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.
Securing a loan for trading is first of all a very bad investment. From my personal experience, 2020 when I was introduce to trading, after seeing all the opportunity in trading after 3 months of learning I loaned money from my elder brother and promise to pay back is 3 months time. I loss all the money. And I was not able to pay back. I have to look for another means to pay back the money. Considering the emotional and psychological aspects of trading it is not advisable to take a loan for trading.
from experience, borrowing money to trade puts you under pressure that is enough to push you into losses. regardless of how certain you feel the trade can go, if the amount you are using is not something you can afford to lose, it is not advisable to make that kind of gamble on it. if getting profit from trades was easily like that, people would have been cashing out really big from trading. getting a loan for trading is just like taking a lone to gamble, the risk out pass the potential gain.
Yes taking loan to start trade it seems you borrowing money for betting, because you know trading is not something like that profit guarantee is 100%,
so I don't know why peoples are getting loan for trade, because they are greedy, they want to make their money 2x-5x at overnight.
When getting a loan or borrowing up some money then it will really be that something worth or considerable at the time or moment that you do make use of this on an investment or business but on trading or gambling? that would really be a very bad decision to take, not unless if you are really that willing to repay up those loans then there would really be no issues but at the time or moment that you cant be able to repay it up or having no plans then that will really be imposing up such huge problem. This is why its really that important that you do really know at least on what are the consequences on what your actions be making. So on the question whether you do take a loan or not will really be at your own discretion.
It is really just that too impossible that you cant be able to see up for yourself whether its worth to take up a loan or not, or you can be able to repay it on time or not. You are the ones who do make out such decisions and not other people. Your situation will be basing up into those decisions you do make and if it turned out that it will be that beneficial for you, then why not?