Investment Become Gambling

[The Founding Titan]

Investing in Bitcoin with a loan should be considered carefully. There is a fixed repayment period for the loan. But there is no guarantee in the market. That the investment will be profitable within that time. As a result, you may have to sell Bitcoin before the optimal time to repay the loan, even at a loss.

The problem with your statement here is that you are assuming that an investor who wants to use a loan to invest in bitcoin is planning on paying back from their investment, that person isn't an investor but a trader hoping for a miracle to happen and will most likely get disappointed, those investors who actually borrow to invest in bitcoin aren't planning on paying off the loan from their investment but from their discretionary income instead.

[ejikeme24]

Investing in Bitcoin with a loan should be considered carefully. There is a fixed repayment period for the loan. But there is no guarantee in the market. That the investment will be profitable within that time. As a result, you may have to sell Bitcoin before the optimal time to repay the loan, even at a loss.

Personally I don't see anything that need to be considered, because it has been said number of times that no one should think of investing in bitcoin with loan money. If lack of discretionary income would make you take out loan then you have to put your investment on hold until you figure out your discretionary income and then you can start from where you stopped instead of taking out loan. as a matter of fact, you're not in a competition where they said that the first to reach will get an award. Even if you didn't reach your investment target on time you won't get punish so what's the need of stressing ourselves too much or getting ourselves worried over something we know that some day some time we would surely get there.

[The Founding Titan]

Investing in Bitcoin with a loan should be considered carefully. There is a fixed repayment period for the loan. But there is no guarantee in the market. That the investment will be profitable within that time. As a result, you may have to sell Bitcoin before the optimal time to repay the loan, even at a loss.

Personally I don't see anything that need to be considered, because it has been said number of times that no one should think of investing in bitcoin with loan money. If lack of discretionary income would make you take out loan then you have to put your investment on hold until you figure out your discretionary income and then you can start from where you stopped instead of taking out loan. as a matter of fact, you're not in a competition where they said that the first to reach will get an award. Even if you didn't reach your investment target on time you won't get punish so what's the need of stressing ourselves too much or getting ourselves worried over something we know that some day some time we would surely get there.

I don't think it's a lack of discretionary income that will make a person to use a loan to buy bitcoin, one popular reason could be to buy the DIP, a dip happens and an investor wants to make the most of that dip, they've probably been accumulating bitcoin for a while and have a reliable way to generate discretionary income, they can decide to take a loan in order to be able to buy that dip, this works because they are not planning on paying back the loan from their bitcoin but instead are planning on doing so from their discretionary income, people who usually do this are those who already have their backup funds in place so they can afford to pay off the loan from their discretionary income.

[PhilosopherKing]

I don't think it's a lack of discretionary income that will make a person to use a loan to buy bitcoin, one popular reason could be to buy the DIP, a dip happens and an investor wants to make the most of that dip, they've probably been accumulating bitcoin for a while and have a reliable way to generate discretionary income, they can decide to take a loan in order to be able to buy that dip, this works because they are not planning on paying back the loan from their bitcoin but instead are planning on doing so from their discretionary income, people who usually do this are those who already have their backup funds in place so they can afford to pay off the loan from their discretionary income.

Regardless of what made a person to take loan to invest, btw it isn't a good idea to invest with a loan if the plan is to repay the loan from a person investment. A loan mean that the person has to pay back the money borrowed, but investment doesn't give any kind of guarantee of when person will get their profit or how much they will be, and this is what make it wrong to depend on bitcoin to repay your loan.

Loan is risky as hell, it can mount unnecessary pressure in people, and not many person can even handle that pressure. You said something about having backup funds in place before taking loans. Loan come with interest and due date repayment, so isn't it pointless and needless to be taking loan when you already have backup funds in place to front load your investment? No matter how small the backup fund may be it is better to use it to invest that using loans.

[The Founding Titan]

I don't think it's a lack of discretionary income that will make a person to use a loan to buy bitcoin, one popular reason could be to buy the DIP, a dip happens and an investor wants to make the most of that dip, they've probably been accumulating bitcoin for a while and have a reliable way to generate discretionary income, they can decide to take a loan in order to be able to buy that dip, this works because they are not planning on paying back the loan from their bitcoin but instead are planning on doing so from their discretionary income, people who usually do this are those who already have their backup funds in place so they can afford to pay off the loan from their discretionary income.

