Earning Interest with Bitcoin?

[Kupid002]

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%? 

Too risky in my opinion if they offer a very high interest, then it could fall into something like an HYIP, and there's also a risk of the site running away with your Bitcoin, we have a lending section here you can offer to lend people but only trusted people with collateral, your Bitcoin will grow so why give it to others just kept it in your wallet.

And another thing is what if the value of bitcoin decrease so what will happen to your money it will also decrease its value.  He can use fiat instead bitcoin if you want he want to lend money. If he is prefer to lose the value of what he want to lend then he can continue.

[Assface16678]

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%? 

Too risky in my opinion if they offer a very high interest, then it could fall into something like an HYIP, and there's also a risk of the site running away with your Bitcoin, we have a lending section here you can offer to lend people but only trusted people with collateral, your Bitcoin will grow so why give it to others just kept it in your wallet.

And another thing is what if the value of bitcoin decrease so what will happen to your money it will also decrease its value.  He can use fiat instead bitcoin if you want he want to lend money. If he is prefer to lose the value of what he want to lend then he can continue.

It is possible today that you can earn more money with the use of interest because now many website or other platforms that support the of cryptocurrency advertise their users to try to invest in their business because some of them are offering for over ten percent interest from different coins but still it takes a month to earn your interest or profit. Still, even this kind of technique may help to improve the coins do we have.

[Dabs]

Just remember that not your keys, not your coins. It's possible they will credit your account if you allow them to use your coins. It's also possible they become insolvent for any of a number of reasons and then you can't withdraw your coins.

[johnwest]

The problem with this thing is that the companies cannot be trusted. There were many Hyips which were paying interest weekly or monthly. But sooner or later these websites did exit scam and ran away with all the principle amounts. Binance is doing this with limited entries so try it if you can.

[universe_]

I think binance will be my preference if I ever take part in lending for interest products because they actually provide this service. Binance is a well-known company with millions of dollars in revenue, with very slim chances of losing my money. Any other unknown lending services, irrespective of the percentage they provide, could disappear with your money on a very good day.  I can't afford to lose my crypto money.

[Lecam]

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%? 

Maybe its posible because many have offer to lend on there but i think some are not trusted. 2% interest is good because bitcoin price is not stable once u have 2% interest in lend then bitcoin will goes you gonna be get a big profit.
I think binance is not offering lend because many trader are not trusted and 10% interest is a really big.

[ontrackk]

If you want to introduce these lending conditions, I think you need a good regulatory platform to make sure you know their identity and make sure they pay you. Although I do not recommend that you lend your money to large companies and exchanges, I would possibly suggest that you start lending cryptocurrencies to individuals where you can conduct testing tasks to insure that they work before you decide to implement them on a larger scale basis.

[Latviand]

Well, I think it's risky to lend to someone or large companies they could access your informations, and maybe bad things will happen.? And I personally don't want this lending thing because what if the borrower didn't intend to pay the coins they borrow, or you will have a hard time asking them to pay immediately, or maybe they wi scam you right? So it's perhaps it's better to lend someone you know, and you can trust just to make sure.

[singlecivilization]

Bitfinex margin funding has been good to me. I have also tried Blockfi but I withdrew my money when I read that they subsidize the interest rates; indicating to me that the business model is unsustainable at the rates they currently offer (around 6%)

[Yatsan]

There is actually a lending board here in forum, if you are a borrower just make sure you are trusted and have high rank, mostly they are just allowing Sr. member and up to approve their loan. Binance and other website that is offering lending is have a high interest so why don't you just borrow to our lenders here?
If you want to start a lending business, you can also post on our lending board and start your business there. Just make sure you will be aware to the risk of lending, just pick the trusted member and you will be all good, or just ask for a collateral.

Lending board: https://bitcointalk.org/index.php?board=65.0

[Dabs]

Collateral is always the way with the least risk, since you usually ask for something that has more value than the amount they are borrowing and the borrower usually wants to get it back.

