCAing. Borrowing to invest might put him under some sort of pressure if the market is not doing well, especially if he hasn't clear off the debt. He might even sell the bitcoin before it yields meaningful returns.

Well, I will not recommend letting his friend borrow money from me as well if I'm in that situation, but I will always, always borrow an amount of money that I know that I can pay for a certain amount of time just so that I have money to invest into different assets such as Bitcoin and probably other asset classes as well.

Borrowing for the sake if investing has risks yes, but that's where your risk management, and decision-making skills comes in. If you know that you can pay that amount if for example a year or two, and if you believe that the amount of money that you will borrow will double or maybe triple for that exact amount of years then at all cost, do it because it's worth the risk. Calculate everything before decide. Borrowing isn't bad, and that's why famous businessmen like Kiyosaki and others are borrowing money to the banks so that they have money to put into their business.

[reagansimms]

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.

Remember, money that has been lent to someone else is no longer your money because you cannot use it when you need it, so theoretically you are the owner, but physically you cannot control it. Even though your friend has made a lot of progress in investing in Bitcoin using the DCA method, who knows what will happen in the future, mistakes can occur that make you have to wait a long time to get the money back. So, if you want to lend money for investment, consider this again. If you don't have the money for other purposes, it's okay to help a friend who is trying to achieve success in Bitcoin investment, but the final decision is up to you.

[DanWalker]

Well, I will not recommend letting his friend borrow money from me as well if I'm in that situation, but I will always, always borrow an amount of money that I know that I can pay for a certain amount of time just so that I have money to invest into different assets such as Bitcoin and probably other asset classes as well.

Borrowing for the sake if investing has risks yes, but that's where your risk management, and decision-making skills comes in. If you know that you can pay that amount if for example a year or two, and if you believe that the amount of money that you will borrow will double or maybe triple for that exact amount of years then at all cost, do it because it's worth the risk. Calculate everything before decide. Borrowing isn't bad, and that's why famous businessmen like Kiyosaki and others are borrowing money to the banks so that they have money to put into their business.

Borrowing money is not bad, but we need to consider carefully and should not compare our loan with top entrepreneurs like Kiyosaki or Elon. We are not like them, they are rare geniuses in the world and they have ideas and plans that not everyone has. Or they have many times more assets than we do and it is normal to mortgage part of those assets.

On the contrary, most of us are not rich, do not have many assets or do not have many ideas for making money. Therefore, borrowing money for investment or business needs to be carefully considered because everything has risks. There is no 100% guarantee that investing in bitcoin in the next 3 years, we will definitely get 2 or 3 times profit.

[terrific]

There is no guarantee but based on all of our experiences, we're in profit if we've DCAed long time ago and we'll compare the price we have now.
And also the price when we're able to buy all of those Bitcoins in the past. But this is the right thing to do.
We shouldn't guarantee it to people that we talk to if we're discussing about Bitcoin. Because this is one of the craziest thing that they might do upon hearing that it's a guaranteed profit and that's to take a loan so they can invest.

I don't think it's a good idea to take a loan for doing DCA. We know it would give you a good profit, but it takes 4 years or 5 before you can see the result. Taking a loan needs repayment every month, so how can you survive paying it monthly?
If you cannot pay them on time, you will face penalties, and you will get more negative profit than making profit from doing DCA.
And it might be worth beneficial if you do DCA in a bearish season because you are buying cheaper than randomly buying when the price is near ATH.

So, for me, if you are going to do DCA, only put extra money or a little percentage of your salary into Bitcoin as your crypto savings. Don't take a loan; you could lose more than you can profit from DCA.

It's never been a good idea to borrow money to DCA or do a lump sum. We're doing something that we're not sure of and if we're sure, we will use our personal money and not a debt to invest. Investing in Bitcoin is profitable but you're right that it will take around those years for one to be profitable.
And I don't think that someone who had relied on debt to invest will be able to witness that profiting moments when they have no other options but to pay the debt and interest with possibility of what they have bought and will be forced to sell at unsatisfying price of BTC.

[Dunamisx]

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.

