It may reasonable to borrow instead of save to buy aggressively during a market

[Tongley]

I have been noticing one thing for a few days, that in addition to investing through the DCA method, many people continue to save money to buy aggressively during market declines. If a person instead of saving money takes a loan to buy aggressively during the decline, then I think it may be a good decision for him.

For example, suppose person A and person B:

Person A is saving ₦40,000 every month in the bank to buy aggressively in addition to the DCA method. He is losing the opportunity to buy this amount of money by saving it separately, waiting for the uncertain future, he is under human pressure to buy aggressively, inflation may affect that amount of money, etc. He can fall into this type of risk when saving money.

Person B, he is not saving money separately to buy aggressively in addition to the DCA method, but he is investing that amount along with his DCA method. He has decided that he will take a loan in installments equal to ₦40,000 when the market falls to buy aggressively. For example, he will take a loan of ₦200,000 and he can repay that amount in weekly or monthly installments of ₦40,000. If he proceeds in this way, he will not have to face the problems like Person A.

So, I think it is most reasonable to take a decision like Person B instead of saving money to buy aggressively. But if someone takes the decision of Person B, then the thing that he has to keep an eye on is whether he will be able to repay the loan or not and whether there will be any kind of problem in his continuous DCA method, etc. He will have to take a decision after considering all the factors.

[Decimetre]

It is not a good investment advice to take loan and invest in bitcoin in any case. The best way to invest in bitcoin is to invest with your Discretionary income: money left after attending to your basic responsibilities. This is in order way saying that to have a successful bitcoin investment, you need to invest with only the amount of money you can afford to lose of which borrowed money does not fall in that category.

Saving money to buy aggressively too is not the best thing to do because we have an investor friendly strategy called the DCA strategy that can allow you to invest as low as 10 dollars or less in bitcoin. So why do you want to be saving #40,000 (~$29.5) monthly when you can easily use same amount to invest in bitcoin as your DCA strategy monthly. By so doing you beat inflation and you also don't fall into the net of borrowing to invest in bitcoin.

 If you borrow to pay in 5 months time as you said and in 3 months time bitcoin had fallen far below the initial Dip that made you borrow money, how will your reaction be even when you're not yet done with the loan. My advice is simple: Invest wisely, invest with money you can afford to lose and never borrow to invest in bitcoin!

[Obulis]

Don't complicate this idea of aggressive buying. Going on the DCA strategy and making savings for aggressive buying on a decline is a very simple notion if I am asked. DCAing while doing savings for a dip is on and then a dip happens, nothing stops the investor from using all the savings made for the dip that's available, I mean that's what to do! As dip happens you use up amount available for aggressive buying (if that's the case) and if it finishes then you continue with the savings till next dip that you will have saved discretionary funds available instead of thinking of taking a loan that can Jeopardize your Bitcoin holding.

[Bitcoin-Forever]

I have been noticing one thing for a few days, that in addition to investing through the DCA method, many people continue to save money to buy aggressively during market declines. If a person instead of saving money takes a loan to buy aggressively during the decline, then I think it may be a good decision for him.

I will not buy in this idea of borrowing to invest in Bitcoin, first reason is that you are taking a financial loan or borrowing conditions that may not be favorable to you, secondly is that, there is going to be a stipulated interest that will be placed on the amount you are borrowing, thirdly, it is not also advisable to borrow to invest on a volatile currency like bitcoin because you don't know when the market will start performing to make you profit and devate it will go until you have your own financial ability and capability to invest and with to be profitable.

[Judith87403]

Who told you that they save money to buy aggressively, nobody saves money to buy aggressively. You buy aggressively from your excesses which comes from your discretionary income. For instance, your regular DCA amount can be $20 from your discretionary income, some months you might have enough in your discretionary income and you can decide to buy with $50 that is what buying aggressively means, not that you will save it in fiat first before you buy. The worst mistake you can do is to borrow money to buy bitcoin aggressively when you know that the market is volatile except you have other sources of income to repay your loan.

