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May 09, 2018, 10:52:57 AM |
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If we're only talking about Bitfinex margin lending per se, not taking into account all the risks involved with the exchange itself (going insolvent, going down, etc. etc.), then yes, lending is a great way to earn some money on your BTC or other cryptos for sure. Interest rates are high, and usually there is a lot of room for bigger investments in lending.
I mean your loan is collateralized and automatically liquidated the borrower's position drops below a certain value, so there isn't that much of a risk there. All you need to worry about is whatever you're lending out actually retains its value through the period of time you lent it out, as well as trying to get the best rate that you can(rates fluctuate from time to time).
But you definitely shouldn't discount all the risk factors. I think you know them all already anyways, so I won't repeat them. Just think twice before you invest.
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