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

[IjawMan]

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.

This your approach is going to get people who choose to adopt it to get into a big financial debt that they may not be able to come out from remaining the same. Borrowing money to buy Bitcoin should be the lest option to patronize when you can simply make savings and DCA from it without leaving pressure on yourself after buying.

Bitcoin is a volatile asset and none of us can specify when it is the last dip to bottom before a price begin to rise. When you might be concluding that you have the perfect dip level to buy now with a loan then that could be the h nbthe price falls more and which could take more time than you had plan for.

Such situation will leave the person under tension and can force you to sell if the price stays done for too too long while your loan duration is counting down.

[CryptopreneurBrainboss]

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.

I don't support borrowing to invest in Bitcoin or any assets at all, my philosophy is if you can't afford it then don't invest in it. Yeah I see the billionaire do it (borrow to invest) but those guys are in another world all together and they have different sources to get the loan repayment back but you, if your source of income goes. What's there that you can use to repay the loan eh? Exactly, that's why you should only invest what you can afford and what's with this aggressive language, investing doesn't have to be aggressive or a do or die affair when you can just softly invest what you have when you do and it must not be every time, you can miss a month or few when there are emergency expenses and it must not necessary be when the market is down that you invest, you can do that anytime.

[Sammysmart001]

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.

I don't support borrowing to invest in Bitcoin or any assets at all, my philosophy is if you can't afford it then don't invest in it. Yeah I see the billionaire do it (borrow to invest) but those guys are in another world all together and they have different sources to get the loan repayment back but you, if your source of income goes. What's there that you can use to repay the loan eh? Exactly, that's why you should only invest what you can afford and what's with this aggressive language, investing doesn't have to be aggressive or a do or die affair when you can just softly invest what you have when you do and it must not be every time, you can miss a month or few when there are emergency expenses and it must not necessary be when the market is down that you invest, you can do that anytime.

Absolutely DCA is not a do or die strategy, most people do think that they just have to keep up with buying every week or monthly too even when there be an emergency that is going to affect their finances which can end up to create unnecessary pressure.

Personally for me the purpose of DCA it to make investment more manageable not in another way round to force you to buy at all costs. If in a case you aren’t stable stable at that moment, skipping or reducing ur purchase for the main time it more better than for you borrowing money or investing in money that might need to solve some important things later on. No one pressure, you can still continue when things fall in place for 💯.

[cxtreenal]

I have heard and studied many methods. I find DCA method to be very effective for accumulation Bitcoin. In case you may not get the expected amount of holding due to your low income range, aggressively buying Bitcoin during the price decline is a great investment strategy.

I have read your thread and I find Person "B" investment strategy more acceptable. I applaud this investment strategy for that person who has the financial stability to repay the loan in installments every week or month. If someone buys Bitcoin aggressively on impulse without any extra backup funding, I would not support them.

If a person regularly accumulation Bitcoin through DCA method and maintains a long term strategy he will be able to reach a reasonable investment position in the future. If he can run DCA without taking loans and only through discretionary income he will still have the possibility of reaching a reasonable position,

[ZeroVinsonN]

I have always been of the opinion that as long as you trust that you discretionary income will be able to pay for the loan then you can borrow to invest in bitcoin but it's only advisable in situations like this one. There is no logic to waiting and saving up for a DIP when you can invest continuously using the DCA but wanting to buy the dip isn't a bad thing, so instead of waiting for a DIP, invest gradually using the DCA and when a dip happens take out a loan you can pay off later on and buy the DIP with it, it's an opportunity to buy more for less and should be taken advantage of. Over some months you can pay off the loan using your discretionary income.

[AmaGold70]

Every investment involves some certain level of risk, and in Bitcoin investing, if you must take a loan to invest in Bitcoin, ensure that such money will be repaid without waiting for your Bitcoin investment to get matured, otherwise the accrued interest might be too heavy for you to repay. There are times when price of Bitcoin drops drastically, and investors who understand what that means will actually invest beyond their DCA strategy taking advantage of such opportunity because such drastic Bitcoin drop is what can make you earn good money. Borrowing money to invest in Bitcoin is risky because of the price fluctuation, but if you invest for long term, you will really make good profit, but should in case your investment collapse, you will definitely bear such responsibility.

[Nheer]

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 the point mate, taking a loan just to get aggressive is very unnecessary, and would only doubles the risk for the investors. The market is volatile but is not much of a concern if they plan to hold for a long time. The major risk is the repayment of the loan. Taking loan to buy the dip will only cause extra financial pressure especially when there's no arranged means of repayment. Although they could only take a loan if the investors has planned the repayment to be on schedule and funds set aside for it. It'd be much easier with no interest loans but It's almost impossible to get one. Loans just to invest aggressively is very risky even if there's a planned repayment and I wouldn't advise anyone to do that.

