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How to make passive income with Bitcoin Lending on Bitfinex?

We have been earning passive income with Bitfinex lending, or margin funding, since 2015 so we have a lot of experience to share. In this article, we will transfer all our knowledge regarding passive income on Bitfinex platform to you so you can maximize your return. First, we need to answer some short questions What […]

The post How to make passive income with Bitcoin Lending on Bitfinex? appeared first on Cryptocointrade.

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We have been earning passive income with Bitfinex lending, or margin funding, since 2015 so we have a lot of experience to share.

In this article, we will transfer all our knowledge regarding passive income on Bitfinex platform to you so you can maximize your return.

First, we need to answer some short questions

What is Bitfinex Lending or Margin Funding?

Bitfinex lending or margin funding simply means that you are lending your funds to a trader that needs them to take a leveraged position in his/her trade.

For example, Alice lend 1 BTC to Bob via Bitfinex lending by:

  1. Alice make her 1 BTC available for margin funding at Bitfinex by writing down her predetermined conditions (lending rate and lending time)
  2. Bob has 1 BTC but he wants to take a position with 2x leverage and he must lend 1 BTC to full his position. Through the Bitfinex platform he founds that someone (Alice) is willing to lend her coin for a certain rate and a maximum lending time.
  3. Bob accepts Alice´s terms and the trade is complete.
  4. Bob can choose to cancel the lending before the maximum time has been reached.

What is passive income?

Passive income is earnings derived from an investment that doesn´t necessarily needs a lot of time commitment. It could be interest account, rental property, stock dividends and more. Many people are looking for passive income as an alternative or secondary income. Also, its a great way to put your money at work rather than have them at a 0% bank account.

How to make passive income with Bitcoin Lending on Bitfinex?

Here we will provide a step-by-step guide on how to make passive income with Bitcoin Lending on Bitfinex.

  1. Sign up and create and account with Bitfinex
  2. Deposit Bitcoin or purchase Bitcoin at Bitfinex
  3. Go to Funding in the header menu. In the image below you see funding marked. Now you see all the available cryptocurrencies for lending in the left menu. Here, you can see Bitcoin marked with red and you see the current lending rate which is 9.73% per year. This screenshot was taken 2020-09-06
How to make passive income with Bitcoin lending on Bitfinex, Bitfinex Bitcoin funding

4. After this, you need to set you Bitfinex lending criteria for Bitcoin. In the screenshot below you see the funding form marked with red to the left. The market interest rate is auto-fill by Bitfinex and you can change it if you like. You must fill in max amount you want to lend and minimum days and maximum days.

5. Optional auto renew option we do really like. In the same print screen above, you can see the settings for auto-renew you Bitcoin lending on Bitfinex. You must set max amount, max days and rate here and Bitfinex will automatically try to lend your Bitcoin again once the first borrower did cancel the lending or the lending terms were running out of time.

6. Also, in the screenshot above you see that the complete order book is available to see. This is good to know so you know where to set your lending rate.

Bitfinex Lending VS Poloniex Lending

We have tried all different margin lending or margin funding features out in the market. We have used Bitfinex, Poloniex and Liquid. We think Bitfinex is superior the other ones in terms of usability, available coins for lending and the lending volume.

How much does Bitfinex charge for margin lending?

Bitfinex charges a 15% fee from you Bitfinex lending income. This is industry standard and Poloniex apply a similar fee for the same feature. However, Bitfinex lending is superior to Poloniex lending.

Conclusion – How to make passive income with Bitcoin Lending on Bitfinex?

Bitfinex lending is a perfect way for Bitcoin passive income. We only have positive experience with this feature. The only thing to remember is that the interest rates can vary throughout the year and that Bitfinex charges 15% of the lending income.

Source: https://www.cryptocointrade.com/crypto-trading/how-to-make-passive-income-with-bitcoin-lending-on-bitfinex/?utm_source=rss&utm_medium=rss&utm_campaign=how-to-make-passive-income-with-bitcoin-lending-on-bitfinex

Blockchain

How did Bitcoin lending become so popular?

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The rising valuation of Bitcoin witnessed the growth of several sectors involved with the digital asset. The crypto lending market has exhibited extraordinary growth as institutions-focused Genesis registered a 245% growth in their outstanding loans in 2020.

While the BTC lending market is young, its swift adoption has created a billion-dollar industry, which is one of the benchmarks of development for the current Bitcoin ecosystem.

Total Bitcoin collateral grew by 1170%

Source: Arcane Research

According to Arcane Research’s recent Banking on Bitcoin report, the total active collateral in the BTC lending market has increased to ~$25 billion from $2 billion in 12 months. It was estimated that the number of Bitcoin used for collateral at the moment is around 420,000 BTC, however, this estimation is based on a modest evaluation that only 50% of the active loans are backed by Bitcoin collateral, whereas various industry experts believe it could be close to 70-80%.

While there are various Bitcoin lending companies in the current market, the impact of the institutional lending organization such as BlockFI and Genesis have been vital.

As mentioned earlier, Genesis’ active loans outstanding improved from $649 million in Q1 2020 to a whopping $3,821 million in Q4 2020. From Q3 to Q4, the growth was roughly 80%.

BlockFi registered similar impressive numbers, with a 50x increase in retail loans BTC collateral from Q4 2018 to Q4 2020; from $10 million to $500 million.

