Are there Situations Whereby it is Advisable to Invest in Bitcoin using a loan?

[Joeboy]

Greetings Everyone,... I want to open a discussion on a very controversial question which is that: Are there situations whereby it is advisable to invest in Bitcoin using a loan?.

The  idea sounds of taking a loan and investing in Bitcoin sound kind of attractive, when you think about it this way: You take a loan and invest in Bitcoin when the price is down and sell off to repay when the price goes up. But the honest truth is that when we take a closer look at the idea there are some risks attached to it. One of such risk is Emotional Stress. Now owing someone( debt) is already stressful and burdensome on it's own, now combining it with Bitcoin's volatility can make an investor feel pressured and lose sight of the bigger picture which is that Bitcoin reward comes in the long term and then that investor may be forced into panicking, and even selling off at the wrong time.

But if we take a look at this matter carefully, I believe that there are situations where taking a loan for Bitcoin's investment may not really be a bad idea, infact it may even be a smart idea. For example, when an investor want to invest aggressively during dip, and he already haas his discretionary income for it coupled with a steady income that can comfortably repay the loan irrespective of the price of Bitcoin or maybe the loan has little or no interest, like money borrowed from a close friend or family member or even a cooperative society.....

So my own view of the matter is that there are circumstances whereby taking a loan to invest in Bitcoin isn't a bad idea if that loan you took isn't dependantt or tied to your Bitcoin investment, meaning that even though the price of Bitcoin depreciates, you as an investor can still comfortably repay the loan....... So what do you think guys

[Promocodeudo]

Hey man, don't borrow or access a loan facility for the purpose of investing in Bitcoin.

Invest in Bitcoin with what you can afford, dont get yourself into debts all in the name of name of Bitcoin, no good financial advisor will advisor will advise you to do that and if anyone does then you shouldnt accept that, if you borrow to invest in Bitcoin which is a long-term investment, how will be paying back the interest, let's say your interest is designed to pay paid to the loan facility on monthly bases how will you go about it?

So you think it is better for you to rely on the business you do or any other stuff to keep paying back your Loan until you're paying, how smart will such decision be, althouh if you can pay up fast is not bad but if you don't have what it takes to pay fast without being riped of your collateral fine but man I will sincerely advice anyone not to borrow to invest in Bitcoin instead start with the little you have and keep increasing your DCA level as your income keep increasing, I don't like the idea of being indebted as a result of your investment in Bitcoin, i stand to be corrected.

[Donk1]

Op You have brought out good points on taking a loan to invest but no mattter how you see it  taking a loan to invest in Bitcoin is still bad because the market is unpredictable. If maybe the price goes down omo you go still pay the loan back and all those things na little little things way go fit cause stress and overthnking. And nor forget say you go pay back with interest Basically, you will have to sell at a lower price than you bought it just to pay back your loan which means instead of making more money you will lose more money.

 It is easy to say no mater how well taking a loan may be, when you are involved in Bitcoin investment it is  not advisable and shouldn't be an option to anyone .......

[Youngrebel]

This one we don discussed am many times. And my advice be say taking a loan to invest in bitcoin na suicide mission because the time frame means a lot. You take the loan which might be NGN6,000,000 as you said aggressive investment and the person wey go give you that loan go collect not less than 1m to 2m in 1 to 2 years time and if you are taking it beyond that years the interest go increase and I in that period will you make a profit of 10,000,000 naira to repay your loan and have small change remain? And if you are going for long term investment then you might only end up paying the loan without change.
Someone give 6m in 10 to 20 years will collect 10m in return and much will come out at that time. Now dollar is high and when the time comes dollar fit go down. You need to calculate all this in the plan. Simple advice it is not good to take loan for investment on bitcoin instead it is better you do DCA method to acquire gradually. You can invest 20k monthly or 10k all depends on the income.

[Marvelockg]

So my own view of the matter is that there are circumstances whereby taking a loan to invest in Bitcoin isn't a bad idea if that loan you took isn't dependantt or tied to your Bitcoin investment, meaning that even though the price of Bitcoin depreciates, you as an investor can still comfortably repay the loan....... So what do you think guys

Considering the volatile nature of bitcoin, using money that's not yours to invest in bitcoin or a money that's from a loan apps for bitcoin investment is a disadvantage that can get you trapped when in the long run, bitcoin continue getting bearish till the time you have pay back the loan. With that, for you to pay back the loan, you're left with no option than selling your bitcoin at loss just so you can offset your loan.