Regardless of what made a person to take loan to invest, btw it isn't a good idea to invest with a loan if the plan is to repay the loan from a person investment. A loan mean that the person has to pay back the money borrowed, but investment doesn't give any kind of guarantee of when person will get their profit or how much they will be, and this is what make it wrong to depend on bitcoin to repay your loan.

Loan is risky as hell, it can mount unnecessary pressure in people, and not many person can even handle that pressure. You said something about having backup funds in place before taking loans. Loan come with interest and due date repayment, so isn't it pointless and needless to be taking loan when you already have backup funds in place to front load your investment? No matter how small the backup fund may be it is better to use it to invest that using loans.

Like I already said, the loan isn't going to be paid off from their bitcoin investment but instead from their discretionary income,, bitcoin investment is long term so the very idea of even paying off the loan from the investment is already unrealistic, but the person might be generating discretionary income weekly or monthly depending on the individual and a person having their backup funds in place doesn't mean they were saving to buy bitcoin, your emergency fund aside there are other reasons why s person will have their reserve fund in place.

[Nwaswago]

I don't think it's a lack of discretionary income that will make a person to use a loan to buy bitcoin, one popular reason could be to buy the DIP, a dip happens and an investor wants to make the most of that dip, they've probably been accumulating bitcoin for a while and have a reliable way to generate discretionary income, they can decide to take a loan in order to be able to buy that dip, this works because they are not planning on paying back the loan from their bitcoin but instead are planning on doing so from their discretionary income, people who usually do this are those who already have their backup funds in place so they can afford to pay off the loan from their discretionary income.

Regardless of what made a person to take loan to invest, btw it isn't a good idea to invest with a loan if the plan is to repay the loan from a person investment. A loan mean that the person has to pay back the money borrowed, but investment doesn't give any kind of guarantee of when person will get their profit or how much they will be, and this is what make it wrong to depend on bitcoin to repay your loan.

Loan is risky as hell, it can mount unnecessary pressure in people, and not many person can even handle that pressure. You said something about having backup funds in place before taking loans. Loan come with interest and due date repayment, so isn't it pointless and needless to be taking loan when you already have backup funds in place to front load your investment? No matter how small the backup fund may be it is better to use it to invest that using loans.

Like I already said, the loan isn't going to be paid off from their bitcoin investment but instead from their discretionary income,, bitcoin investment is long term so the very idea of even paying off the loan from the investment is already unrealistic, but the person might be generating discretionary income weekly or monthly depending on the individual and a person having their backup funds in place doesn't mean they were saving to buy bitcoin, your emergency fund aside there are other reasons why s person will have their reserve fund in place.

I agree that taking a loan to invest in Bitcoin should generally be avoided, but I don't think it's always because someone lacks discretionary income. Sometimes it's driven by overconfidence. An investor may see a sharp dip and convince themselves it's the perfect buying opportunity, so they borrow money expecting a quick recovery.
The problem is that Bitcoin's long-term potential doesn't eliminate short-term uncertainty. A loan has a fixed repayment schedule, but the market doesn't move according to our expectations. Even if the investment eventually becomes profitable, the borrower may be forced to sell early just to repay the debt.That's why I believe the best approach is to invest only money you can comfortably afford to leave untouched. If a dip comes and you don't have extra cash, it's usually better to miss that opportunity than to take on debt and expose yourself to unnecessary financial pressure.

[B-BossMan]

I don't think it's a lack of discretionary income that will make a person to use a loan to buy bitcoin, one popular reason could be to buy the DIP, a dip happens and an investor wants to make the most of that dip, they've probably been accumulating bitcoin for a while and have a reliable way to generate discretionary income, they can decide to take a loan in order to be able to buy that dip, this works because they are not planning on paying back the loan from their bitcoin but instead are planning on doing so from their discretionary income, people who usually do this are those who already have their backup funds in place so they can afford to pay off the loan from their discretionary income.

Regardless of what made a person to take loan to invest, btw it isn't a good idea to invest with a loan if the plan is to repay the loan from a person investment. A loan mean that the person has to pay back the money borrowed, but investment doesn't give any kind of guarantee of when person will get their profit or how much they will be, and this is what make it wrong to depend on bitcoin to repay your loan.

