Just to give an update on this: BTC rates seem to rise when there is a pump on and lots of people who are margin trading borrow BTC to go long.
For other alts, when the price rises, the rates go up as the margin traders short. So rather than leave everything on auto, check what is happening, because you can sometimes get very good rates if you time it right. (Managed to get 0.08% on doge when it was pumping a few days ago).
Topic: Taking Advantage of Poloniex exchange (Read 2836 times)
i only do it with doge . so far so good
Well, Polo used to be really good but recently the rates are going down big time. Probably not worth the risk anymore.
It's a supply and demand thing - the supply of loans has increased and the rates have fallen. I guess they'll go up if there is a frenzy of alt trading dependent on margin trading (another giant pump ether style for example).
It also shows there s nothing else more interesting to play with but to simply loan your coins. Calm before the storm or general crypto decline?
Possibly - I noticed that rates really declined over the weekend. That might be because less trading is being done on the weekend, which meant funds that would normally be lent, weren't, leading to a collapse in rates.
I don't think you can get rich from lending - but it's a nice way to earn a tiny something while you wait for the price you want on trades. Otherwise the coins are just sitting there, and you feel tempted to trade even if the price isn't right.
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But what is the monthly return from doing this?
It depends on hat the % fees are trading at at the time but I'd say that averages at about .125% per day X30=3.75% per month..
Any additional earnings on top of that from the loaning method I have had make up to 60k sat per day extra with .5 BTC. But that is just extra on top of the %..
When a loan is repaid in say an hour, but the term of the loan was 2 days, does the lender receive the entire amount of interest from the borrower? I know that bitfinex will lock in the interest rate for the entire term but will calculate the interest paid by the hour (the interest rates on bitfinex are also much lower as well).
The interest seems to recalculate a few times per minute via the GUI but it does things behind the scenes faster than the GUI refreshes..
Like you can have a loan pop in and out more than once betwen GUI refreshes and you can see that it happened in trade history and analysis but you only see what is current every time the GUI refreshes, which I think is about ever 20 seconds or so..
Go to https://www.poloniex.com/lending#BTC and pull the scroll bar down a bit on the loan offers and wait, every time the GUI refreshes it resets the scroll back to the top too..
Show me 1 single person that has lost their coin to a defaulted loan on polo...
Past performance does not guarantee future performance.
Before Mt Gox happened, people thought their bitcoins were safe because it was the largest exchange around.
Yes, the risk is polo goxing, not loan defaults..
Show me 1 single person that has lost their coin to a defaulted loan on polo...
Past performance does not guarantee future performance.
Before Mt Gox happened, people thought their bitcoins were safe because it was the largest exchange around.
But what is the monthly return from doing this?
It depends on hat the % fees are trading at at the time but I'd say that averages at about .125% per day X30=3.75% per month..
Any additional earnings on top of that from the loaning method I have had make up to 60k sat per day extra with .5 BTC. But that is just extra on top of the %..
When a loan is repaid in say an hour, but the term of the loan was 2 days, does the lender receive the entire amount of interest from the borrower? I know that bitfinex will lock in the interest rate for the entire term but will calculate the interest paid by the hour (the interest rates on bitfinex are also much lower as well).
i could of sworn i said you have to have coins on the market to do margin trading didnt I ?
Show me 1 single person that has lost their coin to a defaulted loan on polo...
Why would you risk your money. Lending your money to some unknown people for a little bit of interesting.
While taking the risk that the loan will be defaulted and you lose on it?
While taking the risk that the loan will be defaulted and you lose on it?
Yeah. Since it is so easy to default on your loan because you don't know your lender it makes no sense to even start lending in the first place.
Even if the coins stay on poloniex you could end up losing your money.
Why would you risk your money. Lending your money to some unknown people for a little bit of interesting.
While taking the risk that the loan will be defaulted and you lose on it?
While taking the risk that the loan will be defaulted and you lose on it?
Well, Polo used to be really good but recently the rates are going down big time. Probably not worth the risk anymore.
It's a supply and demand thing - the supply of loans has increased and the rates have fallen. I guess they'll go up if there is a frenzy of alt trading dependent on margin trading (another giant pump ether style for example).
It also shows there s nothing else more interesting to play with but to simply loan your coins. Calm before the storm or general crypto decline?
Well, Polo used to be really good but recently the rates are going down big time. Probably not worth the risk anymore.
It's a supply and demand thing - the supply of loans has increased and the rates have fallen. I guess they'll go up if there is a frenzy of alt trading dependent on margin trading (another giant pump ether style for example).
Well, Polo used to be really good but recently the rates are going down big time. Probably not worth the risk anymore.
also the loans are based off of margin trading so the people borrowing for margin trading loans have to have coins in the system
maybe the borrower will lose money and then you can say goodbye to your money.
Not possible..
0.02% of a loan in 2 days is really low and i think you can make X1000 the profit you will make if you trade your self because the risk your are taking when you loan is higher than you trade yourself maybe the borrower will lose money and then you can say goodbye to your money.
From what I remember there's not much demand for loans on this site and the rates you get are really bad for the risk you're taking.
The only risk is Polo goxing..
That is not an insignificant risk, as members of the Bitcoin community would acknowledge.
The majority of people's coins would be in cold storage, and not lying at an exchange.
But what is the monthly return from doing this?
It depends on hat the % fees are trading at at the time but I'd say that averages at about .125% per day X30=3.75% per month..
Any additional earnings on top of that from the loaning method I have had make up to 60k sat per day extra with .5 BTC. But that is just extra on top of the %..
OK thanks, that's quite good. I set up a bunch of 0.001 loans, but so far only one has "popped" within the hour - I guess this is not a high trading period! Thanks for sharing an interesting strategy.
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