To Hodl or Lend: What is your take? - page 6.

Kakmakr

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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. Cool

Sayeds56

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Quote from: gunhell16 on June 08, 2023, 05:08:11 PM

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.

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.

Sebas.tian

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Quote from: Davidvictorson

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

Based on what I experienced from other investors that involved in Bitcoin lending some years ago, find it difficult to fulfill their promise and they later changed their personal details that made the lenders to lose their money in that investment because the price of Bitcoin dumped through out the year and the interest of the money increased higher in a way it will be difficult for the borrowers to pay back the interest and the capital. I will never give it a try, because it will not make you to have rest of mind whenever the price of Bitcoin is decreasing in the market than to cause you worry how to get your money back from the people you lend because they will definitely give excuse when the market price continue dumping.

woez

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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.

Latviand

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I have been long debating with myself whether I want to do lending because I do have a considerable amount of bitcoin being hodled but given that there's people out there that will default their loans, I say that it's too risky and I don't think it's worth to do so. Maybe if you really know the person and you have a way to find them so he/she can pay the loan, then at that point the risk is mitigated.

libert19

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I wouldn't, plus there are few platforms offering original Bitcoin lending and those few tend to be centralized, whereas dex lending platforms are on evm chains, to lend there you must wrap your btc first which in itself is risk.

Cryptomultiplier

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Quote from: Fivestar4everMVP on June 08, 2023, 04:48:17 PM

Holding bitcoin is great, as you don't have any thing to worry about as long as you hold your bitcoins on a trusted non custodian wallet.
But on the other hand, the ability to lend bitcoin is also another great way to hold, as it automatically offers the holder ability to grow his or her bitcoin easily without the risk of losing it through trading, but in as much as lending is good, it is also one that is not without risk, there is a possibility for the borrower to decide not to pay back the loan, most especially the type of lending that is decentralized and also does not require the borrower to deposit a collateral..

Personally, I will prefer to just hold my bitcoins than lend it, I can only consider lending when and if I've made so much money that maybe losing a couple of hundreds of dollars won't weigh me down or affect my finances in any way.

For one, lending is also a form of investment. After all you get the returns with interest and a vote of gratitude for being patient.
It is good to ensure that when lending, it is done properly, by factoring trust into the play. I wouldn't lending my coins/BTC to who I really don't know or best, trust in anyway.

To HoDL is where most people find difficultly because the fear of losing the savings to hackers or scammers or gambling or other vices that may require great control and discipline to make it work.
I will like to HoDL, at least I don't get to bother anyone to refund my coins or do I bother about market volatilities until am ready to either invest the hodlings, add more coins or withdraw it.

Uruhara

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Quote from: gunhell16 on June 08, 2023, 05:08:11 PM

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.

Well becoming hodling may indeed be no more complicated than those choosing to trade it in the short term which is. Those of us who do long-term hodling or investing will not be too bothered by technical analyzes and market sentiment in the short term. because we focus on goals and potential that we believe in for the long term.

while those who choose not to become hodling or choose to trade their assets in the short term to increase the quantity of their assets, of course, established market analysis skills are needed. because if you are not proficient in market analysis then it is not a profit that can be obtained but a loss.

gunhell16

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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.

Fivestar4everMVP

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Holding bitcoin is great, as you don't have any thing to worry about as long as you hold your bitcoins on a trusted non custodian wallet.
But on the other hand, the ability to lend bitcoin is also another great way to hold, as it automatically offers the holder ability to grow his or her bitcoin easily without the risk of losing it through trading, but in as much as lending is good, it is also one that is not without risk, there is a possibility for the borrower to decide not to pay back the loan, most especially the type of lending that is decentralized and also does not require the borrower to deposit a collateral..

Personally, I will prefer to just hold my bitcoins than lend it, I can only consider lending when and if I've made so much money that maybe losing a couple of hundreds of dollars won't weigh me down or affect my finances in any way.

molsewid

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Quote from: Doan9269 on June 07, 2023, 09:55:38 AM

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

I agree because when he lend the money it's either it will be less to the initial value he lend or it will be so much higher for the lender. So I think he should invest it instead or hold it instead. There's no doubt in holding bitcoin, among all coins I rather choose bitcoin to hold even more longer than other. Inflation, volatility will be the problem for lending btc.

Finestream

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Quote from: avikz on June 07, 2023, 10:07:23 AM

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.

Exactly. There’s no assurance that your bitcoin will still be back with its additional interest seeing a lot of people nowadays are dying to own even a portion of bitcoin. So I’ll never take that risk for heaven’s sake. Instead, I’ll just master my investment and continue to hold as long as I can, that way I am completely in charge with my own bitcoin. Hodling will double or triple my bitcoin in due time, that means having high patience is only the key.

ginsan

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Quote from: Renampun on June 07, 2023, 10:16:48 PM

if asked to choose to hold or lend my bitcoin, I prefer to hold it, even when the loan has collateral and a few percent interest. why is that? because I don't want the assets that I hold to be in the hands of other people, and when I need them, I can't sell or withdraw them directly.

I am a holder, not a lender. indeed it's a win-win, but just imagine when the bitcoin is lent to someone else, meaning we are waiting for it to be returned, while no one can predict the momentum of the bitcoin price. imagine when the bitcoin price rises and your bitcoin is still in someone's hands other? you will lose the momentum to sell it which can generate bigger profits. not to mention that the risk of the lending platform going bankrupt, it also needs to be considered. that's why I prefer to hold it in my wallet.

