To Hodl or Lend: What is your take?

[Sayeds56]

One of the major reasons why bitcoin Enthusiasts hold bitcoin is in anticipation of a price increase that would increase the value of their asset. However, holding your bitcoin requires a patience mixed with strong will. It is the patience to be patient for a long period of time until the price makes a 10%, 20% and so on increase. Strong will not to use it to solve some immediate problem and risk a reduction in your asset. Consequently, not everyone one can wait that is why some decide to learn bitcoin trading so that they can make some quick profit that would also increase their asset holding. Some other become bitcoin lenders. Yes, they use either a centralized or decentralized platform to lend their bitcoin which would be repaid with interest. What is your honest take on bitcoin lending? Too risky, won't try it? Too risky, will give it a try?

I personally like the idea of lending as it seems prudent and worth trying to stake Bitcoins on a well reputed and reliable platform that offers attractive staking rewards. However, this practice is also associated with certain degree of risk, as there is no guarantee that your funds are absolutely safe. Furthermore, due to regulatory issues surrounding the crypto currencies platforms, there are many uncertainties as crypto currencies are still evolving and meeting regulatory requirements for staking platforms is challenging. Therefore,it is difficult to find a trusted platform that not only provides attractive staking rewards but also works within regulatory framework.

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[BenCodie]

What is your honest take on bitcoin lending? Too risky, won't try it? Too risky, will give it a try?

It depends on your ability to conduct good due diligence on the individuals you lend to or the services that you use to lend. Additionally, it depends on diversification. If you put all of your eggs into one basket, then of course your risk is exponential. If you diversify into some services, some individuals, and place 1/20, 1/50 or 1/100 into each lend, then your risk is much lower. If you are aiming to earn 10%, then you will need 2, 5, or 10 defaults or losses in order to break even. 10 defaults with good due diligence would be difficult.

So overall, my answer is that it's not risky if you know what you are doing. If you aren't wise then you will surely make a loss. I wouldn't recommend it to someone who doesn't have experience or isn't prepared to lose in the beginning. There is a learning curve for everything, even lending!

[Die_empty]

. What is your honest take on bitcoin lending? Too risky, won't try it? Too risky, will give it a try?

I will always prefer to hodl than to lend. There are possibilities that bitcoin price can rise beyond the interest you will gain from lending. This will make you lose the gain you would have made from hodling. Lending is a very risky business that I might not have to guts to invest in. I have seen moneylenders lose money not because they are not skillful but because some trusted clients failed to honor agreements.

Debt collection is a skill that needs to be learned. I don't think I have the tact and approach to collect a debt. So I have to stay clear from the business. Finally, my religion forbids giving loans with interest. The tenants of my religion promote giving loans without interest or collateral. I give loans to people without interest or collateral but I also ensure that I give only what I can afford to lose.

[stadus]

but we forget one thing, that investing in bitcoins is safe,....

You forgot that, as it is incorrect. Although we believe that Bitcoin's price may explode in the future, no investment is completely safe. In fact, Bitcoin is classified as a high-risk investment. Let's be realistic.

[rat03gopoh]

The risk is dealing with people you can't trust, and that can be difficult to identify. Even for someone who has been involved in the bitcoin lending business on this forum for years, they occasionally lose money due to default even though they are given some time leeway.
The rule that guarantees almost no risk is actually clear, "no collateral, no loans". I don't know why this rule is slowly being abandoned and choosing to be without collateral for certain members.

[ultrloa]

One of the major reasons why bitcoin Enthusiasts hold bitcoin is in anticipation of a price increase that would increase the value of their asset. However, holding your bitcoin requires a patience mixed with strong will. It is the patience to be patient for a long period of time until the price makes a 10%, 20% and so on increase. Strong will not to use it to solve some immediate problem and risk a reduction in your asset. Consequently, not everyone one can wait that is why some decide to learn bitcoin trading so that they can make some quick profit that would also increase their asset holding. Some other become bitcoin lenders. Yes, they use either a centralized or decentralized platform to lend their bitcoin which would be repaid with interest. What is your honest take on bitcoin lending? Too risky, won't try it? Too risky, will give it a try?

Take them to think about many situations need to consider and here are my takes.

Hodl the only thing you can do is to buy bitcoin and await on target time you set before you sell. Although market volatility.is stressful but this is only your main problem if you choose to hodl.

Lending Yeah this is profitable but there are times that a lender lose their money due to some those people which doesn't have any plans to pay their debt. And to bad if the borrowed amount is huge since with that the lending business built might collapsed for this reasons.

