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.

[casey15]

It's not a good advice.. no matter how you put it. One thing about the market is that it is not predictable that is why traders still lose. And the type of investment you are talking about isnt shirt term trading... Even though we know the market is going to be bullish, we don't know exactly when it will occur.. that uncertain alone is enough for you not to take out a loan to invest. Because at the end you might even be at loss and unable to pay back the loan.
The math is easier and mouthwatering in theory until you have done it in real life you'll find out that peace of mind is underrated.. always invest what you can afford to lose..don't borrow

[Stepstowealth]

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.

I see am say na assumption you dey make because you cannot possibly know the buying behavior of many people or most of the investors in Bitcoin during the decline season but I don't think you should form your own investment strategy around such assumptions.
I think it is a good decision and it is also discipline for you to maintain your strategy of buying in little amounts occasionally even when there's a decline and an opportunity for you to buy more. You have to maintain a principle and discipline Because if you are easily affected by decline and push to want to invest more It means that you are still making investment decisions based on emotions and even if there is potential for profit I do not see it as a good practice as an investor. An investor should have a fixed plan and strategy on how to invest and then stick to it regardless of the temptation to want to invest more or invest less.

[Coyster]

Person A is saving ₦40,000 every month in the bank to buy aggressively in addition to the DCA method.

Lol, if you want to accumulate bitcoin through DCA, why do you need to save the said amount in the bank, you can as well buy bitcoin worth N40k monthly. If you are saving this amount to buy bitcoin, then it's no longer DCA, but a lump sum purchase.

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 mixing a lot of things up here and it makes it very difficult to make sense of your points. You keep talking about DCA in your topic, but none of what you say reflects what it is. If you take out that loan and buy BTC at once, you are not applying the DCA strategy. Now if we look at the idea without all that confusion, it is not something i'd advise someone to do. I believe taking a loan to buy bitcoin is for high-net-worth individuals, who can borrow large sums of money against their existing assets and they would never have any problems repaying the loan.

[osasshem]

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.

That is a totally an unwise decision, which is not to be taken into action at anytime. If you had said taking this action when the market has started a recovery movement and you are buying aggressively to move with the trend for profits as the market goes, that's different, not taking such action on when the market is on a decline.

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.

From your first paragraph, taking loan to buy aggressively when the market is on a decline is not wise. You have to see the risky move here and make a well calculated decision. When the market is on a decline, person A takes a wiser action buy saving funds to buy aggressively, possibly somewhere at the bottom of the bear market while DCA is maintained, person B miss the big picture because no one can tell how long the market decline will stay, therefore, buying aggressively on a decline will keep the debt interest increasing, and not sure when the market trajectory will change.

[Hewlet]

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.

No matter the way you look the second person in  the analogy you have pointed out, he is the one that is at a disadvantage because he is trying to do above is ability. in investing, it is not necessary to do it as a do or die affairs'. invest based on your financial strength and if after you have invested using the DCA approach you can afford to still let 40k lie in the bank for buying the DIP, it is better to do so than investing all at a go and going on to take up a loan just because you want to buy the DIP.

You must not buy the DIP if we want to keep the record straight. only buy what your financial strength can carry and let the rest go. it is that simple.

[Odogwu-Blockchain]

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.

No no no, very wrong decision, never mention loan when talking about Bitcoin investment and DCAing, it will ruin your investment journey, no matter how sure you may think the market movement seems to be, don't ever take a loan for it, that's a dead trap awaiting you, and don't ever take money from friends and family too, another tempting trap.

Bitcoin investment is volatile and no one knows exactly the future, not even an expert trader here, if you should invest a little bit, you can proceed with your own money no matter the amount, if you don't have you can sell your unused property property for it.

[Hardyrobust]

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.

It is not a good idea to be saving money and be waiting for a dip to occur before buying bitcoin because no one can tell when a dip will occur. However, there is not wrong to be saving money for buying the dip if the person is using DCA strategy. An investor that is doing DCA can decide to save some funds for buying the dip. So, instead of taking loan which is a wrong idea it is best to be saving for buying the dip along side with DCA .

[Versatile_choice]

What I'm about to say now is what I keep telling people around me especially those I introduced into bitcoin investment, taking out loan to invest in bitcoin or to be aggressive in your accumulation journey is not a good idea. Instead of taking out loan to buy the dip I would prefer holding back funds for buying aggressively when there's dip. Yet at the same time it's not a good strategy because you don't know when dip will happen.

FYI it is not a must for everyone to buy aggressively so if you see that you don't have enough discretionary funds to buy as aggressive as you want then you have to make use of the available discretionary because buying from other funds is out of the game.

[Homemade-IQ]

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.

The idea of taking a loan to invest in bitcoin or to buy the dip is not a bad idea if you have other means of repaying it back, or your ability to pay it back does not depends on your bitcoin investment, but if you planned on repaying back that loan from the proceeds from your investment, then it's a terrible idea because Bitcoin is a volatile asset,  so the price may be down when the loan repayment date may be due.

Saving money in form of reserve funds to buy the dip is not a bad idea, but if you pause your regular accumulation because of it, that's what I think is bad.

[Emeraldo]

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 never support your idea for an investor to borrow money to invest in Bitcoin. What make you think that borrowing money to invest in Bitcoin during the dip is the best decision to take at such a critical time when investors are panicking about the market dip..
Never you advise anyone to invest in Bitcoin with a loan money because it might take a longer time for the buy of Bitcoin to recover from the dip which can cause additional interest rate on the loan.

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.

There is nothing to consider here since you are the one that came up with the story of getting a loan and you should have concluded on which one is better for anyone of the persons if it's person A or it's person B. Investing in the crypto market should never be based on emotions because that can literally kill the desire to invest appropriately and be patient till when the investment will become fruitful.