Best Bitcoin Lending September 2017

I have tried several Bitcoin Lending sites since 2015 such as Bitfinex, Poloniex, Bitbond, BTCjam, Bitlendingclub (Loanbase). There are also other such as Bitconnect, Nebeus and BTCpop. Also, OKcoin used to have a lending function. Bitlendingclub announced this week that they will stop their operations in September 2017. We have experienced losses (negative return) with Bitbond, BTCjam, Bitlendingclub (Loanbase).

First, we need to understand the difference between margin lending platforms and the other platforms. If a trader wants to use leverage the leveraged amount must come from somewhere. At some platforms, it´s possible to use your capital to lend to traders that are looking for leverage trading. For this, you receive a market-based daily interest rate. The interest varies from approximately 0 up to 0.20% daily interest rate. This is a very good interest rate since the yearly interest rate would end up in around 200% with the interest on interest effect. In addition, there have been no losses for the lenders at those markets. This is because the lenders` funds are protected by algorithms that closes a position that decreases too much in value. However, this doesn´t mean a lender is guaranteed against losses. The main point is that the end-user can´t take the money and use them in another purpose. This type of peer-to-peer margin funding is available at Bitfinex and Poloniex platforms. Read more at www.cryptocoinzone.com

Bitbond, BTCjam, Nebeus and BTCpop offers another type of peer-to-peer lending. This is more like a traditional loan where a person needs the money for some kind of consumption or investment. The big problem with this type of lending is the ID-verification process and also the longtime going process to force missing payments. There is no worldwide digital ID and the site uses different types of data collecting to gather as much information of the lender as possible. However, we have experienced many losses and missed payments. Those lending platforms don't yet have a good infrastructure to take care of missing payments. This has ended up in a negative return for us at Bitbond, Bitlendingclub, and BTCjam. Read more at www.cryptocoinzone.com

To summarize, we recommend checking the margin lending function at Bitfinex where the current rates are (2017-09-23) for some currencies.

Bitcoin: 0.022% (8.4% yearly)
Litecoin: 0.24% (240% yearly)
Monero: 0.0084% (3.1% yearly)
USD: 0.04% (15.7% yearly)