12-11-2022, 09:41 AM
I took out a $35,000 Loan to Buy Crypto... 6 Month Update.
<!-- SC_OFF --><div class="md"><p><strong><em>Edit\</em>** Automod deleted my first post because it had the name of the digital asset in the title. Hopefully this one gets through.</strong>*</p> <p>​</p> <p><em>tl/dr; Between February and June of this year, I took out $35,000 in unsecured personal loans with a fixed APR. I boughtt 1.7 BTC at a cost basis of ~$20,500. I've since paid off $8,000 of the loan and currently owe $27,000. Even though I'm down ~17% on my investment, I'm not stressing and my conviction remains strong. I can easily afford to service the debt.</em></p> <p>​</p> <p>As promised, here is my 6 month update... You can read the original <a href="https://www.reddit.com/r/CryptoCurrency/comments/vp9nuq/i_took_out_a_20k_loan_to_buy_btc/">here.</a></p> <p>​</p> <p><strong><em>How it started....</em></strong></p> <p>Two unsecured, fixed APR personal loans for $35,000 total.</p> <p>First loan was February 2022 for $15,000 with a <strong><em>6% fixed APR</em></strong> and a monthly payment of $225 on a 84 month payment plan. I bought 0.45 BTC with a cost basis of ~$34k.</p> <p>The second loan was in late June for $20,000 with a <strong><em>4.9% fixed APR</em></strong> and a monthly payment of $326 and a 72 month payment plan (In the original post I said my APR was 4.5%. That was a typo, it's actually 4.9%). I bought 1.25 BTC with a cost basis ~$16k.</p> <p>Total Amount of Bitcoin: 1.7 BTC</p> <p>Total Cost Basis: $20,500</p> <p>With Bitcoin trading at ~$17,000 that puts me currently at -17% on my investment. </p> <p>Current amount owed: $27,000. I've managed to pay off $8,000 so far. </p> <p>Original total monthly payment to service the loan: $551. However, since I've paid off so much in such a short amount of time, they've lowered my monthly payments from $551 to $480</p> <p>​</p> <p><strong><em>How it's going?</em></strong></p> <p>I'm doing fine. I've been laser focused on paying off the loan as quickly as possible. I managed to pay off more than I thought I would by now, ~$8,000. Making the monthly payments has a been a non-issue. I'm thinking I'll be able to pay off another $12k-15k in 2023 or more. We'll see... </p> <p>I'm not upset with my cost basis either. It would have been much higher were it not for a good trade during the late summer rally. I originally had a higher cost basis like $19,500 for the Bitcoin I bought with my second loan. However, I did what I said I would not do: I sold it at in early August for just over $23,000. I held on to the cash for a good two months, and then bought back at a lower price in October-November. </p> <p>I know I said I wouldn't trade, but I just couldn't believe that summer rally. It was too obvious. Bitcoin ended up going over $24,000 so I'm happy I got close to the top. Moving forward, I'm going to continue stacking sats and paying down my loan. </p> <p>Judging from the responses from the original post, I'm sure many haters will be disappointed that I'm not crying about being down 17% on my investment. This is meant to be a long term hold for me, 5-10 years, if not longer. I took out a loan that I can easily afford to service, so it doesn't matter what happens in the market. </p> <p>Nothing has changed in my view of Bitcoin. In fact, since the collapse of FTX and all the others, my conviction in Bitcoin has only grown stronger. I keep everything in cold storage now. I can't imagine ever touching another alt coin or holding my coins on an exchange ever again...</p> <p>Glad to answer any questions...</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Vaginosis-Psychosis"> /u/Vaginosis-Psychosis </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/zi245q/i_took_out_a_35000_loan_to_buy_crypto_6_month/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/zi245q/i_took_out_a_35000_loan_to_buy_crypto_6_month/">[comments]</a></span>
<!-- SC_OFF --><div class="md"><p><strong><em>Edit\</em>** Automod deleted my first post because it had the name of the digital asset in the title. Hopefully this one gets through.</strong>*</p> <p>​</p> <p><em>tl/dr; Between February and June of this year, I took out $35,000 in unsecured personal loans with a fixed APR. I boughtt 1.7 BTC at a cost basis of ~$20,500. I've since paid off $8,000 of the loan and currently owe $27,000. Even though I'm down ~17% on my investment, I'm not stressing and my conviction remains strong. I can easily afford to service the debt.</em></p> <p>​</p> <p>As promised, here is my 6 month update... You can read the original <a href="https://www.reddit.com/r/CryptoCurrency/comments/vp9nuq/i_took_out_a_20k_loan_to_buy_btc/">here.</a></p> <p>​</p> <p><strong><em>How it started....</em></strong></p> <p>Two unsecured, fixed APR personal loans for $35,000 total.</p> <p>First loan was February 2022 for $15,000 with a <strong><em>6% fixed APR</em></strong> and a monthly payment of $225 on a 84 month payment plan. I bought 0.45 BTC with a cost basis of ~$34k.</p> <p>The second loan was in late June for $20,000 with a <strong><em>4.9% fixed APR</em></strong> and a monthly payment of $326 and a 72 month payment plan (In the original post I said my APR was 4.5%. That was a typo, it's actually 4.9%). I bought 1.25 BTC with a cost basis ~$16k.</p> <p>Total Amount of Bitcoin: 1.7 BTC</p> <p>Total Cost Basis: $20,500</p> <p>With Bitcoin trading at ~$17,000 that puts me currently at -17% on my investment. </p> <p>Current amount owed: $27,000. I've managed to pay off $8,000 so far. </p> <p>Original total monthly payment to service the loan: $551. However, since I've paid off so much in such a short amount of time, they've lowered my monthly payments from $551 to $480</p> <p>​</p> <p><strong><em>How it's going?</em></strong></p> <p>I'm doing fine. I've been laser focused on paying off the loan as quickly as possible. I managed to pay off more than I thought I would by now, ~$8,000. Making the monthly payments has a been a non-issue. I'm thinking I'll be able to pay off another $12k-15k in 2023 or more. We'll see... </p> <p>I'm not upset with my cost basis either. It would have been much higher were it not for a good trade during the late summer rally. I originally had a higher cost basis like $19,500 for the Bitcoin I bought with my second loan. However, I did what I said I would not do: I sold it at in early August for just over $23,000. I held on to the cash for a good two months, and then bought back at a lower price in October-November. </p> <p>I know I said I wouldn't trade, but I just couldn't believe that summer rally. It was too obvious. Bitcoin ended up going over $24,000 so I'm happy I got close to the top. Moving forward, I'm going to continue stacking sats and paying down my loan. </p> <p>Judging from the responses from the original post, I'm sure many haters will be disappointed that I'm not crying about being down 17% on my investment. This is meant to be a long term hold for me, 5-10 years, if not longer. I took out a loan that I can easily afford to service, so it doesn't matter what happens in the market. </p> <p>Nothing has changed in my view of Bitcoin. In fact, since the collapse of FTX and all the others, my conviction in Bitcoin has only grown stronger. I keep everything in cold storage now. I can't imagine ever touching another alt coin or holding my coins on an exchange ever again...</p> <p>Glad to answer any questions...</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Vaginosis-Psychosis"> /u/Vaginosis-Psychosis </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/zi245q/i_took_out_a_35000_loan_to_buy_crypto_6_month/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/zi245q/i_took_out_a_35000_loan_to_buy_crypto_6_month/">[comments]</a></span>