Earning Interest with Bitcoin?

[jerry0]

Is this possible?  Example you lend bitcoin to something similar to like a bank and they give you interest on it?  Like how now they give you 2% interest?


I heard binance is doing something similar like that but it was like 10%? 

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[Dabs]

It is possible with a few different companies, but you run the risk of them going out of business or outright not allowing you to withdraw. Remember, not your keys, not your coins.

[teosanru]

Is this possible?  Example you lend bitcoin to something similar to like a bank and they give you interest on it?  Like how now they give you 2% interest?


I heard binance is doing something similar like that but it was like 10%? 

Actually Binance is doing this because they are lending that money ahead to traders at higher rates. Advantage to Binance is that margin money provided for trading is almost at zero risk because liquidation price is set in such a way that the exchange never suffers any loss. So Binance themselves are earning a huge chunk of Interest and distributing merely like 10-15%. It's possible for exchanges to do so but outside that world it's never possible because there will be a list of people wanting their money back but zero people who will willfully come back to return their loans. If they don't then the intermediary will run at a risk of getting bankrupted as they can do nothing about this.

[serjent05]

Is this possible?  Example you lend bitcoin to something similar to like a bank and they give you interest on it?  Like how now they give you 2% interest?


I heard binance is doing something similar like that but it was like 10%? 

There had been services like this and you can check this site https://cryptomaniaks.com/best-bitcoin-lending-sites   but it seems Binance have bigger interest since Nexo gives 8% interest, Blockfi gives 6.2% interest on BTC and 3.3% interest on ETH and Celsius Network gives 8%.

[jerry0]

Well if you can lend bitcoin, are you giving you interest in bitcoin?  Example you lend 1 btc... they pay you back like 1.05 btc?

[figmentofmyass]

Is this possible?  Example you lend bitcoin to something similar to like a bank and they give you interest on it?  Like how now they give you 2% interest?

I heard binance is doing something similar like that but it was like 10%? 

it's a pretty risky business. here are a couple past horror stories re bitcoin lending:
-a few months ago, poloniex allowed the CLAM market to become over-leveraged. a flash crash wiped out borrowers and left a huge deficit. lenders lost a total of 1800 BTC, 10% of which poloniex paid back. https://bitcointalk.org/index.php?topic=5151636.0
-the infamous inputs.io/coinlenders hack, where hot wallet users and lenders alike lost several thousand bitcoins. https://bitcointalk.org/index.php?topic=328053.0

there are other cases i'm sure. just keep in mind, you better be getting really high returns to justify the 3rd party risk.

[adzino]

Is this possible?  Example you lend bitcoin to something similar to like a bank and they give you interest on it?  Like how now they give you 2% interest?


I heard binance is doing something similar like that but it was like 10%? 

Not sure about binance (you sure it's 10%? That is a very high interest rate!), but yeah it is possible to lend bitcoin and receive interest just like banks. But one big problem, you will need to trust the person who you are lending. There is always a chance that the person whom you lent your bitcoin might run away and scam you. In fact tons of people will try to do the same. Since the system is totally decentralized, there is no way anyone can guarantee you that you will get back your coins or the interest. Though you can always use an escrow and ask for collateral. But escrows can go rogue too.

[Upgrade00]

Lending has been going on in the forum for a very long time now, and it has also been implemented into the websites of a couple of exchanges.
When engaging in a peer to peer transaction, one would need a collateral (it's not always used).
Binance has been marketing their lending platform recently added. It's a reputable site which I can recommend. Always look up the website before engaging in any long term transaction on it

[Astvile]

Yes, it is possible in fact there already are lending services out there like Binance and many more, they are offering interest rates bigger than what you think. Lending services are everywhere from exchanges and here many people/company is already offering this kind of service.

[timerland]

Is this possible?  Example you lend bitcoin to something similar to like a bank and they give you interest on it?  Like how now they give you 2% interest?


I heard binance is doing something similar like that but it was like 10%? 

10 percent sounds quite a bit far-fetched to be honest, you'd probably only get those loans if you ran a P2P service and charged really high interest rates for short term gambling no collateral loans, make sure you lend to trusted members though.

Look at a couple decentralised options out there, especially in DE-FI, there are definetly some promising options out there and companies like Salt and nexo also do exist.

[Immakillya]

Yeah that's possible. And actually you can do it here. A lot users here provides Bitcoin loan. You can visit the lending  section. You're able lend bitcoin to members here and pay you interest. But first, they must present you any valid collateral before you lend them. Also some altcoins doing lending function. I think Bitconnect is one of that but it's already shutted down due to inability to sustain the operation needs. In lending industry, very few succeeded because way too risky.
There's a lot of lending companies out there that provide Bitcoin loans. Just don't know what percent they charge you for interest. Some are reasonable and some are not. So it's up to you.

