Cryptocurrency good or bad for loan?

[Celsius]

While investing in crypto, many people take loans from banks, but later they have to face difficulties in repaying the loans if there is a loss. How much crypto is needed to manage social life and can it be the only dependent income source of your life?

It would be kind of sheer stupidity to invest in crypto-currencies by taking a loan from a bank. Investing in cryptocurrencies involves uncertain possibilities and risks. If there was such a guarantee that profits would be made, then of course loans or borrowings could be invested. But both profit and loss are uncertain, so it should not be suggested to invest by taking a loan from the bank.

[legend45]

While investing in crypto, many people take loans from banks, but later they have to face difficulties in repaying the loans if there is a loss. How much crypto is needed to manage social life and can it be the only dependent income source of your life?

It would be kind of sheer stupidity to invest in crypto-currencies by taking a loan from a bank. Investing in cryptocurrencies involves uncertain possibilities and risks. If there was such a guarantee that profits would be made, then of course loans or borrowings could be invested. But both profit and loss are uncertain, so it should not be suggested to invest by taking a loan from the bank.

For a professional trader who can get profit consistently, they can take bank loans because they can pay their installments. For those who are not trading experts, you should not take the investment for investment. This is me talking tetant trading. But for long -term HODs it is advisable to use free money, don't loan money.

[dave_strider]

For a professional trader who can get profit consistently, they can take bank loans because they can pay their installments. For those who are not trading experts, you should not take the investment for investment. This is me talking tetant trading. But for long -term HODs it is advisable to use free money, don't loan money.

Yep. A person should always take a loan knowing fully well he will be able to repay it back.
There is no loan if you want to try something out with the funds you acquired - you get easily get in a sticky situation afterward.

[Zed0X]

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Yep. A person should always take a loan knowing fully well he will be able to repay it back.

The thing is that majority of people who borrows thinks they could pay it back until something bad happens. I guess we have to be more specific here that a person could take a loan to invest in crypto but it has to be within his earning capacity. Taking $100K when you're only earning roughly $3K (gross) a month for example.

[Gurujebs]

The thing is that majority of people who borrows thinks they could pay it back until something bad happens. I guess we have to be more specific here that a person could take a loan to invest in crypto but it has to be within his earning capacity. Taking $100K when you're only earning roughly $3K (gross) a month for example.

The problem about money borrowing isn't the main issue, it's about the size. There are kind of money that you are going to borrow and you will be able to pay back no matter the unexpected problems that will arise later. If you have a plan to borrow money, try as much as possible to borrow 5-10% of what you earned, so you can find a way to squeeze in paying back the money.

Some people will borrow 3x of what they make and plans to pay in batch payment but the challenge about this is that you don't know what make come up later, you know life is full of ups and down, you don't know what can come next, this is why you should plan but add worse scenarios.

[albon]

Yep. A person should always take a loan knowing fully well he will be able to repay it back.
There is no loan if you want to try something out with the funds you acquired - you get easily get in a sticky situation afterward.

Of course correct, but having extra assets to repay the loan can't be risky. Suppose you can sell some of your assets to pay off the loan if you don't make a profit from your crypto investment. But i will always urge everyone that taking loans to invest in crypto is foolish. When the price of your purchased tokens drops then you will have a cash crunch. And if you want to pay off the loan then you will have to pay additional interest so it will go towards additional risk.

[Hisbullah]

Yep. A person should always take a loan knowing fully well he will be able to repay it back.
There is no loan if you want to try something out with the funds you acquired - you get easily get in a sticky situation afterward.

Of course correct, but having extra assets to repay the loan can't be risky. Suppose you can sell some of your assets to pay off the loan if you don't make a profit from your crypto investment. But i will always urge everyone that taking loans to invest in crypto is foolish. When the price of your purchased tokens drops then you will have a cash crunch. And if you want to pay off the loan then you will have to pay additional interest so it will go towards additional risk.

If you have other income that can be used to pay off the loan when we are stuck in buying coins at a high price and have to wait to be able to sell them because the market is correcting, then I think we can take out a loan considering that there are other assets to pay for it. but if there is none, it is better not to take out a loan because it is very risky.

[debra]

It would be kind of sheer stupidity to invest in crypto-currencies by taking a loan from a bank. Investing in cryptocurrencies involves uncertain possibilities and risks. If there was such a guarantee that profits would be made, then of course loans or borrowings could be invested. But both profit and loss are uncertain, so it should not be suggested to invest by taking a loan from the bank.

Agree. It is not a wise way to take a loan from banks. Investing in crypto must be with safe money. If we take a loan from banks, we must pay big bank interest. Moreover, crypto investment is high risk, there is no guarantee to gain profits. So, why don't we invest with safe money. It is no problem if it is with smaller money. We can do DCA, just buy crypto gradually with small money. If we do it a long time, we can collect big investment as well.

[enwi]

It would be kind of sheer stupidity to invest in crypto-currencies by taking a loan from a bank. Investing in cryptocurrencies involves uncertain possibilities and risks. If there was such a guarantee that profits would be made, then of course loans or borrowings could be invested. But both profit and loss are uncertain, so it should not be suggested to invest by taking a loan from the bank.

Agree. It is not a wise way to take a loan from banks. Investing in crypto must be with safe money. If we take a loan from banks, we must pay big bank interest. Moreover, crypto investment is high risk, there is no guarantee to gain profits. So, why don't we invest with safe money. It is no problem if it is with smaller money. We can do DCA, just buy crypto gradually with small money. If we do it a long time, we can collect big investment as well.

