Taking a loan to invest


Hello everybody!

In the past weeks I have been researching about cryptocurrencies over and over again. I know about them for a while now but I have not paid too much interest in it up until now (big mistake). I have gathered a lot of information about loads of altcoins during these weeks of research and I have been going mad over it due to the FOMO. Basically, I want to take a loan of 5-6,000$ on a 5 year period (I make 650$ a month) and invest it in BTC, ETH (for safety), NAV, UBQ and (not 100% sure about this one yet) OMG. I am not going to trade on these (although I believe that I could make some gains, it would be too much time invested and it would be very stressful) but instead I want to HODL for some years. I am aware that ‘you should invest only what you can afford to lose’ but this is my point of view: worst case scenario - I lose everything and I am stuck with a monthly payment of ~100$ for whatever is left from the 5 years after I lose everything, I learn Dutch and go to Netherlands (I currently live in Romania) to live a comfortable life…best case: I earn a couple tens of thousands of dollars and invest them further to make more money (in my opinion it is very easy to make money if you already have some money).
I know this is a long read, sorry for that but I have already driven my friends mad over this - they all told me the same thing: just fucking do it and stop talking about it so much already. This is exactly what goes on in my mind, if I don’t do it I will be stuck with these thoughts (+ FOMO) and it will eventually drive me insane (literally). If I do it and lose everything I would be crushed but that’s not something I cannot live with, there’s always something to look forward to.

Thanks for your time and good luck with your investments :slight_smile:

Borrowing To Buy Bitcoin?
Lending money to invest in Bitcoin

It’s always interesting at these points in life. The questions I always ask are:

  • What can I get rid of in my life now?
  • How can I get rid of extra waste?
  • What do I NOT need?

If you start cutting out things from your life, like, coffee, or soda, or extra chips and snacks… get rid of cable bill,

You can afford to invest in small increments without taking a loan. Worth thinking about?


Not from my view man…I mean, I make 650$ a month and I’m only 20 so I still live with my mother, the monthly expenses are ~150$ and I use about 200$ a month to enjoy my life…I’ve done some calculations and I can afford to ‘throw’ 250$ a month into this investment BUT with a 10 coin portfolio that would be a mere 25$ / coin, which to my eyes is nothing. I know, you should not be looking for huge quick gains - but I still want to get the best out of it if I’m doing it. And even if I choose the slow path - implying that I will lose my entire investment, it would hurt me more to save up this money and put it slowly into this, get to a 5k portfolio and lose everything, rather than have that 5k portfolio from the beginning and slowly expanding it, then losing it all (I could even pay off the loan if I double my investment so I live care-free, instead of going towards a loss).


I get it man.
However, let me tell you this:

  • You WILL make mistakes in trading. 100% guaranteed.

  • It’s part of learning this market

  • So, learn making small mistakes, learn how to get in and out of the market safely, learn the trends, the patterns.

Learning with “borrowed” money is no good in my book.

I’d much rather see you with a healthy $500 portfolio than a $5000 portfolio cost that’s only valued at $2700 because of bad mistakes.


I don’t want to start trading but instead just to HODL (I am very disciplined when it’s the case) those 6 mentioned coins for a long time…I know nothing is certain with the crypto market but even Bitcoin has the potential to go x10 times in 3-4-5 years which would lead to me being profitable (with a small amount but still)


Could be!
Let us know what you’ll do. Keep us UPDATED on your progress here in the PUB!
Good luck!


I already invested 1000 dollar in it.


I would only consider this approach if you’re 1000000% sure, seems to me you’ve done your research and you know the pros and cons of the loan. Just make sure you can cover the monthly repayments and you’ll be fine. Like they say - YOLO (you only live once), this could spectacular pay off which in my mind I think it will because we are only at the beginning of this Crypto journey. Like Peter says, keep everyone posted of your decision, will be interested in your progress.


Ive considered doing this but after watching the Bitesize Bitcoin video on dollar cost averaging i decided that seemed the best risk vs reward balance for me


I would highly recommend that you DON’T use credit/borrowed money to buy crypto, not only because the market is questionable and that you may lose some money, but also because even if you do gain money, you will owe the bank a lot of what you’ve earned.

lets say you take out $5,000 credit at 18%APR
you put all of that money into bitcoin today at $3,500/coin

Now you have about 1.4 bitcoin

And lets say in 5 years bitcoin is worth $10,000 per coin

Your initial investment of 1.4 BTC is now worth $14,000 BUT you have to pay back your initial loan of $5,000 and now you owe $4,500 in interest. So now you owe the bank $9,500 and you walk away with $4500, when you could have made $6,000 by just putting $100 into a savings account every month for 5 years.

