Understanding Cryptos and how to turn it into a Passive Income stream (Part 3)
Short Term loans are offered at Poloniex and Bitfinex. At the very start of my trading adventure I made a lot of newbie mistakes, which resulted in , a number of heavy bags , luckily for me those bags of coins was listed at the loan section on Poloniex . Loan amount are dependent on the coins,for bitcoin you could loan out a fraction of the coin and other alternative coins have different minimum requirements. You could loan out the coins from 2-60 days . I found this to be a very painful experience having to login to check on the loans daily , some loans would only last a few minutes, if that happens I would have lost an entire days of time with the coins sitting there unused , which cause me to develop a loan bot , which can be found at https://mycoinsbot.com , the Bots A.I. would mine the data and help us to give out loans at the best possible rates , after this my life is much sweeter and less painful.
Term deposits are offered for some coins and it might be a good idea for coins that you would hodl long-term anyway. I personally have or had term deposits in DOT and POSW. Cryptopia( https://www.cryptopia.co.nz/Register?referrer=Jack_G ) is offering term deposits for DOT. Poswallet offering something similar for POSW . Please note that the interest rates are quite small usually (~ 5–12%/year). So this really only makes sense for coins you believe in long-term. Also know that the coins are locked up for the time frame of the deposit so if the price goes x100 in the meantime you won’t be able to sell. Its also a good idea to split the deposit into several blocks.
Poswallet.com was hacked and several BTC got stolen. POSW coin has not been affected and I’m confident the team will handle the situation properly BUT: It just showed again that centralized exchanges are NEVER 100% safe. If it is offered in the wallet as with ERC it is something different as you still have the private keys. If you know other coins that offer attractive term deposit options please let me know in the comments!
For those of you that missed my first few post , there are available below .