XinXan (OP)
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February 27, 2015, 08:36:55 PM |
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I never understood how would anyone use an altcoin for collateral, i mean if you want 1 btc loan but you have like 100 ltc, why not sell the ltc yourself instead of asking for the loan?
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DeathAndTaxes
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Gerald Davis
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February 27, 2015, 08:39:16 PM |
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If someone believes the LTC/BTC exchange rate will increase then they would take that loan.
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XinXan (OP)
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February 27, 2015, 08:40:52 PM |
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If someone believes the LTC/BTC exchange rate will increase then they would take that loan.
No, what im saying is that if you already have the amount of money you need in altcoins what would be the point of asking for a loan
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CrackedLogic
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February 28, 2015, 06:14:03 AM |
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I never understood how would anyone use an altcoin for collateral, i mean if you want 1 btc loan but you have like 100 ltc, why not sell the ltc yourself instead of asking for the loan?
Some people like to keep the coin. That's like saying if you're using your house as collateral, why not just sell it and buy bitcoins with it.
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BUY GAMESWITHBTCITCOINFORDISCOUNTEDPRICES
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Bardman
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February 28, 2015, 08:51:13 AM |
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I never understood how would anyone use an altcoin for collateral, i mean if you want 1 btc loan but you have like 100 ltc, why not sell the ltc yourself instead of asking for the loan?
Some people like to keep the coin. That's like saying if you're using your house as collateral, why not just sell it and buy bitcoins with it. You cant compare your house to some altcoins. First of all selling altcoins is the easiest thing and also fast, selling your house is not. For me collateral should be something that you can sell somewhat fast and safe but altcoins as a collateral is like having 70k dollars and asking for a 50k euro loan using 70k dollars as a collateral, makes no sense.
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CrackedLogic
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February 28, 2015, 08:54:24 AM |
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I never understood how would anyone use an altcoin for collateral, i mean if you want 1 btc loan but you have like 100 ltc, why not sell the ltc yourself instead of asking for the loan?
Some people like to keep the coin. That's like saying if you're using your house as collateral, why not just sell it and buy bitcoins with it. You cant compare your house to some altcoins. First of all selling altcoins is the easiest thing and also fast, selling your house is not. For me collateral should be something that you can sell somewhat fast and safe but altcoins as a collateral is like having 70k dollars and asking for a 50k euro loan using 70k dollars as a collateral, makes no sense. They're still both assets. Say you asked for a asked for a 500k loan. You'd offer the deed of your house for collateral.
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BUY GAMESWITHBTCITCOINFORDISCOUNTEDPRICES
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fildza
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February 28, 2015, 11:41:04 AM |
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The value of altcoin change every minutes but when you use it as collateral, you still get the same
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havecoch
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March 01, 2015, 09:30:34 AM |
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I never understood how would anyone use an altcoin for collateral, i mean if you want 1 btc loan but you have like 100 ltc, why not sell the ltc yourself instead of asking for the loan?
Its because people believe in the altcoins,and want to hold it, incase they think a price increase will happen.
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XinXan (OP)
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March 01, 2015, 09:37:27 AM |
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I never understood how would anyone use an altcoin for collateral, i mean if you want 1 btc loan but you have like 100 ltc, why not sell the ltc yourself instead of asking for the loan?
Its because people believe in the altcoins,and want to hold it, incase they think a price increase will happen. That can happen with bitcoins aswell plus people only want "stable" altcoins like dogecoin or litecoin
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Amph
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March 01, 2015, 01:29:43 PM |
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If someone believes the LTC/BTC exchange rate will increase then they would take that loan.
No, what im saying is that if you already have the amount of money you need in altcoins what would be the point of asking for a loan some of them are just scammer, other want to have more choice
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Quickseller
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March 01, 2015, 04:15:26 PM |
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If someone believes the LTC/BTC exchange rate will increase then they would take that loan.
No, what im saying is that if you already have the amount of money you need in altcoins what would be the point of asking for a loan If they sell the collateral they are offering then they will have to pay exchange fees, and would miss out on any additional price appreciation between the time they take out the loan and the time they get the money to repay the loan. A lot of loans secured by alt coins are likely done for altcoin trading so the loans essentially are allowing for additional leverage
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XinXan (OP)
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March 01, 2015, 04:16:59 PM |
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If someone believes the LTC/BTC exchange rate will increase then they would take that loan.
