What I see about bitcoin is its gonna bounce between 100-110k to 80-90k for a long time (at least until Trump takes over). I have an option to take a 2.8k $ loan from a bank and pay 3.4k $ in 8 months. (I'm gonna start paying it after 2 months so you may assume its 6 months). Should I get that loan and make 3x - 5x margin trades on Bitcoin with this strategy? I really appreciate your help. Take Care.
First things first, I’d like to ask: can you pay off the loan if your investment doesn’t go as expected?
I don't see him being capable of paying off the loan within the stipulated timeframe given by the bank in the event of his plans going south. Here's why I think so. If there was a way he can use to make up for the loan in the time given he wouldn't have need for the loan in the first place but would have used that means in securing the money to use in buying bitcoin than going for where he would incur some interest.
Assuming the answer is yes, then go ahead and take the loan.. thing is, even if Bitcoin doesn’t pump within the timeframe you’re expecting, it will likely increase over time since all these positive news factors can drive its price higher. however, keep in mind that there are no guarantees, so you’ll need to accept the risk and trust your instincts.
Well, if my guess is wrong and he can pay off the loan even without his investment plan working out on time then cool. But provided he may likely not be able then he should also consider the extra interests that may start pilling up addition to initial interest when the timeframe for the loan payment elapses without him paying. The uncertainty about the market is what makes the community discourages loan for bitcoin investment.
Trading with cryptocurrency is not something you should have phobia on,if you don’t have funds to invest in, it is better to stay away from trading rather than borrowing money to trade.what if the trading does not go towards your direction and is someone money how will you do at that point.I’m not in support with the idea when you will be borrow money to trade,what if you lose how will you feel.To be at the safer side don’t borrow rather trade with your money that if you lose it will no affect you that much.When trading with cryptocurrency you should bear it at the back of your mind that market might likely go against your wish,so on that note you will be careful with the way you go about your trading because crypto space is unpredictable.