[Wiwo]

It's dumb thing to do, and far better to take the time and save up money to buy aggressively even with limited time numbers, compared to buying Bitcoin with loan money as much faster and larger quantity level, the risks with buying Bitcoin on loan finance is double.

Meaning you face the risks that come with Bitcoin market volatilities and also the risks of loan repayment defaulting that can arise from unforseen market conditions.

The only time that you can take loan in such situations is when the loan comes with zero interest and also unlimited repayment plans, this can only happen in heaven, meaning no one can give you a loan with such conditions.

[Odohu]

I have been noticing one thing for a few days, that in addition to investing through the DCA method, many people continue to save money to buy aggressively during market declines. If a person instead of saving money takes a loan to buy aggressively during the decline, then I think it may be a good decision for him.

It is not a good practice to first save money before you invest same into Bitcoin, that method may not be effective on the long run reason being that you may spend the money on something that is not Bitcoin when you encounter slight emergency. Instead of this approach, why not invest the money through the DCA method you mentioned as the money enters?

For example, he will take a loan of ₦200,000 and he can repay that amount in weekly or monthly installments of ₦40,000. If he proceeds in this way, he will not have to face the problems like Person A.

You are to only invest in Bitcoin with your discretionary income which is the amount of money left after you have settled your basic needs. It is never advisable to borrow money to make investment because investment is not guaranteed to give profits. I know you will not be happy paying back loan with huge interest over Bitcoin you bought during the peak and it dumps. As you know, Bitcoin is a long term game, so borrowing will not allow you give enough time to the investment in order to realize profits.

[Crakryptvest]

It is not a good practice to first save money before you invest same into Bitcoin, that method may not be effective on the long run reason being that you may spend the money on something that is not Bitcoin when you encounter slight emergency. Instead of this approach, why not invest the money through the DCA method you mentioned as the money enters?

It is good that you have helped in giving him lecture on this, with this knowledge, he'll know the danger that's there in saving before investing, however, I don't hold anything against some persons who think like this because, they might be without the knowledge that they can invest in Bitcoin with that amount they think that's small gradually and consistently, who said Bitcointalk is not a place to learn new ideas, the reason why some persons have not started their Bitcoin investment yet, is because they think that they can not invest with something small, and they have been saving, at some point the will use for another, it has been like that which have made them not to have any Bitcoin portfolio.

[MainIbem]

It's dumb thing to do, and far better to take the time and save up money to buy aggressively even with limited time numbers, compared to buying Bitcoin with loan money as much faster and larger quantity level, the risks with buying Bitcoin on loan finance is double.

Meaning you face the risks that come with Bitcoin market volatilities and also the risks of loan repayment defaulting that can arise from unforseen market conditions.

The only time that you can take loan in such situations is when the loan comes with zero interest and also unlimited repayment plans, this can only happen in heaven, meaning no one can give you a loan with such conditions.

Exactly mate, i rather be debt free than putting myself in debt just because I want to buy aggressively when the dip occurs, if am already doing the DCA i see no reason to go take any loan. OP is saying it like the loan is free without any conditions or interest on paying back, even though the loan is without interest what if the person is unable to pay when time for paying is due, so to avoid embarrassment of any sort, I think am against taking loans for an investment.

[Creeper0]

Your strategy may work for some people, it may not work for everyone. Investing on debt and saving money for investment is not advisable. Do consistent DCA and invest aggressively whenever you have more discretionary funds. Buying aggressively is not mandatory, take advantage of the market if you can afford it.

You can invest on debt when someone is giving you a zero interest loan and unlimited time to repay. The number of such people in the world is very few, but sometimes you do come across such people. But no matter what you do, you should have a quick loan repayment system.
A better advice is to stay away from debt as much as possible and do not take out a loan unless you are in dire straits.