Use Bank Loans instead of Margin?

[Anonymous No.17585923]

The problem with margin trading with crypto is that pumps and dumps can liquidate you before your stop loss or other safety measures can trigger. Wouldn't it make sense to buy crypto with a bank loan? You can even set aside some of the loan to make the monthly payments so that your debt costs don't eat into your equity.

>Example:
>$25,000 unsecured loan, 7 yr with ~$500 monthly payment
>Purchase $20,000 crypto, set aside $5000 to cover monthly payments for 10 months

This strategy would get us through the halvening and you could set aside more money from the initial loan if you think we need longer for the market to substantially increase. This strategy would prevent you from being liquidated by pump and dump whales .

Thoughts?

[Anonymous No.17586004]

>>17585923
do it, good idea, no one has ever thought of that

[Anonymous No.17586508]

Buying on debt is dangerous because it reduces your time horizon. That said if you can get cheap unsecured debt and have the cash flow to pay said debt if crypto dumps for a year or two, do it.

[Igor Bogdanoff ᵛᵉʳᶦᶠᶦᵉᵈ No.17586578]

[Anonymous No.17587362]

>>17586508
> Time horizon
I literally took a 10k loan to put in PNK. Current value of my PNK = 35k.
2.5 years remaining paying my monthly payment. No big deal. My time horizon is expanded.