Abu Dhabi resident Down 85% After Taking $140K Loan to Buy Cryptocurrency
Cryptocurrency investing is risky business and one budding investor is feeling the pain after using a huge bank loan to build a losing cryptocurrency portfolio.
DYOR and Steer Clear of FOMO
It appears that FOMO got the best of one amateur cryptocurrency investor in Abu Dhabi who is now 85% down on cryptocurrencies purchased using a $139,500 bank loan.
The unfortunate investor, who goes by the name ‘Cryptohomie’ on Reddit, currently lives in Abu Dhabi. The documents he shared show a loan for 338,000 Arab Emirati Dirham (AED) ($139,500 USD) taken at the height of the 2017 cryptocurrency bull market.
Cryptohomie is on the hook for monthly repayments of $3,381 until December 14, 2021 and the loan total with interest comes up to a whopping $162,333. The amateur investor told Reddit readers:
Still three-and-a-half years to go until I’m freed. Until then, I’m working for nothing and I’m at 85% loss.
Ultimately, he is hopeful that his misfortune will serve as a lesson to others hoping to strike it rich quick by investing in cryptocurrencies.
Don’t Just Blindly BTFD
Cryptohomie stocked his portfolio full of Stellar Lumens, NEO, Litecoin, Ethereum and “some shitcoins that lost 95% of their value already.” Many will wonder how he was able to secure such a massive loan.
He explained that it was easy as pie as most banks are happy to lend out large sums “almost instantly in UAE.”
“You can get $100,000 within a few days on your account without much verification,” he added.
To date, bitcoin price 00 is down more than 70% from its all-time high of $20,000 back in December of 2017.
A Hard Lesson Learned
When asked about how he placed himself in such a pickle, Cryptohomie replied:
I’m 32 and it was my first speculative investment. I think it’s an age where we’re still unconscious and take a lot of risk if we don’t have big responsibilities like a kid or bills to pay.
Most Reddit users were generally sympathetic to his disposition. “I don’t think there’s anything we can say that you don’t go to sleep thinking about already,” one user wrote.
“How many people did this sort of thing and how much banks have loaned out for crypto,” another user added.
Cryptohomie appears to be taking the situation in relatively good stride and jokingly suggested that “if there is any ridiculously rich Emirati who doesn’t know what to do with his money, feel free to contact me.”
Do you think taking a loan to invest in cryptocurrencies is a wise move? Share your thoughts below!
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