Earning Interest with Bitcoin?

[Wintersoldier]

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.

I don't think it is necessary to lend bitcoin for interest. Basically, when you are trading, you are already investing for profit, the same way as lending money, you are seeking for bigger return. Then if that is so, there's no reason to lend if you can already trade even a small amount of crypto, but I know exchanges needs minimum amount to be traded, you just need to get that amount and you don't need to worry about paying money from the lend.

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[cryptoknightt]

It's possible especially if you will lend it to people who are into crypto. However, you should think of the risks that you might be facing. Crypto is volatile so there's no guarantee that they could return the Bitcoin that they have borrowed in time. You should lend it with the trusted people that you know. Why don't you invest and do trading using your bitcoins rather than lending it? I think that would be more profitable.

when you borrow with the cryptocurrency method it will create confusion when repayments, for example now you are borrowing $100 in exchange for the price of bitcoin in the current market conditions is high, whereas if you return with usd then the one giving the loan will lose because the bitcoin price falls, borrowers will profit when prices rise.

[Pearls Before Swine]

Remember, not your keys, not your coins.

That is true, but if there wasn't any risk there wouldn't be any reward. 

I've never earned any interest on bitcoin, but I've heard the same stories about exchanges offering lending services where you can earn a return on your money.  To me that seems too risky and I'm happy to just hold onto my bitcoin, hoping for some capital gains.

The lending game in crypto is tough, and that's why there haven't been any *legitimate* crypto banks yet that pay interest on deposits.  There was that bitcoin savings & loan some years ago, but that turned out to be a huge ponzi scheme.

[Sithara007]

I would just say that anyone lending coins in order to get a 1% or 2% interest is making a huge mistakes. With the number of scams and ponzis going around in the cryptocurrency market, this is probably the stupidest thing to do. For example, you are lending 1 BTC to someone and expects him to pay 1.1 BTC back within one month. Now let's look it from the perspective of the guy who took the loan.

Bitcoin is not going to multiply itself. So either this guy is planning to run away with the coins, or he is planning to use these coins for some investment (trading or ICOs) and expects to net a profit. Even if it is the second case, there is no guarantee that the coins will be paid back in time. What if he incurs a loss in trading. Then how he is going to pay back the coins? Will he take another loan to cover the existing loan?

[Anonylz]

If I will ever take part in lending for interest stuff, I think binance will be my choice if actually they provide this service, binance is a well known established company with millions of dollars in business, the chances of me losing my money is very slim, any other unknown lending services is out of the question irrespective of the percentage they are offering, they can just on a very good day disappear with your money,  I can't afford any story that touch.

[DabsPoorVersion]

It's possible especially if you will lend it to people who are into crypto. However, you should think of the risks that you might be facing. Crypto is volatile so there's no guarantee that they could return the Bitcoin that they have borrowed in time. You should lend it with the trusted people that you know. Why don't you invest and do trading using your bitcoins rather than lending it? I think that would be more profitable.

when you borrow with the cryptocurrency method it will create confusion when repayments, for example now you are borrowing $100 in exchange for the price of bitcoin in the current market conditions is high, whereas if you return with usd then the one giving the loan will lose because the bitcoin price falls, borrowers will profit when prices rise.

Its a risk from both sides. Lender will be at risk if the price of bitcoin will increase and borrower will be at the benefit of it.
Vice versa when bitcoin will decrease its price, borrower can easily pay even with interest if its lower than the time he borrows, lender will be at lost if he received the payment when its price is lower than the time he lend it.

[joniboini]

I would just say that anyone lending coins in order to get a 1% or 2% interest is making a huge mistakes. With the number of scams and ponzis going around in the cryptocurrency market, this is probably the stupidest thing to do. For example, you are lending 1 BTC to someone and expects him to pay 1.1 BTC back within one month. Now let's look it from the perspective of the guy who took the loan.

Darkstar's loan business is going well so far. And the same thing could be said about banks. They keep loaning their money to people, and so far, it works great for them.

