Why You Should Not Borrow Money Or Take Loan For Crypto Trading

So many times out of desperation, we have been forced to do some things that at the end of the day, we will be living with the regret for the most of our lifes. One of the regret I think I made years back in my trading journey even as a female was I actually borrow to trade.

Yes I actually know that there are a whole lot of us who have actually been in that shoe whereby you took a loan or you actually borrow either from your friend or even from a loan app in order to trade. And I actually understand that feeling, it can be the feeling of FOMO, some it can be because you are pressured to do and to many people it might really be due to emotional dictations.

In anyway it actually comes, today I will discussing about some vital reason why you should not borrow or take a loan to engaged in crypto trading whatever it might be the reason. So stay tuned and read with me at the same time.

Reasons Why You Not Borrow For Crypto Trading

---

Image Source

I will be explaining some vital reasons which I strongly believe you should not engage in borrowing to actually trade crypto trading as it can really be so dangerous. I believe if you can see this reasons, it should be able to convince you not to take steps of borrowing to continue your trading journey.

• Volatility.

As we all know, the world of crypto trading is really volatile due to the volatility nature of cryptocurrency itself. There might be price swings which is often times unpredictable and if not well managed can lead to a huge loss from the side of the traders. In most cases, the traders will not even be able to recover from the money they borrowed at the end of the day.

• High Interest Rates.

As we all know, loans generally ranging from either the one collected from loan apps, the one collected from banks or even the ones from people comes with high interest rates. If probably the money you collected didn't yelled that profit or return you are anticipating, do you know that you will need to pay the loan with even additional interest which in some cases will be difficult for you to actually handle. In fact in some cases, it might affect your financial life.

• Debt Risk:

Image Source

Like they always say that in the crypto world that trade with only the money you can afford to lose, when it comes to borrowing to trade in a very unpredictable market like the crypto world, If the investment didn't turn out as you expect, it can actually lead to accumulations of debt for you and this might really affect your financial health and in fact affects your credit score.

• Stress and Pressure:

I have been in that shoe whereby I was trading with a Loan money and I can vividly tell you that it comes with this stress and pressure on your neck. Because you might be forced to generate profit quickly so that you can pay your loan and at the end of the day lead you to take wrong decision making and in turn leads to emotional stress.

Market Manipulation.

Image Source

As we all know that most of the time, the crypto market is prone to market manipulation. At the end of the day it will be difficult for you who actually borrow money to still be able to sustain your position in the market due to the manipulation thereby leading to loss of capital and even the money you borrowed and at the end of the day leads to accumulations of debt also.

I will like to stop here but I am so sure that with the few reasons I have stated here, you will be able to see that it is not wise for you to actually borrow money to trade. Always remember to trade with your own money and even with the money you can afford to lose.

10% beneficiary to @tron-fan-club

VOTE @bangla.witness as witness

OR

SET @rme as your proxy

---

Thank You

---

👇 About me 👇

Achievement 1