Question of the Day. Should I Borrow Money to Buy Crypto Currencies?
You Would be Amazed What FOMO Does to Peoples Minds.
This question , "should I borrow money to buy Crypto Currencies?", always pops up when Bitcoin and Crypto Currency is in a bull market. The simple answer is you should only buy enough Crypto Currencies that you can afford.
In My Mind the Basic Psychological Reason for this is FOMO or (Fear of Missing Out).
Take a Deep Breath and Think About Your Actions.
How We Built Economic Freedom with Crypto Currency and Bitcoin on a Budget.
- Set it and forget it cloud mining with Bitclub.
- Earning bitcoin from our clients.
- Trading Altcoins on Bittrex.
- Earning Steem and SteemDollars on Steemit.
- Having Patience!
Borrowing Money to Speculate is Something I Would Not Recommend.
This is a highly speculative market and Bitcoin could drop back to $1800 or lower if BIP 148 is not successful. I am not spreading FUD. I am just realistic. I have seen Bitcoin and the Crypto Currency markets make huge corrections over the last four years. Why would this time be any different? Trust me a correction is always just one hack or misstep away.
Buy what you can afford. Don't go all in on something unless you are prepared for the consequences if things go sour. Safe trading and have an amazing weekend.
It is usually not wise to borrow money, but in this case I can say crypto is still in its earlier phases. It is hard to investment in a crypto and permanently lose in the long run. I know someone indirectly who took a study loan to purchase bitcoins at $3 in around 2011. I rest my case.
I have done it and it was probably the best decision in my life so far! However, you should only do it if you understand DEBT! It is a two edged sword!
I have done it as well. Was scary when I did it but with great risk can come great return. I happen to throw the full loan into Ether sub $100 price, so everything ended good for me. Now I debate with myself every day should I sell some and pay off the loan or let it ride. I can handle the monthly loan payments so I have been letting it ride. as others have said, I also love crypto's!
I'm riding it as well and the BANK can wait! :)
Why in a bull market though ? I'd buy after bears looked exhausted and wicks started forming on larger time frame charts. Just my opinion.
I'm hoping to learn how to read the charts to know when to buy or sell.Can you help me out?
Touche'! I'm actually looking forward for BTC to at least hit 1750 and then probably bounce off again! :]
Yes: avoid the "Single Point of Failure." It's why IT systems have backups and redundancy. It's why veteran bloggers and social media types don't go all in on any one platform.
I for one am planning for two scenarios: Bitcoin goes to $25, and Bitcoin goes to $25,000. Neither is out of the realm, and both could conceivably happen.
Well stated. Both scenarios are totally possible, and not that far fetched. Perhaps only the two sigma point of variability
STEEM On !!
Dave
Indisputably yes we can borrow some fiat money today and pay it in some months and i'm sure you can paid the borrow and earn enough to buy a car
Taking on debts to make possible profits is very risky. This is already gambling. It's adding a much greater level of risk to do it with debt.
It sounds like an easy way for someone to break their own knee. They won't need the mobster to do the job.
If and only if you can afford it.
Surely but with just 500 USD invested in a solid coin you can make at least 300%
Yeah I wouldn't borrow to speculate on an investment, MAYBE on bitcoin I could see some rational, but the thought of losing on a trade or something failing outisde of bitcoin would be devastating. You would lose twice! However, I'm for working a regular job and putting away some money in crypto every paycheck, you can minimize risks that way and still get gains over time. Everyone wants to get rich quick, but it doesn't work that way so just got to have some patience!
However, we all know the right answer intuitively, but I feel many people would actually take a loan out to invest when it comes down to it despite intuition. If I was back in college again, I would def spend a portion of my student loans or grant money to invest in btc had I known earlier....I'd be able to pay ALL my student debts.
Leverage can be very dangerous to your financial health. It could also increase your profits substantially. Personally I would not take on debt to buy crypto. Instead, I earn it and reinvest.
Yep, max out credit cars and get a loan, overdraft and re-mortgage your house. Post the results in a few months on Steemit so i can have a good laugh at your expense. No, never borrow to invest. Have you seen the video of that biker guy sold all his belongings for litecoin including his house 2 weeks before it pumped. He must be a multimillionare now if he sold them all.
I plan on getting in slowly, however I feel that it is the right time right now on multiple cryptos.
This is a BIG NO NO!
I was in this space when BTC was $25 and I saw the price skyrocketing.
So I started to spend all my cash on BTC and my credit cards with low interest were used for my daily living expenses. It was great for awhile I was able to accumulate over 500 BTC.
I got greedy and thought I was so smart. I didnt want my coins to just sit on the sidelines I wanted to grow them so I started to invest in mining and other ventures.
Long story short I lost over 500 BTC from hacks and then the price dropped substantially. Mining was no longer economically feasible the coins I had left were not keeping up with my interest rates. I had to sell hardware at a lost and sell the majority of my precious coins to pay off debt.
Luckily, I was able to hold onto a measly $2000 worth of different coins. I did not give up and stayed in the game. With the most recent run-up Im now at a break even for all of the $USD I initially invested.
To reiterate do not borrow. It's too stressful.
Good luck all!
Resteeming
Wow, one more story that makes me cringe. I hope you make it back to the 500 BTC.
I seriously doubt I will ever get 500 BTC back unless there is a HUGE correction. Right now I just be happy with getting back some of the USD.
Thanks!
@Hilarski I know what you mean.. :D It's a crazy story hey
That is the craziest story I have heard in a long time @SneakGeekz.. I'm sorry you had to go through that :O Seriously hectic! But well done for having balls, and keeping on husteling!!
You know that old adage ,"Failure is not an option" its one of my mantra's.
I can be charged with over paying for a life lesson but I can never be accused of not learning from it.
My whole life is filled with very valuable lessons that came at a very high price.
The cool thing is that life never gives you more than you can handle as long as your karma is balanced.
and who doesn't love a come back story.
Please give me 6 minutes of your time and watch these incredibly motivational videos.
Beast mode bro beans. Honestly respect you more now. I mean, from talking on Insta, I learnt quite a lot from you, but nothing is ever as powerful as the RARA (success story)! You sound like my kind of personality. Glad we were able to connect 💪🏻🙌🏻
Thank you for your kind words. Its always appreciated.