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.
Getting a loan to invest in cryptocurrency is a very wrong move especially because of its volatile nature and just as the first user commented on Your post asking if you can really pay off your loan if your plans don’t go as expected or you’ll be tied down?
Loans aren’t a great idea and I’m saying this from a personal experience and most times I wish I’m not in debts and I’m telling you that, getting a loan to invest in bitcoin with hopes of making massive profits even enough to pay off the interest and the actual loan is insane and you shouldn’t even give it a shot of you want to stay free from debts.
I wouldn't rule it completely as a terrible idea, it all depends on the terms and conditions of the loan, because he needs to first forget about paying back the loan from his Bitcoin investment, the loan can be payed back from another source, once his paycheck arrives, but if the interest rate is low and it will be payed back in an installment manner, it's not a terrible idea in my own opinion because he can get a huge chunk of Bitcoin at once with the money borrowed, but if his intentions is to trade with the money borrowed, that is what am going to kick against because for you to be able to control your emotions you must trade with an amount you can afford to lose, and I am sure that he can't afford to lose the borrowed money on trading, so taking a loan to trade is a terrible idea in my own opinion unlike investment in Bitcoin that the risk is very minimal.