Home Loan Repayment Vs Crypto Investment - What to Choose? - Part1
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Hey All,
The crypto market is bleeding and as of writing this article the global cryptocurrency market cap today is $2.95 trillion, down nearly 8% in the last 24 hours of trading. Speaking of #HIVE specifically, it's down 12% and currently trading around $0.10. Do we buy more HIVE now, or wait to see if it breaks down further? Now comes the interesting part of this blog post, where I want to talk about whether I should make a pre-payment on my ongoing home loan or use that money to invest in crypto and take on all the risks that come with it, because we all know how unpredictable the crypto market can be. Risk what you can afford to loose here in Crypto.
All these days, I’ve been saving to make a pre-payment, and the amount we’re talking about is close to ₹1.5 million i.e. ₹15,00,000. In dollar terms, that’s approximately $17K+. Now the real question is do I risk it all? Or should I simply give all the money to the bank, take a breather, and feel relieved that I’ve reduced my home loan amount by ₹1.5 million? Here is a high-level table that I’ve put together, which should give a clear idea of the comparison.
Home Loan Pre-Payment vs Crypto Investment...
| Factor | Home Loan Pre-Payment | Crypto Investment |
|---|---|---|
| Amount Used | ₹15,00,000 | ₹15,00,000 |
| Risk Level | Very Low | Very High |
| Guaranteed Return? | Yes — Interest saved is guaranteed | No — Market-dependent, volatile |
| Emotional Benefit | Peace of mind, and then there is reduced EMI/tenure | Excitement, potential high returns is less time |
| Financial Impact | Saves interest cost over remaining tenure | Can multiply or we can lose significant portion maybe 50% or even more there is no guarantee with investment in crypto |
| Expected Outcome - Conservative | Saves around 8% annual loan interest effectively | Could fall another 20–40% in a bear phase |
| Expected Outcome - Optimistic | Steady but limited benefit | Could grow 2×–5× and even much more if we hit bull cycle i.e. bull returns |
| Liquidity | Low (once paid, can’t take it back easily) | High (you can sell anytime) |
| Future EMIs | Reduces EMI count or monthly EMI | No effect on loan burden |
| Stress Level | Low — debt reduces | High — market fluctuations daily |
| Ideal For | Stability, guaranteed savings, reducing long-term burden | High-risk appetite, long-term conviction in crypto |
As you can see from the above table home loan pre-payment offers guaranteed savings, stability, and peace of mind, while crypto investment comes with high risk but also the potential for significantly higher returns. Ultimately, now it is my choice whether I choose or prioritise financial security or long-term growth potential. Frankly speaking I havent made up my mind but in coming days will take the final decision. My better half says it is better I pay off the home loan and enjoy the peace of mind, but I can’t ignore the opportunity to invest in crypto at this moment. Let’s see what the final decision turns out to be. Until then, stay tuned. And that should be it for today’s post — “Home Loan Repayment vs Crypto Investment – What to Choose?” Happy investing… cheers!
Image Courtesy:: etmoney
Best Regards
Paras
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