Yes as the subject said, using borrowed money to buy bitcoin is not good idea because the interest is accumulating every week/month and you don't know when the bull will come and even if you know, you will not know how much it will be. And assuming you took a loan of $400 to pay back within 3 years and the interest rate is $2 weekly and in the 3 years period, bitcoin has not reach the speculated price to sold your bitcoin to pay your loan. Or when you sell, you get the exact amount of the loan, or 1% profit from the sell and you pay off the loan and there is nothing left for you to start over. Is that a good investment? No. So there are many factors one can consider before using borrow money for bitcoin investment. You have to consider the duration of the loan, the probability outcome of bitcoin at the end of the loan year, and the interest rate accumulated at the time to pay back the loan.
When you have done your homework well and you see that you can use the loan to invest on bitcoin and there will be no problem at the end and you will have some changes remain in your wallet then you are free but if not, it will shock you and you will be frustrated so prevention is better than cure as they said. Therefore using loan for investment is not advisable. Ordinarily, you cannot just come to the cryptocurrency Ecosystem space without proper planning and started investing, it is not done in that way, at least calm down to study how things are done in the environment, making some analysis, compare and contrast some of the risk involved then if it is good then you key into it and if it is not then you look for an alternative way to invest in bitcoin.
I came up with this topic because I was planning to borrow money to invest in bitcoin but when I looked at the risk involved, I have to give up the borrowing plan.
I mean the main reason was just that cryptocurrency or Bitcoin is just a risky investment and it wasn't recommended to do a loan just to invest in something that is risky it just wasn't worth it because if you lose your money on Bitcoin then you get a debt as well which is a big problem by chance. If we are just going to invest in Bitcoin we already know that we should have liquidated or fiat money that we have in our savings because if you're going to invest but it is already all of our funds I just wouldn't really going to recommend that because what funds are you going to use when the market is down? Your just gonna end up selling your holding and lose money because you didn't have the plan to invest. Most traders are just going to recommend you invest only 10% of your funds in cryptocurrency because it is just way too risky to put everything on it.
Taking a loan wasn't actually that bad if you know what you're doing loans could easily help you with your problems and probably it could help you buy assets that could generate your income, but if you just doesnt have funds just dont invest on cryptocurrency just invest it on something that is more guarantee to give income.
If you borrow money to invest in Bitcoin, that shows you have no other option left and this also means that you are trying to invest what you can't afford to lose because you borrowed the money, Bitcoin investment is not for such people, if all you can do is borrow money, brother go out and look for jobs, this is not a matter of when to buy or when to sell, you are doing it completely wrong.
Your money or no Bitcoin investment, doing this will put you under pressure and unease mind, it's money you borrow, and there will be a max time for you to pay back the money, I can promise you that it's not going to be a pleasant investment in the end.
Agree with that, when I started working I realize that its actually easy to save your money, just dont buy something that you cant afford, so if you cant afford to invest on Bitcoin just dont invest on it!.
