To Hodl or Lend: What is your take? - page 10.

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Quote from: Davidvictorson on June 07, 2023, 09:40:42 AM

One of the major reasons why bitcoin Enthusiasts hold bitcoin is in anticipation of a price increase that would increase the value of their asset. However, holding your bitcoin requires a patience mixed with strong will. It is the patience to be patient for a long period of time until the price makes a 10%, 20% and so on increase. Strong will not to use it to solve some immediate problem and risk a reduction in your asset. Consequently, not everyone one can wait that is why some decide to learn bitcoin trading so that they can make some quick profit that would also increase their asset holding. Some other become bitcoin lenders. Yes, they use either a centralized or decentralized platform to lend their bitcoin which would be repaid with interest. What is your honest take on bitcoin lending? Too risky, won't try it? Too risky, will give it a try?

To me this feels like speculation on top of speculation, or maybe it could be called leverage. However in terms of trading, which you are effectively doing by renting your bitcoin out, then it might help you to get a long term return from this rather stationary asset. However you always have to look for the downsides or negatives in such trades. If you really think that bitcoin has a bright future then (depending on how long you think it will take to achieve) you might not want to set up a contract where someone can take it away from you if it reaches a certain price. That's how these deals tend to work, people have the option to take them from you if it reaches a presently unrealistic price point.

Velemir Sava

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Hodl means holding onto your Bitcoin for the long term, hoping its value will increase. It requires patience and belief in Bitcoin's potential. Lending Bitcoin lets you earn interest on your holdings but carries risks like borrower default. Choosing between Hodl and lend depends on your goals and tolerance for risk. Hodl is passive, while lending requires active involvement.

I chose Hodl alone but I researched and researched lending platforms, understood their requirements, and assessed their reputation because of the possibility of borrower default, platform vulnerability, and market volatility.

KiaKia

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If I really want to make money out of anything by lending it out it will not be Bitcoin, I have to use a separate fund to buy Ethereum and stake it or lend it out for some rewards over time, it's true that there is no point holding your coins in your wallet for years when you can make more coins but I just don't like the idea because it's risky.

You can make money fixing your Bitcoin on the Binance exchange, but are you seeing what's going on lately? This is one of the examples that things can go wrong really fast, I will prefer to hold my Bitcoin and use other coins to make yield returns weekly or monthly.

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Quote from: Davidvictorson on June 07, 2023, 09:40:42 AM

One of the major reasons why bitcoin Enthusiasts hold bitcoin is in anticipation of a price increase that would increase the value of their asset. However, holding your bitcoin requires a patience mixed with strong will. It is the patience to be patient for a long period of time until the price makes a 10%, 20% and so on increase. Strong will not to use it to solve some immediate problem and risk a reduction in your asset. Consequently, not everyone one can wait that is why some decide to learn bitcoin trading so that they can make some quick profit that would also increase their asset holding. Some other become bitcoin lenders. Yes, they use either a centralized or decentralized platform to lend their bitcoin which would be repaid with interest. What is your honest take on bitcoin lending? Too risky, won't try it? Too risky, will give it a try?

If you are holding your bitcoin in a centralized exchange that offers lending services and you are planning to hold it for a long time no matter how price fluctuates, i can't see any reason not to lend it. But if you are using it as it was meant to use and have self custodity, you might not want to lend it, at least without collateral as that requires ton of trust and you are putting lots of faith to lenders.

I have mad respect for people in the forum lending money for collateral as those act as an alternative for unethical loan sharks and banking services.

EarnOnVictor

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Quote from: Davidvictorson on June 07, 2023, 09:40:42 AM

Too risky, won't try it? Too risky, will give it a try?

There are many investments out there and it's good to try as much as possible you could if you have the money and nerves.

And talking about risk, the risk is in every business and investment, only that the level is higher than each other, and 'the higher your affinity for risk-taking the better for you,' just make it reasonable.

What I do now is to diversify my portfolio, damn the risk, this is because if one fails many others would still be standing for me. Just today, a company offers me 20% ROI if I could leave my money for a full year as they use it. That, I will still do and still does not stop me from investing in anything reasonable that comes my later comes my way.

