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?
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.
You have actually said it all, taking a loan with the intention of investing it into the crypto space whether it is Bitcoin or not is a stupid risk you should avoid by all means because the if things does not go as planned, you are going to be in a very tight Conner you never bargain for, or can he pay off the debt regardless of if it works or not?
If he can't pay it off on his own then it's not the right move to me, I have not even talk about the interest rate that is quite worrisome, in my own opinion this is a risk that is not worth taking because it's not his money, you invest or risk your money with money you can afford to do away with, so since it's a borrowed money, I am very sure that it's a money he can't do away with, so on that note it's best he retrace his steps and wait till he have money or he should leave it completely.