I dunno, some people do it for more than just the returns e.g. for trust feedback, however personally I wouldn't take the risk.
Providing that you do your homework on how to deal with those borrowing your coins, and identifying solid collateral and such then it could be worthwhile...
Topic: Bitcoin Loaning - Is it worth it? - page 3. (Read 3469 times)
Loaning is not a good option IMHO. default rates are pretty high and you could lose money, Furthermore the volume is very small to make a good profit
I ment collateral haha, I was planning in using an Escrow anyway, thanks for the input. I was planning on asking alt coins as collateral which may mean slow business, but a not so devastating outcome when I get scammed :/
Once you build up enough rep/trades you'll be able to take collateral without escrow, though using as escrow will be time consuming just for loans. I'd take forum accounts as collateral as most people wont even need to loan money if they've already got the sufficient amount in alts though there are lots of people doing this already so people would likely choose another user over you.
Plenty of people buy/trade/sell accounts. Just look at the digital goods section. In fact I think forum accounts are the most popular form of collateral these days. To secure an account you just change all the details including the email address and there's not really any way they can get it back. They could go to the admins and try convince them it was hacked but with a little investigation they would see it wasn't. You can always change the signature/personal text to 'account currently held as collateral by Fishbones78 etc as well.
I ment collateral haha, I was planning in using an Escrow anyway, thanks for the input. I was planning on asking alt coins as collateral which may mean slow business, but a not so devastating outcome when I get scammed :/
Once you build up enough rep/trades you'll be able to take collateral without escrow, though using as escrow will be time consuming just for loans. I'd take forum accounts as collateral as most people wont even need to loan money if they've already got the sufficient amount in alts though there are lots of people doing this already so people would likely choose another user over you.
Plenty of people buy/trade/sell accounts. Just look at the digital goods section. In fact I think forum accounts are the most popular form of collateral these days. To secure an account you just change all the details including the email address and there's not really any way they can get it back. They could go to the admins and try convince them it was hacked but with a little investigation they would see it wasn't. You can always change the signature/personal text to 'account currently held as collateral by Fishbones78 etc as well.
I ment collateral haha, I was planning in using an Escrow anyway, thanks for the input. I was planning on asking alt coins as collateral which may mean slow business, but a not so devastating outcome when I get scammed :/
Once you build up enough rep/trades you'll be able to take collateral without escrow, though using as escrow will be time consuming just for loans. I'd take forum accounts as collateral as most people wont even need to loan money if they've already got the sufficient amount in alts though there are lots of people doing this already so people would likely choose another user over you.
I ment collateral haha, I was planning in using an Escrow anyway, thanks for the input. I was planning on asking alt coins as collateral which may mean slow business, but a not so devastating outcome when I get scammed :/
Once you build up enough rep/trades you'll be able to take collateral without escrow, though using as escrow will be time consuming just for loans. I'd take forum accounts as collateral as most people wont even need to loan money if they've already got the sufficient amount in alts though there are lots of people doing this already so people would likely choose another user over you.
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?
First bullet: Yes, if you executed it perfectly and flawlessly. You can ask for 10% as the minimum interest rate for any loan and depending on how long will the loan term be.
Second bullet: Also yes, if you don't know how to sales talk the borrower. You must impose your own rules, and your rules should matter, not the borrower's. Always ask for a valid collateral when giving a loan. In that way in case the borrower defaults, you can take back what's lost in you and you can go on without accepting any losses.
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?
It can be profitable but the margins are small and the risk is great if you don't get sufficient collateral. How can the other party pay first though if you're the one lending the money? Do you mean send collat first? Most people wont trust you yet to send collateral first so you'll need to use escrow. Personally I'd avoid getting into the lending business as it's likely not worth the hassle and one scam is all it takes to ruin your total profit.
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?
It can be profitable but the margins are small and the risk is great if you don't get sufficient collateral. How can the other party pay first though if you're the one lending the money? Do you mean send collat first? Most people wont trust you yet to send collateral first so you'll need to use escrow. Personally I'd avoid getting into the lending business as it's likely not worth the hassle and one scam is all it takes to ruin your total profit.
