Topic: To Hodl or Lend: What is your take? - page 3. (Read 925 times)

I prefer to HODL my own coin rather to lend it to someone else, honestly speaking we are all aware that there are times that the borrower would have a hard time paying it up, so what would happen if you really need the money and the borrower really doesn't have the capability of paying it to that certain date?
It is better to have control on your own money and it also contradicts the most used phrase we used to tell the newbies on crypto "Not your keys, not your coin".

If the person clearly understands what they are doing, understands and knows very well the risk factors they will face, they can consider lending their Bitcoin holdings as one way to increase their holdings, if they are not into this buy and sell scenario, trading activity or basically, don't want to ride the market volatility.

Of course, there's a risk that's why before considering, make it up to the point that we do realize everything from top to bottom.

If I have to answer it personally, I don't want to consider doing that. I won't jump into other things that I'm not really familiar with. It's better for me to focus instead on trading or doing regular DCAs if my budget can keep up with that.

Holding might be the best when it comes to fund safety, and this all depends on the hodler's spending habits. Many people, like myself, use the lending option because of some kind of personal decision-making problem.

Just like you have said, it's very profitable if you can actually lend out smart. The more you lend out with a little interest attached to it, the more you earn in profit than just holding in your wallet and wating for a bull run before you can calculate your profit. Lending holds a greater risk, but lending smart means you are lending out not just to a trusted person, but the trust will also be attached with a payment guarantee, which will be any form of valuable collateral that will be equal to or even greater than the loan amount. If you are giving out a loan in Bitcoin, it's always advisable for it to be calculated by the number of SATs given out and not the dollar value attached to it to avoid fully regrets.

I disagree with this one. I think lending is an art that is applicable to every form of lending; in fact, in the real world, lending is often preferred by many when it's done the right way because there are more means of recovering the loaned-out amount than there are when you loan it out online. In real life lending, you should always request valid collateral, for which an eyewitness will be involved to insure the authenticity of the collateral, and you can as well have a legal backup. It can only be considered risky if you don't take a proper lending procedure, and the borrower can deny even taking any loan from you if you don't actually have any form of proof to back up your claims.

This is true, there is no seizing of funds in crypto world like banking and that's why it's a trouble. In the banking world the default rate is very low, and even when it goes high, they just take whatever you own as a response and that's a lot better for them, it's true and it will work. I believe that it's not going to be all that confusing and I think it's going to end up working for people as well. This is why I can't really tell you how it would not happen in the  crypto world because that's all about the law.

If a government allows me to do the same thing, I can open a crypto lending operation as well and lend people crypto, as long as they pay there is no problem and if they don't pay it back then I take their car or home, if that's alright then I can do that. Until we have that right, we can't lend easily in the crypto world.

After the scam scandals in the industry last year involving big platforms of the lending crypto business, many investors have become afraid of this business model and retreated their investments back to personal hardware wallets where they can have total control over their funds. It may be less profitable, since no passive income will be generated, but it's guaranteed to not be 100% scammed, anyway.

I believe lending would be a great opportunity only if there were guarantees for investors in case the platform went bankrupt. Unfortunatelly what we see for real is that authorities stay by the side of the scammers and their lawyers, completely neglecting the side of investors.

Even holding is the simplest, and if you can't do it. You are impatient and want to make a quick profit, and you use bitcoin to lend or stake. Sooner or later, you will take your bitcoins and invest in riskier things, and it is only a matter of time before you lose. Holding is the best and simplest way, we should take advantage of it rather than get rich quickly for a higher risk return.

Simply having Bitcoin and holding it is a risk in itself. Putting it on loan or getting it into a stake is stacking another risk. It is just a matter of how much can you tolerate with your risk appetite. Also, in my opinion, you are just basically being bored and impatient with profits for holding BTC. Because holding you requires you nothing to do something about it. And you want to do something about it. That is.

If you want to lend it, sure. Just take in mind its duration and credibility to which platform, exchange, or p2p you are going to lend you BTC

I would also choose to hold if I had to choose between the two because I have never liked to lend or borrow, even in real life. Furthermore, lending has a lot of risks involved, from losing money to losing our relationship or reputation.

But if you are interested in the form of a loan and want a higher level of security, a mortgage loan will be a solution for you. Besides, you should carefully choose the object that you will lend to will also limit some of the risks for you. In any business, there is always a risk, there will be no field that offers high returns and low risks. We need to make trade-offs if we want to achieve more.

I don't know the answer could be a long answer but the simplest version of my opinion would be like this

Lend if you want more money while hodl but it has minimum risk, tho it is considered as a risk. and you need a person to use your money. Default on loans is still a thing and problems like this will never be going away. and most bitcoin lending would be on centralized exchange.

Hodl if you have enough money and can forget the noise of the volatility and the purpose is for really long term not a profit in short term and you dont want to take any risk associated with lending activities

Hodling might took a lot of time for you to earn but if you were finding the safest way to not lose money then hodling is for you which is also I prefer. I still find lending not a good idea when it comes to industry even in the real world. Interest is given but the fat that you'll to think about it like " I need to pay my debt " mindset in every payroll. I would rather keep my mental health good than borrow money. Maybe if I see more cases about lending that sucessfully profited a lot then maybe I will reconsider.

