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.
This post received a 3.6% upvote from @randowhale thanks to @ericwoelk! For more information, click here!
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!!
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 💪🏻🙌🏻
And brilliant videos. I have seen them both at least 5 times each :D Love this shit man!
And brilliant videos. I have seen them both at least 5 times each :D Love this shit man!
And brilliant videos. I have seen them both at least 5 times each :D Love this shit man!
Thank you for your kind words. Its always appreciated.
Absolutely not. Get out of debt. Be patient. Invest only what you can afford to lose. And do your Due Diligence.
I think early on it would be a good idea but with the market being a bit shaky it is probably not the best to risk borrowing money from someone.
Thank you for your tips and suggestions Randy!
Your all posts are obviously awesome... Waiting for your next post..
I don't know, whenever I use borrowed money to invest, it always seems to go in the wrong direction. Thanks
I've got a strict policy against borrowing money for investments and for me cryptocurrencies are an investment. That is just how I personally feel about it and may not reflect other people's views on the subject.
Patience is all we need!!!
I agree on your advice.
I've made that attempt in the past and don't work very well. If I had found this article before I would have avoided a good loss :(
no
I tottaly agree on your advice here. I wish i could read this last year but a guess i learned from my mistakes.
There's a distinction that probably should be made too though. Is the debt being taken only because you have other less liquid assets that could be liquidated to pay the debt if things go wrong? If you do, that's not as bad.
If that's not your situation, you're playing with fire.
I can't believe how many people do it. Most would never admit it.
I agree with you and often tell that to my friends who use crypto. You shouldn't rush to start trading and borrow money. Have patience and do your own research before investing.
These rules are simple but unfortunately most of people stumble upon them.
When money clouds our judgement we get into trouble.
Exactly. Invest what you can afford to lose, don't rush, don't borrow if you're not ready for consequences.
Thanks for your hard work. Helps a lot to keep stable pace and it's never bad to refresh basics.
looking at the trend would not suggest you to borrow and buy
Definitely not a good idea. Investing more than you can afford not only puts you at risk, it definitely makes you prone to making stupid mistakes and being impatient, which is how you lose money. In theory it wouldn't be such a bad idea, but if you account for human psychology, then it is literally the worst idea ever.
what is FUD? been seeing those words being thrown around in twitter too.
Fear Uncertainty and Doubt
OH! that makes sense.
No.
Do not risk money you cannot afford to lose.
nice post
It all depends on your intention and what crypto you want to buy.
most crypto's are high in volatility but still yet profitable but main aspect with crypo's is timing at the right moment.
You always hear people saying that if you invest in Steemit and in bitshares you will be rich in a year or two. I have a bit of money in mutual funds. It isn't much but I thought it might be a good idea to pull out a thousand and put it in bitsshares. My advisor was strongly against it and hearing his reasoning it makes perfect sense. This Market has been doing great but it all actually is quite speculative.
I would not recommend that, first rule:
Just spend money you can afford and don't miss!
Yes, only spend what you can afford.
Tottaly agree. Great post . I you borrow you become a slave of whom you borrow from . Use what you can afford at the moment . Resteemed !
Let's ask the people who were margin trading ETH on GDAX during the flash crash what they think about borrowing money to speculate...
The answer if YES of course....but only from a Central Bank!!! and get as much as you can, couple billions, they print it out of thin air anyways so they'll just print some more :) Good stuff Randy. Full upvote
Yes, Im trying to get rid of my debt, focus on getting debt free first while you are accumulating wealth at the same time.
Never trade for more than you can afford to lose.
If you are in debt, you are nothing but a slave...
I have borrowed money off the old credit card to buy cryptocurrency that I turn used to buy weed off the darknet if that's what you mean.
Totally agree with you.
Personally I'd never go all-in. Investing in something with a bit of a risk (which Crypto definitively is!) you have to realize that you could lose everything you put in at any time. Therefore I'm only ever putting in what I can afford to lose. If I make a profit it's nice.
If I lose everything I'll just not be able to afford something nice I could've bought instead... but there won't be any vital harm!
Too bad there's no FOMO when it comes to paying your bills, or lending a helping hand to your neighbor, or donating excess food to the homeless. I do feel Steemit has the potential to help in these areas and patience is the key to abundance.
NO.
When the crypto currency starts to rise sharply, I want to borrow money for its purchase. But I do not dare to do it yet.
I am totally in favour of your opinion that we should never borrow money to trade crypto currencies. Now we have steemit and we can get free steem with little efforts and trade it with other coins on bittrex.
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Not to make anyone feel like they are missing out, but steemit is going nowhere but up. great post @hilarski
You can throw every example of people who borrowed money to invest in something with success at my and my answer will always be NO. For every 1 story there is of success there are 9 of failure.
I will continue to slowly build into my crypto with proceeds.
But, then again maybe that is why I am the @ScaredyCatGuide :-)
@hilarski Answer is NO
I want to explain bit more.
"Only put that money in Trading for that you ready to lose 100%" if you do without this you might face problem in your life.
Good points. This is usually a straightforward question to answer, but emotions get into the mix.
Can you afford to have the value of the asset you borrowed to buy go to $0, and is the risk of that happening (in your estimation) lower than the potential reward?
Usually, the answer is no.
Those are the right questions and the right way to think about it
STEEM On !!
Dave
I think newer and newer better implemented cryptos will start entering the market sooner or later and people will switch sides untill an ultimate crypto is created.
They be like "Let put it on a credit card"... I'll be rich 😂😂😂
Only invest what you are willing to lose .
I'm too much of a scaredy-pants for that. I am turning all of my SBD in Steem Power. (What I am curious, is that I do have a little STEEM token, should I transfer it to SP or leave it where it is? Thanks.
Send it to Bittrex and get more for your SBD. Send it back to Steem and put it into Steem Power if you are going to do that. I have no idea where the price of Steem is going.
Awww, so the internal market (blocktraders) does not sell at the same rate as Bittrex? I have been sending it all to blockaders to convert. I guess i don't understand this part very well. Maybe you tell me here, or make a blog. This is the confusing part, once you start to accumulate SBD and SP. Maybe you look at my wallet?
I did make a Bittrex account. I just have never used it.
Thanks for holding my hand. When I see you I am going to give you some quality chocolate of mine.
Great advise!!
Some people have a STD (Scared To Death)!! LOL
The key is get in where you fit in.
Blessings to you!!!
The thing is, It could drop to $1800 and take some considerable time to recover- but it will almost surely eventually recover and increase. If it shoots to $5k, and the same slump happens, it would still be highly likely to recover and continue climbing. If after the FULL costs of borrowing are factored into a RATIONAL earnings projection it looks like an acceptable return, why not try it?
Almost surely eventually recover. Why? It could go to $0.
Sure- ANYTHING can happen- but it HASN'T gone to 0 in the worst instance, and every crash has recovered. I certainly agree there'd be lots of panic in a slump, but there's almost always BIG buyers when it bottoms out, that's almost always what actually triggers the recovery.
Another thing to think about- if the entire crypto market collapsed, don't you think there'd be FAR bigger and more widespread problems?
Hey @hilarksi, it's Bitclub worth investing in it?
Thanks for the posts, very informative as always!
We love Bitclub and have over 12 mining pools. I am happy to show anyone my back office if they have questions. I don't actively sign people up but we have done very well.
@hilarski thanks for the answer, is just that I saw listed on the badlist of badbitcoin.org but I'm not sure how accurate that list might be. Will look into this as another option of investment!
Greetings from Colombia!