Topic: How To Safely Loan Out 5 BTC (Read 643 times)

These are the set of people you have been warned of by posters above me and they are quite right. However, there is one thing I would like to add which is NEVER BE MOVED BY EMOTIONS if you are serious about venturing inro this service because we are all humans and quite a number of people will want to play on that part of yours to tell you a lot of emotional stories, long and convincing one at that but I tell you dont be moved by it...

Ok ill look into that aswell, I completely forgot that there was a auctions board I never even have visited it before.

I would disagree. Most of the account selling is conducted on the auction board in my opinion and you are likely to get more views to your topic that way and get a faster sale. Or you could post it in both auction and digital goods just to make sure.

Alright thanks for the advice, ill go there if I ever get a default.

The digital goods section is probably your best bet. The market for accounts used to be huge due to the large number of signature campaign. With the lower number of campaigns and more campaigns with stringent account checks, it is harder to get into a campaign with a decent payout. I see an account every now and then up for sale on hackforums but it isn't popular at all.

I also have a question with lending out, if your borrower does default on your loan and they use their bitcointalk account as collateral where is the best place to then sell that collateral. Right here on the forums or is there a better place because I don't see much about selling bitcointalk accounts on this forum yet I see such definitive prices per account, let me know.

I need a loan. but I do not know how to ask. My worry was calculated deceiving.

I will return according to the agreement.

please help me. thanks.

When you are lending, make sure to allocate about 40% of what you earn to potentiale defaulters. About 1 in 8 defaults.
 You can take all the precautions you want, but you cannot predict every single defaulter. There is a reason the rate is 10% and not 5% or 2%. It is not because it is possible, but because the lenders are taking a big risk.

If the loan is with no-collateral or BCTalk accounts, the first thing you should do is to ask for a signed message. Badbear has said the burden is on the lender if the account is hacked. The same goes for no-collateral loans, you will lose 100% if it happens to be hacked.

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1.
Never take Passports or ID as valid collateral. Always something which you can obtain value from again. (Selling ID is a no-go)

2.
It depends on borrower. The collateral should always 100%, unless it is a no-collateral loan. If the coverage is less then 100% and the collateral drops in value, you could quickly lose a lot in case of a default.
The coverage should preferable be above 120% and in most cases above 125% to 130%.
 Why? The collateral can change in value and if it is a newbie requesting the loan, he might default if the value drops below 100%.

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But all of that is logic and common sense.
 Few things to look out for;
Big loans have a smaller default rate. If a sufficient collateral has been put up. They are the safest if they are taken with collateral.
Smaller loans takes more time, but provides a better interest. What is the difference between 0.002 and 0.004 in interest? Compare it to 0.02 and 0.04. People are more willing to pay bigger interest.
 When that is said, they have a bigger default rate. Accounts can easily be farmed up and defaulted on.

I hope this answered some of your questions. I would recommend to start with 0.1 BTC and then see if it is something you want to continue with.

EDIT:
As you have no trust feedback yet, I would recommend to get help from an escrow. I can provide my help, but not with big amounts. (max 0.5 BTC)
 Instead, I would recommend people like Zazarb for Cryptocurrency, SebastianJu for other stuff and ranochigo for Bitcointalk accounts.

Also make sure to look at their post history and feedback/trust feedback. If they have a huge gap between the last time they post and now (eg being away for 5-6 months then coming asking for a loan, possibly putting up their account as collateral), then they might be trying to run off with btc. Also pay attention to passwords and email changes. If they change one or the other (if not both), ask for them for a signed message with one of the addresses they've previously used here.

Also, dont dump a whole lot of btc into one loan either. If you do decide to lend out, spread things out. Make considerations base on the user history here. If anything is questionable, decline the loan or ask for clarification. Make sure you understand the risk too because there will be times where someone who looked to be trusted here could scam someone. 

Allocated some of your money for starting a lending service...., why you not just stick with your "different baskets" and earned another decent profit? You know Lending service has a big risk (loan defaulted)

You should have their valid collateral which has min 120% greater than their loan amount.

This is already explained by Vod (the guy above me was faster)

No collateral, NO loan?

1. You can decrease the chance of defaulted loans by taking collateral (but you know that already). Knowing them in person helps too but that alone isn't enough.
2. https://bitcointalksearch.org/topic/m.6311902 . Some here are also taking bitcointalk accounts as collateral. If you choose to do the same, you need to make sure that the account isn't hacked by asking for a signed message from an old posted address.
3. In addition to the points above. Having many previous trades which requires the other party to trust the potential borrower helps too.

 I have some BTC in different baskets earning me some decent profits. Now i want to start Lending BTC and i've allocated 5BTC for that. This is going to be my first time Lending Loans. However i want to be safe from people who are not going to pay me back. I'm willing to charge 10% interest for 2 Weeks.

1. What ways can i ensure that eveeryone who gets a loan from me pays it back and with interest charged, in full?
2. What would be a suitable collateral that i can request before giving out the loan.
3.What can be the ultimate qualifying criteria?

Thanks for your suggestions.