[White Christmas]

Collateral is always the way with the least risk, since you usually ask for something that has more value than the amount they are borrowing and the borrower usually wants to get it back.

Collateral or what we called the lending agreement in which the person who lends and the borrower are the one who will make an agreement about what thing or money they want to get in order for you to have something from them. The more and higher value you want from them is also the higher you need to place on your collateral in order for both parties agreed with this. All of the person if they let anyone borrow or get something from them, they also want something they can have in order for them to have a good deal and same value of having things because they want and they need something in return.

[veleten]

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%? 

its possible , the lending sites for bitcoin come and go and you have to pick wisely
whenever you are sending your coins away , you no longer in control
the company or a fund or a site can go bankrupt or turn into scam , so think twice before trying to earn 1-2% a year and risking the whole sum
you could try one of the many lending sites like xcoin or btcpop or you could invest into a casino bankroll , for example
the sites like Bitvest , cryptogames offer public investment bankroll and are , usually , profitable in the long run
there is also freebitco.in that offers >2.5% ROI on your bitcoin balances
once again - be very cautious and never invest what you cannot lose

[theskillzdatklls]

The only time tested true methods that I've seen work are either casino investments or margin lending. Anything else is quite risky because they tend to be correlated to BTC/fiat prices. When fiat crashes they'll pay you back and when BTC goes up they just stiff you and leave. Ponzi-scheme styled.

With casino investments and margin lending, the base rates are denominated in BTC or crypto which allows dividends to be paid regardless of the price of the underlying asset and you can understand where the value is coming from as well, which is extremely important.

[Dabs]

I saw that before on Polo as well, you could lend there, someone else would borrow and it would be taken from their account or something, so there wasn't much risk as well. You could set the rate and the duration.

For Casino ones, just do a little research on their history. Some are reliable but are denominated in an alt and not in BTC, so that has it's risks as well.

[BlacksmithCorporation]

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 only Binance but also many other exchanges also do this. These exchanges borrow your money and pay you interest, and then lend it to other users in margin trading at a higher interest rate. I know an exchange with a very good policy for this is Okex, you can deposit your BTC and receive daily interest you can withdraw BTC anytime you want.

[adaseb]

There really isn't much interest lending BTC unless you are doing something risky and sending it to someone who "promises" to send it back. The real money is actually lending USD or USDT or even synthetic USD.

Basically if you look at the funding rate for Bitfinex USD its around ~10% per year, and same with the lending rates you get by lending tether. You can also basically sell your BTC by shorting the perpetual futures on Bitmex and you on average get a rate of 0.03% per day which is about 0.9% a month which is over 10% a year.

You won't get these interest rates at any bank or even by the average SP500 indicies rates for the last few years. Lending BTC on the other hand is not profitable, better just hodl it.

[Wintersoldier]

If this will be possibly be conducted, I highly consider earning interest in a personal way such as lending bitcoin to people you really know for a long time. Because in order for you to lend and earn effectively, you might need to have your own platform to conduct it. Plus, you couldn't trust everyone since the cryptocurrency users are highly anonymous, people might just leave you and take your money out. But if you can develop a system where you could have returns or collateral, then possibly, it is a risk both of the parties need to take for a successful lending to occur anonymously.

[btccashacc]

Actually this has already existed in the bitcoin industry for so long, some random websites collecting and manage people money whether they make profits by trading or lending. However, most of these websites are scams, they mostly are using Ponzi schemes, some of them claim that they have a mining industry but we don't know if that's true, usually, this kind of investment ended up with the owner running away or the website going down. I highly recommended people to not give their coins into some random people on the internet better to manage your money in your own pocket.

[Artemis3]

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.

This happens automatically in some gambling sites, in others you have to explicitly find the section for investing in the bankroll. For such something like 4% over a year i have seen, but your money gets trapped for various months (probably to smooth variance, like a pplns pool). Since they pay you interest over the money you are leaving there (which they use in their bankroll) the collateral is already made.

Not unlike a bank, really. Except its invested in the site's main business rather than outsource investments or traditional loans.