Topic: To Hodl or Lend: What is your take? - page 7. (Read 897 times)

Nobody in his right sense of thinking will appreciate lending than having to invest and hodl, but the process or means to this is what many lack as adequately not too good enough, there must be a desire for something, then a pursuit for it, then meeting the requirements for it by giving it all it takes, going through the challenges and finally arriving at the end result, if you don't have today is not the end of the story that you can never possess, start by creating something in form of value and earn from it, such a way or means could be your own opportunity to getting started to have, invest and hodl than lending.

In certain circumstances, risking one's reputation can be seen as an alternative option for those who have a good reputation. Someone with a high reputation is unlikely to be willing to destroy what they have built over time.

Everyone understands that any accumulation of good deeds you have done over a long period can easily crumble when you commit even a single wrongdoing, including failing to repay a non collateral loan.

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.

You prefer to lend Bitcoin over USDT and are viewing Bitcoin's upside potential as a boon. Bitcoin lending can offer the opportunity to benefit from any price spike during the loan period, which can potentially increase your profits. However, it's important to remember that lending to Bitcoin still carries risks, especially the risk of borrower default. Regardless of whether the loan is in Bitcoin or USDT, the borrower's ability to repay the loan is an important factor in the success of the loan agreement. So if you really can't stand the fluctuations, you should learn to hold assets rather than lend.

Take them to think about many situations need to consider and here are my takes.

Hodl the only thing you can do is to buy bitcoin and await on target time you set before you sell. Although market volatility.is stressful but this is only your main problem if you choose to hodl.

Lending Yeah this is profitable but there are times that a lender lose their money due to some those people which doesn't have any plans to pay their debt. And to bad if the borrowed amount is huge since with that the lending business built might collapsed for this reasons.

The risk is dealing with people you can't trust, and that can be difficult to identify. Even for someone who has been involved in the bitcoin lending business on this forum for years, they occasionally lose money due to default even though they are given some time leeway.
The rule that guarantees almost no risk is actually clear, "no collateral, no loans". I don't know why this rule is slowly being abandoned and choosing to be without collateral for certain members.

You forgot that, as it is incorrect. Although we believe that Bitcoin's price may explode in the future, no investment is completely safe. In fact, Bitcoin is classified as a high-risk investment. Let's be realistic.

I will always prefer to hodl than to lend. There are possibilities that bitcoin price can rise beyond the interest you will gain from lending. This will make you lose the gain you would have made from hodling. Lending is a very risky business that I might not have to guts to invest in. I have seen moneylenders lose money not because they are not skillful but because some trusted clients failed to honor agreements.

Debt collection is a skill that needs to be learned. I don't think I have the tact and approach to collect a debt. So I have to stay clear from the business. Finally, my religion forbids giving loans with interest. The tenants of my religion promote giving loans without interest or collateral. I give loans to people without interest or collateral but I also ensure that I give only what I can afford to lose.

It depends on your ability to conduct good due diligence on the individuals you lend to or the services that you use to lend. Additionally, it depends on diversification. If you put all of your eggs into one basket, then of course your risk is exponential. If you diversify into some services, some individuals, and place 1/20, 1/50 or 1/100 into each lend, then your risk is much lower. If you are aiming to earn 10%, then you will need 2, 5, or 10 defaults or losses in order to break even. 10 defaults with good due diligence would be difficult.

So overall, my answer is that it's not risky if you know what you are doing. If you aren't wise then you will surely make a loss. I wouldn't recommend it to someone who doesn't have experience or isn't prepared to lose in the beginning. There is a learning curve for everything, even lending!

I personally like the idea of lending as it seems prudent and worth trying to stake Bitcoins on a well reputed and reliable platform that offers attractive staking rewards. However, this practice is also associated with certain degree of risk, as there is no guarantee that your funds are absolutely safe. Furthermore, due to regulatory issues surrounding the crypto currencies platforms, there are many uncertainties as crypto currencies are still evolving and meeting regulatory requirements for staking platforms is challenging. Therefore,it is difficult to find a trusted platform that not only provides attractive staking rewards but also works within regulatory framework.

Well, you are very correct, sir, but it depends on who you are lending to just as you have said. When lending, I think the lender should apply wisdom because the truth is that not every borrower can pay their debt. For instance, if you see a legendary member om the forum who is earning about $120 per week and requests to get a loan of $400 to pay back in two months, I can probably accept to give the loan to the person because I know that in those two months, from his signature campaign, he will be making about $880.

What I am just saying, in essence, is that a loan should be given to someone whom you really know has the source of income to pay it back. For example, I have a friend who I took a loan from for my business; it's been over five months now, although it's a non-collateral and non-interest loan. The agreed period is overdue, but I have been the one begging this guy to take back his money, and he is declining, saying he has no need of the money yet, and he is also afraid not to take the money from me and squander it. So, first, he gave me the loan out of trust, and because he knows I have everything it takes to repay him, that was why I said a lender should apply wisdom when giving out loans. I can never give a loan to someone whom I know fully well is not working, doesn't have any investments, and doesn't have any means of paying me back.

For the parable, yes, I heard that saying too. If you loan money to a friend, some time it will result in quarrels and too many issues before you can get your money back. I asked that question in the past to an economist, and his response was that when giving a loan to a very good friend, it should be done in the presence of two witnesses, and there should be a written and signed agreement stating all your terms should your friend fail to repay the loan. The terms could be that you will forfeit any of his property that is worth your loan value. In such a situation, wisdom should be applied, which is, don't give a loan to a friend who doesn't have any property that is worth your loan value. For example, you give a $10,000 loan to a friend who doesn't even have any property that is worth $2,000.

