Topic: Lending safety? (Read 1975 times)

well sure those makes sense to who is asking the loan but knowing that those person dont wanna to sell those altcoin he would send the coin and repay loan to get back his or her coin.

Yes accepting alt coins as collateral is the safest but I guess 2-3 out of 10 asking for a loan uses alt coins as collateral. I read somewhere one is asking for a loan and someone asked for alt coins as collateral, reply is if he is in possession of an alt coins he might as well trade it than ask for a loan.

well poloniex has a lending program that is 99% safe,to a user get a loan they need to put some coin into margin trade(like a colateral)then they can get loans at some interest you fix,these days is around 0,14% some days ago with eth pump were at 0.6% anyway the safety is the person who get the loan cant witdraw it ,that happens with btcjam and is risky to invest a pennie there,they must pay the loan if not enought money to pay the margin coin will be sold to pay the loan soo the risk envolver is very low,if you own some good ammount of btc you can loan them and collecting a good fee daily.The time of loan minimun is 2 days and maximum of 60 days.

Avoid BTCJam and 'auto-invest' options, they are known for wiping out peoples deposits. Just stick with BitlendingClub.
Find people who are solid borrowers and with good reputations.
Look out for new profiles and 0 ratings one. Don't invest in those.

If you accept only altcoins as collateral you will be pretty safe, no doubt about it but you will probably not be able to give any loan because there are other people that give loans and accept other collaterals or some of them even give loans without collateral

Here are a few well known ones that seem to be regulatory compliant and have a lot of traffic.  There are auto-invest mechanisms if you don't want to take risks on individual borrowers and want a "guaranteed return."  Also, there are things called "reputation loans" on BLC where the principal is completely secure.  If the borrower doesn't pay, you just get your money back.  It's not automatic though, you have to tell an admin.  It rarely happens so it is still manually done, but the funds are not withdrawalable.

https://bitlendingclub.com/invite/bkyglx

https://btcjam.com/?r=05ad0623-992f-45ac-a37a-8734e2f94d94&utm_medium=direct&utm_source=referral_url&utm_campaign=bitcointalk

https://btcpop.co/Home/1748/bitcointalk

Just to add; if member of our forum gets infected with a trojan, the attacker gains access to wallet as well if it's on that computer, allowing him to sign any address needed,
so you're not safe either way.
I would say that you need to check users activity throughly before giving out a loan, because a large part of loans with digital goods as collateral are actually just collateral sellouts imho.

There isnt a 100% fool proof lending technique but the only way to safely do it is ask for collateral which is more than the amount requested and can be sold very quickly its good having something worth more but if you cant sell it then theres no point having it

where is site good reputable good profitable lending site bitcoin
high profit low risk, and reputable owner site, is long wesite is early launching
if advantage owner is member BCT legendary member is high trust

Thank you for your answer. And yes, the last sentence you wrote is something crucial that is valid for everyhing in the bitcoin world. Trading but especially for investing in something offered here. Don't invest when you have doubts. It's simply not worth it.

I have not read through the replies so apologies if I am repeating anything.

To answer the OP's question, it is very safe lending here if basic steps are taken which should be obvious to anyone who have been dealing with Bitcoins. I mostly take Bitcointalk accounts as collateral, but also give out a lot of loans to trustworthy individuals without taking any collateral.

A simple rule of thumb while issuing a loan is if you are unsure or have doubts, its best not to lend.

That's correct so i think a loaner should only accept an account as collateral when it is unknown to the public. In fact it would be even safer than an account sale since you would need to tell details about that account. Together with changing the password after the sale it is pretty easy to find out the account. An unknown account as collateral is safer.

Why shouldn't that be fair? I mean everyone who wants a loan and is giving out an account as collateral does know that his collateral will be sold when he defaults. Of course it might be that the loaner will negotiate first. That would be a good thing to do. But the one taking the loan accepts that his account is sold.

Probably they don't have a good feeling  for the defaulted  borrowers of the collateralized accounts! But using accounts as collateral is popular here! I think it is not fair for the lenders who try to sell out the accounts to recoup the loss!

IMHO I don't think it's a good idea to accept an account as a collateral nowadays because the account collateral will probably get a negative feedback from tomatocage if the borrower defaults.

Thanks again for your detailed answer!

I think i would take my time to evaluate an account. When the loaner would pressure me then i would tell him to go away. I had to learn that fast decisions are pretty much always wrong decisions. Not with accounts but with trading and investments.

> (also note that people have complained to me that I was offering to low of an amount to buy their account when they were asking for a loan with their account as collateral)

That's funny. Might be that some see it as a quick way to sell their account. And honestly, when i see the loans that some are giving out for certain accounts then i'm pretty sure it might be the better way to sell an account. For some reason some borrower loan out way more than an account is worth. Maybe old prices or this valuation bot that was said is showing too high value?

Not to forget that the new forum might come soon. When it comes there is a chance that the old forum accounts will not be worth anything anymore.

