I want to know if it's much risk to borrow and purchase bitcoin like it is to trade bitcoin. However, the market is pumping, and it may seem like a good move if the loan is not for lunch, rent, and family bills which account for our daily needs (That is, my daily needs have been taken care of). Thus, timing is another criterion to discuss. How can someone know the perfect time to pick such a desperate gamble? We win or lose in trading or holding bitcoin but, I presume with the help of experts in this forum who have gone through thick and thins in this market, good guides or rules can be shared for users and newbies in the forum to have a grip on the market and know if borrowing is appropriate. It does sound thoughtless but, borrowing is part of the business. And we must prepare for the best as well.
Borrowing money for trading is nothing new, there are lots of people who do it but it’s best to avoid it. Why it may be a problem is that you are not sure of the outcome of your trading, you might end up losing the thread and that will result to a big problem for you because you will have to pay back the money you have borrowed and also pay interest on top of it.
So, it’s usually best to start up trading with your own personal money and not borrow from people. And when you are trading you trade with minimum amounts you can afford to risk so that when you lose it, it wouldn’t be a problem to you as well.
With that said I’ve also seen people who have borrowed money and invested in crypto currency trading and made a lot of profits to the extent that they paid back the money they borrowed and then continued with their profits that was made.
But, before you take a risks like this you have to be sure of the actions you about to take and also have a backup plan in case it doesn’t work.