Bitcoin Forum

Hello  :) everyone Its Cryptosun,
I am holding like a good amount of Bitcoins for a longtime since 2 3 years :) , I heard lending is a good thing which can also let me make money but i am not familar how to lend because if we lend to unknown people we can be easily scammed :) , so i would love to get some thoughts how to lend someone and whats the surety they will pay and also is there any security a lender gets :)

Your help will be appericiated :)
Cryptosun ::)

much smileys, such wow.

here's my advice:
for the first few weeks, don't loan anything to other users unless they have a valid collateral that you can sell for 110% (or more) of their loan amount. in that time look around this section for the no collateral loans and learn gradually from them. after that it's up to you whether or not you want to start giving loans without a collateral or not.

I say this because it is hard to understand the no collateral loans if you're still new on bitcointalk. you'll need to learn how to judge users based on their reputation [1] before you start giving them loans without collateral.

[1] some people disagree with this way of thinking and advises others to always ask for a collateral.

thanks for the post buddy.

Sorry but I am a smiley's lover :)
i will try to use them rearly.

And my friend i am not sure what a valid collateral is it something like escrow?

lol don't worry about the smileys, I was just making a joke.  :P

collateral is some kind of assurance. the borrower will give the collateral to the lender/escrow. and if the borrower is not able to repay the loan the lender have the right to hold/sell the collateral. basically the collateral will be yours if they default.

you can find what kind of collateral is valid and what is not on this post (https://bitcointalk.org/index.php?topic=577765.msg6311902#msg6311902). bitcointalk accounts can also be used as a collateral, but like I said, not everyone agrees with that way of thinking.

oh, and it is advised to use escrow for holding the collaterals.

So collateral is like a solid thing which could be kept as a security correct? and bro I think first i should start with giving low loans :)? coz it will be safe for me until i understand, and according to you how much we could make with lending ?

sorry I didn't include "what is collateral" in my previous post. edit now.

yes, you should start by giving low loans just to be safe.
profit in lending comes from from interest so that depends on your rate. most people asks for 10% but TBH the interest can vary based on the amount of a loan. tho I'm not sure if you can get much.

Ok Buddy thanks alot for your help :) , I will do so.

Perform thorough background checks on everyone before lending and always demand a collateral. Check the users trust, scam reports if any, other profiles on the Web etc. Moreover over,  I suggest you get get to know the forum much better since you're activity is low.

Thanks alot brother for your suggestion ,and yes i guess colleteral is good way to lend :) and yes trust level help us thats what i learnt and yes i am trying my best been online since yesterday lol :)

When will you start your lending business?,
No offense, but this sounds like " trust me , I am rich and I will never do something bad". 
Sorry, I just want to say what I've been thinking since I saw so many newbie scammers on this forum. I hope you are legit.

I am not asking for trusting me :) i was asking about how the process works :) coz i had some spare btc which I am keeping since years :) so i thought it would be awesome if i could make some from them ;)

you can't run here a good business based on loan with decent collateral, the only good collateral that they will ever offer might be their account, and at least it is something like legendary with plenty of trust it will not cover more than 1 btc

if you want to run something where you lend plenty of bitcoin, it's better to use btjam or like you said creating your own business

Save yourself the hassle and just hold on to them. Do not use BTCJam or any of those lending websites they have a ridiculous default rate from the borrowers. Lending here on Bitcointalk is a waste of time most loans are scams or for .005 amounts that are not worth the effort.

**JUST HODL**

isn't it risky? what colletral they offer there like they offer their account here?

Yes buddy i gues i will have to do that lol

yeah there are some risk even with a++ members, but there are not alternative which are less risky besides this forum, also account as a collateral isn't the best collateral, you'll never be sure of being able to sell the account

you can minimize the risks significantly by only giving out loans when there's a valid collateral.

How we can trust btcjam what security they provide?

UI will suggest that you spread your bitcoin among different lending network because they help with all the security measure you only give the money when needed and you will get many people willing to borrow.
I suggest the following networks  https://www.bitbond.com, btcjam and https://bitlendingclub.com

Feel free to roll the dice here and there, but not worth it in my opinion. Loaning here is pretty much chump change with a ton of competition.

Check the links below should explain it pretty well  ;)

http://bravenewcoin.com/news/bitlending-to-curb-loan-default-rates/  average interest 12.68% average default 7.91% - so you might make 5% if you pick the lucky ones...or loose non stop

https://btcjam.com/stats - look at returns in the negatives...

You could put your coins on bitfinex and lend them out using their platform.
The interest is low and might be not worthwhile the risk.

Do not put your money in BTCjam, way to much risk.

You can loan on here but just make sure the collateral is worth more than the loan.

I wouldn't roll the dice either.

If you have a lot of BTC you could start selling them for 5-10% and then buy more.

Thanks Bro :) I guess I will try this offer :) as its a good one

just hold your btc loans are tomuch hassle for little profit. ;)