Cryptocurrency good or bad for loan?

[Z-tight]

People who just started with their regular jobs (that pays decent) usually don't have enough savings but they could take advantage of the price drops by borrowing.

This makes sense and this could be the only scenerio that i can take borrowing to be acceptable, in this case the person just got into a job that would pay them a decent amount every month and with that they can pay their debt.

This is obviously more sensible that someone who borrows to buy BTC, with the intention of paying their debt through the possible profit they can get from the investment.

[LogitechMouse]

I misunderstood the objective, I thought people were talking about loans in the crypto world, you mean taking loans FOR buying crypto, that is definitely a wrong move. Do not take loans that you have to repay back easily, that just doesn't make sense at all, I personally would advice against that as much as I possibly could. I think it would result with you not knowing whats going on, and the best thing to do would be just avoiding everything in total, that will for sure be better for you, it would make things easier for you to handle at the same time as well, would be a smart move to do by just investing with what you already have.

I will give you a scenario:

For example, I took a $1000 loan back in 2022 and used that money to buy Bitcoins at that time and decided to hold it until the bull run. I'm capable of paying that loan in the span of 1-2 years. Let's say that the annual interest of my loan is around 10%. In 2 years, the amount of money that I will pay is $1,107.48. Now in the span of 2 years, how much do you think my $1000 now? My money is worth at least 3x already. The question is, is that a bad move? You know what's the price of Bitcoin in 2022 and now, right?

What I'm pointing out is, there's nothing wrong in getting a loan just to buy cryptocurrency like Bitcoin. There only are some things that you need to know.
1. You need to knowledgeable enough in what you're doing.
2. Make sure that you're capable of paying that loan in the whole duration.

There's nothing wrong in getting loan as long as you know what you're doing. If you're capable of paying it, and you believe that you will make more money by doing it then why not do it?

[bitbit97]

But you have described situation for fiat loan. The story is completely different if you would have taken loan in Bitcoin. And it would be a total disaster if you havent negotiated loan conditions. A person could have taken Bitcoin in 2022, but will be asked to return $ in 2024.

Personally I am against any kind of loans or buying something in credit (unless this is something really unachievable and credit is taken for many years, like mortgage for example). From my point of view, a person must always operate and make planning only with own money.

[Rubel007]

People who just started with their regular jobs (that pays decent) usually don't have enough savings but they could take advantage of the price drops by borrowing.

This makes sense and this could be the only scenerio that i can take borrowing to be acceptable, in this case the person just got into a job that would pay them a decent amount every month and with that they can pay their debt.

This is obviously more sensible that someone who borrows to buy BTC, with the intention of paying their debt through the possible profit they can get from the investment.

A loan can be taken if there is sufficient capacity to repay the loan. Investing in Bitcoin can provide a significant reward. If one has the ability to pay off the debt for a long time then investing in Bitcoin with debt is definitely a good decision. However, there are some people who are too greedy to take loans and even if they fail to make regular payments, the loan will further worsen their financial condition. If you can hold Bitcoin investment for a long time, there is a high chance of making profit, but for this, you must continue to pay off the debt. money. It is also possible that when a person invests with a loan, he can get the ability to pay off the loan very quickly.

[$crypto$]

Yes, you are right, it is better if we don't take out any loans, because we don't have burdens to think about and maybe that will affect our peace of mind.

Even if you have to take out a loan, be wise in using it. We have to measure whether or not we are able to bear the burden we will feel. We should not force ourselves to do something that we can actually do without taking out a loan, for example.

As much as possible on which i do really make myself really trying out to free from loans even on how small or big it would be.Its true that on the moment that you do have that loan then you would really be having that kind of feeling on having a burden on which this is really giving out that kind of stress but if you are really that taking up some loan but you do really know on how to repay it back on the right time then there would really be no issues but if you do struggle on doing so or cant really be so sure then it would really be better that you should really be avoiding this as much as possible.

It's better to be late than to force yourself, that's the principle I try to adhere to as strongly as possible. It's not that you can't take out a loan, because now borrowing is something that is very easy. Many companies operate in that field.

But I think further to avoid the burden or pressure that I might feel later. Prevention is better than cure. We can still do it on our own, even though we need a little time to do it.

[taufik123]

-snip-
Personally I am against any kind of loans or buying something in credit (unless this is something really unachievable and credit is taken for many years, like mortgage for example). From my point of view, a person must always operate and make planning only with own money.

Budget planning using the income money obtained is indeed better, it is more helpful to avoid loans with large interest.
I don't even like to take out loans, it's better to save to get what we want.

Investments that use loans are very risky, especially loans using Altcoins or Bitcoin with high fluctuations.
It will even give it a greater value when it goes up, but it will also go down, but it is still full of risks.

