Topic: To Hodl or Lend: What is your take? - page 5. (Read 943 times)
In my view point bitcoin trading and bitcoin lending is of no much difference as both points to profit making and risk inclusive altogether. While you trade there's a possibility of you losing your coins same with lending, the borrower could abscond with your coin closing down all channels of trace leading to your loss as a lender. Wether be it lending or trading there is risk and so it all depends on your choice of risk you would want to take in making profits. Hitherto to this post, I don't ever intend on becoming a bitcoin lender any day.
The first thing is the price of bitcoin is a volatile one.So you can do use of bitcoin to earn money based on the demand and supply of bitcoin.The price is not the stable one,when the market was crash and get in to bear town.Use the dump to buy the bitcoin at cheap price.Because we know the demand for bitcoin increases,but the supply of bitcoin was constant.So when the market back to normal,it was huge chance to earn the good money from it.Quick profits is easy one by using bitcoin as the trading tool.
I hold my coins and avoid any exchanges or lending platforms. I used to feel like it's important to keep generating bitcoin by constantly putting it at risk: trading it, gambling, lending, investing in shitcoins, now I know better.
Having a lot of wealth stored in bitcoin also helps to make a decision because the more you have the less you feel like risking it. Spend time reading posts by newbies here and you'll see that they all want to make money fast and are willing to risk it all. Long time users, people who were here for 10 years will almost never do that. All of them will tell you to stay calm and hold bitcoin, maybe with some occasional trades if you feel like it.
Having a lot of wealth stored in bitcoin also helps to make a decision because the more you have the less you feel like risking it. Spend time reading posts by newbies here and you'll see that they all want to make money fast and are willing to risk it all. Long time users, people who were here for 10 years will almost never do that. All of them will tell you to stay calm and hold bitcoin, maybe with some occasional trades if you feel like it.
Despite the regulations regarding Bitcoin and cryptocurrencies that are still developing in various jurisdictions, I only see a growing trend where Bitcoin loans generally have higher interest rates than conventional loans. This reflects the risks faced by lenders in providing access to volatile crypto assets. You need to consider whether this higher interest rate is worth the benefits you get from the loan.
Considering the market conditions, I won't be surprised if P2P loaning outside the forum would be a pain. I can imagine plenty of lending businesses around the metropolitan region in my country. As much as I hate interests in lending, well hey if it is for the using crypto, I am all in for it.The lending platforms itself may pose dangers. Centralized systems, which connect borrowers and lenders via a third-party middleman, may be vulnerable to hacking or fraud, putting your Bitcoin assets at risk. Although decentralized systems are intended to eliminate reliance on intermediaries, they may nonetheless involve technical and smart contract risks that expose lenders to unanticipated vulnerabilities. Those who prefer a more conservative approach or are concerned about the risks associated with lending Bitcoin may be better off avoiding this activity and focusing on alternative investing options.
Well people would just consider personal loans at that point. Even by using custodial wallet already would be alarming to many people considering that even my experience of getting my wallet wiped out since the team that was behind in supporting the web wallet I use are considering an upgrade for their system. I know they don't have an ill intention, but hey just knowing that anyone could touch your money anytime and they'll know every single transaction you make is just a no-no for me.
If your goal is just to generate profit from your capital, I think holding would be wiser and more ideal than lending. We all know the risk of getting lent and there's a possibility that you won't get paid as some borrowers intentionally or has the habit of not paying their debts. If you seek assurance and if you want to make your funds safer, better invest and hold in a reliable and trusted coin rather than entrusting it in the hands of borrowers. There are already lots of scammers who borrow funds from decentralized and centralized exchanges so you have to be skeptical and choose assurance over a higher profit but has a bigger risk.
I see lending as a risky activity, and it is preferable to keep your money and generate profits through long-term investment rather than entering into trading or lending. Holding your money can actually be a more passive approach, allowing you to benefit from potential price appreciation over time without the need for active trading or lending activities. But not everyone has the time, interest, or expertise to actively trade or engage in lending, and that's perfectly fine. Choosing a strategy that fits your goals and comfort level is key. So if you decide to explore trading or lending in the future, make sure you have thoroughly researched and understood the risks involved, and consider seeking professional education or guidance in those careers to help you navigate those activities.
