Does any of you have idle btc on Poloniex?

[Snuden]

If so, the daily interest rates on lending is hoovering around 2-4% these days.
Some nice beer money to be made.

[Gendarme]

Sounds fishy. BRB inveshtigashon.

Edit: Inveshtigashon complete. Seems legit. I suppose it makes sense due to the volatility of BTC. I remembering 15% daily swings some days ago.

[Snuden]

Sounds fishy. BRB inveshtigashon.

I was also "wtf" but Poloniex is probably the biggest and a very legit exchange. People has been lending/borrowing there for a year now. Right now the rate on offered loans is 4.25% - it constantly changes though.

EDIT: Yea.

[Gendarme]

It's not daily interest, but for two days. Juicy nonetheless.

[Snuden]

It's not daily interest, but for two days. Juicy nonetheless.

It IS daily. https://poloniex.com/support/aboutMarginTrading/

[Snuden]

New Post: The interest amount is accumulated in real time and is transferred to your account, when the contract close.

[Gendarme]

I see how this works now, I think. People trade with other people's money to be able to profit (or lose) more than they otherwise would. For this service, they have to pay daily interest.

Kinda identical to certificates from the margin trader's POV.

[Snuden]

I see how this works now, I think. People trade with other people's money to be able to profit (or lose) more than they otherwise would. For this service, they have to pay daily interest.

Kinda identical to certificates from the margin trader's POV.

This IS for margin trading.

[Gendarme]

Yes, I did not say it wasn't. My point was that instead of buying BTC certificates from the normal stock exchange and paying 2.5% (current XBT rate) daily interest to the issuer (usually a bank of some sort), you do it here instead and pay interest to other normal people.

[Gendarme]

Sweet jesuss3! This website is a fucking goldmine.

[Snuden]

Yes.

What I do is that I only offer 2 day loans, without auto-renew. I also lend out at a slightly lower rate than the market otherwise allow for, that way I wont have any cancellations - or at least very few. Borrower can cancel the loan before the contract ends, but lender can't.

Yesterday I saw somebody offering 880 btc at 3% for 60 days :-)

[Gendarme]

Why not auto-renew? Also, I read a bit about forced liquidation, but does it really 100% guarantee your BTC, or is there a small risk of him defaulting and Poloniex not paying you?

[Gendarme]

Wait a fucking minute here... does a daily 2% interest equate to a 140 000% yearly interest?!?! I must be fucking dreaming.

Edit: Since they are 2-day bonds it is actually 130 000%, but whatever.

[Snuden]

Why not auto-renew? Also, I read a bit about forced liquidation, but does it really 100% guarantee your BTC, or is there a small risk of him defaulting and Poloniex not paying you?

My idea behind not auto-renewing was that I wanted my interests ASAP, just as I type this I realize that I would get the interest after each loan is closed anyway (LOL)

Auto-renew *ON*

Some people claim that Poloniex wouldnt be able to handle massive forced liquidations if they happened within a split second, so theoretically there is a risk there. Others claim its 100% safe. The biggest risk is that Poloniex gets hacked.

[Gendarme]

I see. I read an article that said so too. In that article, however, the interest rates were 0.02-0.04%. How come it is 1-4% right now?

[Snuden]

Supply and demand I assume. Maybe the implementation of the new fork (happened today) played a role too.
Current rate tells us that there is a lot of margin traders in play right now, if the market change and those traders goes AFK for a while, rates will drop.

Time will tell. Meanwhile I just locked in 4 loans at 4% :)

[Gendarme]

Borrower can cancel the loan before the contract ends, but lender can't.

Any source regarding this?

[deleted_user0]

how u get sum btc? u borrow 1 btc? and then u lend it out? ponzi scheme incummin

[Snuden]

Borrower can cancel the loan before the contract ends, but lender can't.

Any source regarding this?

https://poloniex.com/support/aboutMarginTrading/

[Snuden]

how u get sum btc? u borrow 1 btc? and then u lend it out? ponzi scheme incummin

You can mine/buy/trade
I had some Litecoin from a couple of years ago, which I had totally forgotten about until I opened an old computer from my previous company. I then traded those for bitcoinsh, which I now lend out to traders.

In general I am clueless about cryptocurrency.

[Gendarme]

I just bought with normal Swedish money. Poloniex deposit disabled atm tho :(

Some dude demanding 2000 BTC on 5% rate atm. Crazy shit going on.

[Snuden]

I just bought with normal Swedish money. Poloniex deposit disabled atm tho :(

Some dude demanding 2000 BTC on 5% rate atm. Crazy shit going on.

Yea, a lot of shiit is going on because of the new split of the bitcoins. A few other exchanges have also disabled deposit and withdrawal of btc.

[deleted_user0]

lol such a bubble

[deleted_user0]

When you hear dumb girls discussing in real life parties how you can create infinite profit by investing on cryptos.... you know the bubble is going to pop

[Snuden]

When you hear dumb girls discussing in real life parties how you can create infinite profit by investing on cryptos.... you know the bubble is going to pop

There is no such thing as infinite profit.
I would rather say that those who completely ignore cryptos are dumb.