Study: 22% of Bitcoin investors used borrowed money to operate, not recommended.

According to LendEDU, a personal loan research firm, more than 18 percent of Bitcoin investors have used borrowed money to market the cryptocurrency. In a global survey of 672 Bitcoin active investors, researchers asked traders the method they used to fund their cryptocurrency trading accounts. Most investors used banking systems such as credit cards and ACH transfers to finance their accounts.

But 22 percent of merchants revealed that they have not paid their credit and debit cards after buying Bitcoin, effectively investing in the cryptocurrency with borrowed money. The report said:

"The most intelligent and frugal way to finance a virtual currency exchange account would be through an ACH transfer, which is completely free, only 18.60 percent of our 672 Bitcoin investment respondents were paying for the cryptocurrency of this way.

However, this was not even the most pressing concern from the LendEDU survey. That recognition belongs to this data point: 22.13 percent of Bitcoin investors did not pay off their credit card balance after buying Bitcoin. "

Exaggerated generalization

Lately, Binance, the world's largest cryptocurrency exchange, revealed that it has added more than 250,000 active users daily and was forced to stop adding new users temporarily as a result. Coinbase and Bitstamp have also added more than 100,000 users per day and, at the time of generating reports, Coinbase has about 20 million users.

In early December, the co-founder and CEO of Bitstamp, Nejc Kodrič, stated:

"Please understand that we currently have more than 100 000 new accounts open daily, it is challenging to deal with such an increase, we are expanding our ability to incorporate clients faster, but this takes a little time."

Therefore, 618 Bitcoin users are not enough to create generalizations about the global Bitcoin and cryptocurrency market.

However, it is important to recognize that a small portion of Bitcoin investors are still trading the cryptocurrency with debt to date, despite the advice of experts and analysts to refrain from doing so.

Only invest the amount you can lose
In June, security expert and Bitcoin, Andreas Antonopoulos, emphasized that he only invests a quantity in cryptocurrencies that he is willing to lose, given the significant risk involved in the cryptocurrency trade. While the risk of investing in Bitcoin is lower than others due to the size of its market, the risk of other cryptocurrencies in the global market remains substantially high.

"I own some different cryptographic assets as part of a small but diversified portfolio, I only risk as much as I am willing to lose," said Antonopoulos.

In a presentation at Coinscrum, an event organized by Imperial College London, Antonopoulos also observed that he can lose all his investments in cryptocurrencies and still have everything else because he has invested his career, intellectual capacity and work in Bitcoin and the cryptocurrency market .

For casual investors and newcomers, it is extremely risky to obtain debt to invest in a particular asset and this is not exclusive to Bitcoin. No matter what asset it is, getting into debt to invest in a particular asset or asset class is highly risky.

"My small savings that I have are invested in Bitcoin, 100 percent [of this] In fact, I have a small dollar debt that I'm still trying to pay, so it's more than 100 percent in Bitcoin. I would like to emphasize again that it is not a recommendation to invest, because I have not invested my money in Bitcoin, I have invested my career, my intellectual capacity, my creativity energy, my passion and my work in Bitcoin. of the investment I made in Bitcoin and I could lose everything and still have everything else, "explained Antonopoulos.