Another scenario is not to take loans in order to buy Bitcoin. You have to return loans by selling Bitcoin and you never know the price of Bitcoin in immediate short term.
I have my reservation of people's attitude towards loans and its purpose in investments. There is what we call good debts, which is a debt you can get into in order to have an advantage and it is what you can pay back without much problems, the issue comes from when you have to depend on your bitcoin investment to pay the loans and this is never a good investment practice. In fact, it is a dangerous trading practice. Let me cite an example to drive home my point.
We are currently in a dip, an investor who regularly invests $200 weekly and wants to take advantage of this dip can take a loan of lets say $5,000 with an interest rate of 5% in order to buy more quantity of bitcoin at this reduced price. Now, this $5,000 is equivalent to 6 months and 1 week of his normal accumulation timeline if we go by 4weeks for a month calendar and possibly, he spreads the repayment to about a 9 month timeline. The totality of what he is to pay is $5250 and spreading it across his 9 months timeline would see him repaying approximately $146 monthly while he still has $54 to continue his DCA.
He has won on two sides, the fact that he bought more quantity at a reduced price and the fact that he keeps adding $54 to his portfolio even while repaying the debt with his supposed accumulation budget. He might hit more money and pay off the debt before the 9 months timeline and return to his normal accumulation amount which is $200 weekly or increase his aggressiveness if he is able to. He definitely would have more amount of bitcoin than someone who is just accumulating $200 weekly for the said period of time peradventure the price of bitcoin surges upwards.
Good debts have a good advantage and can be helpful as far as it is what we can afford to pay effortlessly.
But what's the rush for since your investment is for the long term, besides this wouldn't be the last dip in the market. Even if the price of bitcoin surges along the line it doesn't make any difference, because there will also be time when the investor will get the meet the market at a reduced state in the course of his investment journey. Your
accumulation and holding period is going to be more than 9 months, and corrections will always be there. It will be better to continue with your budgeted DCA amount slow and steady, instead of trying to fast forward things by taking loan. What happens tomorrow when you see another market correction that runs deeper than the previous one you borrowed money for? Will you still borrow another money or you think the last dip you saw will be the last market correction you will ever see in your accumulation journey?
There are reasons why experienced investors who has been through this road have always advised us not to borrow money to invest in bitcoin. They have seen it all and arrived to that conclusion that we shouldn't borrow money to invest. Or do you think you can be smarter than those who said don't borrow money to invest in bitcoin? Don't start off on the wrong foundation, because sooner or later it will come crashing down on you and you will regret it.