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Topic: Cryptocurrency trading with flash loans (Read 196 times)

legendary
Activity: 3500
Merit: 1162
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March 19, 2020, 03:57:36 PM
#32
Big companies love to this because they can get flash loans for basically zero interest, they get like 10 billion dollar loan, they invest into something, get back 11 billion and pay that 10 billion in a hurry and keep that 1 billion. It is basically what a leverage trading is like when you are dealing with trillions of dollars for investment in your company, there was literally one in wall street that had 1.8 trillion invested in them (before all of this started, maybe very low now).

They leverage it by loaning from FED or whoever and use it to make more money, if they lose then they pay with loss as well, so you spend zero to either make money or lose money but there is no capital required since they are big enough. We shouldn't allow them to be this free but we do, because they bribe politicians.
full member
Activity: 1190
Merit: 117
March 19, 2020, 03:47:13 AM
#31
I was very confused when I heard about trading with flash loans, because in my opinion there are no exchanges that provide these features.
The features of loans with collateral, because if without collateral existing exchanges will definitely go bankrupt. But my advice is to avoid
everything related to loans, because borrowing money means returning the money with interest. Things like that do not matter if our trading
is successful, if it fails we will experience financial problems.
legendary
Activity: 2898
Merit: 1253
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March 19, 2020, 03:17:47 AM
#30
This kind of loan transaction is uncertain,because until now almost all lenders requires proof of properties as collateral including sign of contract so its new which is unfair to other company.
There are companies allowing you to get a loan with cryptocurrency as collateral. Maybe in future we will see companies giving bitcoin loans for fiat deposits as collateral just like the banking system does. People need these loans for trading so there is a market to develop on here.

why not try Margin Trading? You can borrow funds and you can trade more than the amount that you have on your account. It is a different concept but the results were the same. I haven't heard a crypto exchange that offers that kind of services but some wallets like NEXO offers loan services but it needs crypto collateral.
The OP did not respond but I think this was what they were asking for. Leverage trading and margin trading is what was could be made out from the OP. Even then a loan shark's loan to trade is also possible.

But the more secure option for a loan shark would be to ask the borrower to borrow from the broker, that is margin.
full member
Activity: 1176
Merit: 162
March 09, 2020, 11:08:17 AM
#29
why not try Margin Trading? You can borrow funds and you can trade more than the amount that you have on your account. It is a different concept but the results were the same. I haven't heard a crypto exchange that offers that kind of services but some wallets like NEXO offers loan services but it needs crypto collateral.
member
Activity: 616
Merit: 11
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March 09, 2020, 08:37:16 AM
#28
[quote author=Mahanton link=topic=5228885.msg53932184#msg53932184 date=1582927
Hello,
Can you please give me more information about cryptocurrency trading with flash loans ?
This is a trading where taking a loan, buying coins, selling coins and returning the loan is
embedded in one transaction. I would like to know few web sites where I can do this type
of trading. Do I need to deposit cryptocurrency to take flash loans ?
[/quote]
This kind of loan transaction is uncertain,because until now almost all lenders requires proof of properties as collateral including sign of contract so its new which is unfair to other company.
legendary
Activity: 2898
Merit: 1253
Call your grandparents and tell them you love them
March 09, 2020, 02:27:54 AM
#27
I am really not familiar with Flash loan for trading. Heard first time about this kind of loans.
I also heard it for the first time. Maybe the OP is talking in the same lines as you are but using a different translator to type. What I can make out from my knowledge is leverage trading.

There is no any exchange which can do that, but if you have a high level rank on this forum you will be allowed to loan with another user in this forum.
The OP is not asking for a loan. That too could be a possibility but here it is only a discussion of taking a loan for trading. Of course there is P2P lending system but I am sure nobody who does not know the OP in person would be willing to lend them a lumpsum without securing a collateral of higher value.