I defenitely keep bitcoin lending as an asset if you consider it like that. But this only remains under your control if you are lending from a platform that you have control over and not signing up on a website and staking your money there to join the lending pool. These sites carry the same risks as exchanges when you use them as your wallet.

I consider the P2P lending done on this forum as something that has a huge potential and while veteran lenders here have already a customer base built there is a rampant spam coming from newbies looking for a quick cash grab, which hurts their business.

Similar to this is the casino bankroll investment which is much lower in recently launched casinos.

Staking though, is something I dont recommend.

Hodling in best strategy in a sense that you have full control over your holdings. Lendin is fine if your loan is backed by some smart contract. Real world loans doesn't go well in most cases as its now on lender to return or not. The only down side of Hodling is that it takes time and in case of bitcoin it gives good return. If I have to choose among these two then I would defiantly go for Hodling.

Embracing an excessively extreme anti-centralized platform stance, in my opinion, is not a wise choice. As long as your life remains intertwined with various centralized platforms, it means you still entrust a part of yourself to others. We are social creatures who rely on others, not just ourselves.

This context also applies to the business world. We will still require the presence of others to generate greater income. It wouldn't hurt to do a little research to find a platform with a solid reputation before deciding to entrust your assets to it.

It's true that all the longterm hodlers of bitcoin don't really make any income with their coins when they just store it their wallets, but they are also not losing any coins. Day trading for shortterm profits is the exact opposite of HODL investing and doesn't really suit most investors. There is a lot of risk involved with day trading, and we also need to spend hours analysing the market. It all comes down to how much return we are looking for, some investors are fine with the longterm profit from holding bitcoins alone. Others are willing to take higher risks in life for the opportunity to achieve higher returns. And then there are the people who are willing to let strangers work with their capital to make a profit from which they participate. This of course also can lead to big losses if the other person makes losses. For me personal lending out my coins is not so interesting and too risky, I prefer to have full control over my portfolio and trade some of my coins myself instead of letting someone else do it. It's similar to all the investment funds where we can give away our money and hope that the fund manager will make a big return for us. Or we invest some time and make our own analysis to trade for our own personal profit.

Riskier stake because you need to give your assets to a third party and need to choose a reliable platform, and in this market, no one is trustworthy but ourselves. I don't trust centralized platforms, and let's not forget what happened last year with lending and staking platforms like BlockFi, Celsius...So many lessons for us about leaving assets on centralized platforms whether it's storage or staking, it's all the same. In short, holding is still the safest solution for us.

We know that there are people who would really be fastening up their pace on acquiring bitcoin on which instead of making it that passive, they would really be tending in to do other venture or ways for them to accumulate more.Yes, it is really that understandable that you would really be needing to take up some risks for you to earn more and this is something that would really be entirely be depending on someones risk taking.
There are ones who could really afford on doing so and there are ones who do just simply go to the other side of things which is less that riskier.

Its really that a matter of choice because not all would really be risk takers. This is why it would really be that so optional on which one you would really be taking.Lending is risky but considering getting that 5-10% interest per month into those who do take a loan then it would really be that significant specially if the amount would really be that making up some compounding thing.
So this would always falls down on your own preference when it comes to this choice on which it would really be that basing up on your risk management.

Not only needs but wants.  If the person wanted to increase his stash, he can do either trading or lending.  Both is risky but it is dependent on the knowledge of the person.  if a person wanted to have a sure percentage of return, lending is the best thing, though risky than trading, they can mitigate it by asking for collateral before they release the funds.

I've been holding for over 8 years, so don't expect me to tell you to do anything else, although it's hard when you're new to bitcoin and bought your first batch in the last 12 months.
If it makes you feel any better, bitcoin rewards patience and if you can't handle waiting 2-3 years, you should either fight it, or get rid of the burden before it burns you out.

There's 2 types of people who come to bitcoin.
The first thinks it's easy, they'll go all in and double their money in a year or less and then sell everything at a loss.
The second one thinks the same, but endures the pain and fear. Manages to stay calm and composed and hold until the next bull run.
Which type are you?

There was no comments on the buying Bitcoin in the bearish season. It will be always great to achieve some good profits. And talking about the risk that is every where , where you want to invest there will must risk so no changes on Bitcoin investment. But for gaining quick profit or making some quick money by lending and investment on Bitcoin will never be wise decision. I see that many people are doing this some are lend from bank to invest on bitcoin but I think it will always be better that what you can efford to loose that should be your investment.

Either lending bitcoin as a whole or even a portion of it, for me that is still too risky so I won’t even dare doing like that. It’s much better to lend fiat since the value is lesser unlike bitcoin that even if you lost a portion of it, the amount could be tenfolds to fiat. Instead, I will consider hodling even for 5-10 years. That may be too long but rest assured the value becomes huge and life changing.