I've read a few horror stories about borrowed money and trading. I think borrow to trade is a deathtrap to most. People should trade forex and indices first for 3+ years and prove to themselves they can make money or at least breakeven in the world of manipulations and hard decisions. If they manage to do that, go for it. But borrowed and bigger amounts of money put unnecessary pressure on one's trading, which only thrives if one is in a "zen" environment.
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Trading on margin is even too risky for most people let alone pulling out bank loans or credit cards to trade.
You would think after the dot.com era, people would learn. There were many who got cooked going into debt to finance their trading activities.
There´ll be many more that get cooked on the crypto era. People don´t learn from others mistakes and some unfortunately not even from their own.
I was margin trading before as well but ended doing it with a big loss. Lesson learned!!!
I think that borrowed money especially leads to irrational decisions whenever you made a bad trade as you´re about to loose money you don´t even have. Risks are just multiplying that way.
There have been a lot of these stories lately. The thing is, there is an entire segment of the population that are gamblers who always jump on the hype-train and will risk everything for a shot at redemption. Many of these people lost before... many times, but have grown accustomed to the excitement & stress of "investing" with blind optimism (aka, gambling).
Fomo is the worst that can happen to you whenever you´re looking out to make more money!