Be Smart: Avoid Borrowing for Crypto Trading
Using borrowed money for cryptocurrency trading is a risky approach that can lead to major financial setbacks. Many traders who enjoyed profits in 2017 faced significant losses in 2018 after trying to recover by reinvesting, ultimately losing everything. This highlights how financial overextension can result in severe consequences.
If you haven't achieved consistent profits, consider limiting your investments to 10-20% of your total assets or no more than two years' worth of income. Always trade with funds you can afford to lose. If you struggle to make gains with a smaller amount, taking on debt is unlikely to improve your situation.
If you do experience losses, take a moment to evaluate whether crypto trading is right for you. Stay composed, avoid chasing losses, and resist the temptation to invest more in hopes of a quick turnaround.