If you have no collateral and you are giving out a personal loan it is very likely not to get your money back.
However, if you have collateral you significiantly lower the risk of default. Yes you might have some risk (like the collateral is not good enough in case of forced liquidation) or the service operator will go to bankcrupt (like Gox did with btc).
How does it work with the collateral in Poloniex ? is it possible to have one but get a lower interest rate (I don't have account there and lending would be the only reason)? thanks for the help.
https://poloniex.com/support/aboutMarginTrading/
Thank you for that.
I had a look and I am now checking the loan markets, which has hardly demand for all the coins present. Is this normal or I checked at the wrong time?
Various enormously depending on market conditions.
Isn't he implying here that Poloniex only offers margin trading for a few coins (i.e. not all coins listed)?