its worth it if you know how to spot a scammer or those who plan not to pay.
it would be wise to always use an escrow
Topic: Bitcoin Loaning - Is it worth it? (Read 3486 times)
bitcoin loaning???thats kinda hard now..theres a lot of scammers
That's not a valid reason. Given that logic swimming is dangerous, there are a lot of sharks.
You need to know how to protect yourself.
bitcoin loaning???thats kinda hard now..theres a lot of scammers
Hi,
So something I've been thinking about is lending Bitcoin. For me to conduct trades over Bitcoin Talk, I usually ask the other party pays first (which usually means the trades fall through).
It's profitable if you know what you're doing and avoid giving out risky loans without collateral. So something I've been thinking about is lending Bitcoin. For me to conduct trades over Bitcoin Talk, I usually ask the other party pays first (which usually means the trades fall through).
- Is it actually profitable?
- Will I get scammed to death?
Be sure to read the sticky posts in the lending section before you start giving out loans to other members.
I've found lending out BTC on Bitfinex to be easy and apparently risk-free (as far as that's possible). Bitfinex provide "total return swaps" - basically the lender sets a rate, amount and duration (say: 0.0055%, 1 BTC, 2 days) and waits for a borrower to accept (or the lender can set a rate that a borrower has already demanded).
Bitfinex cover the counterparty risk - the borrower is borrowing on margin, and Bitfinex will do a margin call if the borrower's position approaches the point beyond which they could pay you back.
Obviously there's still exchange risk - Bitfinex currently seem pretty solid, but the usual rules apply: spread your risk, keep on top of information about exchanges you're dealing with, etc.
I don't know what rates to expect elsewhere (I suspect rates probably are better elsewhere) but the 0.0055% rate seems to be the long-term trend. It's still better than the 0% rate I was getting before I moved (some of) my coins to Bitfinex! (And I've been luck so far and always managed to get better than 0.0055%).
(No connection with Bitfinex except as a satisfied customer).
Bitfinex cover the counterparty risk - the borrower is borrowing on margin, and Bitfinex will do a margin call if the borrower's position approaches the point beyond which they could pay you back.
Obviously there's still exchange risk - Bitfinex currently seem pretty solid, but the usual rules apply: spread your risk, keep on top of information about exchanges you're dealing with, etc.
I don't know what rates to expect elsewhere (I suspect rates probably are better elsewhere) but the 0.0055% rate seems to be the long-term trend. It's still better than the 0% rate I was getting before I moved (some of) my coins to Bitfinex! (And I've been luck so far and always managed to get better than 0.0055%).
(No connection with Bitfinex except as a satisfied customer).
Yeah, that's the catch -- does the interest rate on BTC swaps justify the exchange risk?
To me, having money on the exchange is for trading, because the potential returns are much, much higher. If BTC swaps could compete with USD swaps, return-wise, I would consider lending on BFX.
I think it can be worth it as long as you never tried to loan without a collateral. though giving a small loan to a trusted member that can prove their ownership of the said account can be worth it as well.
Yes one shouldn't loan any amount without any proper collateral to make a profit from lending business. It is really profitable business if you manage well.
BTC loaning is still like home made ice cream. You can loan, but there is no quaranty that, you will receive it back. 
That's why you should follow the thumb rule no collateral and no loan. If you follow this method yes it is surely profitable and you can make some decent profit instead investing in some scam programs.
I've found lending out BTC on Bitfinex to be easy and apparently risk-free (as far as that's possible). Bitfinex provide "total return swaps" - basically the lender sets a rate, amount and duration (say: 0.0055%, 1 BTC, 2 days) and waits for a borrower to accept (or the lender can set a rate that a borrower has already demanded).
Bitfinex cover the counterparty risk - the borrower is borrowing on margin, and Bitfinex will do a margin call if the borrower's position approaches the point beyond which they could pay you back.
Obviously there's still exchange risk - Bitfinex currently seem pretty solid, but the usual rules apply: spread your risk, keep on top of information about exchanges you're dealing with, etc.
I don't know what rates to expect elsewhere (I suspect rates probably are better elsewhere) but the 0.0055% rate seems to be the long-term trend. It's still better than the 0% rate I was getting before I moved (some of) my coins to Bitfinex! (And I've been luck so far and always managed to get better than 0.0055%).
(No connection with Bitfinex except as a satisfied customer).
Bitfinex cover the counterparty risk - the borrower is borrowing on margin, and Bitfinex will do a margin call if the borrower's position approaches the point beyond which they could pay you back.
Obviously there's still exchange risk - Bitfinex currently seem pretty solid, but the usual rules apply: spread your risk, keep on top of information about exchanges you're dealing with, etc.