Bitcoin lending’s popularity grows

There are multiple factors that played into the expansion of the BTC collateral market. Over the past 12 months, the asset has received significant recognition after recovering at a rapid rate following the March 2020 crash. However, some of the most common reasons include leveraging on an existing position, arbitrage plays, and covering operation costs without selling any crypto holdings.

Source: Arcane Research

Some of its innate properties have improved over the few months. Bitcoin’s market has a 24/7 availability, which can be traded all year round and it is easily updated. Other assets such as Gold are only trading during the working days of the week, which is close to 30% less than Bitcoin.

Its store-of-value credentials have also improved drastically, with 75% of Bitcoin remaining in profit throughout its history.

However, one of the major reasons involves the ease at which BTC loans can be processed. Traditional loan methods require a certain amount of credit score, a tediously long process, and a lot of paperwork.

With Bitcoin, users do not need to establish a relationship with their banks to get a loan and they can easily lend from the emerging borderless Bitcoin lending market.


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Source: https://ambcrypto.com/how-did-bitcoin-lending-become-so-popular

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Blockchain

OLB Group enables crypto payments for thousands of US merchants

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OLB Group (OLB), a New York-based e-commerce merchant service provider, is making it easier for businesses to accept cryptocurrency payments.

OLB’s more than 8,500 merchants are now able to accept Bitcoin (BTC), Ethereum (ETH), USDC and DAI at the point-of-sale through the company’s OmniSoft business management platform. Customers wishing to pay with cryptocurrency in-store or through their mobile phones can simply elect to do so with their cryptocurrency wallets. All payments are processed through SecurePay, a payment gateway that authenticates the transaction, converts the cryptocurrency to U.S. dollars and approves the final sale.

The decision to integrate cryptocurrency payments was partly driven by the growth of contactless and online orders during the Covid-19 pandemic. With the OmniSoft platform already providing merchants with several options to facilitate payments, cryptocurrencies were the next logical step. 

Ronny Yakov, OLB Group’s CEO, says the payment gateway and point-of-sale architecture are “familiar territory for merchants,” which makes integrating cryptocurrencies through such channels easy.

On the topic of cryptocurrency payments – a promising but underutilized use case for the industry – Yakov believes we are still in the very early stages of adoption.

“It’s very early in crypto-as-a-payment adoption, but we see increasing interest from merchants exploring this payment option as a means to meet their customers however and wherever they prefer,” Yakov tells Cointelegraph.

He also believes certain industries are more likely to adopt crypto payments before others:

“We anticipate that adoption will happen more quickly in higher-ticket transactions such as jewelry, B2B billing and real estate because the transaction fees for cryptocurrency processing are lower – often half of typical credit card fees.”

Cryptocurrencies like Bitcoin have struggled to become a viable medium of exchange, inviting criticism about their utility. Charlie Munger, the billionaire investor and Berkshire Hathaway vice chairman, recently criticizedBitcoin for being “too volatile to serve well as a medium of exchange.”

With development work on scaling and sidechains still in progress, it remains to be seen whether cryptoassets will ever function efficiently as payment systems. In the meantime, assets like Bitcoin and Ethereum are valued for their store-of-value and development capabilities, respectively.

Source: https://cointelegraph.com/news/olb-group-enables-crypto-payments-for-thousands-of-us-merchants

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Blockchain

Litecoin, Monero, Dash Price Analysis: 28 February

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Litecoin witnessed a downwards breakout from a parallel channel and moved to its support at $156.75. Monero was projected to move sideways as trading volumes and buying activity was suppressed. Lastly, a descending triangle emerged on Dash’s chart but a breakout largely depended on the direction of the broader market.

Litecoin [LTC]

Source: LTC/USD, TradingView

On the hourly timeframe, Litecoin broke below its parallel channel and moved to another region of support at $157.5. The On Balance Volume dipped as the price broke below the bottom trendline, but the index was recovering at the time of writing. A bullish crossover in the Stochastic RSI added some more optimism as LTC picked up from the $157 support line.

However, it was hard to overlook LTC’s bear market and stronger cues could be needed to back a move above the immediate overhead resistance. A spike in the 24-hour trading volumes could be one such signal that could project an upwards breakout on the charts.

Monero [XMR]

Source: XMR/USD, TradingView

The 24-hour trading volumes on Monero were muted as the cryptocurrency failed to break out from the $224.5 and $196.3 range. The  Bollinger Bands showed that volatility remained on the lower side as the bands were compressed. This also meant that massive movements were unlikely and XMR could continue to trade within its current channel over the next few sessions.

A bullish twin peak setup on the Awesome Oscillator was negated as momentum tilted in the favor of the sellers at the time of writing.

Dash [DASH]

Source: DASH/USD, TradingView

Dash formed a descending triangle on its 4-hour chart as the price formed lower highs since snapping a local high at over $330. The On Balance Volume also steadily declined as the sell-off was heightened by a correction in the broader market. The Stochastic RSI continued its southbound trajectory after reversing from the overbought region.

Further weakness in market leaders BTC and ETH could continue to have a negative impact on Dash, and support levels at $166.8 and $135.3 could be tested in the event of a downwards breakout. On the flip side, Dash’s pattern could be invalidated if the price moves north on the back of a broader market rally.


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Source: https://ambcrypto.com/litecoin-monero-dash-price-analysis-28-february

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