[Money bag]

It's a personal choice, it's not something you will find me advising someone to do but if for any reason someone decides to do it and they are sure that they will still be able to pay for the loan then I don't see any reason why they shouldn't, but still it's their choice to make, don't be the one giving the advice that might later lead to regret, everyone can claim to have the discretionary income to use to pay the loan but that doesn't mean they know what will happen tomorrow, imagine after taking the loan you end up in a situation where you are no longer able to generate discretionary income, how then do you intend to pay the loan.

[Somto9Light]

Why do you need to borrow money and invest aggressively? Most of you just think that bitcoin is one of those get quick rich schemes where you are promised double returns within a short interval of time. It is a wrong investment practice to borrow money and invest in a volatile asset like bitcoin because of market sentiments. Do you want to borrow money with interest when you are not even sure if the price of bitcoin will increase within the time that you are expected to repay your loan? If you are already investing using the DCA method there's no need for you to worry about buying aggressively because by consistently using the DCA strategy to invest you can still buy a whole lot of bitcoin instead of being faster than your shadow through borrowing of loan.

[Audrey Simmons]

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.

A typical buy and hold strategy will relieve you of this stress, i support buying aggressively when you have the money and can afford to buy, buying with a loan is not something i will advise investors to do, especially for someone struggling to raise capital for investment, there is no reason for you to borrow just to meet up, putting into consideration that where you assume to be the last dip and perfect price to buy might be a starting price for more dips.

[Versatile_choice]

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.

Having a means of repaying it back is not enough reason why you will advice a person to take out loan to invest, because a person might be 100% sure of paying back the loan he took; at that moment another emergency issue will pop up which they  May want to skip paying back the loan to attend to that very One, at this point the loan will remain unpaid and that's how interest will be adding. I'm speaking from experience, which is why I don't buy this idea of taking out loan to invest in bitcoin. If we can be honest to ourselves are we even supposed to invest with loan money ? If not for the fact that most Investors are overwhelmed with the opportunity that the market present to them, an investor who really understand how bitcoin investment works will not think of investing from other funds if not from their discretionary funds.

[Saltysugar99]

I will not invest in Bitcoin with loan. If you have a reasonably predictable future income, then the loan can front load a portion of that future income into the present and invest. But repayment should ideally come from a source that does not depend on the future performance of Bitcoin. An important advantage of normal DCA is optionality. If discretionary income is low this month, you can reduce the purchase. If income temporarily stops, you can pause. If unexpected expenses come, you can make a backup strong. If your financial situation improves, you can increase the accumulation amount. But after taking loan, you have to pay the instalment properly. Your income may decrease, an emergency may come, Bitcoin may drop but the debt payment will still be due. With a loan, you are not only buying Bitcoin in advance, you are destroying your future financial flexibility. So it is more logical to do DCA regularly than to buy Bitcoin with loan.

[Cgrexp]

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.

Having a means of repaying it back is not enough reason why you will advice a person to take out loan to invest, because a person might be 100% sure of paying back the loan he took; at that moment another emergency issue will pop up which they  May want to skip paying back the loan to attend to that very One, at this point the loan will remain unpaid and that's how interest will be adding. I'm speaking from experience, which is why I don't buy this idea of taking out loan to invest in bitcoin. If we can be honest to ourselves are we even supposed to invest with loan money ? If not for the fact that most Investors are overwhelmed with the opportunity that the market present to them, an investor who really understand how bitcoin investment works will not think of investing from other funds if not from their discretionary funds.

It is not reasonable to use borrowed money for investment just because you have the ability to repay the loan. If you invest with your own surplus money, even if the market goes down for a while, the investor is not under pressure to return the money within a certain period of time. If you invest with borrowed money, the market schedule will not follow your loan installment schedule. The need to repay the loan may arise at the very time when you see the opportunity to hold on to it for the long term. Taking risks from your surplus money can be a planned decision, but adding the same risk to debt obligations can greatly increase financial stress. If the objective of long-term investment is to build wealth over time, it is more important to invest in such a way that temporary market volatility or personal emergencies do not force you to sell your investment.

[Cryptomultiplier]

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.

Having a means of repaying it back is not enough reason why you will advice a person to take out loan to invest, because a person might be 100% sure of paying back the loan he took; at that moment another emergency issue will pop up which they  May want to skip paying back the loan to attend to that very One, at this point the loan will remain unpaid and that's how interest will be adding. I'm speaking from experience, which is why I don't buy this idea of taking out loan to invest in bitcoin. If we can be honest to ourselves are we even supposed to invest with loan money ? If not for the fact that most Investors are overwhelmed with the opportunity that the market present to them, an investor who really understand how bitcoin investment works will not think of investing from other funds if not from their discretionary funds.

