- While the crypto market is turbulent, many analysts believe the price of mainstream cryptos will rise to new highs, while others believe it is a portent of global recession. Borrowing money to acquire cryptocurrencies may be an excellent long-term investment. Only time will tell if this is true.
- To get the money they required, 64% of individuals who bought cryptos utilized one or more credit cards. This may have appeared to be a smart approach at the time. However, prices of major cryptos have plunged by as much as 100% in the last month. Many investors may suffer significant losses as a result of this decline. They will also be responsible for the cost of repaying their original debt.
- Some investors are predicted to remain cautious, while others are likely to panic and sell to reduce their losses. Credit cards and overdrafts have been the most commonly utilized credit facilities to fund cryptocurrency investments.
Now is the time for investors who borrowed money to buy cryptocurrencies to pay back their loans. The following is a breakdown of how they raised the funds to purchase their cryptocurrency. According to a recent study, more than two-thirds of cryptocurrency investors questioned borrowed money to make their purchases. Rather than using their earnings or savings, individuals went into debt to purchase their preferred cryptocurrency.
Age Groupings Of Investors
To get the money they required, 64% of individuals who bought cryptos utilized one or more credit cards. This may have appeared to be a smart approach at the time. However, prices of major cryptos have plunged by as much as 100% in the last month. Many investors may suffer significant losses as a result of this decline. They will also be responsible for the cost of repaying their original debt.
Some investors are predicted to remain cautious, while others are likely to panic and sell to reduce their losses. Credit cards and overdrafts have been the most commonly utilized credit facilities to fund cryptocurrency investments.
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They Borrowed In This Manner
KIS Finance’s Managing Director is Holly Andrews. …Some credit card companies will classify this transaction as a cash advance, resulting in a cash advance fee and a higher interest rate. So, if you’re thinking about investing in cryptocurrencies, only invest money you can afford to lose, and fund it with income and/or savings rather than a credit facility.
While the crypto market is turbulent, many analysts believe the price of mainstream cryptos will rise to new highs, while others believe it is a portent of global recession. Borrowing money to acquire cryptocurrencies may be an excellent long-term investment. Only time will tell if this is true.
Source: https://www.thecoinrepublic.com/2022/05/30/sixty-percent-of-investors-used-borrowed-funds-to-purchase-their-now-cracked-coins/