Pros And Cons Of Taking Out Personal Loans To Buy Crypto
Posted: Wed Dec 23, 2020 2:12 pm
Hello in new in here.. but i want to share a thought that i liked it.
Major cryptocurrencies have been making headlines for most of 2020 as their values continue to soar and investors make millions. Because of this windfall, more people are considering investing in crypto in the hope that they will also rake in some of those profits. Although you might have the skill and know-how to make money trading in altcoins, you may not have the necessary capital to start your venture. With good credit or favor from friends or family, you can get a loan to start your venture. The question however remains, how good an idea is it to get a personal loan to buy crypto?
Taking on loans to invest
Taking on debt is a big decision and should never be done lightly without considering all the possible ramifications. Some industry big shots have been saying how they took out personal loans to purchase Bitcoin. This later made them millions but don’t say as much when they lose most of the money. For instance, in What Bitcoin Did podcaster Peter McCormack said that he turned $32,000 into $1.2M which later prompted him to take out a personal loan of $46,250 to buy 2.55 Bitcoin in the hopes that they will continue going up in value. This loan according to him will be paid in six years in the tune of more than $57,000 but should Bitcoin hit $22,669.35 he should make break-even.
Advantages
Disadvantages
Read more in: https://crypto.co/technology/pros-and-c ... uy-crypto/
Major cryptocurrencies have been making headlines for most of 2020 as their values continue to soar and investors make millions. Because of this windfall, more people are considering investing in crypto in the hope that they will also rake in some of those profits. Although you might have the skill and know-how to make money trading in altcoins, you may not have the necessary capital to start your venture. With good credit or favor from friends or family, you can get a loan to start your venture. The question however remains, how good an idea is it to get a personal loan to buy crypto?
Taking on loans to invest
Taking on debt is a big decision and should never be done lightly without considering all the possible ramifications. Some industry big shots have been saying how they took out personal loans to purchase Bitcoin. This later made them millions but don’t say as much when they lose most of the money. For instance, in What Bitcoin Did podcaster Peter McCormack said that he turned $32,000 into $1.2M which later prompted him to take out a personal loan of $46,250 to buy 2.55 Bitcoin in the hopes that they will continue going up in value. This loan according to him will be paid in six years in the tune of more than $57,000 but should Bitcoin hit $22,669.35 he should make break-even.
Advantages
- Liquidity
- New opportunities
- Low inflation risk
Disadvantages
- Volatility
- Regulation
Read more in: https://crypto.co/technology/pros-and-c ... uy-crypto/