Loan is risky as hell, it can mount unnecessary pressure in people, and not many person can even handle that pressure. You said something about having backup funds in place before taking loans. Loan come with interest and due date repayment, so isn't it pointless and needless to be taking loan when you already have backup funds in place to front load your investment? No matter how small the backup fund may be it is better to use it to invest that using loans.

Like I already said, the loan isn't going to be paid off from their bitcoin investment but instead from their discretionary income,, bitcoin investment is long term so the very idea of even paying off the loan from the investment is already unrealistic, but the person might be generating discretionary income weekly or monthly depending on the individual and a person having their backup funds in place doesn't mean they were saving to buy bitcoin, your emergency fund aside there are other reasons why s person will have their reserve fund in place.

I agree that taking a loan to invest in Bitcoin should generally be avoided, but I don't think it's always because someone lacks discretionary income. Sometimes it's driven by overconfidence. An investor may see a sharp dip and convince themselves it's the perfect buying opportunity, so they borrow money expecting a quick recovery.
The problem is that Bitcoin's long-term potential doesn't eliminate short-term uncertainty. A loan has a fixed repayment schedule, but the market doesn't move according to our expectations. Even if the investment eventually becomes profitable, the borrower may be forced to sell early just to repay the debt.That's why I believe the best approach is to invest only money you can comfortably afford to leave untouched. If a dip comes and you don't have extra cash, it's usually better to miss that opportunity than to take on debt and expose yourself to unnecessary financial pressure.

Dude, you are still on the line of going against people that took loan for investment purposes. But I don't think overconfidence can make you successful in bitcoin investment journey, because you cannot be overconfidence on something that you would regret later, and that's where a common sense play is roles, it gives or creat a forum for you to know the difference between +1 .and -2. Though it's good to take an advantage of the dip when it needed, but the derivative or a motive that may leads to loan taking to buy the dip seem as gambling mindset to me. Because it's overconfidence mindset that many gamblers have today, imagine building the confidence on taking the loan and the bitcoin price drops down, how would your overconfidence be of help ?. So the best is to invest with any discretionary funds available at that moment and buy the dip, than forcing yourself to take the loan.

[SDS11]

Year 2023. I started investing in Bitcoin. The market has fluctuated many times until now. However, I have always had a long-term goal. Although I had to sell once due to circumstances, but I started investing again.

However, a few weeks after my investment, a close friend of mine also started investing. He also talked about long-term investment. Our goals were similar. However, even though the goals were the same, our behavior was not the same over time, and this is where the difference between investment and gambling was created.

He start take profits when price increased. After doing this a few times, he started monitoring the market regularly and analyzing the opinions of YouTube and Telegram. At one point, he started making decisions with the market fluctuations. Sometimes he would buy out of FOMO and sometimes he would sell out of panic. In this way, he would make profits at times and sometimes he would lose.

 Even when I warned him about such behavior, he  misunderstand me that maybe I did not want to let him make a profit.
However, at one point, after significant financial loss, he realized his mistake. The problem was in his behavior.  He had the ability to continue investing well in the long term and even though he started investing with this intention, due to his inability to control his behavior, the investment turned into a gamble. 

Do you think that mental and behavioral control are similar important with financial management, risk management  in investing?

✨

Yes. 100% yes. Mental plus behavioral control is just as important as financial management and risk management. Maybe even more: your  long term, stuck to the plan even through fluctuations. Sold once out of necessity, then got back in. That’s financial plus emotional discipline. Your friend started long term but let emotions takes over. Profit taking,YouTube/telegram noise, FOMO buys, panic sells. That’s not investing that’s gambling with extra steps.

[cxtreenal]

Investing in Bitcoin with a loan should be considered carefully. There is a fixed repayment period for the loan. But there is no guarantee in the market. That the investment will be profitable within that time. As a result, you may have to sell Bitcoin before the optimal time to repay the loan, even at a loss.

Personally I don't see anything that need to be considered, because it has been said number of times that no one should think of investing in bitcoin with loan money. If lack of discretionary income would make you take out loan then you have to put your investment on hold until you figure out your discretionary income and then you can start from where you stopped instead of taking out loan. as a matter of fact, you're not in a competition where they said that the first to reach will get an award. Even if you didn't reach your investment target on time you won't get punish so what's the need of stressing ourselves too much or getting ourselves worried over something we know that some day some time we would surely get there.