I don't know what rates to expect elsewhere (I suspect rates probably are better elsewhere) but the 0.0055% rate seems to be the long-term trend. It's still better than the 0% rate I was getting before I moved (some of) my coins to Bitfinex! (And I've been luck so far and always managed to get better than 0.0055%).
(No connection with Bitfinex except as a satisfied customer).
In the future (if not already) people might just start selling accounts with A-C ratings on BTCJam and scamming people?
Anyone thought of this?
Anyone thought of this?
i think this is already reality, because there are many scammers even among those with a+ rating, you can't trust btcjam at all, better to lend money here and use their account as a collateral, which is the best and faster collateral you can ever get
Is there a step by step tutorial in how to do this correctly without screwing up? I have some BTC that I want to start growing and I don't know how before gambling in the altcoin market, loaning seems like the only way to go, but im scared to get scammed, specially if you can't even trust A+ guys in BTCJam.
In the future (if not already) people might just start selling accounts with A-C ratings on BTCJam and scamming people?
Anyone thought of this?
Anyone thought of this?
i think this is already reality, because there are many scammers even among those with a+ rating, you can't trust btcjam at all, better to lend money here and use their account as a collateral, which is the best and faster collateral you can ever get
Is there a step by step tutorial in how to do this correctly without screwing up? I have some BTC that I want to start growing and I don't know how before gambling in the altcoin market, loaning seems like the only way to go, but im scared to get scammed, specially if you can't even trust A+ guys in BTCJam.
BTC loaning is still like home made ice cream. You can loan, but there is no quaranty that, you will receive it back.
In the future (if not already) people might just start selling accounts with A-C ratings on BTCJam and scamming people?
Anyone thought of this?
Anyone thought of this?
i think this is already reality, because there are many scammers even among those with a+ rating, you can't trust btcjam at all, better to lend money here and use their account as a collateral, which is the best and faster collateral you can ever get
as i said before try poloniex margin trades works the same way as loans they ask for an colateral to protect money from their costumers and yes if you see some high rank asking for loan well it had been bought maybe,soo a scam attemption.
i thought that exchange don't ask for any collateral, they simply take your other deposit money if you can't repay their loan with margin trading, in fact i'm wondering what will happen if someone abuse this and make multiple account to scam the exchange through multiple leverage trading at x20
It's almost as collateral, because it requires that holds a coin in return allows you to get a loan, you can't draw, having to invest in other crypto or even with other offers of loan is very attractive so that has about 200 bitcoins in the loans every day.
In the future (if not already) people might just start selling accounts with A-C ratings on BTCJam and scamming people?
Anyone thought of this?
Anyone thought of this?
Lending or Financing is a good business and there's always a market for that regardless of what group there's always someone out there willing to finance or lend someone who needs. As long as the interest is not sky high people will ask you for help (loan).
Bitcoin loaning is a legit and nice business as long as you know what you are doing. Like others said, "no collateral, no lend" rule will keep you safe mostly.
as i said before try poloniex margin trades works the same way as loans they ask for an colateral to protect money from their costumers and yes if you see some high rank asking for loan well it had been bought maybe,soo a scam attemption.
i thought that exchange don't ask for any collateral, they simply take your other deposit money if you can't repay their loan with margin trading, in fact i'm wondering what will happen if someone abuse this and make multiple account to scam the exchange through multiple leverage trading at x20
Hi,
So something I've been thinking about is lending Bitcoin. For me to conduct trades over Bitcoin Talk, I usually ask the other party pays first (which usually means the trades fall through).
So something I've been thinking about is lending Bitcoin. For me to conduct trades over Bitcoin Talk, I usually ask the other party pays first (which usually means the trades fall through).
- Is it actually profitable?
- Will I get scammed to death?
ask ManyProofs
this guy now have a strong fan base and he is known as a "pro lender"
seriously lending is a good part time business but one needs to be choosy as to who will get the loan and I strongly suggest to follow the no collateral, no loan rule
as i said before try poloniex margin trades works the same way as loans they ask for an colateral to protect money from their costumers and yes if you see some high rank asking for loan well it had been bought maybe,soo a scam attemption.
I believe it's profitable, if I had only enough bitcoins to lend, I will run a loan service in this forum
Of course there's still a risk on lending and getting scammed but you can reduce the risk by asking a collateral on every loan or you can just lend to trusted users here.
Of course there's still a risk on lending and getting scammed but you can reduce the risk by asking a collateral on every loan or you can just lend to trusted users here.
mostly trusted users dont need loan they already have enough funds they dont need loan mostly you will see newbies and jr member are asking for loan and if you giving then loan without colleteral you will get scamed and if they are giving their account as a colleteral even the loan amount i small their accout worth it but still after getting scamed it will be hard for you to sale jr member or member account because no one buy it, loaning is so much work
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