Bitcoin Forum

Cryptocurrency loans emerged as an increasingly viable alternative to borrowing loans. What do you think about the cryptocurrency lending business?

https://news.bitcoin.com/genesis-capital-processed-1-1b-of-cryptocurrency-loans-in-2018/

It's a very new business model and it's too early to say anything about it. We need to see what is the percentage of the total loan volume becomes NPA. As of now, they are not offering loans to any individuals because it is particularly hard to recover such loans but they are doing it for institutions.

However, it has also increase the ease of borrowing money to many companies but again it is too early to comment anything good about it. Recovering the loans can be a challenge in coming years and that's what time will tell us!

Bitcoin loans aren't really uncommon, as it has been done for the past years and is still being done here in the forum (P2P loans and of course, BTCJam). I don't think they'd really be having a hard time getting the returns if they would ask for collateral, same as what most lenders here in the forum do. It'd be a huge market in the near future but as of now, if people can just directly apply for a loan in their banks, what need do they have for cryptocurrency loans?

Bitcoin loans or simply called bitcoin lending are now become popular simply because of many people who want to have that. In this forum you can see a lending thread where you can borrow some bitcoin but it need collateral for assurance that you will pay.

Bitcoin lending between individuals here on the forum has lasted for quite a while and has only recently become less used.
Between businesses may not yet be much advanced, but the concept is similar, and some use it as a way of trading without capital.

I think this has been discussed a while ago, but my opinion about Bitcoin loans is quite interesting, because there will be many people who are helped by this Bitcoin loan.Because this is a new thing, of course many people don't know this yet, but with time, borrowing Bitcoin will be popular in the community

It is difficult to say something now, since it is something new in business. Yes, and how it is generally adjusted, it is not clear. It is necessary to follow this and study.

This Genesis Trading lending service is not lending to schlubs looking for a car loan. It's for their giant whale trading friends to drop on crypto markets. They won't even pick up the phone to you if you're not already a deeply established player. The crypto won't ever leave the markets either.

As for conventional lending to mortals, fucking forget it. It will simply never, ever be viable. Every aspect of crypto counts against it.

Not really a new kind of business but the model is the only thing that made it different. The banks are the leading in this kind of industry but with the intervention of crypto it made the model different.

Adjustments will be applied though this has been done even before and that was few years ago just like what other mentioned. And we have a specific section for individual type of crypto loans.

Honestly speaking, I am not convinced of this model for many reasons, but I don’t think there is exactly a lot wrong with the some investment into it, but you obviously shouldn’t try to make massive investment in this due to the risk.

However, I only pick Best Crypto Lending sites (https://cryptolinks.com/cryptocurrency-lending) only for obvious reasons only. I don’t go with new ones at all, that regardless of how good it might look, as risk just doesn’t make me feel comfortable with it.

This look like a large scale lending service with perfect collateral. It isn't the same as that we users get through poloniex or through our forum from trusted users using escrow services. Comparatively the lending business have decreased a lot than the past days as it hasn't generated big revenue as the market fluctuation is big.

From client point of view, I find it for very convenient, especially Nexo.
But I'm not so sure about the business part, because the lender is carrying all the finance risk - exactly opposite to a standard business lending model. Still crypto currencies are too volatile, but every start is harsh.

I think this is still not the time for such businesses to grow. It is very risky as these companies can be easily scammed due to different regulations among the countries of their counterparts. Due to this fact, these companies are very profitable right now. When demand goes high and the supply is less they can increase the rates they are asking and make more earnings.

Maybe this in my opinion is not efficient because loans also need to guarantee what we have, and how many loans are not what we want.

As I reading the articles, they have a good programs. But I'd rather stay away from it, it will be a big problem in the future if you borrow loans from it in my opinion. It is not a good idea or solution for me if we do this kind of methods. It maybe profitable according to their articles statement but still I'm not gonna partake in any kind lending business in cryptocurrency.

The risk is really high when it comes to attaining loan via bitcoin, even if all the documentation are perfect and you have a asset to pledge with relevant value then it is not a big deal even if the person does not replay the loan, but the problem stands when there is a big rally in the market, if i loan someone bitcoin now with the amount just over $3.4k will he be repaying in dollars worth or the exact one bitcoin even when the price touches an all time high valuation, the problem is there are many variables you have to over come before planning to start cryptocurrency lending business.

Unless you're worth several billion dollars, have several decades of track record on Wall St. and play tennis with Barry Silbert, you won't be allowed anywhere this particular lending service.

It's for financial players to play on markets and nothing else.

I have heard of it and it has been roaming around the forum for months. As for me, it is a convenient way to invest yet a risky type of a decision that we could make because we don't know when we are getting a good profit here now that the market is currently down.

it is not for everyone or in other words it can be a horrible business for some and a good one for the others.
for example if you are depending on the fiat value and making a living that way as the businesses logicall go, then you will be screwed a lot. and if you try to change the contract in a way to protect yourself against cryptocurrency price dumps then you will be outbid by the rest and out of a business.
but if you don't care about the fiat value that much and focus only on increasing your cryptocurrency amount, like loaning bitcoin to earn more bitcoin then it can be a good business although there are still headaches of collateral, defaults,...

As OP's these days don't care about making a short write-up on the things that they are linking to, I don't care about reading their stuff, so we are kinda square here. With that said, I assume this piece casually ignores basic economic rules regarding lending. Lending makes sense with stable assets (currencies) which price (value) can be reliably predicted to stay more or less the same in the future (at least, long enough to disincentivize the borrower from defaulting and you from losing). Otherwise, you, as a lender, will have to ask for so much collateral that the borrower would be better off financially by selling some of this collateral himself, which turns the whole business into an exercise in futility and stupidity

I guess that pretty much sums it up

it seems that it is the nature of cryptocurrency, which has a big risk but also gives great rewards. but if we already understand this business, the risk can actually be reduced

To think, Crypto lending could be an option because our generation today focuses more on fast transaction. Due to the growing community, people always seek for the betterment and probably we can heard some are doing this thing. It maybe risky but I think this is something that we should also be curious to see it's development.

What business are you talking about ?  The title says lending business which means we are talking about lending here and not crypto investing    .   

Crypto lending or lending in general is a good business because it is indemand as people are always seeking for cash whether it is for emergency or for personal spendings  .

you just gotta know the correct people that you will offer this service because many are also looking to scam  .

