Wow, thank you to everyone who posted, I really appreciate the feedback!
After reading the comments, I have decided NOT to start lending.
I dont have a lot of BTC as it is. even a little loss would be pretty big to me.
Im not lending for the right reasons. After a little look through the forums, its clear that most lenders lend to help the bitcoin community, not to make a quick profit. I would have profit in mind more than the needs of the community.
thanks again for the advice.
If anyone else wants to give me their 2 cent, im going to leave this thread open for a day, then ill close it
Qai
Topic: Advice for a new user looking to start Lending (Read 893 times)
I would advise you avoid lending as a way of earning BTC income. It's not a safe practice to engage in actively. If you do decide to lend, be very picky about who you trade with. It might not seem like it will make you more BTC more quickly, but it will certainly protect you from fraud.
That being said and to answer your question:
Good general rules to start with. I would also add "Only lend to users who provide collateral worth 110% or more." There's a topic here in the Lending subforum that talks about requiring collateral, but in a nutshell: it will give you assurance that you can recoup your losses should a lendee be either unable or unwilling to pay you back. The collateral topic has some good ideas for acceptable collateral.
I would also avoid loans to people who aren't willing to share why they need the loan and how they intend to pay it back (i.e. what kind of income do they have?)
That being said and to answer your question:
So far I have:
As a new user, for my piece of mind, I can only lend to trusted users who have borrowed and paid back before
As a new user,for the users piece of mind, an escrow service will be needed
as a new user, a max of 0.1btc at 5% interest is sufficient until more trust is gained
Also, I know the first piece of advice a lot of you will give me is "Dont do it!", and depening on the outcome of this thread, I might not. But i'd like to know
As a new user, for my piece of mind, I can only lend to trusted users who have borrowed and paid back before
As a new user,for the users piece of mind, an escrow service will be needed
as a new user, a max of 0.1btc at 5% interest is sufficient until more trust is gained
Also, I know the first piece of advice a lot of you will give me is "Dont do it!", and depening on the outcome of this thread, I might not. But i'd like to know
Good general rules to start with. I would also add "Only lend to users who provide collateral worth 110% or more." There's a topic here in the Lending subforum that talks about requiring collateral, but in a nutshell: it will give you assurance that you can recoup your losses should a lendee be either unable or unwilling to pay you back. The collateral topic has some good ideas for acceptable collateral.
I would also avoid loans to people who aren't willing to share why they need the loan and how they intend to pay it back (i.e. what kind of income do they have?)
You have two options:
a) don't do it.
b) do it and you will lose some or all of your bitcoins.
Obviously the scammers would prefer the latter.
a) don't do it.
b) do it and you will lose some or all of your bitcoins.
Obviously the scammers would prefer the latter.
Quote
Dont do it! 
I am a lender here on this forum, but I do it not with big profits in mind, but just helping the bitcoin community.
I know the first piece of advice a lot of you will give me is "Dont do it!"
Dont do it!
Just don't do it.
Dude 1btc is nothing
Just keep it and get another job so you can buy more
Holding it will make more money than lending it
The risk is loans will take away from the 1 btc so just be happy with the growth curve
It's gonna hit 10K near end of year and then the floor value is 5K
One think warrants that growth, 7M wallets, you have 2M globally, the last peak/valley occurred at 700K wallets
So don't risk any btc unless you are in at low prices and have lots, then if you don't believe in the growth, lend it, to lock in value.
Example if you got 1000btc at 5 bucks, your value is now 600+ bucks per coin so you have 6M in a risky digital currency which is bitcoin
If you keep all 6M in btc only, it may hit 60M by end of the year, but what if its worth 600K not today's 6M
So anyone with a low buy in wallet should diversify but this is not where you can do that, most users here have almost no btc in their wallets
Now if you had 10btc today it's a 6K investment really too little to loan on, a newb should focus on obtaining 10K to 100K of btc then when the next jump in value hits they have 100K to 1M in btc, maybe diversify then
600 bucks is not anything to start loaning unless you live in say Indonesia where the weekly wage is 10 bucks then 600 bucks is a lot of money to you
If you make a minor amount of money like 10 bucks an hour, just focus on buying, take your credit cards, buy 5k USD of btc and the next tenfold pop you have 50K at least to start lending.
But the risk of lending is too great unless you can find real assets and the people in this forum are clueless about asset values of digital assets such as DOMAIN NAMES
Just keep it and get another job so you can buy more
Holding it will make more money than lending it
The risk is loans will take away from the 1 btc so just be happy with the growth curve
It's gonna hit 10K near end of year and then the floor value is 5K
One think warrants that growth, 7M wallets, you have 2M globally, the last peak/valley occurred at 700K wallets
So don't risk any btc unless you are in at low prices and have lots, then if you don't believe in the growth, lend it, to lock in value.
Example if you got 1000btc at 5 bucks, your value is now 600+ bucks per coin so you have 6M in a risky digital currency which is bitcoin
If you keep all 6M in btc only, it may hit 60M by end of the year, but what if its worth 600K not today's 6M
So anyone with a low buy in wallet should diversify but this is not where you can do that, most users here have almost no btc in their wallets
Now if you had 10btc today it's a 6K investment really too little to loan on, a newb should focus on obtaining 10K to 100K of btc then when the next jump in value hits they have 100K to 1M in btc, maybe diversify then
600 bucks is not anything to start loaning unless you live in say Indonesia where the weekly wage is 10 bucks then 600 bucks is a lot of money to you
If you make a minor amount of money like 10 bucks an hour, just focus on buying, take your credit cards, buy 5k USD of btc and the next tenfold pop you have 50K at least to start lending.
But the risk of lending is too great unless you can find real assets and the people in this forum are clueless about asset values of digital assets such as DOMAIN NAMES
Ok,
So I recently purchased a small amount of BTC (<1btc) and decided that a decent way to make a little more was to start lending.
However.
After lurking this forum for a few months now, I've seen an influx of scammers, leading to an increasing amount of skepticism when it comes to new users that offer a lending service, which is completely justified.
So im wondering what a new user like me would need to incorporate into a lending service to make other users take it seriously?
So far I have:
As a new user, for my piece of mind, I can only lend to trusted users who have borrowed and paid back before
As a new user,for the users piece of mind, an escrow service will be needed
as a new user, a max of 0.1btc at 5% interest is sufficient until more trust is gained
Also, I know the first piece of advice a lot of you will give me is "Dont do it!", and depening on the outcome of this thread, I might not. But i'd like to know
So I recently purchased a small amount of BTC (<1btc) and decided that a decent way to make a little more was to start lending.
However.
After lurking this forum for a few months now, I've seen an influx of scammers, leading to an increasing amount of skepticism when it comes to new users that offer a lending service, which is completely justified.
So im wondering what a new user like me would need to incorporate into a lending service to make other users take it seriously?
So far I have:
As a new user, for my piece of mind, I can only lend to trusted users who have borrowed and paid back before
As a new user,for the users piece of mind, an escrow service will be needed
as a new user, a max of 0.1btc at 5% interest is sufficient until more trust is gained
Also, I know the first piece of advice a lot of you will give me is "Dont do it!", and depening on the outcome of this thread, I might not. But i'd like to know
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