Despite the regulations regarding Bitcoin and cryptocurrencies that are still developing in various jurisdictions, I only see a growing trend where Bitcoin loans generally have higher interest rates than conventional loans. This reflects the risks faced by lenders in providing access to volatile crypto assets. You need to consider whether this higher interest rate is worth the benefits you get from the loan.
Of the many cases that have occurred, especially lending sites, it is better to use bitcoin for long-term hold, store bitcoin in a private wallet and sell it when it has a big profit, this is safer and makes us not worry if we lend bitcoin on a site that could be a scam .
Scam site??? I never imagined there would be a scam site that would lend Bitcoins to everyone but only the owner of the scam site you are referring to wants other people's money to take him away. I agree about keeping Bitcoin in a personal wallet in the long term because it can also be an investment for each person in their life, but if you say about a loan on a scam site and it is a Bitcoin loan. I'm a little surprised to hear that because scam sites never give anything to anyone for free except telling everyone to put money in their wallet 
It is not that lending is a bad business model, it is definitely a great business model without a doubt but it has never been done professionally in crypto and succeeded. Back in the day we had lending platforms and all of them got hacked or scammed, many people take loans and not pay it back and that has been a common issue for a long time. I think even the decentralized ones has been crashed because people find a loophole in the system, if you give someone money then they will just scam you.
The only logical argument people have is "take 120 dollar collateral in another coin and give 100 dollar loan bitcoin", which is not what a lending is about, you are taking more than what they need, so how are you really helping them to begin with?
The only logical argument people have is "take 120 dollar collateral in another coin and give 100 dollar loan bitcoin", which is not what a lending is about, you are taking more than what they need, so how are you really helping them to begin with?
Of the many cases that have occurred, especially lending sites, it is better to use bitcoin for long-term hold, store bitcoin in a private wallet and sell it when it has a big profit, this is safer and makes us not worry if we lend bitcoin on a site that could be a scam .
If you're someone who believes in the long-term potential of Bitcoin and is willing to hold onto it for an extended period of time, then "Hodling" can be a viable investment strategy. However, if you are open to taking on some risk and want to earn interest on your Bitcoin on every transactions, then lending can offer opportunities to generate passive income. But, I prefer to hold my Bitcoin rather than lend it out because it gives me a sense of security and peace of mind that is necessary for healthy survival.
The lending platforms itself may pose dangers. Centralized systems, which connect borrowers and lenders via a third-party middleman, may be vulnerable to hacking or fraud, putting your Bitcoin assets at risk. Although decentralized systems are intended to eliminate reliance on intermediaries, they may nonetheless involve technical and smart contract risks that expose lenders to unanticipated vulnerabilities. Those who prefer a more conservative approach or are concerned about the risks associated with lending Bitcoin may be better off avoiding this activity and focusing on alternative investing options.
I think holding is safer than lending, some sites that promise big rewards when lending have the opportunity to become a scam, there's been a lot of evidence and cases, with holding we can sell whenever we feel profit.
Hold in my opinion is safer than lend, as we know that many people are too easy to borrow but it is very difficult to bother, even though he can pay, of course it takes extra patience and time to collect, and I think Hold is certainly better than Lend because we can control full.
As for holding, it seems like there is no risk, but there is still because the only enemy I see here is that if you are not a patient person, it is clear that you cannot be here. That's why, if you buy Bitcoin to hold for a long time, the money you use here should be the extra money you don't need.
Holding your bitcoins definitely has less risks than lending them out. People who want to and truly have the will to hold bitcoin will not be tempted to sell whenever they may need fiat for some reason. That’s cause the money used in buying and holding bitcoin won’t hurt their budget in the short or long run.
I would very much prefer to hold my coins than to lend them out. Obviously, lending them out might bring in little profits in the short run, the risks involved are slightly higher in my opinion so holding is preferable.
When buying bitcoin to hold irrespective of how long, do well to have an extra income aside your regular income so you won’t be tempted whenever any unexpected expenses pops up.
What is your honest opinion about bitcoin loans, I think there is potential for additional income. However, there are risks involved e.g. Default risk, Price volatility that fluctuates significantly when your bitcoins are loaned, it can affect the value of your holdings as well as Regulatory and platform risks where Regulations around cryptocurrencies are still developing In addition, the lending platform that we will use can have own risk, such as security concerns.
Lending Bitcoin is a very big risk, when you lend out your coin instead of just holding it in your wallet, you're giving the individual coming to take the loan an additional income because that individual can use that Bitcoin to make profits that will benefits them while they pay you back the loan amount that would had decreased in value by the time they bring it back. Also if it increase in value it doesn't mean you benefited.
