Free today. Going to continue the guide. wengherng Do copy the guide over to #1 post AFTER I have finished with it

Grow your money on Poloniex - How to lend out your coins

Before we begin the tutorial on lending, the general rule of keeping your coins safe still applies. However, the disadvantage of keeping it in cold storage is that it doesn't generate money besides price appreciation. You can consider another option which is to lend your coins to traders on Poloniex WHILE enjoying price appreciation if any. Do note that you need to have the coins on your Poloniex's account to lend them out.

Lending rates
Let's start with this as lending rates are the main factor why one would want to keep their coins on Poloniex and lend out the coins.

Lending rates depends on supply and demand. It can fluctuate and swing widely. It can be very low but it can also be very high. Even higher than the rates of loan sharks!

Here are some of the spot rates at the moment:

Coin	Rates
Bticoin	0.1595%
BTS	0.0001%
CLAM	1.2997%
DASH	0.0587%
ETH	0.0029%
XRP	0.0096%

As you can see from the table above, rates also vary widely between coins. Dash previously had a rate of 0.88% when the demand was high. Clam had low rates previously but because it is in demand now, it is at super loan shark rates!

Huh, the rates are so LOW???!!!??!? Before you stomp away upset, do note that the rates are quoted PER DAY (24 hours) and not per year!! For example, if you loan out CLAM for 1%, you will get 1% of clams after 24 hours! In the unlikely event that you can lend out for a whole year, the returns will be 365 days x 1% = 365% return!!!! However, as you will see later, it is almost impossible to loan out for long periods unless you are very very VERY lucky.

The interest generated are the same coins you loaned out. If you loan out CLAMS, you will get CLAMS for interest.

Another thing is know is that the interest starts calculating the moment the loan is taken up. The site updates the active loan every 20-30 seconds and you can see interest being generated. So even if you loan was taken up for only 5 minutes, you will already get some interest although it would be negligible.

Note : I guess it goes without saying that you would need a significant amount of coins and a good lending rate to make lending worthwhile. From observation, it seems bitcoin has a consistent demand with relatively good rates. You just have to calculate the returns for yourself to see whether it is worthwhile or not.

Loan duration

Ok, here comes the reason why you won't be getting rich by getting a 365% return.

When you offer your loan, you will need to specify the rate, amount and duration. Default duration is 2 days and the range is 2 - 60 days.

If you lent out for 2 days and the loan is taken up, it doesn't mean that it will be loaned out for 2 days. It can sometimes be returned in a few hours or even a few seconds! This is the main disadvantage of lending, where you need to manually check to see whether your loan is running.

There is a lending bot that can automatically set up loans for you but it is 3rd-party where you would have to give it access to Poloniex to run the loans. I don't recommend it so this guide won't cover lending bots.

Lending risk
As with any loan, there are risk to lending. You can't be going about spraying red paint when your loan is not returned.

I'm not entirely sure what the risks are or how high the risk is. I have asked this in Poloniex and they say that the risk is minimal because they have safeguards. For one, the coins you loaned out cannot be transferred out of Poloniex. Even if you loaned out 1 BTC and the price of BTC crashes, it is still one BTC that will be returned to you!

So, lend at your own risk and don't throw red paint at my house if something happens!


Poloniex lending facility

Ok, let's get down to actual lending out your coins. I only have experience with Poloniex so we will only cover it.

On Poloniex, you'll notice 3 sections/tabs - Exchange, Margin and Lending.



Click on the Lending tab to go to the lending page.

A word of advice : Don't ever go to the margin tab. Very risky to play margin trades.

This is what you will see on the lending page.



1) My Balances
- This is where you can view your balances across all 3 facilities - Exchange, Margin and lending
- It only shows the available amount of coins. If you have open orders or coins under loan, it will not be shown in the total.
- You can also see the type of coins you can loan out. At the moment, only 12 coins can be loaned out.
- From here, you can select the coin you want to loan out.

