Earning interest from lending USD on Bitfinex

[russelluk]

Hi - does anyone have any views on lending USD on Bitfinex. Rates appear really good. I want to put some of my USD into Bitfinex and earn a whole lot more interest that what the bank pays. YES I know there are risks to this but it looks to me that they are acceptable.

Please don't give generic advice against exchanges and that all your coins are not safe on an exchange etc etc - I am aware of all of that and also that your money is probably being held in Tether. What I really want to know is if Bitfinex lending on USD is generally hassle free and that you can get your USD in and out of the exchange within a reasonable amount of time. I have a verified account on Bitfinex and I have tried the lending on a small amount of USD but would like to consider larger amounts. Peoples thoughts are much appreciated.

Thanks

[russelluk]

Does nobody have a view on this??

[timerland]

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.