[SIM-1589588]

I need to put some of my bitcoins for good use. So I'm planning to start a bitcoin lending business that accepts altcoins as collateral.

I would like to ask few questions from HF users.

1. Do you guys hold more alt than bitcoins?
2. Do you have a way to cashout altcoins without converting them to bitcoins?
3. How many times you had a bill to pay and you had to sell your alts for bitcoins even if you didn't wanted to sell them?
4. Will you guys use a service that gives you bitcoins on loan against your alts, and gives your alts back once you clear all dues.
5. How much intrest you are willing to pay for this kind of service. (Let's assume, loan is for 1 month only)

[Zexi]

1. Yes.
2. I don't think so.
3. Never.
4. I am a person that hates owing anyone anything so i wouldn't be interested in this.
5. You should make it something high like atleast 10% considering you are risking your money, i met too many people in my life that never returned their debts IRL even though they got beaten up and threatened.

This is gonna be really rough considering all the scams going around bruh. Good luck with this bruh.

[ᴍᴀʀɪᴏ]

1. Yes. Only 10% of my portfolio is BTC.
2. Yes. With a 5% loss though. Instant bank transfer with a verified business.
3. Didn't have to do that yet and I hope I won't have to do it.
4. Personally I don't have a need for it but it is a great idea and I think that'd work.
5. 10-15% a month would be decent. Every day over the due date extra 2% on total sum.

Awesome idea but it's gonna be hard task to do. Definitely ask for ID proof and work on trust i.e. start from 150-200$ max amount and work your way up.

[SIM-1589588]

Awesome idea but it's gonna be hard task to do. Definitely ask for ID proof and work on trust i.e. start from 150-200$ max amount and work your way up.

No ID or any other paper documents for a loan. I'll be taking 120% to 180% or more, depending on the altcoin and the lenght of loan term and of cource I won't be accepting altcoins that are highly volatile.

I won't be risking my money, there will be proper Terms and Conditions for the loan and In case he's not able to pay the installment on time, he will be allowed to pay the installment by liquidating some of his alts.

Ps: Thank you guys for your feedback.

[2073436]

No ID or any other paper documents for a loan. I'll be taking 120% to 180% or more, depending on the altcoin and the lenght of loan term and of cource I won't be accepting altcoins that are highly volatile.

I won't be risking my money, there will be proper Terms and Conditions for the loan and In case he's not able to pay the installment on time, he will be allowed to pay the installment by liquidating some of his alts.

Ps: Thank you guys for your feedback.

I don't understand? ToS isn't going to hold someone back from running with your coins
My advice: don't bother, hold these shiny coins (it can be a headache)

[Zexi]

I don't understand? ToS isn't going to hold someone back from running with your coins
My advice: don't bother, hold these shiny coins (it can be a headache)

He is gonna hold the user's altcoins and give him bitcoin for it. If i understood correctly.

[.Bus]

He is gonna hold the user's altcoins and give him bitcoin for it. If i understood correctly.

I think you are correct yet I don't understand why would I do that instead of just exchanging them to BTC if for any reason I would need it.

[V For Vendetta.]

1. Do you guys hold more alt than bitcoins?
Yes

2. Do you have a way to cashout altcoins without converting them to bitcoins?
Yes

3. How many times you had a bill to pay and you had to sell your alts for bitcoins even if you didn't wanted to sell them?
I've sold highs, bought lows. Paid bills with the alts I sold, but bought back more than I had after paying

4. Will you guys use a service that gives you bitcoins on loan against your alts, and gives your alts back once you clear all dues.
No. Just use DAI token if you're looking for something stable.

5. How much intrest you are willing to pay for this kind of service. (Let's assume, loan is for 1 month only)
0%. Dai is 1:1 to USD, price determined by MakerDAO.

No point of this service imo.

[Zoomer]

People would love for you to start lending money, oh the prayers have been heard and the heavenly gates have opened for the whicked!

[SIM-1589588]

I don't understand? ToS isn't going to hold someone back from running with your coins
My advice: don't bother, hold these shiny coins (it can be a headache)

Well if someone runs with my coins, I'll liquidate his collateral and recover my money.
I'm pretty sure the guy who wants to run won't be paying the first installment, or reply to liquidation warnings. I can issue 2-3 warnings before liquidating his assets.


For eg:
A took a loan of $1000 worth bitcoins for 1 month against $1200 worth Litecoins (8.5714) with litecoins current value being 140$.
I can liquidate his litecoins if
1. He'll miss his first installment and there's no reply for atleast a week ( Max 3 warnings)
2. If there's a crash and litecoins price goes to 120$, His coins will be sold automatically. (Stoploss at 125$)

However as I said, I'll be taking more money as collateral, it depends on altcoin and time.

---

I think you are correct yet I don't understand why would I do that instead of just exchanging them to BTC if for any reason I would need it.

Emergency or if your coin is in bear market and you don't want to sell your coins but you have some bills to pay or need money for something.

[th3c0rrupt3d0n3]

If you want to lend why not doing it via ETHLend? afaik their app is working fine.

[SIM-1589588]

4. Will you guys use a service that gives you bitcoins on loan against your alts, and gives your alts back once you clear all dues.
No. Just use DAI token if you're looking for something stable.

5. How much intrest you are willing to pay for this kind of service. (Let's assume, loan is for 1 month only)
0%. Dai is 1:1 to USD, price determined by MakerDAO.

No point of this service imo.

So you are saying it's possible to sell 1000 XRP for 854 DAI, convert that to 854$ bitcoins, cashout, use that money and come back a month later, buy 844 DAI back with bitcoins, and get 1000XRP back?

Or you are saying everyone should sell their alts and hold dai because it's stable, isn't it's better to hold USD then?

---

If you want to lend why not doing it via ETHLend? afaik their app is working fine.

Because I want to loan my bitcoins and ethlend only supports eth.

[V For Vendetta.]

So you are saying it's possible to sell 1000 XRP for 854 DAI, convert that to 854$ bitcoins, cashout, use that money and come back a month later, buy 844 DAI back with bitcoins, and get 1000XRP back?

Or you are saying everyone should sell their alts and hold dai because it's stable, isn't it's better to hold USD then?

---

Because I want to loan my bitcoins and ethlend only supports eth.

Instead of going through DAI, can't you just do 1000 XRP for 0.096 BTC. Use coinbase to convert to bank, get $845 in the bank, pay the bills. When you have money again buy BTC and buy back XRP. I'm kinda confused why this service is even being offered.

[SIM-1589588]

Instead of going through DAI, can't you just do 1000 XRP for 0.096 BTC. Use coinbase to convert to bank, get $845 in the bank, pay the bills. When you have money again buy BTC and buy back XRP. I'm kinda confused why this service is even being offered.

Answer is Volatility.

Okay let's do the math, XRP's price is 0.845$ and you'll get 0.096 BTC and you sold that via coinbase and got your money in your bank, paid your bills etc. You saved some money to buy xrp but prices went up and you are getting only 800 XRP now.

I'm not saying that it can go only up but the whole point of this business is you don't loose your alts as long as there's no crash. If there's a crash, system will liquidate your holdings automatically for you.

[V For Vendetta.]

Answer is Volatility.

Okay let's do the math, XRP's price is 0.845$ and you'll get 0.096 BTC and you sold that via coinbase and got your money in your bank, paid your bills etc. You saved some money to buy xrp but prices went up and you are getting only 800 XRP now.

I'm not saying that it can go only up but the whole point of this business is you don't loose your alts as long as there's no crash. If there's a crash, system will liquidate your holdings automatically for you.

What % do I get back if the system liquidates me?