2) Quick transfer
- This is a quick feature to transfer your coins between the 3 facilities
- In order for you to loan out your coins, you have to first transfer the coins from Exchange (that's where your coins probably are at the start)
- If you don't transfer any coins to lending, you won't be able to loan out anything.
- Likewise, if you finish lending and want to sell off the coins, you would have to transfer them from lending back to exchange

3) Loan
- This is where you offer your loan
- You have to enter the rate, amount and duration of loan
- "Auto-renew" is if you want the loan to be listed again once the loan is given back. It is actually not a useful feature as loan rates seldom stay at the same rate for long.
- Once you have set your loan parameters, you can click the "Offer loan" button and it will be displayed in the "Loan Offers" table.

4) Loan offers
- This is where all loans are being offered
- If you want your loans to be taken up fast, you would have to set a lower rate. Basically competing with each other to loan out the coins.

5) Loan demands
- This is where all loans are requested
- If you don't want to wait, you can just offer at the requested rate and it will straight away match
- Loan demand rates are usually much much lower then ongoing rates

6) My open loan offers
- You can see your open loans here i.e. loans that you have offered by not yet loan out

7) My active loans
- Here's where you can see the loans that are taken up
- If you see the first line, I have loaned out XRP at a rate of 0.0097% with an amount of 2221.2508. Duration is 2 days with auto-renew turned on. Up to that time, the interest is 0.00034912 XRP.

That's it! You are now ready to put up your loan!

Loan history/records
This is how you can see your loan history.

Under "Orders" tab, select "My trade history & Analysis".



This will bring you to the following page.



From here, you have two options (as indicated in the picture):
1) Download the excel file containing all your loan records
- easier to use this feature as you can sort out your loans and sum it up in excel

2) Show your "Loan earnings" at the table below
- not easy to see as you can't sort it out. I already have 29 pages of loan history!!!

Note : This is the place where you can see your trade history too.

Lastly, do remember that lending is not without risk but I think the risk is negligible. Again, if you lose your money, don't blame me!

Happy lending like the loan shark that you are!!!!

This post has been edited by kmarc: Mar 30 2017, 01:34 PM

Why not lend a bit? Even 1 BTC can get USD 10 in a few days!

I think it can be longer but then it becomes difficult to read. Looks like my lending guide is going to be quite long. No problem, I will pm our moderator to add another post in front.

Can fly but no time to fly!

I won't say because I have already bought Navcoin!

That's the problem. There's not much description on how staking works, how the rates are determined, the differences between full-node and lite wallets, etc. When you see the developer, tell time to hire me and I'll make the site better. Joking joking. Please tell them to include more information on these aspects. Thx!

This post has been edited by kmarc: Mar 30 2017, 10:26 AM

Good advice!

I see. Not even 1-2 BTC? Anyway, that's just me. It's fun lending out!

Nice. Hope to see ETH move up further. Looks like ETH is currently solid at 52.

Cool! Exciting times indeed!

Yeah, I just read the dispatch. Nothing much on cryptos.

ETH has been stagnant around 50-52. Waiting for it to shoot up further!

Now it's a difficult time for Bitcoin as the direction is uncertain. Until and unless this is resolved, it looks like bitcoin is going nowhere. May even dip a bit.

Waw... look at litecoin and golem!

You have ETC? I didn't buy any because I'm thinking it is like supporting hackers.

Anyway, LTC also moved. I thought it was a dead coin and I almost wanted to sell it off.

XRP also moved!!

The one I'm really waiting for is SC. It has increased by about 500% earlier but unless it is a fake coin, it HAS to move up. My 0.002 SC opinion only.

NAV not doing too well but with active development and promotion, should not be a problem.

Golem I tried to trade a bit, the traded bit now in the red, as expected!

My fun coin, pink coin, also moving up slowly. So fun!!!

This post has been edited by kmarc: Mar 31 2017, 06:57 AM

Yeah, with active development, I'm not worried. Hope they are successful in the long run.

Yup, as always, regret didn't by more.

You have some? What other coins do you have?

Anyway, altcoins trends back to the usual trend, more green than red and higher percentage gain then lost.

This post has been edited by kmarc: Mar 31 2017, 09:56 AM

Nice. My advice is not to be happy with 100 or 200% increase. Hold it tight and let it grow to 4-5 digit percentage gain!!!

