Bitcoin Forum

hello, why lending rate for BTC on poloniex 3x larger then on bitfinex?

Market dynamics. Mostly dependant upon available currency supply, Bitfinex might catch up on size since they survived their hack from recent year. And introduced that strange BU token stuff (which I would not dare to touch with a ten foot pole) but seemingly this attracts deposits, so more supply floating on site resulting into lower rates.
Go for Poloniex if you are supplying lends, my advice.

Is lending worth the risk though? Never done it, but might be interested.

I can't speak for Bitfinex but the only risk on Poloniex is the exchange getting hacked and somebody taking all of the coins.
Ignoring that, the risk is nonexistent. That's why the rates are so low.

To be honest i did not understand this explanation  :(

I am lending now on poloniex, but i do not want keep all my money for lending in one place.

So i am looking for other places, if you, guys know other place to lend ( except p2p like BitBond ), please tell me

I don't even think of having small amount of bitcoin in bitfinex because they have been hacked more than once in past.

But lending in polo can be worth and also quite risk free. However don't dream of making huge profit by lending there.

new signature in honor of this topic.  :P

there is no risk if you done on poloniex, they cover your ass with collateral and the borrower can't be unsolved, but the gain is very minimal, only 0.02% which is ridiculous for me, not going to wast time on that revenue, btjam offer higher revenue but more scammy, or try in the lending section, but you need a good collateral like an altcoin

poloniex has stated (https://poloniex.com/press-releases/2017.03.17-Hard-Fork/) that if you are lending BTC at the time of a fork that you will only receive pre-fork coins (BCC), while Bitfinex has announced (https://www.bitfinex.com/posts/197) that any BTC lenders will receive both BCC and BCU in the event of a BU hard fork.

You can have whatever opinion of BU that you want, however, lenders logically want to receive something of value in the event of a fork.

For your information Bitfinex are taking their tokens off the market because it has achieved its purpose and they are starting to repay their customers who had funds stolen because of the hack. Good job on them for not scamming the community.

Thank you a lot. It was only one idea i had. But few days ago Bitfinex as i understand changed/update policy about BTC Hard Fork, and it`s did not affect to rates. then i decide to make this topic and was very surprised when saw that looks like nobody knows answer.

May be you know other places to lend Bitcoins on exchanges? ( no 2p2 lending like BitBond )

It is just like a regular stock market, well in stock market the arbitrage is smaller since there are millions of traders and billions of dollars searching for difference but to be precise there are still tiny differences.

Exactly like that on poloinex and bitfinex because there is a volatile environment and the prices are supply and demand type.

lending in market poloniex or bitfinex about suply and demand
demand lending in poloniex is very high, if suply low so can incraese price about lending
is same case in bitfinex too

as i understand from above you are wrong

Unfortunately I do not.

There are some websites that accept deposits and pay interest on said deposits somewhere in the range of the mid single digits percent per year. It is my suspicion that these websites deposit the BTC they receive from depositors into exchanges, lend out the BTC and collect the difference in interest payments. I would suggest that you not use these websites because you would be facing the risk that these websites pulling an exit scam (or otherwise lose money in a way specific to their website), in addition to the risk that the exchanges that these websites deposit their/your BTC into end up getting hacked.

The Chinese exchanges used to allow for users to lend our their BTC (and CNY I believe), however this stopped when they were no longer able to offer margin trading, plus I have always viewed the Chinese exchanges to be shady.

I suspect that both Coinbase and Bitstamp will offer margin loans in the future, as both of these exchanges have either recently rolled out margin trading or have said they will offer margin trading in the future.

There is ALWAYS risk with Bitcoin online investing. There r s no such a think as risk free.

Make sure you protect your coins on whatever exchange or lending service you use, 2FA is a MUST HAVE, email confirmation also. Never use the same password twice and make sure its a long one. Also, I suggest installing anti-key logger, PAID one, not some free or cracked shit.

Quickseller, also we can touch savings like Magnr.

I am pretty new, but i saw site where about 9 different Exhanges like Toro or BitMex. As i understand i can trade BTC there with higher shoulder. ( is that call fufures? ) Where all that guy taking BTC ti trade without lending?

