Earning Interest with Bitcoin? - page 5.

apoorvlathey

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Quote from: jerry0 on October 14, 2019, 12:10:46 PM

Just to confirm. If you lend binance 1 btc... as long as you extend it every 2 weeks, you are guaranteed 1.03 btc at the end of 1 year? Or not because its not like a bank and not insured?

That sounds pretty crazy. If someone has like 10 btc, they are gettin back 10.30 btc a year just for letting binance hold it? Wouldn't that mean ppl who have a good amount probably should do that as oppose to keep it in their wallets? Or there is still lot of risk in this?

It has been a pretty general notion with the crypto community to hold all our coins under full control without the involvement of thrid party.
So, storing such high amounts on any exchange is a complete no. Numerous exchanges have been hacked in the past.
You must invest only that amount that you can afford to lose. And putting such high amounts of bitcoins, possibly entire earnings is not the right decision.

jerry0

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Just to confirm. If you lend binance 1 btc... as long as you extend it every 2 weeks, you are guaranteed 1.03 btc at the end of 1 year? Or not because its not like a bank and not insured?

That sounds pretty crazy. If someone has like 10 btc, they are gettin back 10.30 btc a year just for letting binance hold it? Wouldn't that mean ppl who have a good amount probably should do that as oppose to keep it in their wallets? Or there is still lot of risk in this?

Edraket31

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Quote from: jerry0 on October 14, 2019, 11:16:07 AM

Quote from: tsaroz on October 13, 2019, 09:19:24 AM

Quote from: jerry0 on October 11, 2019, 02:52:20 PM

Is this possible? Example you lend bitcoin to something similar to like a bank and they give you interest on it? Like how now they give you 2% interest?

I heard binance is doing something similar like that but it was like 10%?

Binance so far is providing 3% on bitcoin lending. They provide 10% for stablecoins and upto 14% for BNB. Such lending expires in 14 days and you can easily extend them manually a few hours after they have expired. If you missed the schedule, you need to wait some more days where your money would lie without interest. Many other financial services like Nexo and Celcius also provides long term 8% for stablecoins.

Can you explain this? How does that work? So you telling me say you lend 1 btc to binance, every 14 days, you need to extend it manually. Do it for 1 year... then your 1 btc will now be 1.03 btc... is that correct?

Yes, that's correct, its just like you are staking your fund, there are also some exchange who does staking just like BitForex too (which is a great exchange too), and they provide staking in simple way.

Here are some info and links that could help you, please refer for you to learn more:

Binance https://www.binance.com/en/lending
BitForex https://support.bitforex.com/hc/en-us/articles/360032189391-Simple-Staking-Passive-Income-Program

jerry0

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Quote from: tsaroz on October 13, 2019, 09:19:24 AM

Quote from: jerry0 on October 11, 2019, 02:52:20 PM

Is this possible? Example you lend bitcoin to something similar to like a bank and they give you interest on it? Like how now they give you 2% interest?

I heard binance is doing something similar like that but it was like 10%?

Binance so far is providing 3% on bitcoin lending. They provide 10% for stablecoins and upto 14% for BNB. Such lending expires in 14 days and you can easily extend them manually a few hours after they have expired. If you missed the schedule, you need to wait some more days where your money would lie without interest. Many other financial services like Nexo and Celcius also provides long term 8% for stablecoins.

Can you explain this? How does that work? So you telling me say you lend 1 btc to binance, every 14 days, you need to extend it manually. Do it for 1 year... then your 1 btc will now be 1.03 btc... is that correct?

whtchocla7e

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I regularly trade on binance, which makes me a profit of 3-5% per day from the initial capital of 2k5 dollars. You should try this method. Besides, stay away from margin, I lost a lot of money because of it. Great risks and profits.

joniboini

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Quote from: jerry0 on October 13, 2019, 02:44:16 PM

I'm confused with this. You say its a risk from both sides. So you as lender lend bitcoin. Price of bitcoin goes up and borrower will benefit from it. But if the lender only plans to hold and doesn't not plan to sell soon, how does that matter to the lender? So it benefits buyer because the profit they make from bitcoin going up means with the interest they pay the lender, its usually good enough to overcome the rate they are borrowing at?

I think you guys should use one value to measure the profit or the loss. In the first scenario, you say it's a risk because you count it on fiat, but in the second scenario, you count it on Bitcoin.

Most of the time, lender and borrower will make a deal to avoid such a confusing situation, either stick to BTC or use fiat to count how much the borrower lends. I'd rather go with Bitcoin instead of calculating it with fiat, so my Bitcoin will increase even if the price decrease a little bit.