I never like the idea of borrowing to invest in Bitcoin when we know clearly that the returns you make from the investment will only be substantial in a long time and not in the shortest possible time, so why borrow.
DCA strategy is but a strategy is that enables an investor invest at their discretion and not a do or die affair even if the market is pumping hard or dipping harder.
The problem with borrowing is repayment, and I don't think someone who has only one source of income should even consider borrowing as a way to get involved in Bitcoin investment because it will definitely bite you hard in the ass.

Borrowing money comes with dangerous leverage and turns optional investment into compulsory debt repayment with interest that is unprepared for. It's even worse when you borrow and the market price keeps dropping against expectations and you still got to repay the debt. So why borrow if you ain't earning from multiple sources?

[Silverstonez]

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.

What a bunch of shit you have here bro, and this your thread will mislead newbies a lot. You don’t need to take loans from the bank or friends to buy aggressively, provided you have a source of income what you need to do is to be consistent with your bitcoin accumulation strategy till you reach your target and hold it for the long term instead of taking loans to buy aggressively that may later not end well for you. Bitcoin investment is not about being aggressive, it is about being smart, patient and disciplined.

[Cossyblack]

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.

Personally,i don't see anything wrong with borrowing money to frontload my bitcoin investment, i simply see it as an investment risk and I wouldn't borrow an amount of money that will be difficult to pay back.  If I'm going to borrow,it will be a long term loan with little interests that i can be repaying in installments for years.

I can't borrow money with the hope of repay it back using the proceeds from my bitcoin investment because of violatility,  i might end up selling my bitcoin investment to repay back the loan,even at a loss if it falls below my entry price, this is why I can't rely on the proceeds from my bitcoin investments instead, i will be using from my job income to repay it.

[DiMarxist]

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!

This is already an established fact that borrowing money for the purpose of investing in Bitcoin should be discouraged, in what ever way that you see it because it can lead to a very big financial crisis at the end of the day. The reason is that Bitcoin is one asset that is not always controlled in terms of the market price, you can buy Bitcoin today let say a hundred dollars and the price can crash Down to even thirty dollars in the following day.

So just imagine that you borrowed money to invest in Bitcoin and there is a massive drop in price and that dip last longer than expected , let say for a period of six months and the money you borrowed the interest is counting . You have encured slot of Dept in the process which may not be a very good financial advice and decision that someone should take because, at the end of the day you find out that you are not going to make any good profit at the end of the day.

[yixichloro2xx]

Since you are able to save up ₦40k monthly to buy Bitcoin dip. Why will you have the assumption that it is better to take loan and buy the dip aggressively? Hope you are aware that loans comes with high interest rate and due date. What if  something happens ( for example losing your source of income) which prevents you not to payback the 200k + interest in the agreed installment date. The only option you have is to  run back  and sell of some portion of your Bitcoin.  What will make the matter more worse is if Bitcoin price has dumped beyond your entry level. That way you are not only losing on your Bitcoin investments , you are also paying interest on borrowed funds that did not produce the expected return.
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‎For me oo, the best money I can use to invest into anything is the one I personally hustled for. I can't be using money that isn't mine to invest,which might cause alot of pressure. Instead of even saving ₦40k every month to buy Bitcoin dip, why not addd it to your discretionary income and continue with your DCA strategy. The decline that you are saving money for or borrowing for might not come ,and I don't know how long you will continue to wait for it to happen,when you can keep accumulating frequently with your DCA.
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[I_Anime]

Don’t make your bitcoin investment complicated. As long you can maintain a proper dca buying method , that’s already a good start . Don't invest like you’re looking for some kind of quick wins like a gambler. Investment like you are building something valuable (which you are doing by the way ).

You don’t have to start pressuring yourself to the extent of taken loans just to be aggressive. That’s no longer aggressiveness is Just you being overly aggressive. Set a back up fund aside if you are interested in buying the dip while you continue with  your DCA buying than going for loans .

[Localhostspeed]

It's a personal choice, it's not something you will find me advising someone to do but if for any reason someone decides to do it and they are sure that they will still be able to pay for the loan then I don't see any reason why they shouldn't, but still it's their choice to make, don't be the one giving the advice that might later lead to regret, everyone can claim to have the discretionary income to use to pay the loan but that doesn't mean they know what will happen tomorrow, imagine after taking the loan you end up in a situation where you are no longer able to generate discretionary income, how then do you intend to pay the loan.

We know it's a thing of choice but it's important that if you are going to make investment, don't use a borrowed funds. Bitcoin is unpredictable like other investment, it's possible that if you borrow money and buy it, the price will do well and it may as well go the other way round. It's because of the uncertainty its advisable not to be using such money to make investments, most of them don't end well. It's better to try other means to raise funds before you buy.

You know what is worrying about investments with borrow funds, some people borrowed money to make investments, instead of doing what they planned to do with the money, they used the money to do futures where they blow the money immediately. Some don't know how to trade yet want to make money from trading. These are some of the reasons why such move is highly discouraged.