Bitcoin Trader Makes 25% Profit With Using Personal Loans
The Redditor and member of the r/CryptoCurrency community says he's up 25% or $19,500 after taking out three personal loans worth a combined $59,000 to buy Bitcoin over the past 18 months.
As crudely named r / Vaginosis-Psychosis, they now have a total of 2.65 BTC, which is worth $80,400 and now the market is betting big that the price of BTC will reach $100,000 at the beginning of 2025. In a June 30 post on r/CryptoCurrency, a user explained how he approached the dangerous process of getting his hands on BTC.
The first two loans were issued in February and June 2022, totaling $15,000 and $20,000 each. They have fixed annual percentage rates (APR) of 6% and 4.9% respectively, and monthly payments totaling $225 and $326. A third loan was taken out for $24,000 in June 2023, with an APR of 8% fixed and monthly payments of $405.
Meanwhile, the Redditor says he paid off a $15,000 down payment in May, along with a $3,500 down payment on a second loan. From there, they plan to attack the most recent loan, because this one has the highest APR.
Including interest paid, they claim to have accumulated BTC at an average price of $24,000 or $22,264 without interest paid. "In my opinion, the US dollar is losing its value and value very quickly. Therefore, I will set aside money to buy Bitcoin and pay those loans with the lost dollars that I earn from my work .
“ I don't expect Bitcoin to trade in this range in 18 months. I expect BTC to be around $100,000 per coin by then, so I'm going to bite the bull of a short-term high APR for long-term exponential Bitcoin price appreciation. ”
The post has more than 500 comments at the time of writing, some support the idea, while others warn of the dangers of such an approach. "Getting a loan to invest in crypto is like a horror story for me," reads the top comment with 457 upvotes from user r/middlemangv, with r/NotAdoctor_but adding, "Because and this is survival of the fittest, so OP took a calculated risk, most wouldn't.
Giving more details, the Redditor said that they are single with no children and earn around $60,000 from their work every year. They also said that they have cheap rental conditions and are happy to invest 25-30% of their income in BTC every month. As such, the main risk in this will be mainly around the price of BTC falling sharply and not recovering in the next few years or losing it used by hacking and if he keeps them and the wallet is heated.
Staying active will also be a key factor in continuing to reduce borrowing. "It looks like you can afford this. A win here can change your life. "Death," that is, BTC will not go above $35,000 for three years +, will only mean another working year. Worth the risk, thanks OP," wrote user r/Kakoyannaros.