As far as I know, the borrowers have collateral. That is why the interest rates are so low.
If you want to get into poloniex stuff with decent capital, I'd suggest getting a trading bot, as it is much more profitable (and trustworthy) than a lending bot in my opinion.
Pm me for more information
If you want to get into poloniex stuff with decent capital, I'd suggest getting a trading bot, as it is much more profitable (and trustworthy) than a lending bot in my opinion.
Pm me for more information
Sounds interesting. I would like to know more about this trading bot. As long as it would be affordable enough for me to get started, then it would be great. I've sent you a PM.
Borrowers are not able to withdraw borrowed funds, and loans are repaid automatically when positions are closed (usually- borrowers can keep loans outstanding and can use borrowed funds to open a subsequent position), or when the loan becomes due.
Both exchanges have systems in place to force liquidate positions if the equity falls below certain thresholds. Due to the generally low leverage and the generally high maintenance requirements, it is rare that borrowers will have negative equity in their account (which would mean that lenders would have losses); in these cases I know that bitfinex has covered losses and I believe that poloinex has done the same.
Both exchanges have systems in place to force liquidate positions if the equity falls below certain thresholds. Due to the generally low leverage and the generally high maintenance requirements, it is rare that borrowers will have negative equity in their account (which would mean that lenders would have losses); in these cases I know that bitfinex has covered losses and I believe that poloinex has done the same.
Thanks for the information. In that case, then I will try it with a minimum amount first, and then I will consider to lend more Bitcoin if it works. I hope to profit with this, and be able to make a nice passive income out of it.
I'm wondering whenever the use of lending bots (like Poloniex Lending Bot) would become profitable enough to help build a nice income out of it.
When people stop scamming maybe ? The lending isn't profitable itself,forget about using the bot.I've thought so, but wanted some advice before consider using it (if ever) to automate the lending process of my Bitcoin. I think that I would be better off doing it manually, checking Poloniex each day to consider the best rates for my loans. If it turns profitable for me, then I will continue to lend my Bitcoins over the exchange, as it would be a great way of making passive income.
The lending bot that works with Poloniex, has a 10% fee, which brings me doubts whenever lending your Bitcoins with it, would be profitable at all.
Well, you can write your own lending bot ,can't you ? Save additional 10% free if that is near or equal to profits you will make through lending.