Loans with many years will only generate large interest for the borrower,
and we as core borrowers are squeezed with a large accumulation of interest.

[Dr.Bitcoin_Strange]

People who just started with their regular jobs (that pays decent) usually don't have enough savings but they could take advantage of the price drops by borrowing.

This makes sense and this could be the only scenerio that i can take borrowing to be acceptable, in this case the person just got into a job that would pay them a decent amount every month and with that they can pay their debt.

This is obviously more sensible that someone who borrows to buy BTC, with the intention of paying their debt through the possible profit they can get from the investment.

A loan can be taken if there is sufficient capacity to repay the loan. Investing in Bitcoin can provide a significant reward. If one has the ability to pay off the debt for a long time then investing in Bitcoin with debt is definitely a good decision. However, there are some people who are too greedy to take loans and even if they fail to make regular payments, the loan will further worsen their financial condition. If you can hold Bitcoin investment for a long time, there is a high chance of making profit, but for this, you must continue to pay off the debt. money. It is also possible that when a person invests with a loan, he can get the ability to pay off the loan very quickly.

Except you're aiming or targeting to buy a DIP, otherwise, taking a loan to invest in Bitcoin isn't such a good idea, I have my reasons for saying so.
Investing in Bitcoin isn't like just taking out some money to buy a commodity, there are a lot of things involved, adequate preparations to be made and plans to put in place before beginning your Bitcoin accumulation journey.

Things such as building a solid emergency fund, float/reserve funds are necessities, before even starting your bitcoin accumulation.
And putting all these in place requires a good financial and risk management skill and for someone who possess a good financial management skill as well as a solid emergency and a good income flow, there'll absolutely be no reason to acquire a loan with intentions if investing it on Bitcoin, except of course there's a DIP in the market that you feel you can't afford to miss, which of course you have the resources available for the repayment, then acuqiring the loan to buy could be considered understandable.

[Hamza2424]

First of all dont prefer taking loans for investment purposes if you need it for some kind of urgent purpose like a medical emergency or any other crisis you better seek help from friends and family, and if you really want to take up a loan better deal in the local currency in order to avoid the valuation uncertainty, the crypto market is highly volatile and you ant proceed in the crypto market with long term loans there is a high possibility that your assets will get liquidated, that will be the even worst situation.

[albon]

Here's what you need to know about how risky it can be to invest in crypto with your hard-earned funds. So when you invest with a loan that thought will increase manifold. When i collect my loan then i promise to pay something in return, such as paying $130 as a promise to take out a $100 loan. So when you are investing in crypto with a loan and making a loss you have to repay the loan along with the money pledged. Moreover no bank or any medium will give you a loan without profit. It is better to use a special case loan when you know that you have extra assets to pay back if you lose the loan.

[Dr.Bitcoin_Strange]

Here's what you need to know about how risky it can be to invest in crypto with your hard-earned funds. So when you invest with a loan that thought will increase manifold. When i collect my loan then i promise to pay something in return, such as paying $130 as a promise to take out a $100 loan. So when you are investing in crypto with a loan and making a loss you have to repay the loan along with the money pledged. Moreover no bank or any medium will give you a loan without profit. It is better to use a special case loan when you know that you have extra assets to pay back if you lose the loan.

Taking loans isn't the problem, the problem is using it for the wrong purpose and how you intend to repay, it's okay if you wanna take up some loans to buy a DIP, and then gradually pay back via other viable sources. But where it's wrong is when you take up a loan, intending to pay invest the loan money and to repay with the profit gotten from that investment, especially when it involves crypto, you'll be making a terrible mistake because the crypto market is highly volatile and unpredictable, so assuming that you'll make profit enough to repay the loan before the loan's due date would be a terrible mistake.

[yohananaomi]

Here's what you need to know about how risky it can be to invest in crypto with your hard-earned funds. So when you invest with a loan that thought will increase manifold. When i collect my loan then i promise to pay something in return, such as paying $130 as a promise to take out a $100 loan. So when you are investing in crypto with a loan and making a loss you have to repay the loan along with the money pledged. Moreover no bank or any medium will give you a loan without profit. It is better to use a special case loan when you know that you have extra assets to pay back if you lose the loan.

Taking loans isn't the problem, the problem is using it for the wrong purpose and how you intend to repay, it's okay if you wanna take up some loans to buy a DIP, and then gradually pay back via other viable sources. But where it's wrong is when you take up a loan, intending to pay invest the loan money and to repay with the profit gotten from that investment, especially when it involves crypto, you'll be making a terrible mistake because the crypto market is highly volatile and unpredictable, so assuming that you'll make profit enough to repay the loan before the loan's due date would be a terrible mistake.