So they hedge against you with loaning out altcoins? Hm... guess the loaning rate needs to be high enough to average that out.

I wonder if i should try it. I mean i already know something about account worth. And as an escrow i had to learn how scammers might think. When i think about getting 10% a week then this does not sound bad for me. At least as long as the scam rate is not so high at the end.

As long as you can get a specific signed message from an old enough address, and you are certain the account can be easily sold for more then the loan amount then the loan should be safe. You should however add an additional buffer from what you see as displayed prices and what you expect to sell accounts for as account sellers (as is the case for other types of items sold in the marketplace), to offer discounts and will often sell at below asking prices.

The issue is that almost in every case (especially recently) that if an account is offered as collateral, the loan ends up not being paid.

You should also not take reputation points into consideration when deciding to make a loan (other then the fact that reputation point may increase the value of an account).
If you were to buy an account via a [WTB] thread then you could take additional time to evaluate the account, or could have the seller agree to have payment withheld for a certain period of time (maybe a few days) in order to wait for any scam accusations to come to light. When making a loan, there is a bit of pressure to get the money to the borrower quickly.
It really depends on how good of a salesmen the borrower is. If they are not a good salesmen then they may be willing to accept lower prices/loan amounts then what a good salesmen could sell it for (also note that people have complained to me that I was offering to low of an amount to buy their account when they were asking for a loan with their account as collateral).
I don't think it is very financially rewarding, although you could likely buy them at low prices and then sell them at high prices if you have both a [WTB] and [WTS] threads because of the fact that account selling is somewhat taboo, so pricing will almost always work in your favor (significantly) when others come to you. Prices are declining at a rapid rate, and there appears to be oversupply in the market right now, so you could be stuck with excess inventory that eventually becomes worth less then what you paid for them.

From what I have seen, the lender having to sell accounts they took as collateral is more the rule then the exception.
Some people may own a particular altcoin because they believe it's value will rise in the near future. If they need money then they could offer that altcoin as collateral, then be able to spend the money they need to spend, then repay the loan to get the altcoin back, which hopefully will have increased in value since then.

Thank you for your detailed answer ACCTSeller.

So what i read from you is that when i keep care that accounts i take into escrow are worth enough and the signature is matching and old enough and when i don't agree to followup loans that exceed the worth of the account then accounts should be relatively safe as collateral?

Yeah, the account being involved in a scam probable is a risk that can't be avoided easily.

Maybe... if someone really accepts accounts as colletaral, the account should be considerably more worth than the loan. Maybe 150%? That way it should be avoidable that the account owner is trying to sell through that way. It would not be worth it. But for a normal person wanting a loan, it would be ok.

I doubt that trading accounts is very rewarding nowadays. It looks like the prices for accounts are dropping constantly. Maybe an oversupply of accounts now. So i don't think that i will trade accounts. Selling them should be the exception i think.

I wonder if people would give altcoins as collateral since it nowadays is pretty easy to exchange them to any coin they want...

If you are considering to accept forum accounts as collateral for loans, then I would suggest that you don't. In my experience, the overwhelming majority of loans where an account is used as collateral will default, and the loans that do not end in default will very often result in the borrower subsequently asking for a larger loan then what their account is worth (e.g. the 1st loan was a confidence loan).

If you can get a signed message from an old address associated with the account being accepted as collateral, then the risk of someone coming back to claim the account was hacked is low, especially if the account has been posting somewhat frequently recently. Although you do have the risk that the account is involved in some kind of scam that will result in it receiving a negative trust rating.

If you are interested, or would consider buying forum accounts, either to farm or to resell then you would probably be better off opening a [WTB] thread in digital goods. You will probably be able to buy the accounts for as much, or less then you would be able to if you were buying them via loans, and you would not be forced to have the accounts sitting idol while you are waiting for the loan to default. Additionally, a WTB thread would allow you to keep the prices you are willing to pay more private, witch will aid in your ability to negotiate with sellers.

If you are truly interested in lending BTC to users, then you would really almost only want to consider accepting stable, established alt coins, or lending to people who have significant amounts of reputation.

With 10% for each loan that would still be a big hit. Care to tell what your failure was with that loan? Or could you reclaim your money with the collatera, if you received one?

i think stable alts, BTCT (good standing ones) are good as collateral. in addition i accept bitgold because it can be send from one account to another one.
you should never listen to sad stories and use your brain. dont get greedy on high interests. check post history and all trust ratings. with this you should be fine. dont accept account that can be reclaimed by telling the support they were hacked or accounts that require a KYC/AML

from all loans i granted only one was defaulted, thats one out of fourteen.

I have a general question about how safe lending on this subforum is when you take a collateral that has a sufficient worth.

I have read that steam accounts can be worthless afterwards because items are unsaleable or only after a time after which they are unsaleable. I imagine accounts can be hacked too even with a signature, when the signature address is not so very old. And so on.

So how many deals turn out to be scams and how many are paid back actually without problems? What is the feeling of those being on this forum all the time?