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LINKS FOR ADDITIONAL READING FOR THIS VIDEO & ALL INFO IN TEXT DOWN BELOW

Reviews of Lending Sites: https://coinscage.com/best-bitcoin-loan-sites/

Both lending sites and exchanges: https://www.disruptordaily.com/best-bitcoin-lending-platforms/

Information on Bitbond: https://www.cryptocompare.com/spend/guides/how-to-lend-and-borrow-bitcoin-with-bitbond/

Lending BTC for Margin Traders: https://www.bitcoinmarketjournal.com/bitcoin-lending/

Basic tutorial on how to lend BTC on Poloniex: https://www.youtube.com/watch?v=ZRyJ-KbiWUk

Although I am a fan of holding Bitcoin, and that particular game plan has reliably paid off in the long term, I’m well aware that many people are hurting in this bear market. Those who are very desperate to see any kind of gains during this down trend may be open to learning about how to lend out Bitcoin in return for interest payments.
There are a couple different ways you can lend your Bitcoin you hold and receive passive income in the form of interest paid by the receiving party.
We’ve got platforms that bring together small/medium businesses who need loans and lenders. Platforms like these include Bitbond, BTCPop and LoanBit.
You can investigate who you are loaning to and choose how much and for how long you will provide the loan.

Here are some things to consider if you want to take part in these types of lending platforms:
Pay attention as a lender if you have the ability to choose the base currency. so if you lend in USD and Bitcoin goes up, you’ll receive less BTC but the USD amount will be the same
Borrowers will need to disclose their personal information and will often need to verify it with social media accounts and or live video chats.
Interest rates are decided based on the riskiness of the loan, if you want to earn more money through higher interest rates you’ll have to come to terms with the fact that the loan associated with it is very risky and very well may never be repaid.

If your loan is unpaid by the borrower you can be provided information suitable for pursuing legal action. Or you can sell it to a debt collection agency. Neither of which are guaranteed to getting your money back.

There is another way you can also lend your bitcoin to traders and that is by using exchanges like Bitfinex and Poloniex. Here, you can lend your bitcoin or other cryptocurrencies like Ethereum to traders who will use your coins to perform the stress inducing act of margin trading.

Margin trading is when traders borrow funds to make trades. When they do it right, they make exponentially more money than they would have been able to with their own funds, but if the trade goes south, the traders will find themselves owing exponentially more money than they are capable of repaying.

In the case of lending bitcoin on an exchange, the interest rates are determined by the market, those wanting to borrow will choose the least expensive interest rates. Also, you are relying on the exchange to margin call these traders if their trades have become far too risky and have reached the threshold set in place by the exchange. It’s been said that you can expect to be paid anywhere from 3%-10% interest annually by lending on Poloniex, but this I’m sure is subject to change and is in no way a guarantee that you’ll have that same kind of payout.

Keep in mind that if you use either of these lending options you are placing your trust in the borrowers and in the platforms to pay back your loan. Not to mention the fact that you will be unable to trade the coins you’ve lent out. So if the markets start swinging heavily in the red or the green again, you’ll have to be patient to regain access to your bitcoin before you can do anything with it yourself.

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44 COMMENTS

  2. Some bad news, Polo will no longer allow margin lending on their platform at the end of the year for US customers. For Bitfinex they no longer service US retail customers either. The choices on where you can lend btc for interest there just aren't that many options.

    I've tried btcjam and bitlendingclub a while back if you remember them before they closed shop. Short story is it just isn't worth it given the high rate of fraud. The chance of a borrower not making good on their payment was so high that the interest isn't even high enough to justify the risk.

    I would like to see you cover some crowdfunding masternode platforms eg. neptunedash and crowdnode for example. And see how they compare in terms of interest rate ROI, risk and accessibility with the options you mentioned in this video.

  4. Heidi you're premise is correct, check poloniex lending on the trading platform. .25 – 2% daily you set the duration 2 days …etc that your coins will be tied up in lending. Not that I am a fan of the shady site.

  5. Just the same as fiat currency lending sites. Poor interest if it's reasonably safe and no security if the borrower defaults. Unless I have a lien on some hard assets I wouldn't loan anything to anyone. Long ago I learned the hard way that trust has to be earned and not many people are worthy of it.

  7. Without question, bitcoin and cryptocurrency have been a lightning rod of interest for millions of people. When famous financial figures are interviewed they are always asked about what they think of bitcoin. With bitcoin having a similar value to any number of big U.S.-listed companies that is like every finance and corporate press conference having several questions from the floor inquiring about Disney stock. This would be considered very weird but for bitcoin, it is considered normal. I must admit to being skeptical but I have learned over the years to watch the trend not listen to my gut, which often rumbles and is clearly connected to the other end of my anatomy far from my brain. I am acquiring crypto at these levels and will continue to do so. If bitcoin collapses I’ll load up. Mining income is on its back, which suggests core crypto is a soft market, but bitcoin is heading the other way, which suggests that bitcoin is strong but crypto, in general, is still basing. If bitcoin continues to pick up, the altcoins will suddenly spring into life. So the way to play this market is to acquire gently, watch bitcoin and if it looks to be starting a new boom cycle, dive into it and some altcoins to add even more alpha. I discovered a comment of someone giving Accolades to Mr. Adrian Markus from Denmark and also thanking him for helping him increase his Portfolio from having 3.4BTC to 16BTC So I contacted him, Behold I have made 20Btc in less than one month with his working strategies, if you have lost so much during fall or want to increase your portfolio like me, Reach him on *Email/hangout( Adrianmarkus48@Gmail com )and thank me later

  8. Wholly cow!!! You’re actually advising people to do this? Wow, and I thought you were foolish for BUYING bitcoin, but now this? How’s that bitcoin working for ya now, lol! Like I’ve said before, good thing you have your good looks to fall back on, cause you sure as hell ain’t making a cent on crypto currency B.S. The only cash being made here is from all the dummies believing in this crapto, opps, I mean crypto and subbing your channel. So in a way I guess crypto is working for you. Kinda sad to see you build up people’s hope so much, only to be slapped in the face with reality. Buy on, fools.

  18. Yeah, none of thsse thing sound like a wise idea. And like I've always said, when Banks fail, the new Banks will be the people with lots of Bitcoin. Probably the people who owned the banks in the first place. Weeeee.

  23. Very true on the risk of loan out cryptocurrency. Probably too soon in the game for this to be a regular thing in the crypto space. Then again it's all about how much risk one wants to take. Good Information and thanks for sharing. Sincerely JR

  38. Freeze the value of my BTC for 10% a year return? While running the risk of complete loss? I think Crypto's exciting enough as it is! But thanks Heidi…great channel!

  43. Lending btc CREATES bear market dont harm cryptos lending it. The amount of total btc is low and lending any amount harms price. If you lend it sure yiu personaly migjt benefit but you arr killing future of cryptos.

  44. Dont lend BTC. It makes BTC goes down! Why someone wants to borrow btc? – to sell it! And buy back lower. Selling btc makes btc price go down. They sell btc to someone and someone lends it again and they can SELL IT AGAIN ONCE MORE. Lending btc spirals down the price lower and lower! Hodl is the correct way if you want crypto to go UP!

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