Yeah, like wengherng said, Luno or xbit. I haven't use Luno but I found xbit prices much better compared to localbitcoins or remitano.

Ya lor. I find it so inconvenient. Also inconvenient to transfer and email them and wait for approval.

OMG! Look at ripple!!!! Why I didnt buy more

Ya lor, when it went down, I was thinking of adding but I thought only Japan bank involvement so not so great. I think the spike now is because MUFG bank, apparently the 3rd largest Japan bank, just announced acceptance of ripple tech.

Thinking of whether to buy on the rise.

Wengherng, I cannot see the future but if you ask me, I'm putting my bet on SC. This is my dark horse coin and if the developers can make it work, it will be at the level of Storjcoin and maidsafe in the long term. Again, I'm a paranoid investor and I don't dump everything in. Nibbling a bit on the rise as I have so many coins to nibble. Just a bigger nibble for SC. As you know, I'm spreading my funds across more than 20 types of coins. You don't have to follow but do consider getting a bit. My 0.0002 BTC opinion. (but if lose money don't scold me!!! )

This post has been edited by kmarc: Mar 31 2017, 12:51 PM

Oh, where to begin? I think decentralized "cloud" storage will be the future. There are many decentralized blockchain-based storage out there but only siacoin has a price that is so low, presumably because it is still in it's early development? Siacoin's volume is so low and it is not a centre of attention yet. Cryptos are usually pumped regardless of fundamental but for Siacoin's case, the concept is good and work are being done to bring it to fruition. Minebox (I think it is called) is an upcoming NAS that will support BTC and SC. Siacoin is in early development and buying some SC is like buying a company that has not listed on the stock exchange.

Errmmmm... That's as much as I can think of now.

Of course, if siacoin fails to achieve it's development objective....... I guess you could say it is gambling as I'm taking a gamble that this company and siacoin will be somewhat successful.

Edit : Last but not the least, my 0.0002 SC opinion only.

To the chandelier on the ceiling? No no, hopefully to the moon!

This post has been edited by kmarc: Mar 31 2017, 07:49 PM

Waw, look at bitstar. What coin is that?

Anyway, I have finished the lending tutorial and put it in the 2nd page as mod can't move my post. Oh well.......

This post has been edited by kmarc: Mar 31 2017, 08:05 PM

If you don't mind me asking, what's the price you buy in?

Last night a lot of altcoins were hit after BTC went up. Not too sure why BTC going up when it should be going down......

How I wished I can buy some mining equipment. However, I don't think I can buy these equipment over here in Sarawak.

Lol, my fun coin Pinkcoin is almost 80% gain. I didn't even think it has any potential to rise!

I see. I think already not too far off. Hopefully it will go up a bit.

For me, I'm Hodling it and hope to see it rise at least to the mountain in the future.

Unless you can get something like antminer or the thing I think they call ASIC USB plugins. I think that would be easier.

This post has been edited by kmarc: Apr 1 2017, 02:43 PM

Haha, I also don't know. That's why I bought so many types and I'm aiming long term. Some have potentials but it may take months to years before it goes up. At the moment, the only coin, besides bitcoin, that has potential is Ethereum I guess. However, it is already so "expensive" and so painful to spend money to see so few coins in the wallet. Do hope it will rise high one day.

This post has been edited by kmarc: Apr 1 2017, 03:08 PM

Waw! Bitcoin just has to increase 5% and altcoins gets a bloodbath. Would be a good strategy to exit some altcoins the next time nearing resolution of bitcoin's problem. ETH and XRP surprisingly holding up quite well.

In other news, my fun coin, pinkcoin, is up 133%! Lol. Never thought it will be pumped too but as always, no need fundamentals in crazy cryptoland.

This post has been edited by kmarc: Apr 1 2017, 06:18 PM

Just hodl. It's not much anyway. Didn't expect it to increase but hoping for higher percentage gain after a few months/years.

Already done the guide in the first page. At the moment, clam has a very good rate. I really feel like super loan shark!!!