Taking loan to buy Ethereum need advice and thoughts if i should do it now or after August 1st !!!
So I'm basically taking a loan from the bank to invest in ethereum i'v been thinking about it for more than a month now and i missed the 135 drop :( and now i'm actually waiting for the loan money to be deposited so that i can deposit it and buy ethers from kraken i just really need your advise guys if i should do it now at 200+ or wait for after august 1st cuz this is a really big deal for me i never took loan in my life and it will be a big responsibility since i have other obligations and i just want to know your thoughts about the right time to do it ! Thanks
If you’re considering using debt or loans to invest in cryptocurrency or shares, you first need to ask yourself whether leverage and accompanying risk is for you. Debt allows you to buy things you can’t afford. It has two benefits. First, you can take advantage of opportunities in the market, that you otherwise would miss out on. When an opportunity like new crypto coins comes along you can jump on that train right away! You could use some of the profits to pay off the loan quickly.
BUT: Borrowing to invest is not for the faint hearted. The more you borrow, the greater the risk becomes as you have to repay the loan regardless of the performance of the investment. Besides having to repay the initial loan, you also need to pay off the interest incurred on top of that loan!
You need to understand and have a plan to deal with each risk. If you are not entirely comfortable with these risks, borrowing to invest may not be right for you.
Borrowing to invest is a high risk investment strategy for experienced investors only. If you are looking to use this strategy ask yourself these questions:
Do your homework before taking out that loan...
Hope this helps.
Thank you i really appreciate your opinion i do have a daily job and you are right about losing sleep part also im already thinking all day about this any way i will try to plan every thing before i do it i already applied for the loan :( any way thanks again man
If you plan on taking a loan to invest in any currency to trade you should consider it from the point of view that you will lose everything you invest. Ask yourself if you can handle the rates of the loan you use to invest and what your goals are for that investment. If you feel confident that you can pay the interest and clear the loan even if you dont get any money from your investment and the investment wont hurt you in the future (car breaks etc you need money you then dont have) then get yourself clear goals (time or price) and you should be informed enough to make a decision. By the way no sane person with finance background would say this is a good idea. If you dont have the money to invest you already got money problems to solve no need to add the the pile.
i agree with you and appreciate your opinion but i figured im not going any where with my accounting job and all great things have risk and i think it'll be hard but i'll slow down and plan again to minimize that risk as much as possible, thanks man
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STOPDon't take a loan for it! Mow lawns, walk dogs, etc. Take that cash and invest it. I would suggest stock market over crypto as it is just a little less crazy, a little... Either way, if you want to invest in crypto like that, check the values and the changes, find the ones that are same algo as Ethereum and invest in those. That's what i'm doing. I am mining DBIX (Dubaicoin) because it is the same algo and will spike once Ether changes.
Who am I?
BORIS!