Quote from: bitgolden on December 25, 2021, 09:59:55 PM

Quote from: teosanru on December 25, 2021, 11:20:26 AM

Trust me, no matter how sweet this sounds but buying assets using borrowed money and investing them in the market as an individual is not only highly stressful but very risky too, As an individual people generally have just a limited number of income streams. Secondly markets are highly speculative, sometimes you will see them booming every coming month while sometimes you will see them touching new bottoms every month, this way it's hard to predict when is the right time to enter, so if you took a loan and entered into the market at wrong time, it's only god who can save you from all sorts of troubles you are going to face. This Rate of Return > Cost of debt theory looks good only in books and corporates, can't say it suits individuals.

It's always about limiting your finances to the payment you could make on debt no matter what happens to your investment. I always say that debt is there to create a wealth for you, what 10k worths today is not the same value next year, certainly not in 20 years. I have met with a lot of business owners who have debts that go as further as 25 years, that business will literally be paying debt they made today after 25 years, but that's great for them, why? Because the money they are paying right now may look a lot but after 25 years it will be tiny peanuts due to high inflation all over the world.

So, what you should do is get a debt that you know 100% you can pay with your salary or any other income you know you will pay, do not make your debt repayment dependent on crypto, if you know you get 1000 dollars as salary and spend 900 dollars a month, you know you save 100 dollars. You could always try to get 5k dollars debt, pay 100 bucks a month for 5 years and you got yourself a combined money, by the time 5 year ends your salary could even be bigger than 1000 and you would be paying very little.

There is a very tiny line of difference between gambling and business, Opening up a business by taking debt is entirely different than just taking debt and putting it into cryptos, it's not at all a wise choice to give everything in cryptos or let alone any market by taking up debt. This scenario is only true when the market itself is your business, if you are giving enough time studying each coin and its fundamentals or doing technical analysis and charting of every coin, such a thing cannot be done on the recommendation of others or just because you feel overall bullish about the market, moreover, no bank would give you a loan for putting money into crypto in the first place, non-institutionalized lenders are going to suck you up with interest and technically the returns would be very minimal in that case even if you are lucky to be correct.