Topic: Is crypto lending really that great? - page 2. (Read 281 times)
Don't get things twisted, to lend coins you have to have collateral but honestly it's not advisable, crypto market can't be predicted, what will happen in the next hours can be the unexpected, newbies most especially most take their eye off lending crypto
It's great because the requirements are not tough as the banks but you need to make sure that you have the collateral. And that collateral shouldn't be just anything which you think can used as a collateral but, it should be something valuable.
Because these exchanges or lending platforms can fairly assess the assets but expect that the favor is with them. You can't expect to loan exact amount as your collateral, they'll only give lower than that value.
Because these exchanges or lending platforms can fairly assess the assets but expect that the favor is with them. You can't expect to loan exact amount as your collateral, they'll only give lower than that value.
Crypto lending sites I knew few years ago normally use cryptocoins/crypto-assets as collateral. I wonder if it's still done today.
It should be possible in Crypto future to use physical assets that are located "anywhere" in the world as collateral if the assets can be safely locked with things like private keys at some safe and crypto-community "certified" locations then escrowing the private keys in encrypted form, which can be automatically/manually released based on smart contract agreements.
I don't see any advantage from traditional loans though, perhaps the processing time and paper works, but it is still a loan, a money that you have to pay. It's that crypto loan is the new thing for now, that's why it seems very positive at the beginning. Even in this community you can simply make a lot, short or even loan term. So for me, will be the same, if you can stay away from taking a loan, then that's the best advise if my opinion.
And normally these crypto lending platforms require some sort of collateral like btc or eth. One time, I saw a crypto lending platform here asking for a collateral higher than what you are taking. So why would you take a loan if they want a bigger collateral, right? Most of them are scammers, better take a loan from reputable members here that are offering this kind of service rather than this crypto lending platforms. They are not great by any means. Just my 2 cents.
I don't see any advantage from traditional loans though, perhaps the processing time and paper works, but it is still a loan, a money that you have to pay. It's that crypto loan is the new thing for now, that's why it seems very positive at the beginning. Even in this community you can simply make a lot, short or even loan term. So for me, will be the same, if you can stay away from taking a loan, then that's the best advise if my opinion.
I agree that there are a lot of advantages in crypto lending, especially concerning being easier, cheaper and faster, but let's not forget that crypto world is still small and very risky... we have seen huge price fluctuations, projects vanishing, scams, etc... it will not be easy for people to go into debt without feeling safe about the value they are getting...
A couple of years back, one friend of mine is in financial trouble and he wants to loan cryptocurrency from me. To be honest, I think it’s not a good idea for me to lend him cryptocurrency due to the volatility where bears dominated in the Great Bitcoin Crash.
What I did is that I converted my BTC to digital local currency and withdraw it to my bank with a small transaction fee and lend it to him. The unlucky thing for me is that because he was too dependent in the bounties that he joined and may want to use it to pay me back. The bounties that he joined are nothing but scraps as it is kinda mixed of failed and abandoned campaigns, exit scams, etc.
Until now he can’t pay me back because of struggling to cope up with finances, so he surrendered to me all of his private keys and other information as “collateral”. However, that won’t be enough. It would be just great if you can handle risk management. Of course, I could handle it well because of diversifying my income sources.
What I did is that I converted my BTC to digital local currency and withdraw it to my bank with a small transaction fee and lend it to him. The unlucky thing for me is that because he was too dependent in the bounties that he joined and may want to use it to pay me back. The bounties that he joined are nothing but scraps as it is kinda mixed of failed and abandoned campaigns, exit scams, etc.
Until now he can’t pay me back because of struggling to cope up with finances, so he surrendered to me all of his private keys and other information as “collateral”. However, that won’t be enough. It would be just great if you can handle risk management. Of course, I could handle it well because of diversifying my income sources.
Crypto lending is really a great opportunity as well as a great risk of losing money.But not for all who are experienced and analysis based trader they can lend cryptocurrency.But for newcomers in crypto they should avoid lending because crypto lending without risk management or experience is like suicide.So first be technical analyst then lend crypto if you want.
Cryptocurrency lending has the potential to take over the loans industry as we know it.
I'm not convinced about this.
Normally one gets a loan in the currency he earns, so he can avoid unnecessary risks caused by the price fluctuations. And for now there are not so many people that earn crypto for they every day jobs.
Then unless somebody is long term holder, he may not have the correct collateral. And if he's a long time holder,.. he may not need the loan.
Also in theory crypto price is rising while fiat value is falling due to inflation, making fiat loans cheaper.
I see 2 big uses for crypto loans:
1. Very short term loans, to allow people handle certain problems without touching their normal stash. Also this kind of loans can go without collateral for reputable members, making them very interesting.
2. Short/medium term loans for market speculators.
I don't see any of these competing for real with the established loaning (maybe excepting the pawn shop, if you consider that as loan).
It's very good for those who knows risk management very well, still crypto market is unpredictable, anything can happen, I'd rather lost my money than losing a lend money or loan money, more pain at your disposal lol
Even though the terms are flexible but I still have my reservations about crypto lending, I don't really like it because of the nature of cryptocurrency, nothing is certain. To me it is too risky because we can be at the loosing end.
The risk that's involved in crypto is why lending is not recommendable, it's just like taking loan to invest or trade crypto, you can keep jumping from one debt to another easily, if you can manage risk very well then no problem
It's great because the requirements are not tough as the banks but you need to make sure that you have the collateral. And that collateral shouldn't be just anything which you think can used as a collateral but, it should be something valuable.
Because these exchanges or lending platforms can fairly assess the assets but expect that the favor is with them. You can't expect to loan exact amount as your collateral, they'll only give lower than that value.
Because these exchanges or lending platforms can fairly assess the assets but expect that the favor is with them. You can't expect to loan exact amount as your collateral, they'll only give lower than that value.
Cryptocurrency lending has the potential to take over the loans industry as we know it. In essence, it makes the process of getting a loan far easier and has far less requirements than traditional lending methods. In this article, we’ll walk you through the many advantages of cryptocurrency lending and why you should consider crypto the next time you need a loan.
https://selfkey.org/the-top-5-advantages-of-cryptocurrency-lending/
Despite there are a lot of advantages, we have to admit that there are a lot more disadvantages. For example, cryptocurrency isn't really popular in the world that makes the demand for crypto lending isn't high. Furthermore, the cryptocurrency market contains a lot of risks. Because of less requirements than traditional lending methods, it increases the risk to the higher level! https://selfkey.org/the-top-5-advantages-of-cryptocurrency-lending/
Cryptocurrency lending has the potential to take over the loans industry as we know it. In essence, it makes the process of getting a loan far easier and has far less requirements than traditional lending methods. In this article, we’ll walk you through the many advantages of cryptocurrency lending and why you should consider crypto the next time you need a loan.
https://selfkey.org/the-top-5-advantages-of-cryptocurrency-lending/
https://selfkey.org/the-top-5-advantages-of-cryptocurrency-lending/
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