I hope the OP responds to some of the posts here because basically all that could be dissected out from their post has been made.
legendary
Activity: 2898
Merit: 1068
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March 05, 2020, 08:54:48 AM
#26
I'm sure that many people are attracted by flash loans and possibility for fast investment and fast returns.
But there is a catch and you can find yourself in closed circle of losses and situation where you can't return the loan. Also, such loans requests quite a high collateral because lenders want at least some certainty and pay back guarantee.
So, I would avoid such loans and follow the rule that you invest extra money that you have and don't need without further debts.
hero member
Activity: 2464
Merit: 585
March 05, 2020, 06:30:12 AM
#25
There are some platforms where you can take a loan by keeping some amount of coins as collateral into the account. You would probably need 120%+ collateral to take a loan. This might not give you the ease to trade with that financed amount and return the profits as interest. You can try some financial institute which can loan you depending on your credit line without actually keeping any collateral.

I think, this can make you gain some profits but you should never forget that you are also bringing a lot of risk along. By any chance if you face loss in trading than you would need to pay the interest for the financial institute on your own and this can unbalance your financial life.
full member
Activity: 1358
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March 05, 2020, 05:18:24 AM
#24
I never know about this services but I'm sure only user by user who already know well doing that. There is no institution or on line site have it, if yes they will need guarantee their money will come back. There is rules is trading and investment world, never use loan money for both activity because can give you deep pressure, it will make you don't have control with emotion and passion. Don't use and stop asking that, it will bring dark future into your life.

One of the profits that many people can earn with the use of investment in the cryptocurrency and some of them at the early time realizes the use of crypto to make profit every team they make investment but still, we need to monitor the transaction we are doing with the use of it because there are some instance we can lose our money from the volatile market. As an investor for a long time and trader too always keep updated about the things happening in world trade and market prices. Also, the event because of some of the reasons why a market price is an event happening right now in the world. Also, we can make a lot of information on the internet today to monitor the activity.
full member
Activity: 1330
Merit: 147
March 04, 2020, 12:55:42 PM
#23
There is no any exchange which can do that, but if you have a high level rank on this forum you will be allowed to loan with another user in this forum.

But, since you are still newbie you can't do that. I'm really surprised when I see this thread because you are able to take at least two risk in your strategy which was said by some before me.

Seem like you are an expert to trade, right? so as you are really confident to do this thing. You may need to make a loan in real life such as through bank or someone who closest to you.
member
Activity: 294
Merit: 13
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March 04, 2020, 11:42:36 AM
#22
Hello,
Can you please give me more information about cryptocurrency trading with flash loans ?
This is a trading where taking a loan, buying coins, selling coins and returning the loan is
embedded in one transaction. I would like to know few web sites where I can do this type
of trading. Do I need to deposit cryptocurrency to take flash loans ?
I don't think that there would be a site who would have this kind of transaction or deal.
If a trader couldn't come up with a capital to trade then how could they even trust you with their money?
And how could they know if you are really going to pay them back if you lose on your trades?
legendary
Activity: 2324
Merit: 1101
March 04, 2020, 10:47:58 AM
#21
I am really not familiar with Flash loan for trading. Heard first time about this kind of loans. Only I heard some binary exchange have option for demo trading balance for learning purposes. You may take loans from some other platform, but obviously you need collateral. And more importantly I am not agree to take loans for trading purpose. It's quite risky if lost fund and most likely that's the reason why any exchange doesn't offer such as features.
Even I can't understand the concept of flash loan. It might be good if OP could elaborate what exactly he meant to say here with flash loans. Trading might show huge profits and this is what makes this kind of thought enter the minds of various people including OP but with huge profits comes huge risk.

Considering the rank of OP, I think he has newly started into the crypto space and with greed in his mind, he is willing to take a loan to perform trades and pay the loan back with the profits achieved in trading. This can give huge profits without actual investment but this might only be good for professional traders who already have gained some experience.
legendary
Activity: 2240
Merit: 2174
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March 04, 2020, 01:27:24 AM
#20
I am really not familiar with Flash loan for trading. Heard first time about this kind of loans. Only I heard some binary exchange have option for demo trading balance for learning purposes. You may take loans from some other platform, but obviously you need collateral. And more importantly I am not agree to take loans for trading purpose. It's quite risky if lost fund and most likely that's the reason why any exchange doesn't offer such as features.
sr. member
Activity: 630
Merit: 250
March 04, 2020, 12:26:27 AM
#19
Hello,

This is a trading where taking a loan, buying coins, selling coins and returning the loan is
embedded in one transaction.

