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.
If you do not have enough capital, you should temporarily step away from trading or gambling and wait until you have the capital to manage. You should never borrow money from anyone or borrow money from a bank at high interest rates to invest or trade.
However, one suggestion is that if you can repay the loan or borrowed money on time, then you can take a loan if you wish, but if you cannot repay the loan on time, then you should definitely refrain from taking a loan.
Trading is not guarantee unlike a good business plan that can last up to 1 month before earning still business is preferable meaning if taking a loan to start up a business that’s well structure paying back should not be stressful while trade is different, trade and gambling have similarity and we’ve all read stories that touches the heart after taking a loan to gamble or trade obviously we might never know the outcome so in this situation having the money to pay back isn’t easy especially when a person is not working just trade. Taking a loan still requires something valuable in exchange, I guess not all Lender request for a collateral which is understandable but paying back is a must, what if the money is not available at the moment reasons why requesting a loan is not advisable.