(MENAFN – ValueWalk)
Investing in cryptocurrencies has been a frantic race lately.
So what happens when you combine the tantalizing prospect of new global currencies and exceptionally low prices, but have no money to invest? Americans are turning to lenders.
And as many investors are currently adding up their losses, others are doubling down, using loans to fund more cryptocurrency purchases as they try to time the market to predict when prices will bottom out.
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Many of these borrowers are already in trouble. More than 32% of cryptocurrency investors have used a payday loan in the past, and 11% have used a payday loan or title loan to invest in cryptocurrency, despite three-tier interest rates figures.
July 3 is Shitcoin Day, the anniversary of the first-ever “utility token” ICO, called Mastercoin, in 2013. To mark this, DebtHammer.org surveyed over 1,500 Americans to study their habits. investment. Here’s what we learned.
Key points to remember
- We use loans to pay for our investments: Around 21% of crypto investors said they used a loan to pay for their cryptocurrency investments. Personal loans were the most popular, but payday loans, title loans, mortgage refinances, home equity loans and leftover student loan funds were also used.
- Hoping for a pay day: 11% of previous payday loan users who bought crypto used a payday loan or title loan to buy crypto. Most borrowed between $500 and $1,000 to invest. Given that payday loans average around 400% APR, this is a big gamble.
- Investors go into debt: Nearly 19% of respondents said they had trouble paying at least one bill due to the amount of money they had invested in cryptocurrency, and around 15% said they were worried about a eviction, seizure or repossession of a car because of their investment.
Read the full report at debthammer.org/cryptocurrency-survey.
DebtHammer is an industry leader in the fight to get Americans out of debt.
Updated on June 23, 2022 at 3:10 p.m.
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