Cryptocurrency trading with flash loans

[SquallLeonhart]

I am really not familiar with Flash loan for trading. Heard first time about this kind of loans. Only I heard some binary exchange have option for demo trading balance for learning purposes. You may take loans from some other platform, but obviously you need collateral. And more importantly I am not agree to take loans for trading purpose. It's quite risky if lost fund and most likely that's the reason why any exchange doesn't offer such as features.

Even I can't understand the concept of flash loan. It might be good if OP could elaborate what exactly he meant to say here with flash loans. Trading might show huge profits and this is what makes this kind of thought enter the minds of various people including OP but with huge profits comes huge risk.

Considering the rank of OP, I think he has newly started into the crypto space and with greed in his mind, he is willing to take a loan to perform trades and pay the loan back with the profits achieved in trading. This can give huge profits without actual investment but this might only be good for professional traders who already have gained some experience.

[Ailurophile]

Hello,
Can you please give me more information about cryptocurrency trading with flash loans ?
This is a trading where taking a loan, buying coins, selling coins and returning the loan is
embedded in one transaction. I would like to know few web sites where I can do this type
of trading. Do I need to deposit cryptocurrency to take flash loans ?

I don't think that there would be a site who would have this kind of transaction or deal.
If a trader couldn't come up with a capital to trade then how could they even trust you with their money?
And how could they know if you are really going to pay them back if you lose on your trades?

[Ridwan Fauzi]

There is no any exchange which can do that, but if you have a high level rank on this forum you will be allowed to loan with another user in this forum.

But, since you are still newbie you can't do that. I'm really surprised when I see this thread because you are able to take at least two risk in your strategy which was said by some before me.

Seem like you are an expert to trade, right? so as you are really confident to do this thing. You may need to make a loan in real life such as through bank or someone who closest to you.

[Assface16678]

I never know about this services but I'm sure only user by user who already know well doing that. There is no institution or on line site have it, if yes they will need guarantee their money will come back. There is rules is trading and investment world, never use loan money for both activity because can give you deep pressure, it will make you don't have control with emotion and passion. Don't use and stop asking that, it will bring dark future into your life.

One of the profits that many people can earn with the use of investment in the cryptocurrency and some of them at the early time realizes the use of crypto to make profit every team they make investment but still, we need to monitor the transaction we are doing with the use of it because there are some instance we can lose our money from the volatile market. As an investor for a long time and trader too always keep updated about the things happening in world trade and market prices. Also, the event because of some of the reasons why a market price is an event happening right now in the world. Also, we can make a lot of information on the internet today to monitor the activity.

[jostorres]

There are some platforms where you can take a loan by keeping some amount of coins as collateral into the account. You would probably need 120%+ collateral to take a loan. This might not give you the ease to trade with that financed amount and return the profits as interest. You can try some financial institute which can loan you depending on your credit line without actually keeping any collateral.

I think, this can make you gain some profits but you should never forget that you are also bringing a lot of risk along. By any chance if you face loss in trading than you would need to pay the interest for the financial institute on your own and this can unbalance your financial life.

[bitbunnny]

I'm sure that many people are attracted by flash loans and possibility for fast investment and fast returns.
But there is a catch and you can find yourself in closed circle of losses and situation where you can't return the loan. Also, such loans requests quite a high collateral because lenders want at least some certainty and pay back guarantee.
So, I would avoid such loans and follow the rule that you invest extra money that you have and don't need without further debts.

[TheUltraElite]

I am really not familiar with Flash loan for trading. Heard first time about this kind of loans.

I also heard it for the first time. Maybe the OP is talking in the same lines as you are but using a different translator to type. What I can make out from my knowledge is leverage trading.

There is no any exchange which can do that, but if you have a high level rank on this forum you will be allowed to loan with another user in this forum.

The OP is not asking for a loan. That too could be a possibility but here it is only a discussion of taking a loan for trading. Of course there is P2P lending system but I am sure nobody who does not know the OP in person would be willing to lend them a lumpsum without securing a collateral of higher value.

I hope the OP responds to some of the posts here because basically all that could be dissected out from their post has been made.

[CHENIEN]

[quote author=Mahanton link=topic=5228885.msg53932184#msg53932184 date=1582927
Hello,
Can you please give me more information about cryptocurrency trading with flash loans ?
This is a trading where taking a loan, buying coins, selling coins and returning the loan is
embedded in one transaction. I would like to know few web sites where I can do this type
of trading. Do I need to deposit cryptocurrency to take flash loans ?
[/quote]
This kind of loan transaction is uncertain,because until now almost all lenders requires proof of properties as collateral including sign of contract so its new which is unfair to other company.

[LbtalkL]

why not try Margin Trading? You can borrow funds and you can trade more than the amount that you have on your account. It is a different concept but the results were the same. I haven't heard a crypto exchange that offers that kind of services but some wallets like NEXO offers loan services but it needs crypto collateral.

[TheUltraElite]

This kind of loan transaction is uncertain,because until now almost all lenders requires proof of properties as collateral including sign of contract so its new which is unfair to other company.

There are companies allowing you to get a loan with cryptocurrency as collateral. Maybe in future we will see companies giving bitcoin loans for fiat deposits as collateral just like the banking system does. People need these loans for trading so there is a market to develop on here.

why not try Margin Trading? You can borrow funds and you can trade more than the amount that you have on your account. It is a different concept but the results were the same. I haven't heard a crypto exchange that offers that kind of services but some wallets like NEXO offers loan services but it needs crypto collateral.

The OP did not respond but I think this was what they were asking for. Leverage trading and margin trading is what was could be made out from the OP. Even then a loan shark's loan to trade is also possible.

But the more secure option for a loan shark would be to ask the borrower to borrow from the broker, that is margin.

[MCobian]

I was very confused when I heard about trading with flash loans, because in my opinion there are no exchanges that provide these features.
The features of loans with collateral, because if without collateral existing exchanges will definitely go bankrupt. But my advice is to avoid
everything related to loans, because borrowing money means returning the money with interest. Things like that do not matter if our trading
is successful, if it fails we will experience financial problems.

[el kaka22]

Big companies love to this because they can get flash loans for basically zero interest, they get like 10 billion dollar loan, they invest into something, get back 11 billion and pay that 10 billion in a hurry and keep that 1 billion. It is basically what a leverage trading is like when you are dealing with trillions of dollars for investment in your company, there was literally one in wall street that had 1.8 trillion invested in them (before all of this started, maybe very low now).

They leverage it by loaning from FED or whoever and use it to make more money, if they lose then they pay with loss as well, so you spend zero to either make money or lose money but there is no capital required since they are big enough. We shouldn't allow them to be this free but we do, because they bribe politicians.