[robattfield]

You prefer to lend Bitcoin over USDT and are viewing Bitcoin's upside potential as a boon. Bitcoin lending can offer the opportunity to benefit from any price spike during the loan period, which can potentially increase your profits. However, it's important to remember that lending to Bitcoin still carries risks, especially the risk of borrower default. Regardless of whether the loan is in Bitcoin or USDT, the borrower's ability to repay the loan is an important factor in the success of the loan agreement. So if you really can't stand the fluctuations, you should learn to hold assets rather than lend.

[Yogee]

I don't really like lending whether it's fiat or bitcoin so hodl and self-custody of your assets all the way. Surrendering control of your BTC or other crypto to these lending platforms in exchange of interest always comes with risks and it doesn't matter if they seem reputable to handle your funds. We should learn lessons from big crypto companies that were "exploited" or filed for bankruptcy.

[bayu7adi]

The rule that guarantees almost no risk is actually clear, "no collateral, no loans". I don't know why this rule is slowly being abandoned and choosing to be without collateral for certain members.

In certain circumstances, risking one's reputation can be seen as an alternative option for those who have a good reputation. Someone with a high reputation is unlikely to be willing to destroy what they have built over time.

Everyone understands that any accumulation of good deeds you have done over a long period can easily crumble when you commit even a single wrongdoing, including failing to repay a non collateral loan.

[Doan9269]

I don't really like lending whether it's fiat or bitcoin so hodl and self-custody of your assets all the way. Surrendering control of your BTC or other crypto to these lending platforms in exchange of interest always comes with risks and it doesn't matter if they seem reputable to handle your funds. We should learn lessons from big crypto companies that were "exploited" or filed for bankruptcy.

Nobody in his right sense of thinking will appreciate lending than having to invest and hodl, but the process or means to this is what many lack as adequately not too good enough, there must be a desire for something, then a pursuit for it, then meeting the requirements for it by giving it all it takes, going through the challenges and finally arriving at the end result, if you don't have today is not the end of the story that you can never possess, start by creating something in form of value and earn from it, such a way or means could be your own opportunity to getting started to have, invest and hodl than lending.

[naira]

One of the major reasons why bitcoin Enthusiasts hold bitcoin is in anticipation of a price increase that would increase the value of their asset. However, holding your bitcoin requires a patience mixed with strong will. It is the patience to be patient for a long period of time until the price makes a 10%, 20% and so on increase.

As a small holder, I think it's simple because from the beginning holding Bitcoin was a dream since I knew Bitcoin. When that happened, it wasn't hard for a long time, as if I had an absolutely precious object. Talking about patience is of course the main thing, but to strengthen it all there are always small things that need attention and a commitment to yourself that the bitcoins you currently have need to be looked after properly, always avoiding negative issues like Fud who always tries to shake the grip we, don't obsess over being aggressive because holding bitcoins doesn't need to be in large quantities at once use DCA as an option which for small holders DCA has been an effective way to date. Don't force buying when there are other needs that must be met, always prioritize the basic needs of the family.


Everyone has their own way of enjoying the process of holding bitcoins, and it will be a rewarding experience when Bitcoin reaches the most desired ATH. And one more thing to remember later 10-20 years to come you hold 0.01 btc making the rarest person whose value is definitely very valuable.

[Unbunplease]

I don't really like lending whether it's fiat or bitcoin so hodl and self-custody of your assets all the way. Surrendering control of your BTC or other crypto to these lending platforms in exchange of interest always comes with risks and it doesn't matter if they seem reputable to handle your funds. We should learn lessons from big crypto companies that were "exploited" or filed for bankruptcy.

Always remember that lending platforms can disappear or go bankrupt. There can also be problems due to regulation or changes in the law. And there is always the risk of defaulting on a loan - life these days is very complicated and full of force majeure.

[ajiz138]

I'm also for "No Lending, Only Hold".

Hold and DCA is the best option at all times, buying from price levels and holding for the long term and then selling in batches with each new high.

As for lending, it is not a good option at all. What will I gain from bitcoin lending? Profit through little interest? Is this the profit you wish for? This is nothing compared to what you can earn from holding bitcoins in the long run. This is of course apart from the other disadvantages of lending.

I also don't like loans or lending to others because this can't be identified properly this will cause problems for me and better focus on bitcoin HODL only.

We are more calm in our own way to get bitcoins generated from DCA than to generate bitcoins from loans and this is small interest especially if you make loans with fiat intentions and prices fall then it will make us lose, I know that my calculation method may be wrong but actually it's not a good thing for me.

Large and small loans will definitely have a few problems, especially if someone fails to pay them, so we have to be prepared for that risk, but I myself don't want to do that.

[Iroh]

What is your honest take on bitcoin lending? Too risky, won't try it? Too risky, will give it a try?

