Have you done it or would you recommend it? I'm not an active trader so my bitcoin stash is just sitting on Coinbase. I heard I could lend in Poloniex at a loan of 0.048% per day which with 100 btc would earn me about 0.5 BTC per day.
That sounds pretty good for just letting my BTC sit there, since it already is just sitting there on Coinbase, but do you know what the risk is? Besides Poloniex shutting down and running away with my BTC is there any risk of losing BTC though the lending process? I'm not sure how lending works exactly so I wanted to hear your opinion
Thanks
I've done it. The thing to do is apply risk management strategies - so instead of lending your entire amount in one lump, break it down into much smaller loans - i break it down to 0.01 (so lots of small loans of 0.01). And lend for the minimum time (2 days).
The best time to lend is when there is a pump on, for example during the ETH pump, people were borrowing BTC at about 0.07% to 0.1% and sometimes higher.
As with everything do your own research. But it's less risky lending on Poloniex than on places like BTCJam. That's because Poloniex actively monitors margin on the borrower sides and if they don't put in additional margin, they forcibly liquidate the trade to protect the lender.
You won't get rich fast doing this - it's modest returns and they deduct a 15% fee. But if you have coins just sitting there waiting for an appropriate trade, it doesn't hurt to lend them out and make a little something.