The last two paragraphs of your article seemed very good to me. To fulfill the prescribed cycle in Bitcoin accumulation, it is necessary to follow the DCA method regularly. The amount of money should be in line with your financial capacity, there is no need to take any pressure. You have to be consistent in the DCA method to reach the prescribed Bitcoin goal. Your personal financial situation cannot be forced with it or there is no additional pressure on taking a loan.

The additional mental and financial pressure of paying the loan every week or every month may create a withdrawal attitude that you may become irregular in investing. There is no need to worry too much because Bitcoin is an additional financial backup for you. You will accumulate Bitcoin through the income you are currently earning and discretionary income which can be hold for a fixed and long term period and get the expected return.

[ejikeme24]

~snip~

I don't think it's a lack of discretionary income that will make a person to use a loan to buy bitcoin, one popular reason could be to buy the DIP, a dip happens and an investor wants to make the most of that dip, they've probably been accumulating bitcoin for a while and have a reliable way to generate discretionary income, they can decide to take a loan in order to be able to buy that dip, this works because they are not planning on paying back the loan from their bitcoin but instead are planning on doing so from their discretionary income, people who usually do this are those who already have their backup funds in place so they can afford to pay off the loan from their discretionary income.

We are only guessing as we don't know the reason why some investors chose to take out loan to invest in bitcoin, it could be due to the reason you gave here or the one I gave. I believe everyone must not have the same reason when taking out loan even though surely they are all taking it for the sake of Thier investment but not only when there is dip.

 It's just like what happened few weeks back, there was a delay in payment and it's already time to make my Bitcoin purchase. since I'm used to regular DcAing then I had to invest from my emergency funds with the hope of replacing it since I'm expecting payment in a day or two, While Some investors wouldn't mind taking out loan at this point especially those that doesn't have emergency funds or backup funds.

 So it is not only when there is dip that investors think of taking out loan, but it is true that this mostly happen when there is dip because some investors may not have enough discretionary income to buy as aggressive as they like and it's been long since they started hoping for such opportunity to come. so after considering the time it took before it happened and letting it go just like that, they can decide to take out loan to buy as much as they like. But if I happen to be in that situation, I would rather invest with my emergency funds if I don't have backup funds since I'm  sure of paying it back or  I could invest with the little I have rather than taking out loan.

[Frankolala]

But if I happen to be in that situation, I would rather invest with my emergency funds if I don't have backup funds since I'm  sure of paying it back or  I could invest with the little I have rather than taking out loan.

Your emergency funds is strictly for the purpose of an unforeseen circumstances that will hit you unexpectedly and not to use for buying the dip if you don't have reserve funds. This is because you don't know when a real life emergency will play out. You might think that everything is fine financially for you and you go ahead to use your emergency funds to accumulate bitcoin and the next moment, you are hit with a real life emergency.

For instance, a heavy rain started and a heavy storm pulled off your roof. You must sell back those bitcoin and possibly at loss if the price dips after your purchase. I see this as gambling just because you wanted to added a little additional Sats at the dip. It's better you don't get carried away by the dip and make your decisions that will affect the size of your bitcoin stash negatively.

If you don't have reserve funds when the dip comes, there's no need to kill yourself about it. Wait till you have your discretionary income to keep your DCA ongoing, it wouldn't be the last dip.

[Promocodeudo]

Bitcoin investment nor good to dey put hand inside all the time na just to the increase your investment na him be the best thing so that you go fit reach your over accumulation stage on time, even if you get financial challenge na for you to find another means no be to come dey sell your investment because at last you go regret am because before you know am, you go just dey seel till yo nor go get any coin again to invest on.

Bitcoin investment nor be trading but investment wey you go achieve for when you leave am for a long term, e go grow come make better profit.

