Earning Interest with Bitcoin? - page 9.

adzino

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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%?

Not sure about binance (you sure it's 10%? That is a very high interest rate!), but yeah it is possible to lend bitcoin and receive interest just like banks. But one big problem, you will need to trust the person who you are lending. There is always a chance that the person whom you lent your bitcoin might run away and scam you. In fact tons of people will try to do the same. Since the system is totally decentralized, there is no way anyone can guarantee you that you will get back your coins or the interest. Though you can always use an escrow and ask for collateral. But escrows can go rogue too.

figmentofmyass

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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%?

it's a pretty risky business. here are a couple past horror stories re bitcoin lending:
-a few months ago, poloniex allowed the CLAM market to become over-leveraged. a flash crash wiped out borrowers and left a huge deficit. lenders lost a total of 1800 BTC, 10% of which poloniex paid back. https://bitcointalksearch.org/topic/poloniexs-taking-money-from-its-customers-to-cover-its-loss-5151636
-the infamous inputs.io/coinlenders hack, where hot wallet users and lenders alike lost several thousand bitcoins. https://bitcointalksearch.org/topic/coinlenders-inputsio-tradefortress-hack-328053

there are other cases i'm sure. just keep in mind, you better be getting really high returns to justify the 3rd party risk.

jerry0

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Well if you can lend bitcoin, are you giving you interest in bitcoin? Example you lend 1 btc... they pay you back like 1.05 btc?

serjent05

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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%?

There had been services like this and you can check this site https://cryptomaniaks.com/best-bitcoin-lending-sites but it seems Binance have bigger interest since Nexo gives 8% interest, Blockfi gives 6.2% interest on BTC and 3.3% interest on ETH and Celsius Network gives 8%.

teosanru

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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%?

Actually Binance is doing this because they are lending that money ahead to traders at higher rates. Advantage to Binance is that margin money provided for trading is almost at zero risk because liquidation price is set in such a way that the exchange never suffers any loss. So Binance themselves are earning a huge chunk of Interest and distributing merely like 10-15%. It's possible for exchanges to do so but outside that world it's never possible because there will be a list of people wanting their money back but zero people who will willfully come back to return their loans. If they don't then the intermediary will run at a risk of getting bankrupted as they can do nothing about this.

Dabs

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It is possible with a few different companies, but you run the risk of them going out of business or outright not allowing you to withdraw. Remember, not your keys, not your coins.

jerry0

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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%?

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