Manual lending on Poloniex (Tutorial)

aotearoa (67)in #curation • 6 years ago (edited)

Hello Steemers

Carrying on with the 'How to build a bulletproof cryptocurrency portfolio (101)' series, today we are going to talk on how to perform manual lendings on Poloniex.

As already stated before, Poloniex have many functionalities, and one of the is the lending section (as shown in the picture below)

After clicking on the lending section part, the view on Poloniex will be similar to this one:

On the picture above you can see on the right all the coins that a person is able to lend. There's a minimum treshold for loans. BTC loans cannot be under 0.01, ETH under 0.005 and all the others 0.001.

Below you can find the section where all the active and placed loan offers (and demands) are shown:

To be able to lend, first the person needs to transfer the desired funds from the exchange section into the lending section. To do so, simply go to the balances tab on the top right menu, and then select transfer balance.

As you can see above, the transfer process is pretty simple. Simply put the desired ammount of the coin you want to lend in the transfer field, then select from exchange and in the following field from margin (and here you change to lending) to lending.

Voilá! You funds will be immediatelly transfered to the lending section.

After that it's just a matter of selecting how much you wanna lend (you can click on the balance of the disired coin on the my balances section (or you can input it manually in the offer XXX coin section).

To choose the rate (which is the daily interest rate (in %), the person should take into account the ammount of coins offered for each interest rate on the loan offers section. My experience tells me that the person should make an analisys between this section and the loan demands section. The demands are the loans takers are willing to take for a determined interest rate.

Although in theory this should be what determines if a loan offer has a great chance of being taken, in fact what happens is the opposite. So the loan demands section is to be used only for ammount purposes. So if the person takes only the dcemand value into account and also excludes the ammount and the lowest loan offers, one will be able to (manually) detemine the best daily interest rate to maximize the chance to be able to have its offer taken.

Please keep in mind that those rates change all the time, and there are better times during the day to offer loans (such as 08:00 a.m (GMT-3), 04:00 p.m (GMT-3), and also 11:00 p.m (GMT-3).

Well I guess that's all for this post

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