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Quote from: kooboat on October 13, 2019, 06:47:58 PM

Yeah, it is very possible since there are many services that deals with lending and borrowing of bitcoin. You just need to be careful since most of the sites that deals with such online lending service are scam. Don't follow any link you have little knowledge about and end up getting defrauded of your funds.

Do research and risk on your own, that's a really good idea. Because of that, I think many people will be able to earn a big interest in it and also many people will now be able to get interested to invest in bitcoin as well. Indeed, you can't scam if you know how to dig more research about them. In that way, bitcoin will be more popular all over the world and it can boost the economy of a country.

kooboat

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Yeah, it is very possible since there are many services that deals with lending and borrowing of bitcoin. You just need to be careful since most of the sites that deals with such online lending service are scam. Don't follow any link you have little knowledge about and end up getting defrauded of your funds.

jerry0

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Quote from: DabsPoorVersion on October 13, 2019, 12:11:03 AM

Quote from: cryptoknightt on October 12, 2019, 11:43:29 PM

Quote from: Genemind on October 12, 2019, 10:43:12 PM

It's possible especially if you will lend it to people who are into crypto. However, you should think of the risks that you might be facing. Crypto is volatile so there's no guarantee that they could return the Bitcoin that they have borrowed in time. You should lend it with the trusted people that you know. Why don't you invest and do trading using your bitcoins rather than lending it? I think that would be more profitable.

when you borrow with the cryptocurrency method it will create confusion when repayments, for example now you are borrowing $100 in exchange for the price of bitcoin in the current market conditions is high, whereas if you return with usd then the one giving the loan will lose because the bitcoin price falls, borrowers will profit when prices rise.

Its a risk from both sides. Lender will be at risk if the price of bitcoin will increase and borrower will be at the benefit of it.
Vice versa when bitcoin will decrease its price, borrower can easily pay even with interest if its lower than the time he borrows, lender will be at lost if he received the payment when its price is lower than the time he lend it.

I'm confused with this. You say its a risk from both sides. So you as lender lend bitcoin. Price of bitcoin goes up and borrower will benefit from it. But if the lender only plans to hold and doesn't not plan to sell soon, how does that matter to the lender? So it benefits buyer because the profit they make from bitcoin going up means with the interest they pay the lender, its usually good enough to overcome the rate they are borrowing at?

Also if you lend btc to binance or some site, how are you getting paid in interest? Example you lend 1 btc. So do you get paid in btc interest like 0.1 btc or 0.03 btc or is it in usdt? How long can you lend 1 btc for? Say you want to lend 1 btc for 1 year, how much interest will you get and how are you getting paid? Like is it after 1 year, okay now you get back 1.1 btc back? Lets just assume you have no plans to sell that 1 btc the entire year so you willing to lend it.

traderethereum

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Quote from: jerry0 on October 11, 2019, 02:52:20 PM

Is this possible? Example you lend bitcoin to something similar to like a bank and they give you interest on it? Like how now they give you 2% interest?

I heard binance is doing something similar like that but it was like 10%?

Please take a look at the image below:

The rate is too small in the lending section in poloniex. The rate means you will get the interest for 0.0027% for bitcoin amount you offers to traders.
But the annual rate is bigger.
I change Duration in 30 days so it will run by itself until the traders close the loan.
Sometimes, if bitcoin price moves fast, increase or decrease, the rate will increase too, and you will get some nice interest in your wallet.
But this time, it seems, bitcoin price is not moving so fast, I mean, the price does not increase or decrease too high or low, so the rate is not too big.
But if on the other day, the price is getting a pump or dump, the rate will change, and traders will take a loan from you.
I already give an offer to traders at one rate, and I don't mind to wait for a long time to see my offer is fill because it depends on the market condition.
You can try too in poloniex.
I don't know in Binance because I don't try on their site.

tsaroz

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Quote from: jerry0 on October 11, 2019, 02:52:20 PM

Is this possible? Example you lend bitcoin to something similar to like a bank and they give you interest on it? Like how now they give you 2% interest?

I heard binance is doing something similar like that but it was like 10%?

Binance so far is providing 3% on bitcoin lending. They provide 10% for stablecoins and upto 14% for BNB. Such lending expires in 14 days and you can easily extend them manually a few hours after they have expired. If you missed the schedule, you need to wait some more days where your money would lie without interest. Many other financial services like Nexo and Celcius also provides long term 8% for stablecoins.

matchi2011

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Quote from: dimastegar on October 13, 2019, 08:10:52 AM

I have never invested my money in a lending program. Even if Binance promises a 10% interest, I won't be interested. Because the risk is too big for small bag holders like me.