Experienced investors that always advice that you only invest with your discretionary income aren't fools. The volatility of bitcoin is not that predictable so taking up loans to buy bitcoin regardless of the fact that bitcoin might be bearish at the time is not the best.

[Bright0515]

What you should know is that every loan has a time for repayment. If you take loan and invest in Bitcoin when the price dip and you thought the price will skyrocket at any moment but funny that the price continues to dip more. You can not make profits for using loan money to invest in Bitcoin because you need to pay the loan with the interest within a limited time, even though you want to extend the loan more interest will continue to add up and will put you under some emotional stree as you will be thinking about how to pay the loan. For being under emotional stress you will only end up selling your Bitcoin at loss.

[Gozie51]

Greetings Everyone,... I want to open a discussion on a very controversial question which is that: Are there situations whereby it is advisable to invest in Bitcoin using a loan?.

It is a no no and you know why? Bitcoin is a volatile asset and that means it fluctuates up and down. This means you can't be able to surely rely on it to hope to regain your capital when the creditor calls for his money. You need patience to give time for it to grow and you can do that with your money not borrowed money. Bitcoin is not the kind of investment that you use loan to invest on because of the fluctuating reasons I gave above.

Except you are a risk taker who has another source to repay the loan when due and price never appreciate but you surely have to bear the risk. Invest as you can manage its loss.

[Obulis]

Your assessment is spot on. Using loans for Bitcoin is serious risk because of its volatility and the psychological effects of owing. It's hardly a good idea. But then, your exception is logical: if the loan has little to zero interest and repayment is completely not connected to the performance of the investment's and with an advantage of a steady income source, the risk is transformed already.  This somehow to a great extent is a calculated and strategic attempt since the weight of debt obligation is separated from the investment performance..  However, aside this exception(s) and sometimes even with it, it's a dangerous idea to invest in Bitcoin with loan.

[I_Anime]

Taken loan is not advisable at all especially when come to the crypto market because the market is unpredictable. So you can’t just expect the market to go up once you buy , and if for instance the market endup deeping you will be able to hold for long cause is not money you can stay without using and beside the money is not even yours so it won’t make things easy at all so better to just stay away from that idea , and start small as your hand reach .

[EL MOHA]

But if we take a look at this matter carefully, I believe that there are situations where taking a loan for Bitcoin's investment may not really be a bad idea, infact it may even be a smart idea. For example, when an investor want to invest aggressively during dip, and he already haas his discretionary income for it coupled with a steady income that can comfortably repay the loan irrespective of the price of Bitcoin or maybe the loan has little or no interest, like money borrowed from a close friend or family member or even a cooperative society.....

So my own view of the matter is that there are circumstances whereby taking a loan to invest in Bitcoin isn't a bad idea if that loan you took isn't dependantt or tied to your Bitcoin investment, meaning that even though the price of Bitcoin depreciates, you as an investor can still comfortably repay the loan....... So what do you think guys

I think I get your point where you don’t wish to miss out on certain prices and actually think borrowing will actually be of good benefit as you have the means of paying back the debt without any problem. Yes this might look right but yet a good investor will actually advices you to not borrow money for investing into bitcoin no matter how certain you are of paying back the loan an/ or the bitcoin yielding profits and the first reason for this opportunity never stops or ends in the market so there will most certainly be another opportunity again even if it won’t be as grand as this one.

The issue with loan is everyone always have plan of sons funds coming to clear it until that funds comes back to meet some emergency and that’s why you see many investors advising you to even sort out emergencies first. You might be depending and have full assurance on an income but it is still not yet 100% that it will be there all the time. So to avoid any future problems it safe to stay away from borrowing, rather aside your DCA funds set aside you can have extra funds to buy aggressively when the market present the opportunity.

[Faazs]

Greetings Everyone,... I want to open a discussion on a very controversial question which is that: Are there situations whereby it is advisable to invest in Bitcoin using a loan?.

