Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
Fuso.hp
on 23/05/2025, 15:32:33 UTC
Lack of sources of income is what is causing some new investors to borrow money or take out a loan to begin investing, if you have a reliable source of income, as a new investors you will be able to save for emergency funds without having to plan for it before investing. It can also help them to prepare for DCA strategy.
You can sell a dormant property to invest in Bitcoin especially when you have somewhere you can stay or the proceed from the sales can afford you a decent rent in which your future cashflow can cover, while you put the surplus into Bitcoin. But what I can never support is taking a loan to invest in Bitcoin because that will mean investing with money that is not yours and this will put you into pressures to even sell your Bitcoin at a loss when the loan maturity reaches and you have not realized good profits. The ideal thing is to always invest with our discretionary income which loans does not fall into, hence my reservation to taking loan to invest in Bitcoin. Assuming you take out a loan of say 4 years and buy Bitcoin. The loan plus the interest is something big that you don't have the guarantee that the Bitcoin will give enough profits within that 4 years to pay back the loan with the interest and still remain what you will hold as Bitcoin in your wallet.
I think this issue will be more risky because I have always heard from many big investors that one should not borrow money from others to invest or invest outside of one's own interests. Now selling land and investing in Bitcoin may fall into the same category. It is certain that if you keep the land, the price of that land will increase gradually, but if you invest in Bitcoin, especially if you sell land, there is no guarantee that the investor will get a good return on that investment. I think that instead of selling land and investing in Bitcoin, the investor should invest some amount of money continuously depending on his income, so that on the one hand, his land will remain, but he will have a continuous investment. I gave such an opinion from my side, but my opinion may not agree with many, but if I were in my place, I would definitely not sell my land and invest in Bitcoin, but would do something alternative to invest.