Risk is everywhere I guess. But if you personally not feeling good about it there's no need to push yourself instead move to another venue of investment. You can go with trading or investing with other business. Lending business always possible for people who can cater the risk and handle good money management. Your willingness to proceed is the key to success to any venue of investment that you'll going to take.

Dabs

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Interestingly, you could also be an operator or owner of some gambling site, grab a small portion of the bankroll, and loan those out for a lower rate to people, who of course should pay back and is also backed by collateral. But that in itself is already a calculated risk... Banks do this all the time, they lend money they don't really own. They are custodians. It's a business after all.

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Quote from: Daniel91 on October 12, 2019, 09:37:54 AM

I have come across such offers several times but have not accepted.
First of all, bitcoin is not regulated in my country and there is no legal protection in such offers.
And second, why borrow bitcoin and risk because of 2-3% interest if I can just hold bitcoin and earn much more.
I'd rather deposit some of my crypto earnings into an investment fund, completely legal and in accordance with the law, and wait for safe earnings.

You are mistaken. Those interest rates are yearly interest rates against bitcoin, not against fiat. The idea is if you lent someone 100 BTC in Jan, by the end of Dec you would end with 102~104 BTC.

But of course there is no State protection, you are risking your coins when you lent it to others. If you do it in an exchange you just hope that exchange doesn't go bankrupt.

What you say implies exchange into fiat, and there you have all the traditional methods and there is no point comparing.

Indeed something like 10% yearly for bitcoin is way too high, i find it highly suspicious to say the least. Its not impossible to briefly see this when margin traders go crazy sometimes, but its not like you lent them for a whole year, two months is the maximum i have seen but you most likely end with a 2 day thing at best. And then 2 days later the interest goes down to like 2%, on average it goes around 4ish like the gambling sites offer.

Indeed any positive interest rate against a deflationary coin is quite high, and usually risky. Collateral helps, i suppose.

dimastegar

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I have never invested my money in a lending program. Even if Binance promises a 10% interest, I won't be interested. Because the risk is too big for small bag holders like me.

uray

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Quote from: jerry0 on October 11, 2019, 02:52:20 PM

Is this possible? Example you lend bitcoin to something similar to like a bank and they give you interest on it? Like how now they give you 2% interest?
I heard binance is doing something similar like that but it was like 10%?

Dabs have given you the exact reason why you nor anyone should do things like that sending your coins to a third person on the pretext to get interest or incentives, you cannot trust a third person or company to get hold of your coins, i have seen many promising exchanges come and go in the short history of bitcoin and majority have gone down because of hacks and the users are the one suffering.

taiwww

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Quote from: jerry0 on October 11, 2019, 02:52:20 PM

Is this possible? Example you lend bitcoin to something similar to like a bank and they give you interest on it? Like how now they give you 2% interest?
I heard binance is doing something similar like that but it was like 10%?

Giving fixed return on Bitcoin is hoax. The only possible way to get returns on bitcoin investment is bankroll. Invest in bankroll of some renowned gambling site and when they make profits, you will get the share too in form of fixed returns over time. It is not much but acceptable.

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Quote from: Wawa2013 on October 13, 2019, 12:41:28 AM

Just heard me if Binance did an idea like a bank, by giving interest to anyone who lends bitcoin, and with what time period to get profit 10%? There must be a certain period as we deposit in the bank and get profit every month? Or maybe according with amount of bitcoin that we save for Binance?
Everything is still unclear and where this information?

The annual rate of the bank is lower than in crypto I think and it depends on what country you are in but I can tell that 10% is quite high although it is not fiat but that's still too much if you compare it to fiat. Lending money might be profitable but it takes a lot of time before you get it and it might not be worthy if you are an active trader. But I'd like to know more about of this lending thing of Binance.

Wawa2013

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Just heard me if Binance did an idea like a bank, by giving interest to anyone who lends bitcoin, and with what time period to get profit 10%? There must be a certain period as we deposit in the bank and get profit every month? Or maybe according with amount of bitcoin that we save for Binance?
Everything is still unclear and where this information?

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Earning money with bitcoin by staking maybe you can check bianance exchange market, before joining binance staking you canlooking for which one altcoin have stable coin for staking and check how many percent for every coin give staking every month, after getting which one coin give higher amount for every month you can check how stable coin want to you stake, you have faced with less rink to stake altcoin with lower price for the future to earn your money with bitcoin holding.

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