Question about Poloniex

mathew

@mathew It only needs to be the same rate. So for your example, yes it will be accepted.

Also the other way around, If I have 0.5BTC and someone asks 1BTC, it will take 0.5 from me and find the rest with other lenders for example player B have 0.25 and player C that also have 0.25 to complete the 1BTC.

One more question is with that example does my loan interest start when I offer and it gets accepted or when his total BTC loan is filled?

Zeus

@mathew Lending 0.5 BTC, wanted 1BTC, it needs to have 1BTC in total to lend yours, what I mean is Poloniex won't lend just 0.5 and then find more, in total it needs to be available to lend 1BTC or more. Sometimes you see like 2 BTC or more at 0.12% for example; this can be one person money or many person money together.

mathew

So if you need 1BTC and I lend out .5BTC, someone else has to give you .5BTC for my offer to take affect?

FrilledShark

@mathew
No doesn't matter, in most cases people are just going to take a loan at a higher rate instead of waiting. An example would be taking a 1 BTC loan, but there isn't enough to take it from 1 person. He will simply take the loan at variable rates: 0.5 at 0.1%, 0.3 at 0.11% and 0.2 at 0.15%.

If you want to know about the security behind margin lending, it is pretty simple. The person loaning from you, puts 0.4% of the loan as collateral and trades with the loan they just accepted. They will always (There are some exceptions) be able to pay the loan back + interest. This is because if they lose 0.4% + (interest) of the loan about, their funds will get liquidated. This means you will your loan back and they will lose their money. The exchange always has control of the loan, because they are unable to move it out of the "Margin" section. There is almost 0% risk with this type of lending.

If you want to know more, just ask. My asset Margin is lending money on Poloniex, so I know quite a bit about it. I'm slowly moving away from margin lending, but not in the near future.

I don't know if any of this was confusing. I might be able to reformat it in a different way if you need it.

mathew

@FrilledShark said in Question about Poloniex:

@mathew
No doesn't matter, in most cases people are just going to take a loan at a higher rate instead of waiting. An example would be taking a 1 BTC loan, but there isn't enough to take it from 1 person. He will simply take the loan at variable rates: 0.5 at 0.1%, 0.3 at 0.11% and 0.2 at 0.15%.

If you want to know about the security behind margin lending, it is pretty simple. The person loaning from you, puts 0.4% of the loan as collateral and trades with the loan they just accepted. They will always (There are some exceptions) be able to pay the loan back + interest. This is because if they lose 0.4% + (interest) of the loan about, their funds will get liquidated. This means you will your loan back and they will lose their money. The exchange always has control of the loan, because they are unable to move it out of the "Margin" section. There is almost 0% risk with this type of lending.

If you want to know more, just ask. My asset Margin is lending money on Poloniex, so I know quite a bit about it. I'm slowly moving away from margin lending, but not in the near future.

I don't know if any of this was confusing. I might be able to reformat it in a different way if you need it.

ahh ok that answered some of my questions? Why would you move out of loaning when it seems like it could be profitable?
Also When people ask for say a 500 XMR loan is that truly legit or could they some how take your money and not repay?
Example:

Propagandalf

I never tried the lending section of Poloniex, will give it a try with 0.01 btc now =) potential earnings from this will go to buy more Burst of course, hehe.

Propagandalf

Got my first active loan =) Could someone explain how the auto-renew works?

mathew

@Propagandalf said in Question about Poloniex:

Got my first active loan =) Could someone explain how the auto-renew works?

When the loan is completed after the time period it will go back onto the offers so someone can get a loan from you again

Zeus

This post is deleted!

FrilledShark

@mathew
They can't take the loan and not repay it.

I'm moving out of Margin lending because it is unpredictable and there is better ways to invest BTC to earn a more and stay competitive with other assets. Currently I'm providing loans on Bitcointalk and here. They can pay 10% on a 7 day loan instead of 0.14% (0.02% a day).

IceBurst

@FrilledShark You appear to studied this market space rather in depth and appear to be doing well in it, congratulations. I hope other can heed your advice and past experience to strengthen values. I understand margin trading and lending both but didn't even know it was a built in feature on Poloniex. Maybe you could answer a couple of question I have about Cryto-Magrin Loans

Is there a specific type of coin (eg BTC, ETH, Burst) that is better than any others for offering Margin Loans? Is better defined as faster investment or higher rate of return?
What is the expected range of rates for short term loans (under 7 days)?

Thanks,

--IceBurst

FrilledShark

@IceBurst
The coin with the highest lending rate depends on the usage of the coin. I prefer to lend in BTC, because it is the most stable one. There are always one coin trading better then BTC, it varies a lot and depends on the popularity of the coin. I can't tell which one is the best and it costs a lot more to transfer funds to the coin and back again then what you gets.

Common interest rates is about 0.02 to 0.03 a day. That is 0.21% each week.