Bitcoin is not going to multiply itself. So either this guy is planning to run away with the coins, or he is planning to use these coins for some investment (trading or ICOs) a nd expects to net a profit. Even if it is the second case, there is no guarantee that the coins will be paid back in time. What if he incurs a loss in trading. Then how he is going to pay back the coins? Will he take another loan to cover the existing loan?

Or he could use other coins or tokens to pay back the loan. Or he got his salary next month and paid for it. You can't lend your money just to some random guy. It's stupid.

You need to understand that loan is not the same as free money. Most of the time, you need collateral before somebody gives you a loan, so the risk of them running away is smaller than you expected, except the collateral does not have any value.

The lending game in crypto is tough, and that's why there haven't been any *legitimate* crypto banks yet that pay interest on deposits.  There was that bitcoin savings & loan some years ago, but that turned out to be a huge ponzi scheme.

It's no secret that fiat lending is more structured and regulated, hence the number of scams could be lower than crypto. But using a small part of your Bitcoin might not be a bad idea at all if you can manage it.

[Oneandpure]

Earning money with bitcoin by staking maybe you can check bianance exchange market, before joining binance staking you canlooking for which one altcoin have stable coin for staking and check how many percent for every coin give staking every month, after getting which one coin give higher amount for every month you can check how stable coin want to you stake, you have faced with less rink to stake altcoin with lower price for the future to earn your money with bitcoin holding.

[Oceat]

Just heard me if Binance did an idea like a bank, by giving interest to anyone who lends bitcoin, and with what time period to get profit 10%? There must be a certain period as we deposit in the bank and get profit every month? Or maybe according with amount of bitcoin that we save for Binance?
Everything is still unclear and where this information?

The annual rate of the bank is lower than in crypto I think and it depends on what country you are in but I can tell that 10% is quite high although it is not fiat but that's still too much if you compare it to fiat. Lending money might be profitable but it takes a lot of time before you get it and it might not be worthy if you are an active trader. But I'd like to know more about of this lending thing of Binance.

[taiwww]

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%? 

Giving fixed return on Bitcoin is hoax. The only possible way to get returns on bitcoin investment is bankroll. Invest in bankroll of some renowned gambling site and when they make profits, you will get the share too in form of fixed returns over time. It is not much but acceptable.

[uray]

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%? 

Dabs have given you the exact reason why you nor anyone should do things like that sending your coins to a third person on the pretext to get interest or incentives, you cannot trust a third person or company to get hold of your coins, i have seen many promising exchanges come and go in the short history of bitcoin and majority have gone down because of hacks and the users are the one suffering.

[dimastegar]

I have never invested my money in a lending program. Even if Binance promises a 10% interest, I won't be interested. Because the risk is too big for small bag holders like me.

[Artemis3]

I have come across such offers several times but have not accepted.
First of all, bitcoin is not regulated in my country and there is no legal protection in such offers.
And second, why borrow bitcoin and risk because of 2-3% interest if I can just hold bitcoin and earn much more.
I'd rather deposit some of my crypto earnings into an investment fund, completely legal and in accordance with the law, and wait for safe earnings.

You are mistaken. Those interest rates are yearly interest rates against bitcoin, not against fiat. The idea is if you lent someone 100 BTC in Jan, by the end of Dec you would end with 102~104 BTC.

But of course there is no State protection, you are risking your coins when you lent it to others. If you do it in an exchange you just hope that exchange doesn't go bankrupt.

What you say implies exchange into fiat, and there you have all the traditional methods and there is no point comparing.

Indeed something like 10% yearly for bitcoin is way too high, i find it highly suspicious to say the least. Its not impossible to briefly see this when margin traders go crazy sometimes, but its not like you lent them for a whole year, two months is the maximum i have seen but you most likely end with a 2 day thing at best. And then 2 days later the interest goes down to like 2%, on average it goes around 4ish like the gambling sites offer.

Indeed any positive interest rate against a deflationary coin is quite high, and usually risky. Collateral helps, i suppose.

[Dabs]

Interestingly, you could also be an operator or owner of some gambling site, grab a small portion of the bankroll, and loan those out for a lower rate to people, who of course should pay back and is also backed by collateral. But that in itself is already a calculated risk... Banks do this all the time, they lend money they don't really own. They are custodians. It's a business after all.

