Take out $127,000 Loan to buy Crypto - Lose 85%
At the moment the cryptocurrency sphere is looking a little sluggish. Some punters are having a little trouble with their investment opportunities, but not too many are probably reeling as much as an investor who took out a six-figure loan to purchase cryptocurrencies that have since lost 85 per cent of their value.
The unlucky investor posted a document from Emirates Islamic Bank that shows monthly repayments of 8194 dirham ($3067) until December 14, 2021. The original loan is listed as 338,000 dirham ($126,500) with a total outstanding amount of 393,296.80 dirham ($147,200) including interest.
“Here is my bank instalment related to the loan I took to invest in crypto,” the user wrote. “Still three-and-a-half years to go until I’m freed. Until then, I’m working for nothing and I’m at 85 per cent loss. I hope it gives you a lesson.”
He said he bought Neo, Stellar, Litecoin, Ethereum “and some shitcoins that lost 95 per cent of their value already”.
Apparently, getting a loan for $100,000 in the UAE is pretty easy..... Nearly as easy as losing it all in a few months and having to make ridiculous repayments too! I would say that this guys 'bag hodling' a bigger sack than Santa does on Christmas Eve!
Let that be a lesson to all uneducated punters out there....... Buy the dips and not the trips!
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This was on news.com.au
While there is a lesson in it ...it is also MSM kicking crypto while it's down. .
ouchie! :(
I couldn't believe he managed to lose so much. What an absolute fool investing on borrowed dimes.
that guy is one of the only real investors out there, everyone else on these boards, Youtube etc. doesn't have a care in the world and is happy to buy more...why? because they didn't invest real money to begin with
So which is more valuable? Money or time..... Because I have pumped a shitload of time into this platform which is a significant investment if you ask me!
time is also valuable but i'm just pointing out that while we are in a meltdown there is seemingly no real panic on any crypto related message boards, very little, and it seems that the reason for that is that most crypto investors are young and invest small amounts of money, so that when things crash it's not a big deal, they just keep putting those same small amounts in as they did before. Things are different when dealing with real money, let's see you put in $50k USD and watch that drop 75%, then let's see how happy you are about cheap prices etc. etc.
This guy is a a real........example of what not to do? Real......gambler? I've been investing for 20 years and regardless of the market borrowing a ton of money to buy something that is up 100+% in a short-time frame is a very high risk low percentage play for success. I advise people against this all the time. In fact I yelled at my radio show listeners that they better not buy BTC when it ran up near 20K even with non-borrowed money.
I agree that one should not borrow to invest esp. with high interest etc. and that's a good rule traditionally but by your rule, you never would have purchased BTC unless in a bear market (but overall at much higher levels). there were many times when BTC went up 100% repeatedly and quickly, and by your rule you never would have gotten in at a good price. That rule applies more to stocks and traditional investments, but BTC had already gone up 10000x and nobody has a crystal ball to know when it will drop to a bear market. It's all just luck/timing, right down i'm down huge, but if I had made the same investments 1yr earlier I'd be rich and retired now...but doing so doesn't make me any smarter, just timing/luck.
The lesson two is do not invest with borrowed money.
Don't invest with money you borrow from the bank!
YOLO!