One French expat in the UAE is paying 2/3 of his paycheck for 3 years to repay a big bank loan he invested in crypto right before the crash.
Economic advisors will always tell you not to invest more than you’re willing to lose. However, many people get excited by the prospect of becoming rich almost overnight and ignore this advice completely. One man who is feeling the error of his ways is a French expat now living in the United Arab Emirates (UAE). He decided to take out a big bank loan to invest in crypto, which was then followed by the market tanking.
Taking a Chance
There’s no shortage of people looking to invest in crypto, especially late last year when the price of Bitcoin was nearing $20,000. People were mortgaging their homes to buy virtual currencies, not to mention college students using their student loan money for the same thing. One man even sold his home, converted the cash into Bitcoin, and moved to a campground as he felt that strongly about the future of BTC.
Sadly, those people who extended themselves precariously to buy crypto when the market was white-hot ended up getting burned. Everyone knows how 2018 has shaped up in regards to the value of cryptocurrency.
One member of those sad ranks is a Frenchman now living in the UAE. He had invested a few small amounts of his personal money into crypto and got back some pretty good results. He says:
I invested my own money in September last year and it went very well. I made three or four times more than I had put in.
Bank Loan for Crypto Investment
The man then decided to up the ante. He went to the bank and secured a loan for Dh367,000 ($100,000 USD) and then sunk it all into cryptocurrencies. He invested in Litecoin, Neo, Ethereum, Lumen, and Ripple.
Initially, things went great. The Frenchman notes:
I made over Dh100,000 in 10 days and everything looked great.
However, he decided to not cash out and continue riding the wave. He, along with thousands of others, believed that the money would just keep flowing in. Then the crypto market plummeted.
The man now pays a full two-thirds of his paycheck every month to make his loan payments. He makes just over $3,200 a month, and he has to pay the bank almost $2,200. That’s not a lot to live on, and he has three full years of such payments to make.
On the bright side, he says that he’s holding on to the crypto he bought and is hoping that the prices will rise again. If they do, I think it’s probably safe he’ll cash out.
Have you invested more than you can afford in cryptocurrency? Let us know in the comments below.
Images courtesy of Shutterstock.
Check out the original article here.
Author: Jeffrey Francis