This is how loan works and function but if you use it your financial will never bright anymore. There is no guarantee your strategy will success and you have possibility to get back the loan, I suggest you stay away from this one. Low interest and easy KYC become the magnet and you should realize this is disaster coming from. If you need loan try with bank, you'll get clearly rules and regulation, it will protect you from bankrupt and crime.
legendary
Activity: 3416
Merit: 1912
The Concierge of Crypto
March 03, 2020, 01:14:47 PM
#18
The current problem with flash loans is the requirement to have a reliable and trusted oracle to determine the price or market value of the coins being put up. It's not collateral, but it all happens in the same transaction so it's almost like collateral. It happened because the exploiter made the oracle think the price was lower than it actually was, so it was repaid in the same transaction at what it thought the price would be.
legendary
Activity: 2842
Merit: 1152
March 03, 2020, 01:05:37 PM
#17
Flash loan trading is more common in forex and not in crypto, it is already quite frankly risky for the exchanges to do margin trading and leverage trading and they get insurance for something that will be heavily favored and happens compared to regular crypto trading, they can't afford to do flash loan trading at all and can't force people to pay up when the time comes considering we are all over the world.

However, if you are doing forex trading with flash loans you are most probably in the same nation as the place you work with which allows them to take your KYC basically and if you fail to pay up then they will put a claim on your loan and simply sue you to pay up, we don't have that kind of thing in crypto.
legendary
Activity: 2282
Merit: 1344
Buy/Sell crypto at BestChange
March 03, 2020, 02:04:31 AM
#16
Maybe what OP meaning to say is leverage trading?
It's like a loan within trading exchange.
It's kinda possible with the term of "flash loans". If ever in the future this will happen, it should really collateral loan even it is a flash loan within trading exchange, collateral loan wil really play on thing thing if ever some exhang will make some of these.
legendary
Activity: 2772
Merit: 1112
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March 03, 2020, 01:53:44 AM
#15
I don't know whether this answer is the same as the intention of the OP.
To my knowledge Poloniex exchange has such a service, but I have never used it (I'm not recommended this)
I don't think use service like that will be good, the mental pressure is more big compared use your own money for trade.
legendary
Activity: 2898
Merit: 1253
Call your grandparents and tell them you love them
March 03, 2020, 12:42:15 AM
#14
I would not suggest any names, but there are sites that allow you to take a loan in the names of margin trading. While margin is essentially risky it gives a leverage to the trader to make more money. I don't suggest it to new users but if you are already experienced in this art then go for it but with risk management. If you don't know how to do that then don't venture into margin trading or leverage trading.

There is also the method to pawn collateral altcoins to get a loan for trading is you need - I dont know if that is what you asked in the first place. Poloniex is one which allows such trades. Also getting a loan outside and then using it to trade is also possible, but needs a bit more time to first get the loan.

Of course you risk your account and it's deposited money in case you are not able to make the money back.
hero member
Activity: 2590
Merit: 644
February 29, 2020, 03:04:28 PM
#13
When it comes to cryptocurrency, anything that has to do with loans, you must give a collateral for it and the collateral you’re giving is your cryptocurrency which will be an amount that is worth what you’re about to borrow.
^ Collateral is one of the most important if we are taking a flush loan from an exchange. Nobody will easily trust people and eventually, a business that has a loan will not long last if without collateral. But why you are planning to have a loan if you are in trading? Trading is a sort of gambling, so your capital must be affordable at you.
Nevertheless, I read this article two days ago but this is not an exchange platform, it is decentralized finance that has flash loans without collateral, https://news.bitcoin.com/defi-flash-loans/ (already introduced above)
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