[matchi2011]

I have never invested my money in a lending program. Even if Binance promises a 10% interest, I won't be interested. Because the risk is too big for small bag holders like me.

Risk is everywhere I guess. But if you personally not feeling good about it there's no need to push yourself instead move to another venue of investment. You can go with trading or investing with other business. Lending business always possible for people who can cater the risk and handle good money management. Your willingness to proceed is the key to success to any venue of investment that you'll going to take.

[tsaroz]

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%? 

Binance so far is providing 3% on bitcoin lending. They provide 10% for stablecoins and upto 14% for BNB. Such lending expires in 14 days and you can easily extend them manually a few hours after they have expired. If you missed the schedule, you need to wait some more days where your money would lie without interest. Many other financial services like Nexo and Celcius also provides long term 8% for stablecoins.

[traderethereum]

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%? 

Please take a look at the image below:



The rate is too small in the lending section in poloniex. The rate means you will get the interest for 0.0027% for bitcoin amount you offers to traders.
But the annual rate is bigger.
I change Duration in 30 days so it will run by itself until the traders close the loan.
Sometimes, if bitcoin price moves fast, increase or decrease, the rate will increase too, and you will get some nice interest in your wallet.
But this time, it seems, bitcoin price is not moving so fast, I mean, the price does not increase or decrease too high or low, so the rate is not too big.
But if on the other day, the price is getting a pump or dump, the rate will change, and traders will take a loan from you.
I already give an offer to traders at one rate, and I don't mind to wait for a long time to see my offer is fill because it depends on the market condition.
You can try too in poloniex.
I don't know in Binance because I don't try on their site.

[jerry0]

It's possible especially if you will lend it to people who are into crypto. However, you should think of the risks that you might be facing. Crypto is volatile so there's no guarantee that they could return the Bitcoin that they have borrowed in time. You should lend it with the trusted people that you know. Why don't you invest and do trading using your bitcoins rather than lending it? I think that would be more profitable.

when you borrow with the cryptocurrency method it will create confusion when repayments, for example now you are borrowing $100 in exchange for the price of bitcoin in the current market conditions is high, whereas if you return with usd then the one giving the loan will lose because the bitcoin price falls, borrowers will profit when prices rise.

Its a risk from both sides. Lender will be at risk if the price of bitcoin will increase and borrower will be at the benefit of it.
Vice versa when bitcoin will decrease its price, borrower can easily pay even with interest if its lower than the time he borrows, lender will be at lost if he received the payment when its price is lower than the time he lend it.

I'm confused with this.  You say its a risk from both sides.  So you as lender lend bitcoin.  Price of bitcoin goes up and borrower will benefit from it.  But if the lender only plans to hold and doesn't not plan to sell soon, how does that matter to the lender?  So it benefits buyer because the profit they make from bitcoin going up means with the interest they pay the lender, its usually good enough to overcome the rate they are borrowing at?


Also if you lend btc to binance or some site, how are you getting paid in interest?  Example you lend 1 btc.  So do you get paid in btc interest like 0.1 btc or 0.03 btc or is it in usdt?  How long can you lend 1 btc for?  Say you want to lend 1 btc for 1 year, how much interest will you get and how are you getting paid?  Like is it after 1 year, okay now you get back 1.1 btc back?  Lets just assume you have no plans to sell that 1 btc the entire year so you willing to lend it.

[kooboat]

Yeah, it is very possible since there are many services that deals with lending and borrowing of bitcoin. You just need to be careful since most of the sites that deals with such online lending service are scam. Don't follow any link you have little knowledge about  and end up getting defrauded of your funds.

[ReiMomo]

Yeah, it is very possible since there are many services that deals with lending and borrowing of bitcoin. You just need to be careful since most of the sites that deals with such online lending service are scam. Don't follow any link you have little knowledge about  and end up getting defrauded of your funds.

Do research and risk on your own, that's a really good idea. Because of that, I think many people will be able to earn a big interest in it and also many people will now be able to get interested to invest in bitcoin as well. Indeed, you can't scam if you know how to dig more research about them. In that way, bitcoin will be more popular all over the world and it can boost the economy of a country.