I still do not understand how they manage it to look like its crypto lending whereas they still count it at 1.1 billion dollars. I mean either its a bitcoin amount or its dollar amount what are they really lending. If they are not lending dollars why calculate it at 1.1 billion dollars instead of the bitcoin amount.

Also, this is not really "lending" considering these are not loans, loans are stuff you get to buy a house , get a car, pay debts and whatever, this is just margin lending which people use to buy or sell on a position during trading and then pay it back to them, there is a legal tender in place and if you are using their system and borrow money they have all the info about you possible and you are responsible to pay them back which is exactly like fiat lending.

Cryptocurrency lending business sounds possible in theory but in reality the possibility of you succeeding in it is very thin. The fluctuation in price can really affect it success.

Nah. Never a successful one.
Many ICOs I have seen which have the same industry and yet they fell short as always. I dont say they are dead but it is more of a non active company anymore.

People would rather go with the banks than do this kind of loan which is riskier. Same goes for the company who will do it.
Information leakage might also happen since they will have all of your identification cards. Dont want that while your in crypto right?

I have seen some projects about cryptocurrency lending held ICOs last year and even in 2017, I haven't heard anymore about them after their ICO if they been successful in this matter. Since we are now going forward and becoming more and more into cryptocurrency, I believe cryptocurrency lending is also a good and on time business.

If crypto lending bussiness, there should be need regulator. We know that internet is like a jungle and identity can be anonymous. Every loan must be need collateral and need authorities to approve that collateral. I am prefer think crypto as commodity because its a digital asset

actually loan money is the business of the bank, and the government has arranged loan terms, so if bitcoin wants a loan feature or service, the best way is to support each other or work with the bank. and bitcoin is a currency so its function is to make buying and selling transactions.

Using cryptocurrency for loan its not good ideas, how ever bitcoin and altcoin have speculative price where some time could be on higher but some time could be lower, will be not profitable if you trying make cryptocurrency as lending business.

Cryptocurrency cash management is very risky for both parties. After all, cryptocurrency has a very high price volatility. I do not think that state banks will do this. For them it will be too risky. Commercial banks may try to issue loans in cryptocurrency. However, I do not even want to predict what will come of it. This will more resemble a roulette game. Here, someone will definitely lose, and someone will win by changing the rate of cryptocurrency. This kind of activity is definitely not for banks that love accurate profit calculation.

I think a business certainly has risks, so we must be careful in calculating it. but I think if everything is calculated using crypto does not become a problem to run the business

I suspect we shouldn't really expect cryptocurrency loans in the near or not so near future

I mean as a mass phenomenon (other than rare events). Without volatility being on par with best fiat currencies (and that being so for months or even years) followed by mass adoption, there is little chance for such loans to make into mainstream. It simply doesn't make sense. For example, if Bitcoin rises a couple times, it maybe profitable for the borrower to default on his loan as with borrowed bitcoins he might be able to buy twice as much collateral as he provided for the loan. But providing 200% of collateral doesn't make sense either

In my opinion, the Cryptocurrency lending business is legitimate as long as it does not endanger each other, there is no limit to this. If the loan aims to fund business operations, of course the borrower has calculated profits and losses.

The purpose of the company to get a loan is one way, this is also done by many companies in the world as a step for them to get business capital. Because not all capital for business can be fulfilled by the company itself

Cryptocurrency lending is a good offer, but it is not yet widespread due to several drawbacks: high volatility of the cryptocurrencies; too little acceptance worldwide (not everywhere accepting the cryptocurrency for payment);
but with the big spread of cryptocurrency, it will really be very good, because the banking sector is now strangling people with its loans!
and various microloans are even worse and there is a chance of getting people to take money!
Blockchain technology should remove all the negative aspects of lending and helping people!

Except a borrower would complete the entire process for which the loan is needed in crypto currency and would equally get contributions in crypto in other to make profit sustainable to pay back the loan and its accruing interest, it really does not worth it at moment. But if some conditions are included in the loan agreement to hedge against all of the fluctuations that are likely to arise in between the days of collection and repayment, then its something to be considered.

actually, there was a hype last year regarding this crypto lending business. everyone wanted to launch a lending business here. but to find out, most of them have loopholes within the system. the dev teams are the ones gaining from their platform. or most of them ended up as scammers and crap. so i am not really convince with this strategy, unless the team behind is really trustworthy.

Even if all these issues get sorted out, it won't make Bitcoin loans more feasible

Lending money assumes you provide collateral for the loan, i.e. you enter an agreement with the lender (for example, a bank). So if you fail to return the loan, you may legitimately lose this collateral, which means its forfeiture should be enforced somehow (read, your property can be taken by force from you without your consent). But how are you going to do this stuff with cryptocurrencies unless there is some legal entity lending you coins officially, which means full legal recognition of cryptocurrencies? We are far from that

Because of that, lender require collateral amount more than loan amount. Whenever the price down to the certain number, lender will automatic selling the collateral at the best price. I see that's the best solution to overcome the lender losses in Crypto. Surely lender have to see that altcoin (collateral) price on the market every day.

Honestly, if I had my own company, I would never take credit in cryptocurrency for anything in life.Due to the high volatility, you can give all the income for loan coverage. To put it mildly, it is not serious.

Cryptocurrency loans are the future. But at this stage I would prefer a loan in some kind of stablecoin.Think for yourself, today I can take a loan in the ethereum for the price of $ 100 and tomorrow, if its price becomes $ 500, I will have to incur heavy losses.Yes, the opposite situation is also possible, but when it comes to a loan, you need to consider the worst option.

Yes, today we must be foolish to take a loan in cryptocurrency. The course jumps forever there and there. And in the end, you can just lose more than you gained.

It's unwise to take a loan for something that it's profits is very unpredictable and uncertain,cryptocurrency investments is a wise step towards financial freedom,but doing so via loans is one step towards financial bondage as nothing is sure.
Invest with any amount you have as profits are not sure

I think it's the right step in the right direction in the sense that it would bring about an increase in the wide spread adoption of Cryptocurrency.
Cryptocurrency lending services would make it  potential investors to access loans without having to go through the rigorous procedures of the conventional system.

I think it’s fair to say that slowly we are witnessing increase in popularity as far Crypto Lending (https://cryptolinks.com/cryptocurrency-lending) is concern. But of course, it only make senses IF there is a proper option available to be used.

