How to multiply your Bitcoins the old school way
With fiat there are 3 ways to get money: earn, invest, or by loaning. I would like to talk about the latter. In this post I will give an example on how you can multiply your Bitcoins twofold every year.
First of all you need to know about margin trading. When people trade on margin they need to lend some money. You can be the supplier for this loans on https://poloniex.com/lending#BTC for example. The average daily interest is about 0.25% and the loans or usually very short (you can limit it at 2 days, but it will be about 1 day average).
Poloniex also takes 15% of the interest so this means that on average you keep about 0.21%. When we know this we can calculate the yearly compound interest: (1 + 0.21 / 100)^365 - 1) * 100 = 115%.
This means you can double your money every year. Now the hard part is that you have to give the loans manually and this will take a lot of time and monitoring. There are 2 solutions for this:
- If you have a small number of Bitcoins the https://www.poloniexlendingbot.com/ will manage your loans for you for a 10% fee.
- If you have a large number of Bitcoins setting up a small server with this open source lending bot https://github.com/Mikadily/poloniexlendingbot will be more profitable.
Earning money is sometimes about patience. Some people get rich in a few days, but most people get rich over a long period of time:
This is not true. The average daily interest rates on lending BTC or any other coin vary significantly, and offer much lower interest. Poloniex deducts its own 0.15/0.25% fee on every coin-coin (fiat-coin) exchange. Have you doubled your coins? No? You're simply misleading others. If somebody's lucky enough they'll earn around 10% yearly at the very best
They deduct 15% on interest you make on loans, nothing else is deducted. No I've not doubled my coins, but the 10% you are talking about was achieved in about a month.
The interest rates on Bitcoin are also consistently higher than the other coins.
Super post