I agree, there's no harm in taking out a loan and the most important thing is that you have to be able to pay the installments on the loan for investing, so that it doesn't interfere with your daily activities, which might be disrupted if you can't pay the installments. It's a good idea after borrowing to properly analyze what we will invest in if possible when prices are being corrected, and we can get a cheap price. It is not recommended that loans for investment be made from profits, because they may not always be able to produce profits on time, resulting in the burden of not being able to pay the loan.

[JoyMarsha]

Crypto can serve as an alternative source of income, not for one to fully become dependent on it because of its volatility. Based on crypto volatility, it would be wrong to take up a loan to invest in crypto, even when we are told that our future is secured with crypto investment and that we should invest and have a long-term goal.

Invest and having a long-term goal should be with our spare money not with a loan money that we are thinking of paying back with our job salaries that we are not sure whether we are going to stay up to our job for a year since the job sector is changing, AI is taking people's job

[vegasus]

But you have described situation for fiat loan. The story is completely different if you would have taken loan in Bitcoin. And it would be a total disaster if you havent negotiated loan conditions. A person could have taken Bitcoin in 2022, but will be asked to return $ in 2024.

I also think that way. Where can you get a loan that easily? We definitely have to provide collateral, right? Then, what about the installments? With the flowers? Even though the loan interest at the bank is really scary. Moreover, interest on online loans / rentiers, etc. Have they not thought about that? Usually, here, when borrowing money, there are 3 possibilities.

1. Loans in bank
If we borrow from a bank, then we must have collateral that must be used as collateral for our loan, and we will get the appropriate amount. And, we are also obliged to pay the installments + bank interest every month, and if we are late then it will be a problem. Even if we are three times late, we will usually get a warning letter and if there is no response for several months, the bank will confiscate our collateral, unless we are able to pay it.

The problem is, do we have the collateral and can we afford the installments + bank interest every month?

2. Personal loans
Even if we want to borrow from personal, is it possible for us to get a loan easily, up to 2-3 years, without monthly installments. and return it without any interest? I thought, it doesn't exist. Unless we borrow it from our relatives, maybe. That's all, we would really be immoral if we returned it for that long without interest or anything else, even though we ourselves are making a profit from the loan. So we just don't know ourselves.

3. If we make a loan to a certain party with maturity rules, usually only around 6 months maximum here, whether in other countries. and of course we will have collateral that must be put up as collateral. But I'm not sure if they want to lend it for more than 2 years. Even if it were possible, there would definitely be a lot of flowers. Just imagine, if you borrow from a bank within a certain period of time, the interest will be quite large, you know.

For me, I also prefer not to invest by taking loans. Better to invest as much as I can afford, but nor by taking loans.

[Rubel007]

I misunderstood the objective, I thought people were talking about loans in the crypto world, you mean taking loans FOR buying crypto, that is definitely a wrong move. Do not take loans that you have to repay back easily, that just doesn't make sense at all, I personally would advice against that as much as I possibly could. I think it would result with you not knowing whats going on, and the best thing to do would be just avoiding everything in total, that will for sure be better for you, it would make things easier for you to handle at the same time as well, would be a smart move to do by just investing with what you already have.

I will give you a scenario:

For example, I took a $1000 loan back in 2022 and used that money to buy Bitcoins at that time and decided to hold it until the bull run. I'm capable of paying that loan in the span of 1-2 years. Let's say that the annual interest of my loan is around 10%. In 2 years, the amount of money that I will pay is $1,107.48. Now in the span of 2 years, how much do you think my $1000 now? My money is worth at least 3x already. The question is, is that a bad move? You know what's the price of Bitcoin in 2022 and now, right?

What I'm pointing out is, there's nothing wrong in getting a loan just to buy cryptocurrency like Bitcoin. There only are some things that you need to know.
1. You need to knowledgeable enough in what you're doing.
2. Make sure that you're capable of paying that loan in the whole duration.

There's nothing wrong in getting loan as long as you know what you're doing. If you're capable of paying it, and you believe that you will make more money by doing it then why not do it?

Your words are true and logical. If one can invest in a currency like Bitcoin with a loan then he can definitely be profitable in the long run. In this case I don't see taking loan as bad but taking loan is not possible for everyone. Especially those who do not have sufficient capacity to repay the loan. Those who have multiple sources of income or have the ability to repay the loan regularly can definitely be profitable if they invest in Bitcoin for the long term.

[0t3p0t]

One important thing to remember as a borrower is that we have to make sure we are able to pay what we owe in the timespan the lender has given us or else it is not nice but for some they still accept extension. We should also take knowledge into consideration as to where loan money will go whether crypto, stocks, bonds, precious metals and any other investments we know. The thing is we should have the idea if it really is worth the investment as we are taking risk here since the capital we have is a loan money. But if someone has to lend me money in the span of a ten year payment I think I'll go for crypto especially Bitcoin. 😅