The decision for using DCA strategy is good and lucrative, but the means is very bad, because you cant invest by taking a loan in bitcoin, why not tell the person to be patient with what he already started with and instead use the profit he realized to return back to the investment than taking loan, alternatively, he can wait to build up his money to a certain extent whereby he can use to invest, because you cant rush into what may cost you bad tomorrow.

[Marvell1]

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.

They don't borrow money for trading and I will not support the situation whereby someone borrowed money for trading, the reason being that when trading you're not sure of making profit, and secondly you can lose your capital at anytime, so I know that very well, it's better for a trader not to indebt he or herself because of trading because theirs every tendency that it may experience loss any point in time, that is why I have been emphasing on it, people who borrowed to trade always lost out in trading

Even borrowing money for long-term investing is risky and not recommended, let alone borrowing money for trading. It's more like gambling than investing.

It's unclear if OP is referring to trading or DCA and long term holding but either way borrowing money to invest in highly volatile and unpredictable assets like bitcoin is not advisable. Unless they have stable sources of income and can guarantee that they will be able to repay those loans without having to rely on their investments. But people with a stable income and a clear financial plan probably won't need to borrow money to invest because there are better ways to invest than borrowing money.

[Muba20]

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 a friend wants, then in many cases it cannot be ignored. As long as you have enough money, you can give it and if not, then it is reasonable to ask him to regularly deposit a part of his discretionary income into Bitcoin and use it for DCA. If that friend regularly deposits a part of his discretionary income into Bitcoin, then he can definitely build a large portfolio after a long time. In my opinion, he should not be advised to invest aggressively right away. If he is patient for a while and learns better about Bitcoin and occasionally invests aggressively with a part of his income, then that is fine, but he should not invest with borrowed money. In case he holds Bitcoin for the long term, he should also create an emergency fund so that he can use that money for any urgent purpose.

[Lanatsa]

There is no guarantee but based on all of our experiences, we're in profit if we've DCAed long time ago and we'll compare the price we have now.
And also the price when we're able to buy all of those Bitcoins in the past. But this is the right thing to do.
We shouldn't guarantee it to people that we talk to if we're discussing about Bitcoin. Because this is one of the craziest thing that they might do upon hearing that it's a guaranteed profit and that's to take a loan so they can invest.

I don't think it's a good idea to take a loan for doing DCA. We know it would give you a good profit, but it takes 4 years or 5 before you can see the result. Taking a loan needs repayment every month, so how can you survive paying it monthly?
If you cannot pay them on time, you will face penalties, and you will get more negative profit than making profit from doing DCA.
And it might be worth beneficial if you do DCA in a bearish season because you are buying cheaper than randomly buying when the price is near ATH.

So, for me, if you are going to do DCA, only put extra money or a little percentage of your salary into Bitcoin as your crypto savings. Don't take a loan; you could lose more than you can profit from DCA.

It's never been a good idea to borrow money to DCA or do a lump sum. We're doing something that we're not sure of and if we're sure, we will use our personal money and not a debt to invest. Investing in Bitcoin is profitable but you're right that it will take around those years for one to be profitable.
And I don't think that someone who had relied on debt to invest will be able to witness that profiting moments when they have no other options but to pay the debt and interest with possibility of what they have bought and will be forced to sell at unsatisfying price of BTC.

Taking debt to buy bitcoin just creates more problems than solutions because the market can flip anytime and when that happens the lender will not care about your long term vision they only care about their money back and the interest that comes with it. When you invest with your own savings you control the timeline you can hold as long as you want without pressure and that is where most people find success but once you add debt the pressure grows you start watching every small move in the chart hoping it goes up quick and that stress usually leads to bad choices.

Bitcoin rewards patience but debt demands urgency those two things can never align if you want to be part of this market you have to do it with money you can comfortably lose or lock away for years not money that belongs to the bank or someone else. Some people convince themselves that bitcoin will double quick so the debt will be covered fast but history shows us that price never moves in a straight line there are months of sideways and even years before the reward comes if you cant wait those years then borrowing to invest will only trap you in frustration. It’s much wiser to build positions slowly with spare money even if the amount looks small because at least you have peace of mind and you can actually wait for the profit without someone knocking at your door asking for repayment that mental freedom is worth more than trying to gamble borrowed money on something uncertain.