Why do people obtain loans?
People take up loans for different reasons. Some people get loans to start up a business expecting that they would make gains from it rather than losses and they would be able to pay back the loan at the appropriate time in other to avoid permanently loosing their collaterals. Some other people sort for loans because they are suffering backdrops in their businesses and they believe that the loan would give them the necessary push to get back right on track. For others, it might necessarily not be about business. It might be that, they need the money to pay hospital bill or any other bill. Some even take up loans for miscellaneous purposes like weddings, vacation or to get gifts for someone. For someone to go get a loan whatever be the reason, there must be a conviction that he/she would be able to pay back at the appropriate time.
The possible disappointment and repercussions
But things happens. Disappointments sets in and many people end up loosing their valued properties used as collaterals especially to banks. There are many organizations that give loans to customers. Some of them do not require collateral though depending on the weight of the loan and wether the person taking the loan is a member of thesame organization or not. But there will always be repercussions for not paying back loans on time. Maybe the higher the duration, the higher the interest. Therefore, anyone wanting to apply for a loan must think things through and make necessary scrutinization of what the loan would be used for.
Things to think about before getting a loan for business or any form of investment
Before you apply for a loan, you need to consider the possibilities of losses or gains you might incurr from the business or investment so that you don't end up loosing everything. You also need to search for the best loan sources or alternatives that would offer low interest loans so that the interest doesn't end up amounting higher than the loan itself. You must know the policies guiding the organization you are getting the loan from. You should know how much capital you need for the investment.
The other important thing is to know the right type of business to sort loans for. There are businesses that are just too much of a risk and the potential losses are too obvious that you are not supposed to get loans for them. Or you stand a chance of getting yourself into trouble. With these at the back of our minds, let us now consider the case of investing a loan into Bitcoincash.
Taking a loan for bitcoincash investment.
Yes, bitcoincash Is worth investing in but does it worth taking up loans for? Is it really worth it? Doesn't this already sound like a crazy idea? Don't be too quick to judge yet, let us try to make it look like a reality and then imagine how it would turn out.
Know what type of asset bitcoincash is.
Bitcoincash is an asset that only worths what people are Willing to pay for it at a particular time.
Bitcoincash is a digital asset which means you can neither touch what you are puting your money into nor store it in your house. It is completely virtual. when you think about this, it raises the question of trust. How do I know if this thing would not just vanish and leave me in debt? To quickly answer this question, I believe, it won't when stored in the right wallet. Be it the BCH you bought with your money or the one you bought with loan, it is not appropriate to store it in an exchange wallet unless, you are trading with it. You can even get a ledger hardware wallet and store it offline, in that way, you can even feel a bit of it's touch. But if you can't do that, the best online wallet would be Bitcoin.com wallet where you have a private key (seed phrase) to take care of.
How to handle the Bitcoincash you bought with a loan
You probably must have thouht things through before optioning to buy Bitcoincash with a loan. You already know the risk factor right? Then you can proceed. But if not, don't try it. Bitcoincash like other cryptocurrencies in the market witnesses a lot of volatility. The price will keep swinging. Don't be greedy because you see the price pumping now, it could go down in the next minute, hour or day. And vice versa.
Trading with it?
If you're going to use it for trading which of course would be the best way to make a lot of profit, payback your loan and use the profits to continue your trade. But as simple as that sounds, you are on the edge of loosing all the loan money and put yourself into trouble. To trade bitcoincash bought with loan, you have to be very good at trading and you have to remember that even the best ones still loose. Again, I won't advise you to stake the bitcoincash you bought with a loan. You already know the danger of staking especially in future trading where you could gain massively or loose massively. Spot trading is the best for you because there, you probably would not loose your capital that easily.
Long-term?
Long-term investment? What could be the duration of this loan that you are going to put into Bitcoincash that you would probably have to hold for years? What if the price never increases? What if the price increases sometimes but when the loan is due for payment, it drops?
You must have tried to answer the above questions before making a decision to buy Bitcoincash for long-term hodling with a loan. If you were successful in answering those questions, then you can proceed. But you must store it in a trustworthy wallet as recommended above. Of course, those were just recommendations. If you find better ones, why not?
The green light in long-term hodling of BCH is the fact that over the years, cryptocurrencies have witnessed success in terms of price and bitcoincash happens to be among. With the growing awareness of bitcoincash, it would only keep getting better. You might end up getting even up to 500% profits off your investment and pay back the loan without any issue. Also, no matter how low the price drops, the amount of bitcoincash in your wallet would still remain the same. When the loan is due and you probably loose your collateral because the value was low and you refused to sell, there would still be hope of buying your property back when the price start pumping again.
But what you must know is that, obtaining a loan for bitcoincash investment is as risky as for any other investment. I'm not a professional, so I don't give professional financial advise. I'm just a lover of Bitcoincash giving Bitcoincash thoughts with love.
You might want to check out these articles also; How about saving for retirement with BCH?
and How about securing a crypto portfolio for your kid(s)?
Thanks for visiting.
Disclaimer: This is not an advise. Remember that!
Thanks for this interesting article. I think to take the advice from this article to work. I only had the experience of https://northnloans.ca/payday-loans-quebec.php to get out of the money crisis. Borrowing money for an investment only makes sense when the loan's return on investment is high and the risk level of the venture is low. Investing a loan in a hazardous thing, such as the stock market or derivatives, is not a good idea. Furthermore, if an investor takes out a loan, it makes no sense to put the funds in an investment that will mature after the loan is paid off. It's also critical for the investor to ensure that the return on investment exceeds the loan's cost.