The  idea sounds of taking a loan and investing in Bitcoin sound kind of attractive, when you think about it this way: You take a loan and invest in Bitcoin when the price is down and sell off to repay when the price goes up. But the honest truth is that when we take a closer look at the idea there are some risks attached to it. One of such risk is Emotional Stress. Now owing someone( debt) is already stressful and burdensome on it's own, now combining it with Bitcoin's volatility can make an investor feel pressured and lose sight of the bigger picture which is that Bitcoin reward comes in the long term and then that investor may be forced into panicking, and even selling off at the wrong time.

But if we take a look at this matter carefully, I believe that there are situations where taking a loan for Bitcoin's investment may not really be a bad idea, infact it may even be a smart idea. For example, when an investor want to invest aggressively during dip, and he already haas his discretionary income for it coupled with a steady income that can comfortably repay the loan irrespective of the price of Bitcoin or maybe the loan has little or no interest, like money borrowed from a close friend or family member or even a cooperative society.....

So my own view of the matter is that there are circumstances whereby taking a loan to invest in Bitcoin isn't a bad idea if that loan you took isn't dependent or tied to your Bitcoin investment, meaning that even though the price of Bitcoin depreciates, you as an investor can still comfortably repay the loan....... So what do you think guys

When person borrow money take buy BTC e sweet for mouth to chop tomorrow gain today, but sabi say nah big trap e be. BTC no send person papa oh, price fit fall anytime, u sabi say loan no dey wait u must pay back, crash oh no crash, and debt go add u plenty pressure, wetin suppose be cool long term HODL go turn to hot short term gamble. U sabi say worst case scenario u lose collateral, u spoil your credit score record and still miss Bitcoin comeback,
Plus BTC nah freedom money, freedom and debt knw dey mix together.  Always try to invest what u can afford to lose, don't borrow to invest it's not advisable, if u don't have wait till u have extra cash don't tie urself to a borrowed chain.

[SatoPrincess]

I wouldn’t advise anyone to borrow money to invest in bitcoin. Where would you even get the loan from in Nigeria? Loan sharks? Banks? Family & friends? The interest rates from loan sharks will be so high and you may not be able to hodl long enough to get a return on investment. I also wouldn’t advise taking a loan from family or friends because these things have a way of ruining relationships especially when you can’t fulfill your end of the bargain. It’s better to buy what you can afford no matter how small and build from there.

[Merit.s]

I wouldn’t advise anyone to borrow money to invest in bitcoin. Where would you even get the loan from in Nigeria? Loan sharks? Banks? Family & friends? The interest rates from loan sharks will be so high and you may not be able to hodl long enough to get a return on investment. I also wouldn’t advise taking a loan from family or friends because these things have a way of ruining relationships especially when you can’t fulfill your end of the bargain. It’s better to buy what you can afford no matter how small and build from there.

If you are taking a loan to invest into bitcoin, it should be that you have a means which you can use to pay back the loan gradually over the given period of time and you don't need to depend on your bitcoin investment to pay back the loan. After all, people working in the bank and good companies take loans to buy car or rent a good apartment and pay back from your salary bit by bit overtime.

Bitcoin investment is promising and such people that have the capacity to get loans from whomever can give them and pay back should do it because in future your bitcoin investment will give you a good profit because you bought cheaper. However, if you don't have a means of paying back your loan and hope to pay it from your bitcoin that you will buy, it's better that you don't take the loan.

[Mayor of ogba]

The  idea sounds of taking a loan and investing in Bitcoin sound kind of attractive, when you think about it this way: You take a loan and invest in Bitcoin when the price is down and sell off to repay when the price goes up.

If you have a means that you will use in paying back the loan you want to take to invest in bitcoin, you can take a loan to invest in bitcoin, but if your intention is to use your bitcoin investment in paying back the loan, just like you described in your post, you should never attempt taking a loan to invest in bitcoin because there could be a possibility that your bitcoin investment cannot yield good profit that you will use in paying back your loan, and if that happens, you will have no choice but to sell your bitcoin at a loss to pay back your loan.

[JoyceBTC]

People Dey go as far as in taking loans from loan apps, bank loans and private lender to invest in bitcoin.E no ever Dey advisable to take loan to invest for bitcoin because e go leave you with long regret due to bitcoin volatility and in the long run u go end up regretting because what will happen when the price of bitcoin falls and you’re given a deadline to pay up your loan?. The only alternative go be to take another loan to service your current loan, making you a great debtor.

