Post
Topic
Board Speculation
Re: Buy Buy Buy or Sell Sell Sell?
by
AirtelBuzz
on 22/06/2024, 04:58:59 UTC
[edited out]
If you are thinking of borrowing to invest then you should look further into yourself whether you can afford to do so or not.
Borrowing for investment may be a good idea, but you should have alternative repayment arrangements that can be repaid within a short period of time. If you are thinking of repaying the loan through investment profits, it is better not to because you cannot predict the market conditions. But if your buying luck is good or if you get dips then the profit potential is high with repayment of your loan.

One can question how rational it can be to invest with debt. But I can say from my personal opinion, investing with debt cannot be reasonable at all. Why would you invest with debt if you can pay off the debt in a short period of time after investing with debt? You can invest in self-financing a little later, when you have the money. Borrowing has some risky aspects. For example: after taking a loan, there is doubt about whether you can pay it back within a certain period of time, you may feel stress after taking a loan, you may have to repay the borrowed money before the time if the borrower is facing danger. When you invest with debt, you cannot create any kind of funds. Because, if you have the money to build the fund, you don't have to worry about borrowing money from anyone. What would you do if you were in danger? On the one hand, the thought of paying the debt, on the other hand, the thought of freeing oneself from danger. In such a situation you can think of withdrawing money from your investment. You may have suffered a loss then. Hence, the idea of ​​investing with debt can become self-inflicted.
Investing with loans is not a bad idea, but if the person taking the loan is aware, then the loan will not have any negative effects. Some people have enriched their investments with loans and today they are reaping the benefits of the investment. If a good investment plan is not taken with the loan, then the loan becomes a burden. I wouldn't say investing in Bitcoin with debt is bad because investing in Bitcoin with long-term debt has the potential for a good return. But of course the borrower needs to be able to repay the loan at regular rates so that they can invest in Bitcoin with no stress loan facility. Buying and holding Bitcoin in a bearish position can create an opportunity to make that money even in a short period of time. But to avoid the risk an investor needs to invest with a long term investment plan.
Investing with debt is not a bad idea but when you invest with debt you have to remember that you can lose money from your investment because it is risky.

So maybe many people will say to avoid investing with debt because if you invest with debt and even lose money from that investment then you will never be able to repay that debt. I would like to say that rather than investing with debt, invest as much as you can afford. If you have little money then start with little money and try to increase it gradually so that you don't get burdened with debt.

@Rabata, if you suggest investing with debt you should remember that we invest in Bitcoin for the long term. Will the lender wait long to get his loan back? never.