I would prefer to hold than to lend and that's my own opinion. Lending out your bitcoin is as risky as lending out fiat or other valuables. You would need some sort of assurance that you would be paid back else you would incur a lot of bad debt.
If you could withstand the risk involved in lending your bitcoins, then it could also be profitable in both the long and short run. You could lend out your bitcoins with a certain interest percentage and if all goes well(the lender pays back) you would make a small profit in the short run.
But if you incur bad debts after lending out your coins, then you would have probably wished to have held it.

[bittraffic]

If I have the patience and are also willing to lend BTC, I might want to do it when bear market is almost over like this time of the cycle where we hit bottom already.

Hitting two birds in one stone, you get interest when they paid and at the same time the value increases as well. But right now I just wanna hold some and trade some.

[isaac_clarke22]

Too risky, will give it a try?

Cause I ain't someone that wanted to chase people just to pay their lent amount. I can deal with interest and calculation on how to profit off from my lending business. It's much easier now with hodling and I am open to more other income that could potentially make another branch of businesses.
Trading isn't even for me in crypto, but I am okay with trading commodities like the usual buy and sell stuff you see in Facebook.

If I have the patience and are also willing to lend BTC, I might want to do it when bear market is almost over like this time of the cycle where we hit bottom already.

Hitting two birds in one stone, you get interest when they paid and at the same time the value increases as well. But right now I just wanna hold some and trade some.

Just careful in bearish market as many would definitely try to gain BTC then might scam you by defaulting in a loan. If you can do both then good for ya. It's just way too much for me to handle lists of lenders, lol.

[mvdheuvel1983]

I am not a big bitcoin investor. People who engage in bitcoin lending using whatever platform that has been made available to them are people who are big investors in bitcoin. Say they have 1 or more bitcoin. From my understanding and research, bitcoin lending seems to be profitable but then I am not the person to engage in that risk. It is too high risk. What scares me most about bitcoin lending is the volatility. I may end up making no profit because of this. Holding and taking profit no matter how the wait period is fine with me. At least my peace of mind is still intact.

[ginsan]

if asked to choose to hold or lend my bitcoin, I prefer to hold it, even when the loan has collateral and a few percent interest. why is that? because I don't want the assets that I hold to be in the hands of other people, and when I need them, I can't sell or withdraw them directly.

I am a holder, not a lender. indeed it's a win-win, but just imagine when the bitcoin is lent to someone else, meaning we are waiting for it to be returned, while no one can predict the momentum of the bitcoin price. imagine when the bitcoin price rises and your bitcoin is still in someone's hands other? you will lose the momentum to sell it which can generate bigger profits. not to mention that the risk of the lending platform going bankrupt, it also needs to be considered. that's why I prefer to hold it in my wallet.

A pretty good point where if one of the factors makes a person think wisely then he will prefer to hold it in the sense that he is in full control of his assets in his own wallet rather than giving loans to other parties just to get interest. However, this perception also depends on each other's thinking because those who have a lot of money in the form of Btc will provide loan services to those in need.

Apart from that, I think one thing that makes us successful in this context is when bitcoin goes up we can sell immediately unlike those who use btc to borrow to other people, of course they will miss the opportunity to sell btc when the price is rising.

[Finestream]

No lending! Only HODL!

I will never lend my hard earned bitcoins to some unknown faces. Bitcoin lending is a very risky business and I have lost a significant amount of money from a platform called BTCJAM if you remember it.

I will only lend bitcoin if it has securities like banking system. Like credit score checking, having some collateral, address and ID verification and so on. Otherwise it's a very easy job for scammers to run away with my money. I will just rather hold it.

Exactly. There’s no assurance that your bitcoin will still be back with its additional interest seeing a lot of people nowadays are dying to own even a portion of bitcoin. So I’ll never take that risk for heaven’s sake. Instead, I’ll just master my investment and continue to hold as long as I can, that way I am completely in charge with my own bitcoin. Hodling will double or triple my bitcoin in due time, that means having high patience is only the key.

[molsewid]

The common goal of either holding or lending out our asset to people is to make money, if you invest by holding, you're more prone to making more money because you will be on the advantage to make more money in addition especially when the market rises in your favour, if you lend someone, there's a little probability that you may not get your money back on time as at when needed or due, you may have the risk of loosing it value due to inflation, but when you invest you're in charge, when you lend out the recipient is in charge

I agree because when he lend the money it's either it will be less to the initial value he lend or it will be so much higher for the lender. So I think he should invest it instead or hold it instead. There's no doubt in holding bitcoin, among all coins I rather choose bitcoin to hold even more longer than other. Inflation, volatility will be the problem for lending btc.