And as a debtor e go leave you with so many challenges like anxiety, overthinking, even financial instability. So as an investor e no ever Dey advisable to take loan invest for bitcoin instead of that u use the DCA method, where you fit invest bit by bit according to your capability without having to be in debt.

[Fivestar4everMVP]

So my own view of the matter is that there are circumstances whereby taking a loan to invest in Bitcoin isn't a bad idea if that loan you took isn't dependantt or tied to your Bitcoin investment, meaning that even though the price of Bitcoin depreciates, you as an investor can still comfortably repay the loan....... So what do you think guys

Well, the only valid reason you gave here where taking a loan to invest on bitcoin isn't a bad idea is when you are working and earning a good income that paying off the borrowed money without having to sell the bitcoins the borrowed money was user to buy is very possible, in this kind of situation, I agree that it's even smart to borrow money and invest in bitcoin especially when there is an emergency crash in the price, which means that in no time, the price could turn around and start rising again.

It is important we all know they borrowing money isn't a big problem, it's repaying the money, and before we consider taking a loan to invest in or on anything, we must ensue that provisions have been made for how we can repay such loan that loan without depending or waiting for what we invested the money on to yield fruit or profit.

[fredericktaylor]

The  idea sounds of taking a loan and investing in Bitcoin sound kind of attractive, when you think about it this way: You take a loan and invest in Bitcoin when the price is down and sell off to repay when the price goes up.

If you have a means that you will use in paying back the loan you want to take to invest in bitcoin, you can take a loan to invest in bitcoin, but if your intention is to use your bitcoin investment in paying back the loan, just like you described in your post, you should never attempt taking a loan to invest in bitcoin because there could be a possibility that your bitcoin investment cannot yield good profit that you will use in paying back your loan, and if that happens, you will have no choice but to sell your bitcoin at a loss to pay back your loan.

It is true that the mentality of paying off debt depending on Bitcoin profits can never be a reasonable investment, as the risk of losing money can increase manifold. From my perspective, using money that we can afford to lose to invest in Bitcoin, This will not cause any financial problems now or in the future. Long-term investment in Bitcoin can be expected to yield profits in the future by managing it properly. Investing with debt increases mental stress, which increases the possibility of making wrong decisions, so it is wise to invest within your means to reduce risk by investing in Bitcoin.

[DaNNy001]

No matter how good you think you are with analyzing the crypto market it is not advisable to take a loan to invest...as we all know, volatility is a constant dynamic in the crypto space, even Bitcon goes through a dip lots of times...what happens if you end up losing what you invested it means that you would be in debt...if you don't have the money to invest then work to get it or wait patiently till you get it

[Stable090]

What you should know is that every loan has a time for repayment. If you take loan and invest in Bitcoin when the price dip and you thought the price will skyrocket at any moment but funny that the price continues to dip more.

Am not always in support of taking loan whenever you want to invest in bitcoin, but anyone that chooses to take loan and invest with it, then make sure you have a means which you can pay back the loan without depending on your investment. Maybe you have a job or a business that can pay the loan back without affecting you in any way.

If you depend on the profits which you make before you will be able to pay your loan, then it’s better you just stay away from loan because things might not really end well. You might decide to buy a coin, then the price will start dumping, and if you take a loan, you have a specific period when you are suppose to pay back, if you don’t have any means to pay back, and the coin which you bought is down, and you have to pay back your loan, then you will have to sell the coin at lose, and will have to look for money to complete the loan which you are suppose to pay back.

[Ronsbit]

If it were advisable to invest in Bitcoin or crypto with a loan, you would never have heard a slogan as "do not invest with funds you can not afford to lose." This slogan was formed as a result of the market volatility, as a turn of events can occur at any point in time, hence we are advised to invest with spare funds so that we do not get trapped in the midst of a sudden shift in market direction against our initial projection.

Taking a loan is never advisable; you can never predict the market trend, as anything could cause a turn of events. We've witnessed a series of events where the market gets liquidated within a few hours of a news breakout or reaction from entities. Imagine if you took a loan and it is near payback time, and the market is booming, and all of a sudden there is a turn of events, and you run loss what will you do?