I know you’re talking about investing in alt coins, but keep in mind there is a much greater risk involved with those. You could end up losing that money and then also having to pay back the interest. Not a great idea in my opinion, but maybe there is an angle that you see into this that I don’t. Just make sure that whatever you do is not based on an emotionally charged decision and actually has some calculated thought behind it.


In Romania people don’t have that much money, it’s actually pretty reasonable (5k for 5 years = 105$ / month to a total of 6.200$~) - I wouldn’t give 5k for 1.2k in 5 years to be honest :joy:
It’s not an impulse, I have done my research and I think that the loss is nothing compared to the potential winnings


What’s up bro!! If you think it’s a good idea go right ahead. Sometimes we have to take a step back to go two forward, but it seems counter-intuitive to go in debt in order to make money, especially in something with such a volatile essence. But if you have a plan, which it seems you do and you get that things might not go your way and you’re okay with the consequences that implies, then fuck it, stick to your guns. :smiley:


@AeN Donald Trump has used debt to make money his entire life. He famously started out with a loan from his Dad - probably not at 18% interest but a loan all the same. He’s been financed by banks all across the world (not fake news!). Now, not all of us are Donald Trump, nor do we want to be. But I wouldn’t let people dissuade you from taking out a loan now. You’re 20: the stakes are low. It’s not like you’re a 40 year old guy with a family to take care of. That said, a lot could happen in 5 years, so maybe this particular loan isn’t the most ideal. Are there any family members who might be interested? Maybe you could actually start putting in that 100 bucks a month for a few months, do the math on the returns and show a family member that you know what you’re doing. 10% interest to a family member is a lot better than 18% [compound] interest to a bank.


I’ve done this myself. But don’t think it’s a good plan in general terms


If I screw it up I can live with it, I will probably have smaller goals for the rest of my life or I will move to Netherlands and live a care free life…or Trump will start a 3rd world war and we all die. The loss compared to the potential profits is well worth taking the shot for me. I would’ve had about 10k profits if I did it the first time I thought about it, I cannot live thinking ‘if I did that’ every day for the rest of my life, however I can punish myself for a mistake by paying the loan off in 2 years


i’ll do a video on this. i get this question a lot


If you’re in the US, also consider the fact that you’ll have to pay taxes when you cash out back to fiat to pay your loan. You’re better off taking the loan and bet on craps at the casino in my opinion.



I’d strongly suggest against investing with money you are getting on Loan/Credit. Investing already has risks, and now you are doubling down on that by running up debt to take those risks.

Lets say you have a credit card with a 12.99% APR. which is middle of the road for above average credit. Now lets say you want to invest $1000. Your basically paying the credit card company back $100 on that in 12 months… and thats only if you make the montly payment of $90. if not, your talking about compounded interest…

So if your investment flops, not only did you lose money, but you also are now paying compounded interest on your debts.

and even if you DONT lose money… you still need your investment to out perform the interest rate you are paying on your loan…

Like lets say you invest in a coin and make 10% on it! thats a great investment! but you’d lost money becuse your paying 12% in interest.

Not a great idea man. you can really get yourself in a whole. your better off trying to find maybe a weekend job where you can pull in $100-$200 a month and build some extra capital that way.


There are always going to be those “Man im kicking myself for not getting in earler/selling out earlier/taking bigger positions earlier” moments. thats just investing. Its great to have big goals but what is more important is being disciplined and sticking to your plan.

Debt can be a real tough thing to dig out of.

I know alot of people who looked at investing as a lottery ticket and got in some pretty big holes.

Remeber when you invest your are buying a stake in these companies. your basically a venture capatialist. find something you believe in, find the capital, and get in. dont sweat the 10K. with smart discipline and investing you can have enough money down the road where you just laugh that one off.


I did this just before August 1st and I’ve already doubled my money. I took a 3year loan with 8% interests. So this was great. Now I have the problem that I don’t want to repay the loan but keep the money in crypto and returning just the monthly payments. Hope that first good decision won’t be nullyfied by this one…