No, what im saying is that if you already have the amount of money you need in altcoins what would be the point of asking for a loan If they sell the collateral they are offering then they will have to pay exchange fees, and would miss out on any additional price appreciation between the time they take out the loan and the time they get the money to repay the loan. A lot of loans secured by alt coins are likely done for altcoin trading so the loans essentially are allowing for additional leverage But when you pay the loan back you have to pay it with interests bigger than the fees you would pay for exchanging the altcoins
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Quickseller
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March 01, 2015, 04:23:24 PM |
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If someone believes the LTC/BTC exchange rate will increase then they would take that loan.
No, what im saying is that if you already have the amount of money you need in altcoins what would be the point of asking for a loan If they sell the collateral they are offering then they will have to pay exchange fees, and would miss out on any additional price appreciation between the time they take out the loan and the time they get the money to repay the loan. A lot of loans secured by alt coins are likely done for altcoin trading so the loans essentially are allowing for additional leverage But when you pay the loan back you have to pay it with interests bigger than the fees you would pay for exchanging the altcoins The interest will probably be more then the exchange fees however the interest would not be more then what the borrower *hopes* the exchange rate will have increased since they got the loan.
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Icardi09
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March 02, 2015, 06:16:50 AM |
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Other than LTC and DRK, what's altcoin did use for collateral? I personally wouldn't accept altcoin as collateral, since hold that alts is very risky. Altcoin price changes every time and crash occasionally.
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Bardman
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March 02, 2015, 08:22:45 AM |
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Other than LTC and DRK, what's altcoin did use for collateral? I personally wouldn't accept altcoin as collateral, since hold that alts is very risky. Altcoin price changes every time and crash occasionally.
Dogecoins i think are accepted aswell, namecoin, novacoin. Pretty much the ''stable'' ones
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Pugsly
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March 02, 2015, 10:40:49 AM |
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I never understood how would anyone use an altcoin for collateral, i mean if you want 1 btc loan but you have like 100 ltc, why not sell the ltc yourself instead of asking for the loan?
I've never really understood that either. Using money to get a loan of other money seems pointless. I think most people who take out loans here do so just for the feedback though so that's one reason. Using your account as collateral seems like a better option though sometimes people need the accounts to actually earn the money back.
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XinXan (OP)
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March 02, 2015, 03:01:54 PM |
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I never understood how would anyone use an altcoin for collateral, i mean if you want 1 btc loan but you have like 100 ltc, why not sell the ltc yourself instead of asking for the loan?
I've never really understood that either. Using money to get a loan of other money seems pointless. I think most people who take out loans here do so just for the feedback though so that's one reason. Using your account as collateral seems like a better option though sometimes people need the accounts to actually earn the money back. Well i think 80% of people here that ask for loans are either scammers or not serious people. Ive seen a lot asking for loans to gamble, like wtf is that. When you ask for a loan in real life is to do something of value with it not gamble...
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hilariousetc
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Join the world-leading crypto sportsbook NOW!
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March 02, 2015, 08:50:56 PM |
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Most people won't give loans out to people who are suspected of going to gamble with it and quite rightly as you're almost certain to lose it, though I don't doubt some people take loans out under a different story and then gamble with it anyway.
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Bardman
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March 02, 2015, 09:27:37 PM |
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Most people won't give loans out to people who are suspected of going to gamble with it and quite rightly as you're almost certain to lose it, though I don't doubt some people take loans out under a different story and then gamble with it anyway.
I actually saw some that said they were going to gamble the loan and still received it, with collateral but still why would anyone loan money to a gambling addict
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Quickseller
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March 02, 2015, 09:50:52 PM |
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Most people won't give loans out to people who are suspected of going to gamble with it and quite rightly as you're almost certain to lose it, though I don't doubt some people take loans out under a different story and then gamble with it anyway.
Most smaller loans (less the .1 or so) are almost certainly going to be for gambling, (what else could they be for?) I don't think lenders particularly care though as long as they are sufficiently protected with collateral.
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