Also Bitmarket Poland site. Do you know some thing about it? )


crazyivan, thank you. Security advises ever is good. About anti-key logger i even did not heard. Will search some info )

Or you could replace your proprietary operating system with only free, libre and open source software ;)
That way the code can be publicly audited and proven that it's not going to send your Poloniex password or whatever pictures you keep of your girlfriend to scary Russian hackers.

Yes, I know lending is possible through Poloniex and Bitfinex, but whether exchanges will provide any security for the lender. I am really in confusion state whether they will pay or not.

The thing is, that the risk you take for example on poloniex isnt as big as the risk you have on loaning btc here,in our home-btctalk.org.
That is why people use the principle "no collateral, no loan" because they are not going to risk their bitcoins just for a small return. They need something with value, to gain back the money loaned to them in case of scam.

I would treat poloniex more like a steady investment, where you can get some % of return from money invested pretty much without any risk, they just cover you up.

Poloniex is one of the greatest prizes in hacking at present. Lord knows how much money is stored on there. I'm sure they're extremely careful but another hack is only a matter of time.

It's already happened and somehow it'll happen again. Considering the returns on offer there's no way I'd bother myself.

In their defense, they offered up repayment for all users affected through their coins. And just the other day announced that they are doing a full buyout of those coins. So they've done a good job at handling the situation -- far better than most.

Absolutely. It was handled with class but who knows what's around the corner? I presume they make enough in fees to cover a lot of eventualities but not all of them.

I am unsure of the legitimacy of Magnr, and cannot reasonably advise if it is some kind of scam or not. It looks like they are offering 1.28% APY on BTC deposits (per year), which is not much more than what you would expect to earn in a single month on bitfinex. For this reason alone, I would advise against depositing BTC there as you will almost certainly earn much less than alternatives, and will have less access to your funds.

I had never previously heard of Toro however I would advise against doing so. First of all, their website looks like little effort has been put into it. Secondarily, it looks like when you "invest" in this site, you are more investing in traders' actual positions (if they make money, you make money, if they lose money, you lose money), which is much riskier than giving a loan to fund traders' positions that gets repaid first when positions are closed.

BitMEx offers futures trading and AFAIK, no actual BTC is actually borrowed.

They are being pretty careful about security though. Since the Cloudflare bug thing they've been manually approving large withdrawals, and there is a notice on their site asking people to enable 2FA.

If people are sensible and make sure that all their passwords are a) long and b) different on each site, plus enable 2FA they should be fine.

I don't understand what you are saying because already Poloniex has been hacked, but at last, they recovered the losses and paid to all the members. Already they are providing lot of security measure to their members but what my concern is whether lending money is working fine with Poloniex or not.

give me link please

Or better. They could do the big Verning and run away with all the BTC and other coins. Its so easy to get away with it since altcoin exchanges arent regulated.

You might be right in some cases, but I would like you to note that there is something like coinfirm.com and moreover, the bitcoins are traceable, you can check if they are being moved somewhere, or if they are just calmly waiting for the turn to dump.
I would also say that almost every time Bitcoin exchanges ( altcoin exchanges too ) hold most of their funds on offline wallets, so to get there, you need an exploit or sensitive data given from the inside.
There is also another possibility, as you already said: poloniex can just move bitcoins and run with them. But saying something like that implies that they won't have any troubles for doing that, and I cannot believe people are saying that every bitcoin exchange will run away with money sooner or later.

I dont think you get or know what the big Verning is. I suggest you read up on the Cryptsy exchange scandal and see what happened there. To give a hint, its where the owner of the exchange himslef who tries to steal from its own users.

Everyone knows who Big Vern is.

The issue is, why do you think Poloniex is like Cryptsy? Where is your proof?

The guy above me in my previous post seemed like he didnt know. I meant that not as an accusation to Poloniex but as a fact that the Verning did happen and it could happen again whatever the exchange is.

Good question. But the takeaway of this, at least to me, is that they took the right path. Where most crumble and run off and go into hiding, they decided they would do the right thing, one way or another. I have a lot of respect for that.