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How to Make Money from Bitcoin Lending

Started by Sub5, Jun 01, 2019, 11:19 am

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There are potentially significant earnings to be made in Bitcoin lending, but there is also significant risk. Bitcoin lending tends to operate through intermediary websites such as Bitbond and the concept is as simple as it sounds.

You act as a bank, lending your Bitcoin to another person at a certain level of interest.

Because the market is unregulated, the levels of interest are generally much higher than the standard bank rate meaning that there is a potential for high returns.

However, on the flip-side, the unregulated nature of the transaction means that in the event that the borrower does not pay back the Bitcoin to you, there is little recourse available for you to enforce the loan.

The volatility and the risk associated with the Bitcoin lending market means that it is probably a market only accessible to very large holders of Bitcoin, due to the level of risk and the potential expense in enforcing a loan if something goes wrong.

However, if handled correctly, there is a huge potential market in this sector.

For more information about Bitcoin Lending, take a look at this in-depth guide.