That's because if you had held that bitcoin in your wallet,l you would had still benefit from the increase the Bitcoin received. You also have a risk of losing your Bitcoin to scammer that would run away with your Bitcoin when you agreed on a no collateral loan as forum lenders do.
I think this is going to be individual choice. This is based on how everyone is able to manage their funds when they HODL or lend to someone. Now both of them are opposite sides of one coin and has got their own risks involved. Now there is reason one should start right from the risks involved because that’s what concerns when profiting in the “long run”. When you lend you can already see how risky business it is. When you are in the crypto world there is literally no guarantee to whom you are lending the money. If you checkout forums lending section then there are only some members who has established successful business but having highly volatile collateral and securities can turn this business down at anytime. If you are able to overcome the losses and yet prosper the business in the positive direction. If not then it’s gonna be disastrous business.
Now, imagine the other side where you have set up your favourite hardware wallet. You are putting your savings into it and Bitcoin is sitting just like that. It would profit you if prices are hiking and it will put you into a loss if prices go down.
However, you would be in loss only if you sell your Bitcoin. It’s far better to understand this because Bitcoin could be long term asset saving for you and there is no limit for how long you store them and sell only if you are in profit. That’s entirely in your own hands unlike lending your bitcoins. You see where I am going with this?
Now, imagine the other side where you have set up your favourite hardware wallet. You are putting your savings into it and Bitcoin is sitting just like that. It would profit you if prices are hiking and it will put you into a loss if prices go down.
However, you would be in loss only if you sell your Bitcoin. It’s far better to understand this because Bitcoin could be long term asset saving for you and there is no limit for how long you store them and sell only if you are in profit. That’s entirely in your own hands unlike lending your bitcoins. You see where I am going with this?
It still largely depends on one's strategy or goals, Bitcoin lending is a risky investment and should be approached with responsibility and caution. You should thoroughly research the lending platform you are using and assess the risks before deciding to lend Bitcoin. In addition, you also need to limit the loan amount to a safe level to avoid bad situations that may arise. In summary, Bitcoin lending is a risky investment, so if you do not have knowledge and experience, you should limit your participation to avoid losing money and assets.
The problem with lending is this....
If there are a sudden spike in the price and you have borrowed your tokens to someone else, then those coins are inaccessible to you, until the loan are repaid.
Now, on the other hand.... if you hodl your coins, then it is accessible at all times and you can capitalize on all the short-term spikes that might happen on the way to the next ATH.
If there are a sudden spike in the price and you have borrowed your tokens to someone else, then those coins are inaccessible to you, until the loan are repaid.
Now, on the other hand.... if you hodl your coins, then it is accessible at all times and you can capitalize on all the short-term spikes that might happen on the way to the next ATH.
What if the lending happens in a bear market where the market crash like it wouln't recover again, I think any bitcoin that is borrow in this periof will only favour the borrower, because when they borrow btc and sell for USDT, they will do whatever they have with the bitcoin and when it is time to pay and price of Bitcoin prices crashes, the borrower only need small usdt nto pay back because he will the price crash as advantage to buy Bitcoin price at lower price and if the borrowers are clever trader, they can borrow when the price is low, sell when the price is high and buy back when it is low again to pay back, they will earn more USDT with this strategy.
They have the same risk, that's why the level of lending is higher because if you don't know how to manage money properly, your lending money might end up in vain if I compare it to holding.
As for holding, it seems like there is no risk, but there is still because the only enemy I see here is that if you are not a patient person, it is clear that you cannot be here. That's why, if you buy Bitcoin to hold for a long time, the money you use here should be the extra money you don't need.
As for holding, it seems like there is no risk, but there is still because the only enemy I see here is that if you are not a patient person, it is clear that you cannot be here. That's why, if you buy Bitcoin to hold for a long time, the money you use here should be the extra money you don't need.
You made a valid point that there is risk involved in both in lending and holding. In lending there is risk that borrower may default which is beyond your control but you can mitigate this risk by selecting a reputable entity having proven track record of repaying loans.
Holding requires intense patience when it comes to investment like Bitcoin, emotionally driven decisions based on daily price fluctuations can lead to impulsive actions that may not align with your long term goals. Overcoming this challenging issue can be achieved by avoiding daily monitoring of investment portfolio.
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