And specifically about your question, if I were you, I will divide the money into two and continue to invest in both if their promising returns are truly worth it.

m2017

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Quote from: Davidvictorson on June 07, 2023, 09:40:42 AM

One of the major reasons why bitcoin Enthusiasts hold bitcoin is in anticipation of a price increase that would increase the value of their asset. However, holding your bitcoin requires a patience mixed with strong will. It is the patience to be patient for a long period of time until the price makes a 10%, 20% and so on increase. Strong will not to use it to solve some immediate problem and risk a reduction in your asset. Consequently, not everyone one can wait that is why some decide to learn bitcoin trading so that they can make some quick profit that would also increase their asset holding. Some other become bitcoin lenders. Yes, they use either a centralized or decentralized platform to lend their bitcoin which would be repaid with interest. What is your honest take on bitcoin lending? Too risky, won't try it? Too risky, will give it a try?

I have a negative attitude towards lending, but this doesn't mean that everyone else should adopt the same tactics of avoiding lending. This is just my choice, due to the fact that I consider these risks to be excessively unjustified. In lending, you will have to give bitcoin (or othrt crypto) into the wrong hands. Giving 100% for the sake of possibly getting 10-20%? I don't know anything dumber. I would be willing to risk 10-20% to get 100%, but certainly not vice versa. With a hodl, sooner or later, capital growth will still happen, and this is inevitable. I prefer to go slowly, but only forward. The pursuit of quick profits (lending) promises big trouble and unnecessary risks - all for the sake of relatively small profits. It's not worth it.

avikz

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No lending! Only HODL!

I will never lend my hard earned bitcoins to some unknown faces. Bitcoin lending is a very risky business and I have lost a significant amount of money from a platform called BTCJAM if you remember it.

I will only lend bitcoin if it has securities like banking system. Like credit score checking, having some collateral, address and ID verification and so on. Otherwise it's a very easy job for scammers to run away with my money. I will just rather hold it.

Doan9269

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The common goal of either holding or lending out our asset to people is to make money, if you invest by holding, you're more prone to making more money because you will be on the advantage to make more money in addition especially when the market rises in your favour, if you lend someone, there's a little probability that you may not get your money back on time as at when needed or due, you may have the risk of loosing it value due to inflation, but when you invest you're in charge, when you lend out the recipient is in charge

Zaguru12

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Quote from: Davidvictorson on June 07, 2023, 09:40:42 AM

What is your honest take on bitcoin lending? Too risky, won't try it? Too risky, will give it a try?

It’s is a two way something obviously if everything goes to plan and the debtor doesn’t hang on the money and pays up at the right time then it is good because this time around you will be having a little interest on it and still keeping your coin for the time it took. But the other way is why lending is kinda risky because once the debtor doesn’t pays back it makes you lose your funds. That is why the person been borrowed the money must be a trusted person but even trust can cover for something that is not available.

Although I will say lending might work better I would say having your bitcoin with you might gives you extra freedom to take profit anytime the market might pump up not like the loan that has to payed at a specific time. For example if bitcoin should raise to a certain amount you could just sell of and then buy back after it dumps again, with this you might have earned some profits. But without the bitcoin in your possession you can’t take profit anytime you would like

Davidvictorson

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One of the major reasons why bitcoin Enthusiasts hold bitcoin is in anticipation of a price increase that would increase the value of their asset. However, holding your bitcoin requires a patience mixed with strong will. It is the patience to be patient for a long period of time until the price makes a 10%, 20% and so on increase. Strong will not to use it to solve some immediate problem and risk a reduction in your asset. Consequently, not everyone one can wait that is why some decide to learn bitcoin trading so that they can make some quick profit that would also increase their asset holding. Some other become bitcoin lenders. Yes, they use either a centralized or decentralized platform to lend their bitcoin which would be repaid with interest. What is your honest take on bitcoin lending? Too risky, won't try it? Too risky, will give it a try?

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