A pretty good point where if one of the factors makes a person think wisely then he will prefer to hold it in the sense that he is in full control of his assets in his own wallet rather than giving loans to other parties just to get interest. However, this perception also depends on each other's thinking because those who have a lot of money in the form of Btc will provide loan services to those in need.

Apart from that, I think one thing that makes us successful in this context is when bitcoin goes up we can sell immediately unlike those who use btc to borrow to other people, of course they will miss the opportunity to sell btc when the price is rising.

mvdheuvel1983

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I am not a big bitcoin investor. People who engage in bitcoin lending using whatever platform that has been made available to them are people who are big investors in bitcoin. Say they have 1 or more bitcoin. From my understanding and research, bitcoin lending seems to be profitable but then I am not the person to engage in that risk. It is too high risk. What scares me most about bitcoin lending is the volatility. I may end up making no profit because of this. Holding and taking profit no matter how the wait period is fine with me. At least my peace of mind is still intact.

isaac_clarke22

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

Too risky, will give it a try?

Cause I ain't someone that wanted to chase people just to pay their lent amount. I can deal with interest and calculation on how to profit off from my lending business. It's much easier now with hodling and I am open to more other income that could potentially make another branch of businesses.
Trading isn't even for me in crypto, but I am okay with trading commodities like the usual buy and sell stuff you see in Facebook.

Quote from: bittraffic on June 08, 2023, 02:00:24 PM

If I have the patience and are also willing to lend BTC, I might want to do it when bear market is almost over like this time of the cycle where we hit bottom already.

Hitting two birds in one stone, you get interest when they paid and at the same time the value increases as well. But right now I just wanna hold some and trade some.

Just careful in bearish market as many would definitely try to gain BTC then might scam you by defaulting in a loan. If you can do both then good for ya. It's just way too much for me to handle lists of lenders, lol.

bittraffic

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If I have the patience and are also willing to lend BTC, I might want to do it when bear market is almost over like this time of the cycle where we hit bottom already.

Hitting two birds in one stone, you get interest when they paid and at the same time the value increases as well. But right now I just wanna hold some and trade some.

Iroh

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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?

I would prefer to hold than to lend and that's my own opinion. Lending out your bitcoin is as risky as lending out fiat or other valuables. You would need some sort of assurance that you would be paid back else you would incur a lot of bad debt.
If you could withstand the risk involved in lending your bitcoins, then it could also be profitable in both the long and short run. You could lend out your bitcoins with a certain interest percentage and if all goes well(the lender pays back) you would make a small profit in the short run.
But if you incur bad debts after lending out your coins, then you would have probably wished to have held it.

ajiz138

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Quote from: yhiaali3 on June 08, 2023, 05:30:44 AM

I'm also for "No Lending, Only Hold".

Hold and DCA is the best option at all times, buying from price levels and holding for the long term and then selling in batches with each new high.

As for lending, it is not a good option at all. What will I gain from bitcoin lending? Profit through little interest? Is this the profit you wish for? This is nothing compared to what you can earn from holding bitcoins in the long run. This is of course apart from the other disadvantages of lending.

I also don't like loans or lending to others because this can't be identified properly this will cause problems for me and better focus on bitcoin HODL only.

We are more calm in our own way to get bitcoins generated from DCA than to generate bitcoins from loans and this is small interest especially if you make loans with fiat intentions and prices fall then it will make us lose, I know that my calculation method may be wrong but actually it's not a good thing for me.

Large and small loans will definitely have a few problems, especially if someone fails to pay them, so we have to be prepared for that risk, but I myself don't want to do that.

Unbunplease

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Quote from: Yogee on June 08, 2023, 11:10:40 AM

I don't really like lending whether it's fiat or bitcoin so hodl and self-custody of your assets all the way. Surrendering control of your BTC or other crypto to these lending platforms in exchange of interest always comes with risks and it doesn't matter if they seem reputable to handle your funds. We should learn lessons from big crypto companies that were "exploited" or filed for bankruptcy.

Always remember that lending platforms can disappear or go bankrupt. There can also be problems due to regulation or changes in the law. And there is always the risk of defaulting on a loan - life these days is very complicated and full of force majeure.

naira

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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.

As a small holder, I think it's simple because from the beginning holding Bitcoin was a dream since I knew Bitcoin. When that happened, it wasn't hard for a long time, as if I had an absolutely precious object. Talking about patience is of course the main thing, but to strengthen it all there are always small things that need attention and a commitment to yourself that the bitcoins you currently have need to be looked after properly, always avoiding negative issues like Fud who always tries to shake the grip we, don't obsess over being aggressive because holding bitcoins doesn't need to be in large quantities at once use DCA as an option which for small holders DCA has been an effective way to date. Don't force buying when there are other needs that must be met, always prioritize the basic needs of the family.

Everyone has their own way of enjoying the process of holding bitcoins, and it will be a rewarding experience when Bitcoin reaches the most desired ATH. And one more thing to remember later 10-20 years to come you hold 0.01 btc making the rarest person whose value is definitely very valuable.

Topic: To Hodl or Lend: What is your take? - page 6. (Read 943 times)