Investing is always safer and logical when using money that has been earned and which is not tied to something else, especially when investing in high risk options such as the crypto currency. Taking a loan from the bank will only make the pressure of having to pay high interest rates on the a burden as they will drag us down if the investment does not yield reasonable returns on the investment. Using such an approach like buying little amounts of crypto over time also serves the advantage of avoiding high price volatility in the market. Long-term application of this basic logic therefore could make a large difference without stressing about it or taking chances you do not need to take. Financial risk always remain a big factor in holding considering any investment.

[Cryptsafe]

It would be kind of sheer stupidity to invest in crypto-currencies by taking a loan from a bank. Investing in cryptocurrencies involves uncertain possibilities and risks. If there was such a guarantee that profits would be made, then of course loans or borrowings could be invested. But both profit and loss are uncertain, so it should not be suggested to invest by taking a loan from the bank.

Agree. It is not a wise way to take a loan from banks. Investing in crypto must be with safe money. If we take a loan from banks, we must pay big bank interest. Moreover, crypto investment is high risk, there is no guarantee to gain profits. So, why don't we invest with safe money. It is no problem if it is with smaller money. We can do DCA, just buy crypto gradually with small money. If we do it a long time, we can collect big investment as well.

I always say this to borrowers, if you don't have alternative source of income for backup purpose do not go borrowing to invest not to talk of Crypto which we all know how volatile it could be. It is true that one can make a good fortune from the Crypto market, the reverse could also be the case so in that situation what do you do when it dumps on your borrowed investment?

Crypto market is a lucrative one but In as much as we want to invest in it, we should be able to invest with funds we can afford to lose maybe our spare funds or budget we have for it. It could be done in a bit sequentially till we achieve our investment goal and target.

[albon]

Yep. A person should always take a loan knowing fully well he will be able to repay it back.
There is no loan if you want to try something out with the funds you acquired - you get easily get in a sticky situation afterward.

Of course correct, but having extra assets to repay the loan can't be risky. Suppose you can sell some of your assets to pay off the loan if you don't make a profit from your crypto investment. But i will always urge everyone that taking loans to invest in crypto is foolish. When the price of your purchased tokens drops then you will have a cash crunch. And if you want to pay off the loan then you will have to pay additional interest so it will go towards additional risk.

If you have other income that can be used to pay off the loan when we are stuck in buying coins at a high price and have to wait to be able to sell them because the market is correcting, then I think we can take out a loan considering that there are other assets to pay for it. but if there is none, it is better not to take out a loan because it is very risky.

I took a $200 loan from my friend today and already purchased nodepay tokens with that money. Since the token is listed on the exchange today so it is a very shot time investment idea. Although i already have a lot of profit from other altcoins so i want to hold them long time. Even if nodepay token leads me to loss then i won't have much trouble. Because i have a lot of funds so i can easily repay this type of loan. But i consider taking loan from bank as a big risk.

[Hisbullah]

I took a $200 loan from my friend today and already purchased nodepay tokens with that money. Since the token is listed on the exchange today so it is a very shot time investment idea. Although i already have a lot of profit from other altcoins so i want to hold them long time. Even if nodepay token leads me to loss then i won't have much trouble. Because i have a lot of funds so i can easily repay this type of loan. But i consider taking loan from bank as a big risk.

If you feel confident in borrowing money to invest, of course you can do it because you have the ability to pay it back. Investing in crypto with borrowed money is indeed a big risk because crypto prices are very volatile, but if you have the ability to pay using real-world money and it doesn't interfere with your living needs, I don't think this is a problem.

[alltalk]

Crypto market is a lucrative one but In as much as we want to invest in it, we should be able to invest with funds we can afford to lose maybe our spare funds or budget we have for it. It could be done in a bit sequentially till we achieve our investment goal and target.

Yep. We don't need to invest with a big capital if we have no enough money yet. We have an option to invest gradually with DCA method or the like. We should always remember to invest with safe money, we use the money that won't be a problem if we lose it. Crypto investment is surely very profitable but it sometimes becomes unpredictable. How if crypto prices are decreasing severely? If we use safe money, it won't be a big problem. But if we invest all our money, it will be a big problem. Moreover if we use loan money, losing all the money can be a disaster.

[kulkhan]

We know cryptocurrency market always unpredictable and it is very risky for investment. So it also risky investment for loan. If we take lone and that invest on crypto it will creat extra presser to invest. And then we were losser from here.

So i think if we want to invest on cryptocurrency then we take fund from our own fund then we will able to invest on cryptocurrency freely.

[Cryptsafe]

Crypto market is a lucrative one but In as much as we want to invest in it, we should be able to invest with funds we can afford to lose maybe our spare funds or budget we have for it. It could be done in a bit sequentially till we achieve our investment goal and target.

Yep. We don't need to invest with a big capital if we have no enough money yet. We have an option to invest gradually with DCA method or the like. We should always remember to invest with safe money, we use the money that won't be a problem if we lose it. Crypto investment is surely very profitable but it sometimes becomes unpredictable. How if crypto prices are decreasing severely? If we use safe money, it won't be a big problem. But if we invest all our money, it will be a big problem. Moreover if we use loan money, losing all the money can be a disaster.

Taking a loan is not even advisable because of the market volatility. You never can tell how long a market could take to pick up if it goes bearish and if such happens near when you are supposed to have paid back the loanand you are yet to do so, it would be a disaster because you cannot pay back the loan and the possibility of you forfeiting your collateral would be the only option. This is why we are advised to use spare funds for crypto investment or invest as we can afford to lose. But sometimes it does not necessarily mean we lose our funds, but we being patient enough to wait for the market to pick up back as it usually does.