Topic: How secure is Poloniex lending? (Read 6576 times)
Who ever is posting rates under .5% is retarded and this is why the old finance sector goes to such lengths to keep the poor and dumb out. With out the lenders there is no Margin trading. All the lenders have to do is get together and set a minimum standard rate on their loans and their is nothing the borrows can do about it.
I think margin lending in poloniex could be considered as safer because borrower will get 2.5x of his total bitcoin as loan only when he decide to short or long any coin. So even if the price get dumped hard, poloniex will automatically liquidate borrower account to recover the loan amount and also fee poloniex takes on margin trading. I don't think their lending is as risky as in other bitcoin lending platform.
Poloniex will guarantee it, I mean when borrowers borrow funds there guarantee which detained by the poloniex so that the lender will feel safe.so its safe to lend right ?
correct me if i am wrong because i have never used this feature but the way i see it is this way:
- people borrow money on poloniex for trading, right?
- so imagine someone borrows 1BTC from you and promises to return it with profit 1BTC+profit in a week.
- then he buys xyz coin @0.01BTC so he has 100 xyz
- the next couple of days xyz coin gets dumped real hard that the price goes down 50% down to 0.005BTC and we all know this happens so often in altcoins.
- now your 1BTC is turned into 0.5BTC since the borrower can no longer pay you back he leaves poloniex and never comes back to his account ever again
* now what are you going to do?
Polonex will issue a margin call prior to the borrowers account reaching a zero equity status, and will force liquidate a borrowers position before the borrower is anywhere near zero equity. Polo also only allows for margin lending for a few select altcoins with generally high licquidity. - people borrow money on poloniex for trading, right?
- so imagine someone borrows 1BTC from you and promises to return it with profit 1BTC+profit in a week.
- then he buys xyz coin @0.01BTC so he has 100 xyz
- the next couple of days xyz coin gets dumped real hard that the price goes down 50% down to 0.005BTC and we all know this happens so often in altcoins.
- now your 1BTC is turned into 0.5BTC since the borrower can no longer pay you back he leaves poloniex and never comes back to his account ever again
* now what are you going to do?
There is the risk that Polonex could get hacked and there is also the risk that Polonex's risk management policies are insufficient to prevent lenders from loosing money in the event of a very quick crash in price of a coin.
Okay thanks, this is exactly what I was expecting. The only risk you have is that Polo is going offline or got hacked. In my opinion, 15% is not actually much.
The only risk is Polo going down, getting hacked or something related to the exchange. Margin lending s safe, no chance lender can steal your money. However, profitability s questionable, Polo takes 15% from your profits. Very soon u ll figure out you can't make anything significant that way.
I think margin lending in poloniex could be considered as safer because borrower will get 2.5x of his total bitcoin as loan only when he decide to short or long any coin. So even if the price get dumped hard, poloniex will automatically liquidate borrower account to recover the loan amount and also fee poloniex takes on margin trading. I don't think their lending is as risky as in other bitcoin lending platform.
Poloniex will guarantee it, I mean when borrowers borrow funds there guarantee which detained by the poloniex so that the lender will feel safe. 
I think margin lending in poloniex could be considered as safer because borrower will get 2.5x of his total bitcoin as loan only when he decide to short or long any coin. So even if the price get dumped hard, poloniex will automatically liquidate borrower account to recover the loan amount and also fee poloniex takes on margin trading. I don't think their lending is as risky as in other bitcoin lending platform.
With ALL financial instruments there is always a risk, and no I can't say if it is bigger or smaller then other interest, but i can say that i don't use those instrument.
I prefer safety and safe investments, spending a few btc in altcoin is as far as I will get.
I think margin lending in poloniex could be considered as safer because borrower will get 2.5x of his total bitcoin as loan only when he decide to short or long any coin. So even if the price get dumped hard, poloniex will automatically liquidate borrower account to recover the loan amount and also fee poloniex takes on margin trading. I don't think their lending is as risky as in other bitcoin lending platform.
The lender won't lose his money while lending for margin trading. This is applicable not only to polo but all margin lending sites. There are several factors that imply this. However, you can't get big profit by lending. However it is safe.
Don't spread lies. Seems like an echo of previous posts, which means that you should know from reading the first few that the lender could lose his money. What if Poloniex goes cryptsy? What if the collateral coin crashes and there aren't enough buy orders to liquidate it, and the margin coin also crashes? 
The lender won't lose his money while lending for margin trading. This is applicable not only to polo but all margin lending sites. There are several factors that imply this. However, you can't get big profit by lending. However it is safe.
crazyivan is right , poloniex lending is safe cause the money is only used for trading and the borrower can't withdraw them
so you can consider it a safe investment unless polo got hacked or shut down
and the rates these days are really low for btc , it was way better previously
but if you are holding an alt and you want to grow it without bothering with trading then you can go for it , cause the alts rate is good when there are some pumps
so you can consider it a safe investment unless polo got hacked or shut down
and the rates these days are really low for btc , it was way better previously
but if you are holding an alt and you want to grow it without bothering with trading then you can go for it , cause the alts rate is good when there are some pumps
I am considering to try the lending feature of Poloniex for the first time. I read all the stuff that is available for the feature. It seems very risk-free (except the fact that Polo could be hacked and lose balances). Besides from this, is there any risk what I did not see?
i think its a another way to make profit although many member would not agree with my opinion. i am lending my btc and other coins, and i don't expected to get much in a short time. for me, its like an investment that can give other profit and i think polo is a good site. the only problem is polo often get DDOS by unknown people. but i think for polo itself, they will fix and secure their site, just to give safe for their member.