I NEVER suggest making random investments, as that is something only a CRAZY person will do. So, it’s absolutely MUST to only pick the options that are entirely convincing and got the potential you look for. Without doing proper research, it’s just crazy for us to pick out any option.

Its true, the price always high fluctuating and its better to take loan from the banks and its much cheaper on interest rate. Beside interest rate, there is no regulation on cryptocurrency if we take loan in crypto.

On the surface it seems like a good idea but lending is a very risky business especially for the one that is giving the loan so a collateral is going to be asked for each single loan, this means that if cryptocurrencies really become adopted around the world then lending as a business will not be as common as today which is a good thing if you think about it.

I am not comfortable with lending programs, as we have seen many times that scam ratio is too high. I prefer Forex trading, which is where you don’t have such risk to face, at least if you are with regulated broker like I am with FreshForex (https://freshforex.com/). I am not saying this is guaranteed profit thing, but scam is not a problem here.

In any manner you might be just looking at bitcoin as a currency similar to fiat and for me there is no problem with bitcoin lending. The only gap that I think may be a hindrance is the idea that bitcoin does not equate money in terms of usage, which means that people have to convert it back to money in order to buy things or for whatever it may serve him best. If it should happen that bitcoin will be more like fiat in the years to come then it will just be the beginning of the new era of digital money. Where you don't have to exchange bitcoin for fiat since by itself it can already purchase or pay for something you need. This may happen in the years to come.

I would certainly agree with your thought If you substituted Litecoin for Bitcoin here

Bitcoin is just too expensive and too dear to be used as a regular means of payment. Do you see a lot of people directly paying with gold coins, apart from in the movies (as in John Wick, for example)? And it is not because gold is cumbersome and inconvenient (even though because of it too) as people could just use gold certificates which would count as paper money backed up gold. They don't pay with gold simply because gold is a store of value, and you typically don't waste such assets (unless you have nothing else to pay with, of course)

In this way, we shouldn't actually expect Bitcoin to become a good currency in the future. But that's not a bad thing at all as we have lots of altcoins to serve as Bitcoin's proxy to being a means of payment. And it won't hurt Bitcoin either as it will only add more value to it as a store of value, i.e. "digital gold"

the business of running crypto in my opinion is not easy and I have experienced it if it has not been resolved to affect all of these businesses and it would be good for me to become a long time bankrupt

Maybe in the other type of business but how about for crypto loans? I'm not really positive for these kind of business cause we can hardly to find persons who can be trusted of getting loans to us, its because we are all in anonymous identity and we can simply escaped from it.
So at this time, crypto lending institutions will never be profitable and possibly many will quit.

Lending with cryptos is one of the high profitable investment when we can make a trusted website for that,but still it is not created yet.

But this is one of the must have business if the crypto currency becomes future of currency and most preferrable payment method to kill the traditional bank loans.

It would be tough for a new project to attract investors but still, if you want to take the risk go innovate well. Having business on cryptoworld is a great move, you must think for a more innovative one. Cryptolending might not be effective for now but who knows it can be a great player in the future. If you don’t manage well your business, for sure you will be bankrupt.  

To be honest I'm not really familiar about a big company who lends a big amount of cryptocurrency and what's the process and requirements needed... since most of the big investors are in stocks and forex trading. I'm only familiar with the lending here in the forum where in you can create your own lending thread and lend users who has a valid collateral.

But I think for big companies and for users who're offering lending service here in the forum earns a big amount since there's a fixed percentage everyday or if the collateral falls down they do have the right to sell it.

This is indeed a new way and method to make money through crypto although it's still way to early to conclude that this method is viable and profitable cause digital currencies are secured and encrypted and can protect its users anonymously but maybe in the future businessmen and institutional investors may have solutions to this problem.

I think both of them have their respective advantages, by lending means that they minimize the risk, while the borrower, can invest even though he has no capital, of course there are agreements that must be followed together beforehand. of course with increasing prices, the borrower can repay the loan and pay interest

I dont think thats true for those who know how to manage their money and are willing to use that money to grow. The basic thing that lending platforms based on bitcoin or altcoin based collateral loans is that the market movements are making them very difficult to sustain. We have seen several ICOs who did such projects like ETHLend SALT and now NEXO. However there were rumors that NEXO was the reincarnated version of SALT. Basically like all other ICOs they are not to be trusted with your money. ;D

However a peer-to-peer lending business can be a small cap venture for a personal accredited investor. This sector may grow in future if crypto becomes more mainstream with availability of better collateral for borrowers to pledge.

I think cryptocurrencies loan is really making wave in credit industry and many projects are coming on this circumstances loan.  I remember bitbond is making great wave and many businesses and business men has taking the advantage of it in having loan for business.  I agree that in future many cryptocurrencies projects will be coming up that will help in expand the credit industry.

Cryptocurrency lending business is really risk involved, and it requires a development of increased trust to profit through the lending business. There were very few firms that provide lending services. Poloniex seems to be the one in the market that has got good trust rating. Even through the forum there are people providing the service with increased trust.

The business model is new in the fact that rules and regulations about, it is really hard to comply. There are lots of things to consider and needs more decisions to be executed. Imagine borrowing bitcoin at a low price and it grew at higher rates. You will have the liability to pay the debts from the interest + the rate hike.

Although bitcoin lending business has its pros, cons also are there. It's really hard to let people borrow coins. But lending bitcoins were practiced since day one. The community were helping each other and letting the members borrow from another and it worked well.

Forex trading is not easy as it seems and you need at least 3 years of experience for being profitable trader with proven track record. Lending with cryptos can decrease traditional loan requests but main problems exist because of collateral which doesn't have stable value/loan amount.

The problem with lending cryptocurrencies is not on the side of the lenders, most of them are honest and they state their requirements upfront, the problem comes from those looking for loans, look at the lending section of the forum and you will see newbies every day trying to get a loan by telling a sad story about why they need the money and why they have no collateral.

I think that this type of business has a future, as its popularity is growing rather quickly due to the many benefits that crypto-credit projects offer. This may be, for example, lending without checks, as well as the opportunity to receive fiat without paying capital gains.

The problem with lending bussiness in cryptocurrency is regulation. If not regulated, interest rate must be more higher than banks beside that, its about the identity or security of fund

I think it's still a possibility, because if there are still many who don't support bitcoin and don't support blockchain technology, in my opinion it won't make the future of cryptocurrency good, we must support the development of cryptocurrency for a better future.

I remember this Nimfamoney platform that conducted ICO more than two years ago. They are a crypto-lending platform. At first I’ve heard a lot about the project, with  very good objectives but then their token right now is not in use and must changed to another token. i don’t know what had happened to the platform. If there will be more crypto-lending platform, with the current bearish season, I dont know if they will be successful.

it seems that this is an extraordinary business breakthrough in the field of crypto currency, with the existence of a loan business like this eating the economy will also grow better by using crypto currencies.
although all risks that are owned by crypto currencies will be in line with the business.

I think it's still a high risk, in any online world can be manipulated including identity data. yeah this business is indeed profitable and tempting. but you have to tighten the approval process in lending, try to provide a more expensive collateral

It is a great business now that we are having a great timing right now considering how the market is rising.

But it will be a bit of a problem since scams are rampant. Even ICOs are failing.

This resemble a substantial scale loaning administration with flawless insurance. It isn't equivalent to that we clients get past exchange cum lender Polenix or through our discussion from believed clients utilizing escrow administrations. Relatively the loaning business have diminished a great deal than the previous days as it hasn't produced huge income as the market variance is enormous.

No investment is totally safe or risk free specially with lending business.This is very profitable but if you do able to handle the risk and manage this business carefully.If you even just handle or lend 3-4 people for monthly lend basis then it is already a good start up but you do always remember that asking for valid collateral is a must so that incase someone do scam or didn't pay you out you do still have the chance to pull out some amounts on the capital.

To be sure another way and strategy to profit through crypto in spite of the fact that it is still method to ahead of schedule to reason that this technique is suitable and productive reason advanced monetary standards are verified and scrambled and can ensure its clients secretly however perhaps later on businesspeople and institutional financial specialists may have answers for this issue.

Crypto will never be good for lending. There is no incentive for people to pay it back, even when it was at its height people abused the system by getting a small loan and than repaying it quickly and getting another small loan and re... keep doing this until they have a 100% trust rating of paying back and at huge amounts and than one day they require a big sum and than take it and leave.

Unfortunately corporations barely get punishment for stealing peoples crypto and when it comes down to individuals it is even harder. You can try to sue people who steal your money but it will be a hard challenge and considering its global its even harder to sue someone in a different country. That is why lending business will never be really big in crypto world at all since trust system is weak

The loan business in crypto, at first it seemed crowded and many people were willing to get it, but the level of trust was weak, so the application of the loan business in crypto is currently not getting much response.

if we now trade then selling is the wrong choice. because prices now show a decline, then if prices are low then buying is the right choice. we must be able to make the right decision if we still want profit and we can avoid losses. we don't buy on a large scale either. it's better if we invest gradually.

I think that crypto lending will be profitable among traders, since traders ultimately will need funding to continue trading (especially when there are dips but they no longer have cash to buy more coins) I think that having established trust will allow a crypto lending business to flourish. For those who are skeptical of using crypto and are wary of scams and ponzi schemes, they may opt for getting a crypto loan. However, marketing to traders may be hard because you will have some competition since that there are already exchanges or trading platforms that allow you to make a loan.

The more borrowers of course the greater the profit you might get, but the risk will be much greater. yeah you need to manage it well, if there are many borrowers make sure you have employees to monitor and verify them. yeah thats why, collateral is important

It is called margin trading

And it has been around for years already, for example, at Bitfinex. Though you would need a third party (in this case an exchange) that would forcefully liquidate your position if price goes against you. Actually, it is a good example as you don't have to provide a full collateral for your loan. For example, initial margin at Bitfinex is 25% which means the collateral you should provide can be only 25% of the amount borrowed (i.e. one forth)

Its not that easy as it seems. There are companies trying to provide this service but the problems that arise are many.

The number of legit borrowers are very low and people dont trust online sites based on "cyber-money" to pledge a collateral. More successful business model would be to start a small capital entrepreneurship backed by 3-4 people (preferably family members) money to start a peer to peer lending system.

Trust is a big issue here. Hence those site offering P2P loans - if they move to a crypto lending system that would be a nice start. But 2018 did Rip off several ICOs and one such project which I was interested in was FastInvest but they also had to stop the ICO and refund investors. :(

It is actually the best way to borrow and lend. The blockchain based lending businesses are way better...  they are easy, quick and anonymous compare to the traditional lending companies . Crypto lending would have gone to an advanced stage if not for the bear market.

Can you explain in greater detail what you mean by this? What you mean by the blockchain based lending business exactly? How is it going to work in real life? If you mean that you should provide collateral via, say, smart contracts, then you should provide over 100% of it (like what blockchain-based stable coins do) but in that case it makes no sense as borrowers could just sell their collateral and get done with that

What am I missing here?

If there is a bitcoin crypto loan, I think it's very interesting for me not just people who want to know a bitcoin but also people who need money like us, not all people have more money. so joining it to meet the needs, because it really needs to earn enough for the family so it is a great help to those who need a loan, and with a cryptocurrency loan that would be helpful to everyone.

No one will lend money to you because you are poor so even if there is a crypto lending company then will have some module and procedure for the eligibility criteria and I think lending with crypto much complicated because how they will take something as collateral.

without a guarantee it would be difficult to get a loan. and at least have to be careful when borrowing from online companies, because there have been many cases where the business has become more complicated

Loaning with the bitcoin or cryptocurrencies could be an alternative on the grounds that our age today concentrates more on quick exchange. Because of the developing network, individuals dependably look for the advancement and presumably we can heard some are doing this thing. It possibly unsafe yet I think this is something that we ought to likewise be interested to see it's advancement.

Online business is always complicated, but to overcome the same it needs trust. With lending business the same is the reality and for the same there isn't any legit lending service renderer. All that effective is through our forum who are legit in the lending business on return of limited ROI on the amount.

This is in fact another way and strategy to profit through crypto in spite of the fact that it is still method to right on time to infer that this technique is suitable and gainful reason advanced monetary forms are verified and encoded and can ensure its clients namelessly however perhaps later on agents and institutional financial specialists may have answers for this issue.

When someone getting loan online the one who is giving the money need to be careful,that is why they were asking for valid collateral.

Online made everything more convenient but it is only missing the trust building.

I never understood that thing

If you are asking for collateral why would then a borrower care about taking a loan in the first place if he could just spend that collateral directly (and without paying interest at that)? So it all comes down to trust (read, no valid collateral for you) but when online you are expected not to trust anyone by default. Yeah, there is a lending section on the forum (or how it is called correctly, dunno), but I even fear to look into there (as it's likely bad for karma)

I just said to the users above who said I need to be careful while giving something as a collateral while lending that is why I mentioned they are the one who need to be afraid.

Maybe the collateral can't be liquidated immediately so user might asking for loan then repay it with interest,but this is the concept of lending when the user having nothing worthy no one will give us a loan even from bank or private lending companies. :)

I didn't mean you personally, of course

I meant a lender, it is a figure of speech basically. But that's the problem with online lending, i.e. your collateral should be liquid. It is not like you come to a bank for a loan and can offer real estate as a collateral. Not very liquid but that makes sense as the bank is in no hurry to get rid of it at whatever price (provided it has a price)

In other words, what can you offer as a collateral for an online loan other than your good name (read, you should already be trusted)? A ton of shitcoins? And how would that be different from just selling them?

People weren't provided funds bare handed, they were requested to submit collateral. There were more digital collaterals that have been requested to get loan. This assures the trust between the lending person and the one who getting it. Importantly some people use escrow services for the same, so it is risky but can be done in a safer way.

but in addition to lending Bitcoin and crypto legal regulations for borrowers, there is only a guarantee of data for individuals, in the future if Bitcoin loans and blockchain become more popular, clear legal regulations are needed.

The practice of a “low-risk type of lending,” can be more  profitable for a company and in cryptocurrency bear market  is better for companies than they did when the market was bullish.

It we are talking about collateral loans it doesn't really seem worth it, if someone wants cash they can just sell their crypto themselves and save the fees.  If we could establish some sort of credit system and give out non collateral loans in crypto that would be revolutionary. 

So lending business through online may not get successful? Because it is same as selling our good and buying back with paying more price then we sell based on how long we take to repay the lend amount.

But I am not really interested at lending any money because it really sucks us,just better sell what we have then beg to someone to give some money and take this valuable good.

I don't really know

As I'm not involved in this kind of activity so I can't give any definitive conclusion. But I still can't see how it can possibly exist on mass scale (lending business) other than peer-to-peer loans between trusted parties (just simple logic)

Anyway, there's a board (https://bitcointalk.org/index.php?board=65.0) here which is just about that thing. As I also said, I don't go there (people don't go to the Lending section at Bitcointalk), though I see now and then someone being painted red for not returning a cryptocurrency loan. In this way, there might be some form of life on this planet, after all

I have seen a lot of them popping up recently and there are also a lot of people that are now using cryptocurrency to borrow loan, but I don’t really know how that works. But, I think most of these cryptocurrency lending platforms have their own wallet and you will have to fund that wallet before taking any loan. Though the good thing about them is that there is no collateral. And lastly, I don’t take loans, I don’t like it.

I see some lending apps in google apps and one of my friend said to me thats is legit but i dont know if there`s kind of business is success . But i think if you need extra money for emergency you can lend but you need a valid id`s for the verification and that is my one of my problem so i decided to stay to use captcha and many faucets that i can earn free. Less hassle you dont need to think that you have a lend but i think this kind of business is really good because its very helpful incase if you need cash.

lending nice but I guess little gain.  I lent money to stock exchanges like Poloniex and bitfinex, but the gain was very, very few. also saw the yobit net there was higher than the gain..  There are companies lending to people and I have no knowledge about them :)

The first time I came across cryptocurrency lending was on nexo where you can use your cryptocurrency as a collateral in this way you can use any of the altcoins as a collateral and get loan from the site, cryptocurrency lending is a new wave in the cryptocurrency world and at that we should keep watching to see how far and positive is will help the community.

I would advise you to stay away from Yobit exchange. They have a very bad reputation over here. They list tons of shit coins which are manipulated and then they profit off the users. Just search "yobit" and you will see tons of scam accusation popping up on the result. I wouldn't even think about storing any coins at yobit let alone lending them anything.

It's true, anywhere you want to look about Yobit they do not speak very well, in fact, if at some point they won enemies I do not think that only their bad reputation has been assigned to them, I'm sure it's because of several complaints from many operators that had nothing to do with it.

Lending cryptocurrencies is a very risky business so many people that need small loans and that have no collateral will never get them, personally I see this as a good thing, we live in a world immersed in debt and it seems that now everyone is carrying a huge amount of debt and those that do not are seen as being weird, cryptocurrencies despite their advanced technology will bring the old idea that only loans for productive businesses will be given while loans just to consume a product will become scarce.

In my opinion, crypto borrowing is not much different from fiat money lending, because the procedures performed are the same, and data information must be complete and accurate.
Besides that there are costs that must be paid with high interest and a short period of time making the borrower must really take into account the risk if he is unable to return it.

Its possible to create crypto lending bussiness but need government rules. We know that many crypto investor want anonymity and wont pass KYC, if crypto lending bussiness created, Government regulation needed to protect lender or investor in this bussiness

Yeah, its not that much different from fiat lending business but technically it is, since its both borrowing and there is expected interest in return just so happen that it is in another form of currency but is convertible to fiat. And also returning what you borrowed on cryptocurrency may vary because of high volatility on the market.

Now Cryptocurrency lending business is a new era of business. Many of these forums now do business in Cryptocurrency loans. And through this, they have benefited a lot. They provide the Cryptocurrency Loan on a weekly, monthly, and yearly basis. They earn some interest through loans. And this interest is their profit. Cryptocurrency is required to obtain a loan from a loan businessman. They never lend without collateral. If they end up paying the debt, they increase the amount of interest. And even if they can not repay the loan, then the case is named in the name of them. So, without the ability to repay the loan, it is better to not take the loan.

Thank you.

I think this is a very good and necessary idea. True financing mechanism should be transparent, otherwise regulators of different countries may prohibit such financing. Perhaps regulators in some countries may be loyal to the origin of funds and not require any documents confirming the origin of funds, but then investors should have confidence in the safety of their money. With such an investment should be the protection of the investor. If all these conditions are met, then many companies will be able to receive significant investments.

Also agreed with you, true financing mechanism Bitcoin will have more transaction every day through that it will help to circulate the price that is because of transaction fees that may also be profitable by miners. And blockchain technology have a transparency work on that. Through this lending platform using cryptocurrency, I think it really helps the market and contributes to growth by making more transactions.

Are you sure you understand what the whole thing is about?

This is about online lending business. So how many businesses do you know that are involved in lending fiat online, i.e. without real collateral, going to the bank office in person, signing a pile of papers and doing similar stuff? I don't know any as that would be equal to giving out money without a chance of getting it back in the majority of cases. And what actual procedures do you refer to in your post, I"m curious?

 I find that business in this area is really great. Genesis Capital is only an intermediary and receives 5-7% interest but lends at 10-11%. This seems like a tremendous big interest rate. Banks only have an average interest rate of 1-2.25%.
This is really an area that brings a lot of money to intermediaries. Last year, Genesis Capital's total loan amount was up to $ 1.1 billion. It has brought millions of dollars to businesses despite the crypto market being degraded.

As long as there is no assurance in today's conditions, I think it's not a very logical job because it's a much more risky payment method than the banking sector. Especially because there is no regulation or regulation in this sector, this job becomes more difficult. Of course, it would be wrong to interpret this work just because of these reasons, but it is also a fact that it is more difficult than other alternatives in the same sector.

The price of crypto is too erratic, it will be hard to track your gains and you have to take several counter-measures for worst case scenarios. Though hard, I still think it has lot of potential given that this space is still growing and many ideas will ideas will come up making lending easier and risk free like Micromoney. It only needs few personal details and lets you use their token as collateral.

Would not seem suspicious would it? I doubt the legitimacy behind running such businesses but who cares anyway? Traditional loan shark mafia days are long gone and now the same system is used just under the veil of crypto lending. Would not be surprised to see predatory lending rates and extortion modes to get back money by the debt recollection agents.

Stop promoting projects like this. Keep your comments on topic and not promote something like this.
Like I have said previously in this thread crypto lending could be a good business but there are a lot of issues which need to be dealt with if it is to be done on a large scale and not just a forum P2P lending system by a certain lender.

I have little idea of how loans here on the forum work (never used it). I skimed through the article and I must say, that crypto for cash is both smart and risky. Genesis Capital could possibly earn a lot from the crptos in lien should the borrowers default.

I think it's difficult and what if there is a trick in the loan.
but of course to make a loan there must be strict rules about collateral if the debt cannot be paid.

Even this forum have lending section, some people, to not name them or advertise them, are earning bitcoins with lending business from a long time. You even have some sites for that, I remember poloniex, among all other exchanges, also had lending option. It`s nothing new, people earn like that, you need to have bankroll and skills to do it. You can`t lend without collateral, you need to have good rates, better than others. Eventually all debts are paid if you are careful and take all necessary steps.

In my opinion, the cryptocurrency lending business is a very promising business. for example someone borrows $ 100 in bitcoin when the price of bitcoin is around $ 10,000, and now the current price of bitcoin is around $ 3600, the borrower must return far more bitcoin than when borrowing. Clearly the benefits are obtained by the person who lends.

Invest in bitcoin itself is risky, get involved in cryptocurrency lending business activity will give us double risk. Even if it is legal and regulated by some countries, it still risky. I prefer like to invest in new altcoin especially masternode coin rather than get involved in lending business.

You are right the risk level of crypto lending is very high even higher then the risk we face investing in crypto it self, because in doing the lending business we will be needing an escrow and also a collateral which in most cases in crypto lending is your cryptocurrencies such as our tokens and coins which may be taken from us if we failed to meet up with the lending conditions.

The bitcoin lending business will have a higher risk than we know, so this will be a lot of losses. So this business is better avoided because it is indeed anonymous and without guarantee this is not possible. I think there will be many investors who are disappointed and lost, it seems difficult to be able to trust each other.

maybe it can only be done by a group of people or a community that uses crypto currency only because the crypto currency in my country has not been fully usable or has not yet been formalized as an official currency, can a loan be possible

Bitcoin lending business is always been profitable but this would depend on how a certain lendor would able to handle the business well.This doesnt depend on bitcoins price
since you can lend amounts basing on usd amount but with volatility as of this moment you can still possibly earn or accumulate bitcoin.
The only important thing is that you would able to make interest out of your money but be sure to avoid scammers and selecting good payors.

I generally avoid any loans and try to do without them, because I consider them a debt pit, from which it is very difficult to get out later. Only a profitable and sustainable business justifies the receipt of loans. Credits in cryptocurrency are doubly risky.

It is good but you have to used good escrow and put Alot of security in place in other to be able to secure your funds.  Learning services is good if the customer are ready to pay back.

It is good to live without any debt, once we borrow and get debt we're ruining ourselves. Better is to stay happy and limit according to the earning. Cryptocurrency network is now getting onto the loans through different ico programs. Till date what we have for long term profiting through lending is very small.

The crypto lending business is a very profiting venture and in recent time it has become very popular and at that we need to know it risks, most especially the when we have to do the collateral with another crypto tokens or coin which will be sized when one can not meet up with the lending terms.

Yes  . thats true , many people suffer from the debts and im one of them . so far we still pay for our debts  . we sell some our appliances just to pay the due but those are not enough because until now we are still continue paying   .   debts can be helpful but debts can also make your life more miserable than before  .

Here in crypto , lending is now becoming more popular but i already learnt my lesson  . i wont lend no matter how i badly need the cash  .  i will only work hard to save money  .

Cryptocurrency loans are emerging as an increasingly viable alternative to borrowing fiat. that's actually good, don't see anything to be worried about

But it still too risky to lend or borrow from someone. If we lend from someone, we need to think about we are going to pay him if suddenly we cannot make money. And for the borrower, we risk some money to other people which we don't know if he can pay back or not.

But still cryptocurrency lending business was a profitable business for us if we know how it works.

Cryptocurrencies lending might look like very profitable businesses but it's not that simple as it looks like. It's still risky and this area isn't regulated enough so there is a risk of loss and potential scamers.
But cryptocurrency lending market is growing because many people find it as a better way than lend fiat money from banks. So, it has great potential but risks need to be mitigated.

The risk in terms of value and also if we are based on the value of bitcoin, there will be parties who are disadvantaged. so the loan must be based on USD which is still not fluctuating and interest can be clear

That "double risk to double reward" quote, never thought ill never see or hear that. Though, I'd agree to that quote it's widely used by some hardcore investor and etc. In connect to Lending business, well TBH this is one of the most risky business to engage with, as the ROI is quite unsure at first and to gain good reputation would be a challenge.

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This Crypto lending (as for me) is really good line of business. Though, the only thing that bothers me is giving out my trust to unknown people. (Which is the only thing I dislike, To TRUST! Haha) but as time passed by for sure this type of industry would literally be very visible. As of now, There are only a few who are into to this type of business.

In my opinion. nowadays it is not right if crypto currencies are made into commodity loans such as fiat currencies. Crypto currencies do not have definite value provisions. so that one party will be harmed. if the crypto currency weakens, the lender will be disadvantaged because the crypto value is different from when the agreement was made.

Double risk is equals to double reward when succeeded however there is a huge chance of losing so much. I'd just rather invest on trusted coin especially high market capitalized coins than borrowing coins then hold it after a certain time and interest grow also, you'll just run after to it.

Most of such loans if done will be based on the amount of bitcoin being issued and not the USD value of the loan. If the USD value was taken then the borrower is being given an advantage. That would be bad for the lender who is the businessman in this case. They will always try to get back whatever bitcoin they lent and interest in bitcoin. If bitcoin prices drop then it is helpful for the borrower but then again the lender is not in loss at that time if they know how to leverage the risk and themselves if the lender is a long term holder.

This is good for a small cap p2p lending shop. Bigger projects have failed which I witnessed myself the only one being up till date is Debitum. I would not recommend investing in them though. Just mentioning it here. Its price has also dropped a lot.

I don't think that it would be a good business,
First people are greedy specially in crypto currency people would just scam you,
They could send some fake proofs like fake ID just to get the loan so becareful.

Yeah, lending in regular fiat have already cost lenders a lot of money so what more if the currency that will be dealt with is less regulated than the dollar. Yeah it given that the returns would likely be worth the risk but hey, it's a gamble that obviously a lot of us are not willing to take.

Taking loans is generally very risky, especially as a loan in a cryptocurrency is a double risk. We cannot be sure of positive changes in the cryptocurrency market during the period of loan repayment. And there will be pretty tight deadlines. In general, a credit in cryptocurrency is a game of roulette, you can get lucky, or you can lose everything. I'm not ready to play that way yet.

I think about crypto loans, of course, we must be careful and think carefully because crypto prices sometimes rise and fall

With lending the user who lends the fund makes the respective terms and conditions as well the collateral for the loan amount. In most of the case funds were provided in terms of bitcoin or some highly valued altcoins. Further specific ROI is added periodically for the amount. This way there is no big risk when you get loan from trusted lenders with some escrow.

Then there must be a platform to close the deal. This way there will be some guarantee for the lender (although it's not totally warranted). As I saw in the past, the borrower should show a collateral before borrowing the money. This collateral could be an amount of altcoins in balance.
In case of not paying the lender back, this collateral would be removed from the borrower's account and sent to the lender's account. Poloniex platform is an example: https://poloniex.freshdesk.com/support/solutions/articles/1000274348-lending-explained

by limiting it to the top coin coins, it does make this activity minimal risk. but also we as borrowers must be observant of market conditions. besides that borrowing for productive activities is highly recommended

Personally for me, I am typically against any thing that has to do with loan, because I see it as an enemy of progress or something that would make me sell my right. No matter what the situation is, provided it is not a matter of life and death, one will definitely survive it without loan.

I am not against loan business, at least it is a good thing that they are able to create a business out of it still using cryptocurrency, but in this volatile market that one can really not predict, it is quite risky to gamble with one’s future investment, because I believe that no crypto loaner will wait till future when the market becomes good for him to get his loan back.

Everyone do what they can to make some money, i think that who want can take a loan because maybe the coins they have will grow and not want to sell it for low and this is main reason they take a loan.

I think it is possible to borrow crypto money as long as there are clear rules, because something on the internet and anonymously certainly requires special regulations, different from paper money where there are items and can be tracked for use.
In addition, very fast crypto price fluctuations also provide additional risks that can generate more debt or even less debt, depending on crypto prices at the time of repayment.

In general, I don't like loans either

On the other hand, there are different types of loans. As an illustrative example, when you are trading on margin, you essentially borrow funds as well and pay interest on these funds (which can be expensive). Indeed, you can survive without it, but if you are using margin trading to maximize your profit potential (and it works for you) or just for hedging (which should always work), I don't see it as inherently wrong or evil. So how are things particularly different with bank loans provided you know what you are doing?

Price is irrelevant if you are a lender, you are in the crypto space so you know the nature of the market, price is volatile.
A lender as long as it can increase their assets through lending would be happy to continue the business as the fact that they are here, they believe on the long term journey of crypto.

  A huge possible indeed, as time runs by there is no doubt that in the near future crytpo will open its method to lend accommodately. But I think it should have limit and liable platform to track down all accounts who installed cryptocurrency in appropriable way. Believing with positive determination, in the near future it will exceed bountifully.

Crypto loans are becoming very popular nowadays but we should be cautious on to where and what are we loaning to. Risk is very high but with regards to security, I think it's also dependable.

Actually it provides bigger size of opprtunity for people who borrow it because those people can manage the fund to gain profit in trading. But I still hate crypto loans, lend money to others is not negative thing but if there is interest in it then it can give bad impact for the economy. Such cooperation is unhealthy. I preffer like to lend money to people who run healthy business then ask for dividen based on profit that earned by the business.

Having operating a lending business in the crypto space, you already know and accepted the risk of losing money.
You have to do due diligence when you are lending money, just like investing in a coin of your choice because all are risky but there are ways to minimize the risk in lending, otherwise, lending industry in general would not be profitable.

every loan I think is reasonable if there is interest. provided that the activities are clear, so that it produces, I don't think it's a problem. therefore before lending, we will be selective, it will be better

Reasonable only if the interest is apropriate to the amount that you have loaned but lending companies nowadays are becoming greedy . Ive seen alot of them where they offers a small loan but the interest is verry huge  . The time frame for the repayment is also too early ,if you cant pay on the said dates you will incure more charges  but this doesnt stop the willingness of people to lend because people do also want cash which makes lending a good bussines especially if done in crypto .

It is not about the value, the purpose of lender is to accumulate a profit within a short period of time and disregarding the risk that the value may lessen the only risk that I can see is that if the lendee does return the money he lends.

All that doesn’t make any sense, it is still the same thing the bank system of giving loans. If you want to take loans from banks you give collateral and that’s the same thing with cryptocurrency lending you're still going to give something in return before you get the loan (yes, you're give your crypto in exchange for money) and when you don't pay back plus the interest you're not getting your crypto back. So I don't see any difference and there is no need for me to be talking about which one is the best, I'm not the type of person that borrows money. I've never had any reason to and I don't even wish to.

That is the reason of collateral backed loans. It provides some level of security for the lender even in case of default. Though it does not guarantee a return but it gives a value of the collateral once auctioned off. But in the crypto scene we have people seeking loans for gambling and trading mostly so there is a risk that every lender faces. P2P lending still needs a lot of usage or else we will have lenders but nobody to give loans to or scammers not providing collaterals at all.

Either way a lending business of such can be a part time hobby if you have time to put in.

this is also a good business to make the profit and giving the loans like with cryptocurrencies is also been profitable for because in future cryptocurrency is mostly the popular payment method and if you got lots of cryptocurrency and then it will be more valuable.

Not really good if the business owner doesn't know how to operate his business. There are certain rules for the owner after allowing someone to borrow your own money/cryptocurrency to make sure they can pay you because once they are gone you can't get back the money to lend to them. And it is not that easy to trust someone behind the internet to be honest.

I never tried to do bitcoin loan even I have  collateral because I don't want have a problem in the future. Although this lending is spread all over in crypto space to help other cryptocians I think we still need to be careful to  specially the lenders bec3you don't have any assurance if the borrower will pay you.

That's great to see the future development of business in cryptocurrency, and lending is good strategy to do in order to grow your asset. I wonder how to do it since many scammers roaming around, and we can't be sure where to invest our asset in order to gain profit. Hopefully there's more opportunities to come along, once many lending services will offer staking of token assets. With that, I think we will benefit the circulation of our funds in digital world.

just like me, where I am not interested in crypto loans, I prefer to invest in personal power, because my psychology is not able to bear the debt, rather than damage the mentality later

I, probably, would never take a loan in cryptocurrency for my business. By itself, a loan, if it is not concessional, already represents a risk, because it is necessary to return a sum much larger than the loan amount itself. Credit in a cryptocurrency is doubly risky, because in addition to the usual risks, the risk of negative changes in prices on the cryptocurrency market is added to return the loan. In this case, it is very difficult to predict and draw up a real business plan for his return.

I think the crypto currency loan business will be very profitable for lenders, but not for borrowing customers, we assume for example we borrow a bitcoin at a price of $ 8000 and after a few months we have to repay the loan but the price when we return the price to double. Of course customers will feel loss by the price difference.

And you're calculating luck and positive cases, if we lend and they don't pay, it will be a huge problem, and I don't know where we will find that person in this technology world when they disappear, the crypto world and system are really complex, anonymity makes it very difficult to determine a person's credibility. Many people think asking for a mortgage will be a good idea to get out of this situation but I do not think people can be sure that collateral will have no volatility in the process we store, rising is lucky but unfortunately, reduction will make us lose

I actually focus on the crypto market which is prone to drastic increases or decreases. for example, a company borrows crypto funds at q2 at a price like that ......, then at q3 / q4 crypto prices rise or fall. then what is the company's estimate for returning the crypto loan? it makes me a little doubt whether this can work in the future.

To avoid such risk it is always good to lend in terms of bitcoin, but shouldn't be lend in terms of USD. Upon the same whether the price is high or low repaying in terms of bitcoin with mentioned ROI. Here when the borrowing is done in terms of bitcoin nothing gonna cause a loss for the borrower.

I think this kind of way also improved a lot in this situation and people in this world train different kinds of methods to make money and in this situation everyone wants to get the profit for their Bitcoin are some other cryptocurrency and this situation will be profitable for them.

Sounds like something that can turn into a disaster.

Exactly, if you don't know how to run this business then you will only be an easy target for fraudsters, I have tried this business several times, it's quite profitable, but some users do use this method to cheat, they occasionally use their accounts for collateral, and I suggest for you to never accept account bitcointalk for guarantee, search another valuable collateral, you don't know how bad the account is, so don't ever receive a risky collateral.
once again if you don't know how it works then this business will be very risky to you

absolutely right, everyone may be psychologically unable to bear the debt. I also agreed that I would not be interested because of having a debt

i think lending is a good way to earn a money and its how bank earn money and i do think we could use cryptocurrency to give a loan to people to develop their own businesses.

The crypto lending business is indeed carried out by those who have a large crypto value and it will provide a definite advantage for the borrower, but still we must take into account security and trust.

I don't see any difference between the both of them as long as they are still asking for collateral's. Well, I know that cryptocurrency loaners can never give you any loans without collateral and that is right because some. People are going to run away with the money, which is very bad, so they have to give something in return in case they decide to act any way stupid then the cryptocurrencies they have given as collateral would be used as a way to recover the money they have taken from the lenders.

Lending, if it is not concessional, is in itself very risky. Cryptocurrency lending is doubly risky, as the risk of high price volatility of cryptocurrency is added to the usual risks. Before taking a loan in a cryptocurrency, you need to carefully calculate everything and, first of all, you need to anticipate subsequent changes in the cryptocurrency market. I would refrain from getting a loan in cryptocurrency. This is a lottery - here you can win and almost equally lose.

Those who have a large crypto in possession would rather want it not wasted on things that easily wrong by investing. They would rather use it to open their own lending business but that too would be one using proper debt collection procedures and collateral securing. Without those the concept of lending and earning interest from it will not work out. The lender never does anything for the advantage of the borrower, it is a business after all and only those lenders who are professional would be good in handling such a business.

The market for crypto lending is still something that has not been tapped into. Lets hope it becomes big as bitcoin becomes more popular.

Electronic loan money is good but it has many issues to verify and the risk is quite high. I have a friend who often lends money to get monthly interest, but sometimes he gets cheated and escaped.
So my biggest question is, how can Genesis Capital manage their debt and how can they get the money back from the borrowers?

right, crypto loans have a double burden. when we get profit, I suggest to immediately return the debt, so that we can use profits as initial capital. than we are bound by debt, because it can interfere with our psychology

If we borrow 0.01BTC with an interest of 0.001BTC I would return 0.011BTC. Don't look at the dollar value, that will only break your heart if the value of Bitcoin goes down. Your goal as a lender is to increase the number of Bitcoins you are holding and as a borrower, you are obliged to return the Bitcoin that you borrowed with interest regardless of the dollar value.