[tabas]

Nexo gives 8% interest

But the interest that will be given by Nexo won't be in bitcoin.
https://nexo.io/earn-interest/eur
https://nexo.io/earn-interest
However, Nexo is one of the most popular now. I haven't tried them but I think 8% annually is sustainable.

[darkangel11]

I know a few ways to earn interest by owning Bitcoin.
One of them is investing in a casino/ The second one is investing in a lending platform.
The third one is investing in a casino.
The fourth one is claiming bitcoin airdrops and hodling.


All of them are risky and It's always your choice.

[nelson4lov]

~Snipped ~
10 percent sounds quite a bit far-fetched to be honest, you'd probably only get those loans if you ran a P2P service and charged really high interest rates for short term gambling no collateral loans, make sure you lend to trusted members though.

Look at a couple decentralised options out there, especially in DE-FI, there are definetly some promising options out there and companies like Salt and nexo also do exist.

10% isn't far fetched when you have a sustainable business to support it. If Binance is offering more than their competitors, well that's because they're looking to grow their userbase especially since US users have been sent packing.

Well if you can lend bitcoin, are you giving you interest in bitcoin?  Example you lend 1 btc... they pay you back like 1.05 btc?

You can't exactly lend with BTC but you can lend an equivalent of 1 BTC using the supported crypto. And yes, You can convert your funds + interest back to BTC after redemption. That's for binance though. I don't know about others.

[Yamifoud]

Lending has been going on in the forum for a very long time now, and it has also been implemented into the websites of a couple of exchanges.
When engaging in a peer to peer transaction, one would need a collateral (it's not always used).
Binance has been marketing their lending platform recently added. It's a reputable site which I can recommend. Always look up the website before engaging in any long term transaction on it

It has already existed around for many years, loans in BTC and paid with BTC also or other potential coins.
The only new is that by taking a loan from a certain exchange which is something higher risk even it is reputable rather than to directly make loan to the reputable member in the forum.

I don't think it was a good idea and a deal of 10% interest is big enough.

[gentlemand]

The faintly legit places that offer this do it entirely on the basis of finding other individuals willing to pay your interest. As we've seen with the wildly fluctuating terms and payment levels from Blockfi it wavers all over the place and it super reactive to what they can squeeze out of their borrowers.

It's a bit of a stretch to call it interest earning. You're really a lender in the most basic sense.

If Coinbase offered a rock solid and boring 2-3% no doubt it would be swamped. They have no safe way of making that pay so we're stuck with places that look fancy on the surface but might blow up any moment.

[Ryan Dugan]

I gave up trying to find a place to earn interest. There many to choose from but I do not trust a single one of them. What legal protection do we have if they run off with your funds? Even a very good return will take years to break even and before then if they run you lose. So even 33% which is a ton might not be worth it if you only get paid for 2 years and they steal the rest. So it is hard to know. Maybe if you lend your crypto out but take collateral? That is the only way I can think of doing this the most safely.

[timerland]

Nexo gives 8% interest

But the interest that will be given by Nexo won't be in bitcoin.
https://nexo.io/earn-interest/eur
https://nexo.io/earn-interest
However, Nexo is one of the most popular now. I haven't tried them but I think 8% annually is sustainable.

I agree, they are offering loans to people who need a line of credit and then take their crypto as collateral, I don't really trust this at all since they are charging a min of 8 percent interest, and investors are getting 8 percent back. Sure their might be higher interest rates for bigger loans but I just don't think they have enough volume to keep accepting investments and this will cut in their profits a lot.

The faintly legit places that offer this do it entirely on the basis of finding other individuals willing to pay your interest. As we've seen with the wildly fluctuating terms and payment levels from Blockfi it wavers all over the place and it super reactive to what they can squeeze out of their borrowers.

It's a bit of a stretch to call it interest earning. You're really a lender in the most basic sense.

If Coinbase offered a rock solid and boring 2-3% no doubt it would be swamped. They have no safe way of making that pay so we're stuck with places that look fancy on the surface but might blow up any moment.

If coinbase did that though, I reckon we'd need to send them every piece of ID before we'd be able to invest there

[Duzter]

Is this possible?  Example you lend bitcoin to something similar to like a bank and they give you interest on it?  Like how now they give you 2% interest?


I heard binance is doing something similar like that but it was like 10%? 

I don't think Binance or any other firms functioning with legitimacy will give such a huge interest upon the investment. Most of the time big interests were a way to attract the common people who are new to the cryptocurrency network. Most of the users when entering have a thinking cryptocurrency investment will make us rich. This is achievable, when everything is done on the right manner understanding and learning the market. Simply getting in will make the user get into the hands of scammers who attract with large returns on the investment and runs away.

[gentlemand]

If coinbase did that though, I reckon we'd need to send them every piece of ID before we'd be able to invest there

Tons of people are already signed up to the hilt there. The only way they can get any type of return though is by lending to nutters. It's says enough that no long established operation is doing it other than through their trading platforms and Circle have already fucked enough people with their Clams balls up.