Giving a non-collateral loan to a stranger should be a decision that the lender has agreed to accept whatever risk it presents. For example, if a trusted friend brought a stranger to you and asked you to give a loan to the person, stating that he, being your trusted friend, would cover the debt if the borrower failed to pay, and you knew fully well that if the stranger didn't pay, you couldn't force your friend to pay it, the best choice would be to decline the loan or give it out and agree to bear the risk of not getting your money back should the stranger decide to run away. perhaps Bitcoin loan is something that can have an disavage effect on the borrower if the price of Bitcoin sees a big uptrend 📈(I talked about it on my first comment).

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.

Of course, it would be a risky option to borrow the existing Bitcoin balance by collateral and use this debt to trade because if the current positions are negative there will be a possibility of non-repayment of this debt and in such a case the balance shown as collateral will be taken in return for the debt. Moreover, in such a case an extra cost will be incurred as the interest on the debt will be paid in addition to the loss of the new transaction.
Giving existing Bitcoin savings as a loan will not be a risky situation because there are many trustable platforms where these transaction(s) can be made. With these platforms you can lend your Bitcoin savings as a loan and get the interest income with the lowest risk.
For this reason it would be more accurate to interpret whether it is risky to perform these transactions depending on which side you are on.

Lending will only make sense when you are paying with the amount of BTC and not with the value it has for the current market price. Let's say you lend someone 1 BTC and after the time is over, they will have to pay you 1.05 BTC. So, even if the price increase or fall, your assets will stay the same. Currently, 1 BTC = $26400 and you will be paid after certain time and the price increase to $28000, You will get less than 1 BTC when they return that to you. And the interest amount will not cover that either if you are looking for to hodl it afterward. Also, if the price falls, you will get more BTC but the one who is giving you back will be in a loss. You will have both advantage and disadvantage. Vice versa for value transfer but opposite.
And not to mention that there are risks of security concern. Not your key, not your coin. And when it is in the hand of others, nothing can be said about it. So I will stay away from it and try to make the best out of DCA or Spot trading.

Honestly, I can't lend my bitcoin through any centralized or decentralized exchange unless maybe through this forum.
 I can also lend it to a trusted friend who is a bitcoiner like me. I have a few friends of mine who are bitcoiners. A few times they have requested a loan from me, and I have offered to give them the loan in Bitcoin. It was in their agreement to pay me the exact volume of Bitcoin I lend them, even if the price of Bitcoin goes above the price it was before I loaned it to them.

Apart from that, I really prefer to hold my bitcoin for the long term. There is one advantage of lending for lenders; for example, if you lend 0.05 Bitcoin when the price was $25k and Bitcoin grows to $40k, you have your loaned amount increase in profit even plus the interest rate, but that advantage is a very big disadvantage for the borrower because, if he only needed to spend $1,250 to buy 0.05 Bitcoin when the price was $25k, he will now need to spend $2000 to buy the same 0.05 Bitcoin before he can pay back his loan, and that's only for the amount borrowed; he still needs to cover the loan interest depending on what the interest rate is. That's also the reason why I wouldn't want to take a loan in Bitcoin from anyone.

Cheers 🥂, Dr.Bitcoin_Strange 👺👺

Let's generalize the lending thing in the crypto community. There have been projects that have made their main use case into lending and we've seen that most of them collapsed. If personally I'll go with the lending business and I'll have a budget of my BTC into lending, I'll pass.
It's an headache and painful honestly and even if I haven't done such, imagining of how things will go when you're gonna have hard time asking for the payment of your borrowers seems to be like having no hope and just a discouragement why I've been into this. So honestly, it's hard pass on me if this idea is gonna be brought by someone to me. I'll just leave it to those that has a strong heart and have been into this business for years.

Yes, lending bitcoins is very risky. Even lending regular money on credit sometimes becomes unprofitable. It would be best if you watched who you could trust—simple strangers, despite the promised interest, I would never risk giving. Yes, I will lend to a friend, but this person is closer than a brother, and I am sure of him. Otherwise, I always remember the saying: "You lend to a friend and receive your debt from the enemy." Moreover, with the volatility of Bitcoin, lending is a thankless task. Besides that, I won’t borrow; you need to learn how to live with the means that a person has, which is why it is crucial to have good patience to save some money, in this example, Bitcoins, to never depend on any debt.

i will not try it. after all it's too risky for me who has a limit on funds. I prefer to try to manage the money that I currently have. Lending bitcoins with interest is not easy. You need data guarantees and trust regarding the people who will borrow the bitcoins that you have. However, the risk is when you find someone who doesn't care about their own personal data. well, so, I better hold on to the bitcoins that I have. it has many advantages for me, such as learning to invest, saving, learning to make decisions, and others. it makes my skills increase even though sometimes I face the risk.

Lending is not that bad but it's not safe either, what will happen if you don't get your lent Bitcoin back? What will happen if the platform which you lend through stops working? I would rather store my Bitcoin and HODL for a very long term until I am satisfied and ready to take profits, I will keep buying more Bitcoin and keep instead of trying to find a way that I can earn more Bitcoin through lending.

Not just HOLDING. HOLDING AND FORGETTING. LOLz.

This is a strategy I find useful, I'm not saying I have a whole lot but what I have, I do not think about it honestly, all I'm after is how to earn more and hold for whats to come next year during the Bitcoin Halving.

And in the aspect of lending, we're in this together. Truthfully, I'd rather use my bitcoin to stake on three straight draw ( gambling ) rather than lending, at least, I'm damn sure of getting returns ( profits ) or lose. Although, I don't discourage thisto be carried out by whoever that wants too.