Borrowing is a financial instrument of choice. Sometimes borrowing can make you particularly financially strong. Not long ago, a Bitcoin investor I knew borrowed $1k to buy Bitcoin. At that time, Bitcoin was going through a price decline. Although his reasoning was that he would hold Bitcoin for the long term. Moreover, he had engaged in Bitcoin accumulation DCA strategy. He tried to increase his holdings by buying additional Bitcoin. Later he paid off the loan from his alternative own sources but during the bearish period the additional Bitcoin buy increased the size of his portfolio. And he remains steadfast in his long term goals.
I gave this example to show that if you have a source of timely repayment, it would be great and smart to increase your Bitcoin holdings by borrowing during bearish periods.
Yes, you can invest with a loan in one way. For example, if the market has fallen, you have money to buy aggressively. But you have kept your money in the bank but your bank account has been locked for some reason. In such a situation, you can invest with a loan if you want. But you have to know exactly how many days you can repay the loan in between
Whatever the situation is, taking loans to invest in Biitcoin is very risky.....Bitcoin as we all know is a long-term asset, and also price fluctuation is a normal part of its cycle, now if you invest using borrowed money and the market movs against you, that investor will be left not just with losses, but also with the burden of repaying debt often with interest. Now let's use the bank scenario you talked about imagine you borrowed money from someone and promised to repay when the bank releases your funds the following week, but due to some reasons beyond their control, there was a delay (nothing is really certain with banks). If something like this happens honestly speaking as an investor you will be under a lot of pressure especially when the person you are owing begins asking for his/her money. And this pressure will definitely intoxicate you and push you into making a veryy costly decision.
That is why the safest and most sustainable way to build your Bitcoin portfolio without being pressured is to use your
Discretionary Income ( not borrowed funds) to invest little by little, month after month, than to borrow a large money and expose yourself to unnecessary risks, pressure and even maybe humiliation. Over time, those small and steady investments stacks up into something tangible and meaningful...