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.
Repaying $3.4k in just 8 months with a 2.8k loan means you will have to pay interest at 32% APR. This can be called a very high interest rate. You will never get a specific profit guarantee from crypto or Bitcoin at a specific time. If you want to take such a loan for trading purposes, then this will be the biggest stupidity for you. Because you will never be able to do anything good by trading. Unless you are an expert. And if you want to hold, then it will require a very long time where just 8 months is not enough. So I think you should never invest in Bitcoin or any other crypto coin with such a high interest rate loan.
-32% APR down the first second he took a loan is the worst deal ever, can't imagine myself getting such a bad deal, but since market has dipped so hard, it could work out, with prerequisites that OP can find the bottom for entry.
But otherwise it feels like a rip off, not even bank impose such high interests.
If he's doing future, well it's guaranteed he'd get liquidated, only top 1% survive this trench.
The other just become foods. 5x leverage means it can't compensate drawdown more than 20% drawdown, even less if the exchange he's trading on is shady and enforce liquidation far from the supposed liqudation point