It's a tedious process honestly, yea you could ask for collateral and if they give you altcoins is all good but bitcointalk accounts as collateral are just painful, you have to either sell them which you might not be able to do so fast or join a sig campaign and pay for the loan yourself which is tedious so if someone ends up not paying you have to be dedicated to it and recover your money using your time.
I think I might proceed with it actually. Alt coins seems a good, solid collateral, even if I don't receive many requests because of it, I atleast will come out well if I'm not paid back.Thanks
The point is if you lend it in bitcoin or in $
because if you lend it in dollar and bitcoin goes up, you would have got more profit holding bitcoin than lending and with less risk
because if you lend it in dollar and bitcoin goes up, you would have got more profit holding bitcoin than lending and with less risk
BTCLend hasnt been to bad, allows you to use collateral for your loan and has a international collection agency on retainer.
What if you use BTCJam and do lending only for the A+ guys? To be A+ you need all sort of verifications, so it wouldn't be anonymous, which means they will do everything possible to be pay back. What would happen if they legitimately cant pay back tho, do BTCJam cover loses?
BTCJam is still a joke. A+ status doesn't really determine whether he/she is a scammer or not and there is lack of work from BTCJam to minimalize scammer
What if you use BTCJam and do lending only for the A+ guys? To be A+ you need all sort of verifications, so it wouldn't be anonymous, which means they will do everything possible to be pay back. What would happen if they legitimately cant pay back tho, do BTCJam cover loses?
I wouldn't do it. The risk far outweighs the reward in most cases.
Regarding collateral. Make sure it is something of high demand so you can sell it easily. A domain may not be as good as you think as you need the right buyer for it.
Regarding collateral. Make sure it is something of high demand so you can sell it easily. A domain may not be as good as you think as you need the right buyer for it.
It's a tedious process honestly, yea you could ask for collateral and if they give you altcoins is all good but bitcointalk accounts as collateral are just painful, you have to either sell them which you might not be able to do so fast or join a sig campaign and pay for the loan yourself which is tedious so if someone ends up not paying you have to be dedicated to it and recover your money using your time.
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?
I personally don't loan out any of my bitcoins & don't plan to. A lot of people do it successfully though & earn decent interest. You need to be careful who you deal with though as there is a high probability of getting scammed.
Look for people with positive trust (click on their profile, you'll see I have a trust score of 4 (-0) (+2) which means I have 0 negative feedbacks & 2 positive so somebody like myself would usually be safe to deal with).
Try & take a collateral as a condition of the loan, there are many escrow providers around here who can advise you well. Seek out Quickseller.
Thanks for the replies.
Do people still scam if they give decent collateral? I was planning on asking for collateral with every trade anyway, I think it would push away most scammers, but not all of them...
I need some BTC first to be honest, I lost it all a while ago and have only just got back into it. Trying to trade, but my member status and ability to trust complete strangers is holding me back a little
If you are still concerned, try the escrow service that is given by trusted members. It could minimalize scam risk Do people still scam if they give decent collateral? I was planning on asking for collateral with every trade anyway, I think it would push away most scammers, but not all of them...
I need some BTC first to be honest, I lost it all a while ago and have only just got back into it. Trying to trade, but my member status and ability to trust complete strangers is holding me back a little
Thanks for the replies.
Do people still scam if they give decent collateral? I was planning on asking for collateral with every trade anyway, I think it would push away most scammers, but not all of them...
I need some BTC first to be honest, I lost it all a while ago and have only just got back into it. Trying to trade, but my member status and ability to trust complete strangers is holding me back a little
Do people still scam if they give decent collateral? I was planning on asking for collateral with every trade anyway, I think it would push away most scammers, but not all of them...
I need some BTC first to be honest, I lost it all a while ago and have only just got back into it. Trying to trade, but my member status and ability to trust complete strangers is holding me back a little
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?
If you want to loan on bitcointalk then you should use Escrow to hold collateral or something and be sure of the valueof the collateral (Take Senior members or above i'd say) , yes it's profitable but you may get scammed .
there is also Bitfinex & BTCJam which are professinoal website for loaning and stuff you could get scammed AFAIK but they will give you the informations of the loaner if it happens (that's on btcjam , not sure about bitfinex)
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