Bitfinex | Offer Swap question

[DarkRavenGamer]

Hello!

Isn't it very profitable by just lending your money on bitfinex for swap rates at 0.6% per day? That is almost 20% gain per month. What am I missing?

[1714814285]

1714814285

[Kluge]

Risk of government seizure/shutdown, daily time needed to put out new offers (a good number of swap-takers are fickle and cancel the order within an hour), risk of owner running off.

We're in a bull market, too, right now, so rates are far higher than usual.

Time you can basically write off if you put a lot in. If you only have, say, $500 in, though, it may not be worth the bother after factoring in the risk.

ETA: Risk of account being compromised, too, of course. -And risk of BFX itself being compromised.

[DarkRavenGamer]

Risk of government seizure/shutdown, daily time needed to put out new offers (a good number of swap-takers are fickle and cancel the order within an hour), risk of owner running off.

We're in a bull market, too, right now, so rates are far higher than usual.

Time you can basically write off if you put a lot in. If you only have, say, $500 in, though, it may not be worth the bother after factoring in the risk.

ETA: Risk of account being compromised, too, of course. -And risk of BFX itself being compromised.

Thank you for your response. I think I'm ready to take that risk. I will give it a try.

[madken7777]

Lending rate isn't always high. Also take wire fee into account.

[arbitrage001]

Hello!

Isn't it very profitable by just lending your money on bitfinex for swap rates at 0.6% per day? That is almost 20% gain per month. What am I missing?

Haven't seen rate this high for a while.

The recent jump in bitcoin price hike the rate a little, but people borrowing the money to bitcoin make even more.