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Topic: Cryptocurrency trading with flash loans (Read 201 times)

legendary
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March 19, 2020, 02:57:36 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, 02:47:13 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
So anyway, I applied as a merit source :)
March 19, 2020, 02:17:47 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
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March 09, 2020, 10:08:17 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
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March 09, 2020, 07:37:16 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
So anyway, I applied as a merit source :)
March 09, 2020, 01:27:54 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: 2912
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March 05, 2020, 07:54:48 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: 2562
Merit: 586
March 05, 2020, 05:30:12 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
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March 05, 2020, 04:18:24 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, 11:55:42 AM
#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
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March 04, 2020, 10:42:36 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: 2464
Merit: 1102
March 04, 2020, 09:47:58 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: 2394
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March 04, 2020, 12:27:24 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: 658
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March 03, 2020, 11:26:27 PM
#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
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March 03, 2020, 12:14:47 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: 3052
Merit: 1188
March 03, 2020, 12:05:37 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: 2506
Merit: 1394
March 03, 2020, 01:04:31 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: 2814
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March 03, 2020, 12:53:44 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
So anyway, I applied as a merit source :)
March 02, 2020, 11:42:15 PM
#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, 02:04:28 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)
sr. member
Activity: 980
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February 29, 2020, 01:59:46 PM
#12
I agree with most of you that usually loans rely on some sort of collateral, however flash loan services where no collateral is required has also been experimented on.

According to what I read Decentralised exchange (defi) flash loans did use to exist a few months ago.
The platform offering this service was Bzx but because the process did not go smoothly (you can read more about it here: https://news.bitcoin.com/defi-flash-loans/ ) now due to the exploitation potential of no collateral loans as far as I know there're currently no more defi platforms up and running Sad
sr. member
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February 29, 2020, 12:53:00 PM
#11
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. And then I’m a type of person that doesn’t like taking loans because I’m afraid of what might happen after you have taken the loan.

Trading with a borrowed is quite some risk, how do you even whether you’re going to make profit or lose the money? You don’t even know about that for sure, so it’s a big risk. There are still companies that can give cryptocurrency loans if you want, like Nexo.io.
hero member
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February 28, 2020, 05:10:58 PM
#10
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 ?
Based on my experience after all these years i dont encounter such platform that loans and trading have collaborated.
Actually got confused on what you are seeking on or just simply you want just to get loan or something? Grin
Im quite sure that i do have seen some similar thread asking for some flash loan but that one do tell or ask
to obtain it without collateral which is  pretty hard unless if youre a trusted guy to the community but you do able to get one.
For  trading platforms offering such loan thing then it doesnt exist.
hero member
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February 28, 2020, 04:09:26 PM
#9
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 ?

Flash loan is still a new service, and it encountered some difficulties in it early stage. I wonder why you want to try it now. It's probably available on Ethereum Defi. I am not sure though if the service is still running after the defi flash loan issue.

This kind of service will not able to sustain longer, since it was very prone of scam and fraud customers who wouldn't provide an honest intentions. Cryptocurrency loan together with trading is riskier compared with other types of services, because they're both potential of becoming compromised in the future.
Most probably, this kind won't stay longer in operation, unless every registered customers provide their individual crypto deposits as collateral.
I supported what you said about the flash loan not to last long because the protocol is already been compromise slightly cause some hackers was said to use it as a strategy to scam people.
With that been said, i hope the OP have the require knowledge in arbitrage trading because alot of people have make losses through the act of flash loan
hero member
Activity: 1498
Merit: 586
February 28, 2020, 03:26:28 PM
#8
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 ?

Flash loan is still a new service, and it encountered some difficulties in it early stage. I wonder why you want to try it now. It's probably available on Ethereum Defi. I am not sure though if the service is still running after the defi flash loan issue.

This kind of service will not able to sustain longer, since it was very prone of scam and fraud customers who wouldn't provide an honest intentions. Cryptocurrency loan together with trading is riskier compared with other types of services, because they're both potential of becoming compromised in the future.
Most probably, this kind won't stay longer in operation, unless every registered customers provide their individual crypto deposits as collateral.
hero member
Activity: 1876
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February 28, 2020, 03:12:11 PM
#7
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 ?

No website will give you a loan without collateral. Loan lenders must ask collateral, for security reason. I don't think there is any such platform that you are looking for. And it is not fair to trade crypto currency with a loan. It may even be that you lose all your money. If you have extra money try to trade with it. Which will be good for you
legendary
Activity: 2702
Merit: 4002
February 28, 2020, 02:29:25 PM
#6
You want an easy way to get money without even having capital, the method you mentioned is closest to Gambling as the only profit made there is based on luck and nothing else.
What will happen if the price drops? Can't pay off the loan? There must be a guarantee with a higher value than the deal.
If you have this collateral, why not borrow using fiat money, invest and then return the loan amount.

Note:
Trading in cryptocurrencies with borrowed money is a high-risk investment and may cause you to lose that money and increase your debt.
Ucy
sr. member
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February 28, 2020, 08:58:50 AM
#5
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 ?

Flash loan is still a new service, and it encountered some difficulties in it early stage. I wonder why you want to try it now. It's probably available on Ethereum Defi. I am not sure though if the service is still running after the defi flash loan issue.
full member
Activity: 1904
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February 27, 2020, 05:47:55 PM
#4
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 exchange site owners would offer this kind of loan idea on their customers, because these days scammers and other fraud activities is rampantly happening. That's how worst is this kind of platform would be implemented, and people would be tempted to take advantage on a certain offer without being liable due to act of cheating on different perspective.

I have never encountered one also. Most of the time, they require some sort of collateral. You can't find exchanges that will do such flash loans. It is not an advantage on their end. If that exists, that exchange will be a bankrupt by now because of these abusive users.
sr. member
Activity: 1484
Merit: 253
February 27, 2020, 05:45:04 PM
#3
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 exchange site owners would offer this kind of loan idea on their customers, because these days scammers and other fraud activities is rampantly happening. That's how worst is this kind of platform would be implemented, and people would be tempted to take advantage on a certain offer without being liable due to act of cheating on different perspective.
legendary
Activity: 2660
Merit: 1261
February 27, 2020, 05:40:26 PM
#2
None one of the websites has the ability to do that kind of loan.

Some platform exchange could have a feature loan but you need to put collateral as a guarantee for taking the loans, they cant do trading and loan activity with a single transaction. Because it's no guarantee the trading could be successful trading, also you have some chance lose went do the trading. Another reason you must send back the money loans with the same amount you take the loans just thinking if some people can do that kind of loan and the trading was to lose the loans process with trading activity would get the process with some lose situational trading activity. Don't forget taking loans have some time to return the loans with the same amount + the interest loans.
newbie
Activity: 5
Merit: 1
February 27, 2020, 07:16:59 AM
#1
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 ?
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