You tok well for some things here, you said e no good for investors to the withdraw from their Bitcoin investment all the time, that na funny tok becos e come be like say investors suppose even touch their holdings when them never reach their target and hodl for a long-term, i no say some people dey always dey moved by profit sake of say the buy when the price small and e come rise at some point but e no mean say pesin go withraw profit as if the pesin na trader, that behaviour na wetin we take no traders and e no go good if real investor behave like that.
As for when you get financial challenges, na why investor suppose get emergency funds na so that em no go wan put eye for investment wey em the build for the future, abi you don forget say na so e  suppose be?

[Hardyrobust]

Bitcoin investment nor good to dey put hand inside all the time na just to the increase your investment na him be the best thing so that you go fit reach your over accumulation stage on time, even if you get financial challenge na for you to find another means no be to come dey sell your investment because at last you go regret am because before you know am, you go just dey seel till yo nor go get any coin again to invest on.

Bitcoin investment nor be trading but investment wey you go achieve for when you leave am for a long term, e go grow come make better profit.

You tok well for some things here, you said e no good for investors to the withdraw from their Bitcoin investment all the time, that na funny tok becos e come be like say investors suppose even touch their holdings when them never reach their target and hodl for a long-term, i no say some people dey always dey moved by profit sake of say the buy when the price small and e come rise at some point but e no mean say pesin go withraw profit as if the pesin na trader, that behaviour na wetin we take no traders and e no go good if real investor behave like that.
As for when you get financial challenges, na why investor suppose get emergency funds na so that em no go wan put eye for investment wey em the build for the future, abi you don forget say na so e  suppose be?

investor no supposed touch there bitcoin investment at all when then still dey accumulate bitcoin. E go affect then negatively because then no go come dey consistent with buying of bitcoin and the thing go also affect there bitcoin holdings. So the best thing na for all long term investors to focus on how then go take accumulate enough bitcoin for there holding.
Long term investor supposed also get a kind of safety net like emergency funds wey go fit help them to protect their investments incase if anything happens wey then no expect and e go help them not to dip hand for their bitcoin holdings.

[Sonia_123]

This is the problem you have with over zealous investors, they don't understand wetin dem call investment, dem think sey na where you go put money come dey chop am small small anytime wey you need  money, Bitcoin investment na investment wey you go prepare for because as you start am nothing go make you temper am  if not e don turn kalokalo for you because him go dey draw you everytime to spend from am, all you need to dey do na to dey buy bitcoin according to as your money reach small small wey nor go affect your monthly expenses.

[Alonso_]

This is the problem you have with over zealous investors, they don't understand wetin dem call investment, dem think sey na where you go put money come dey chop am small small anytime wey you need  money, Bitcoin investment na investment wey you go prepare for because as you start am nothing go make you temper am  if not e don turn kalokalo for you because him go dey draw you everytime to spend from am, all you need to dey do na to dey buy bitcoin according to as your money reach small small wey nor go affect your monthly expenses.

That is true, buying and accumulating of bitcoin should be considered as a long term investment, not just buying and accumulating bitcoin for no reason rather than buy and selling immediately all in the name of having quick profits, that isn’t the right way of approaching bitcoin investment, there are people who must have been investing in bitcoin for the longest time period, and they must have come across profits as well and decided not to sell their bitcoin immediately, there are people who just see Bitcoin as a means of savings, they might probably not be interested in profits, and I think it’s better to remove profits from your mind while starting your investment as a beginner.

[Olatundespo]

This is the problem you have with over zealous investors, they don't understand wetin dem call investment, dem think sey na where you go put money come dey chop am small small anytime wey you need  money, Bitcoin investment na investment wey you go prepare for because as you start am nothing go make you temper am  if not e don turn kalokalo for you because him go dey draw you everytime to spend from am, all you need to dey do na to dey buy bitcoin according to as your money reach small small wey nor go affect your monthly expenses.

If a person has a regular source of income, he will be able to make progress in accumulating Bitcoin. You can buy Bitcoin with the extra money you have, but remember that you will not need that amount of cash very soon. Invest in Bitcoin and plan to buy it gradually. The best advice is not to take risks, do not use the entire fund you have and if you regularly buy Bitcoin from the money you have saved, your fund will be depleted at some point. You need to accumulate Bitcoin and keep the cash flow flowing. Both are very important. By holding Bitcoin regularly, you can prevent the depletion of your fiat. By keeping the cash flow available, you will not become poor, and you can accumulate Bitcoin regularly through discretionary income without any stress.