I tried lending at poloniex.
Poloniex lend funds to people who want to do margin trading, and they do a margin call when investor open position goes bad, preventing the investor to be unable to repay lended funds.
So if poloniex is ok (i mean no hacking or thinks like that) than i think lending is safe too.
But the real problem is that lending profit is very very low. I don't do it anymore because of this.
Anyway you could try it with a small amount, so you could figure out if it's what you are looking for.
Have a nice day.
I am considering to try the lending feature of Poloniex for the first time. I read all the stuff that is available for the feature. It seems very risk-free (except the fact that Polo could be hacked and lose balances). Besides from this, is there any risk what I did not see?
Profit is too damn low. Tried it and its not worth it
If your going on a vacation or something, putting your Bitcoin to work from loans can be a good idea especially if it's done automatically.
I am considering to try the lending feature of Poloniex for the first time. I read all the stuff that is available for the feature. It seems very risk-free (except the fact that Polo could be hacked and lose balances). Besides from this, is there any risk what I did not see?
Profit is too damn low. Tried it and its not worth it
correct me if i am wrong because i have never used this feature but the way i see it is this way:
- people borrow money on poloniex for trading, right?
- so imagine someone borrows 1BTC from you and promises to return it with profit 1BTC+profit in a week.
- then he buys xyz coin @0.01BTC so he has 100 xyz
- the next couple of days xyz coin gets dumped real hard that the price goes down 50% down to 0.005BTC and we all know this happens so often in altcoins.
- now your 1BTC is turned into 0.5BTC since the borrower can no longer pay you back he leaves poloniex and never comes back to his account ever again
* now what are you going to do?
I will take the person who took the loan's collateral (another altcoin) and hope that the person who lost it can afford the loss. What else is there to do? No point getting their contact info, sueing them, e.t.c when you can just take his/her collateral and get all your money back. The only event where you would lose is if either Polo gets hacked/funds stolen, or if both the collateral and the altcoin invested in crash, and the collateral no longer covers the loan amount. This is highly unlikely, as polo also has it set up so if the person who took the loan's collateral reaches a certain percentage of the loan amount, enough is sold to repay the loan. - people borrow money on poloniex for trading, right?
- so imagine someone borrows 1BTC from you and promises to return it with profit 1BTC+profit in a week.
- then he buys xyz coin @0.01BTC so he has 100 xyz
- the next couple of days xyz coin gets dumped real hard that the price goes down 50% down to 0.005BTC and we all know this happens so often in altcoins.
- now your 1BTC is turned into 0.5BTC since the borrower can no longer pay you back he leaves poloniex and never comes back to his account ever again
* now what are you going to do?
I tried lending at poloniex.
Poloniex lend funds to people who want to do margin trading, and they do a margin call when investor open position goes bad, preventing the investor to be unable to repay lended funds.
So if poloniex is ok (i mean no hacking or thinks like that) than i think lending is safe too.
But the real problem is that lending profit is very very low. I don't do it anymore because of this.
Anyway you could try it with a small amount, so you could figure out if it's what you are looking for.
Have a nice day.
The only risk is Polo going down, getting hacked or something related to the exchange. Margin lending s safe, no chance lender can steal your money. However, profitability s questionable, Polo takes 15% from your profits. Very soon u ll figure out you can't make anything significant that way.
15% is fine as long the funds were invested is quite high,we still got the rest which about 75% so it's definitely not wrong,and the one who offer this services and provide all the needs is polo,but if the money were invested is just very little,forget it,only wasting the time 
In my opinion the risk of lending on trading is we can not control our emotion, because if we use margin trading our emotion are unstable and we will out from rules of trading who make profit rutine. And i think poloniex is secure there are not find problem from people who use margin trading on there.
The only risk is Polo going down, getting hacked or something related to the exchange. Margin lending s safe, no chance lender can steal your money. However, profitability s questionable, Polo takes 15% from your profits. Very soon u ll figure out you can't make anything significant that way.
correct me if i am wrong because i have never used this feature but the way i see it is this way:
- people borrow money on poloniex for trading, right?
- so imagine someone borrows 1BTC from you and promises to return it with profit 1BTC+profit in a week.
- then he buys xyz coin @0.01BTC so he has 100 xyz
- the next couple of days xyz coin gets dumped real hard that the price goes down 50% down to 0.005BTC and we all know this happens so often in altcoins.
- now your 1BTC is turned into 0.5BTC since the borrower can no longer pay you back he leaves poloniex and never comes back to his account ever again
* now what are you going to do?
- people borrow money on poloniex for trading, right?
- so imagine someone borrows 1BTC from you and promises to return it with profit 1BTC+profit in a week.
- then he buys xyz coin @0.01BTC so he has 100 xyz
- the next couple of days xyz coin gets dumped real hard that the price goes down 50% down to 0.005BTC and we all know this happens so often in altcoins.
- now your 1BTC is turned into 0.5BTC since the borrower can no longer pay you back he leaves poloniex and never comes back to his account ever again
* now what are you going to do?
Jump to: