Bitcoin Forum

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while I'm not a high rank, it sounds crazy to send any loans especially with bitcoin? what insurance do you have? that they might get banned or would you be asking lots of private information or something  ???

Couple of tips for you...

1. Never send first
2. Always use escrow
3. When loaning, always get collateral^*


* By collateral, make it "good" collateral, like popular altcoins that you can liquidate should the borrower default... Try to avoid getting involved in things like domain names, or BitcoinTalk accounts... they're generally "bad" collateral. You'll see in the sticky threads in the loan section (https://bitcointalk.org/index.php?board=65.0) that the generally accepted amount is 120% of the loan amount of collateral is required.

If you're the lender, you'll have an easier time building up trust, which is something that, unfortunately, you'll have to do in order to establish yourself as a lender here, especially because of your "Newbie" rank.

At your level, I'm willing to go on a limb in stating that a lot of people that will hit you up for a loan are gamblers, which will put the loan at risk of not being repaid on time. You're absolutely correct in stating that you should never provide a loan to newbies.

Also make sure that the account that you're lending to doesn't have a recent password change, which would indicate that the account may have recently changed hands. Just because a member is a higher rank doesn't mean that they're trustworthy.

Work with a couple of reputable escrows here and try to build up your reputation that way.

And don't ever bend your rules about the basics of lending, as others have mentioned. Don't go first, make sure to receive collateral, and ALWAYS use escrow. People will come up with creative ways to attempt to dodge these rules, so don't ever break them.

Welcome to the forums, and best of luck to you here!

No private info, lending bitcoin, no escrow?
Man you have one very brave idea here.
I would start with reading more about lending in forum sections and not only here.

Always use escrow, what you are saying here is recipe for disaster.

Also I would like to add this for OP... Scammers will try to scam with whatever trick they can do with you so be careful. Have a read here: SCAM ALERT!!! Lost 0.08 BTC [Please stay safe] (https://bitcointalk.org/index.php?topic=4773983.msg43114643#msg43114643)

after reading your post there, I'm curious why does he need to borrow 0.08 btc if he (supposedly) had 0.096 btc of a token? why wouldn't he just sell 0.08 btc of that token instead of paying back 0.096?  ???

edit: quoting OP too

It never clicked my mind. It's simple because s/he wanted to scam someone and I was the one LOL I do not regret by the way, I really hope he comes out clean. My intention of braining this example to the OP was to alert him. Hope he learn something from here if s/he involves in the lending business.   

There is not always a trusted member behind a Legendary account, nor Newbies are always scammers. It's not the rank you should consider when lending, but other things like collateral or other loaning principles that I might don't know. Because, even though account sales are discouraged, but they are still happening in the hidden (mostly in Social Media) which means that even a new member can come up to you with a very high ranked account to ask for a loan with the hope that you might consider his request seeing the rank he has on his account. But never do that mistake. It is always better to double check than regretting later.
I hope you don't get scammed.
Good luck!