The Sad But True Story of Cryptohomie

We all do stupid things in life.

It just stings a little bit more when we do stupid things with our own personal finance.

Since "those who do not learn from history are doomed to repeat it," it's always nice when someone is brave enough to come out and say, "Hey, look, I messed up. I'm gonna tell you about it so maybe you won't make the same mistakes I did."

Thus, I recently read about the sad story of one Cryptohomie, a 32-year-old from Abu Dhabi.

He borrowed a $126,500 personal loan from a UAE bank, which is apparently a simple thing to do in the land of oil wealth. That's kind of a staggering amount that one can so easily obtain, but that's not the point of this life lesson. What we want to know is...

Why?

To buy cryptocurrency. 🤨

And don't get me wrong! I loves me some crypto and blockchain investments. I have made (and lost) a bunch of money doing this type of investing. Being that this is steemit powered by STEEM and we are living through the Crypto Dog Days of Summer 2018, I'm sure that a lot of you, too, are in the same boat. Waiting for the next bull... or whatever. And god knows really when and/or if it will ever happen.

"The night is always darkest just before the dawn." That's the usual drill. We'll see if that happens again. I have a feeling that it will. But I have NO IDEA what will happen in the short run.

But let's get this straight, first and foremost, right here and now, young crypto Padawans...

Never ever never ever ever borrow money to invest in crypto.

It's just stupid.

Sure, maybe a little bit of light margin on a stock account. No more than 20%. That can be okay. At times. Like if you know you're gonna get paid in the next few weeks and you see an opportunity that simply is just too juicy to pass up. But realize that it is still RISKY AF.

But borrowing to buy cryptoassets?

NO!

That's just nuts.

The asset class is simply way too young and volatile to even be thinking about this kind of investment strategy.

But yet, I know some people who are absolutely addicted to BitMEX and its leveraged bitcoin trading environment. In fact, I've even been in WeChat groups where people advocate leveraging short and long positions because "there's just no other way to make money right now."

Uh-huh.

Sure.

You gone get REKT!

So remember this lesson whenever you invest:

Don't be like Cryptohomie, y'all!