Post
Topic
Board Beginners & Help
Merits 1 from 1 user
Re: You chose to "Be Your Own Bank" don't get complacent and scammed, I did.
by
bitmover
on 18/11/2019, 12:04:27 UTC
⭐ Merited by Steamtyme (1)

Sorry for your loss.
However, there is an important lesson here.

I know most people here are tech guys, with little knowledge about traditional investments.

One very important thing to consider when dealing with bitcoin as an investment (which is what you are doing, as you are even lending it) is to really understand its potential performance in your portfolio and the risks involved.

An asset like bitcoin which may increase its 10-20% per day has enough volatility by itself. You don´t really need to lend it for 5% interest rate a year (which is almost negligible compared to nearly 300% gains, only this year). Lending also increases your risk exponentially.

If you want fixed interest rates, you should buy bonds. Exchange your bitcoin to your local fiat and get your 1-5% per year (depending to your country). Bonds are highly regulated and nobody is going to run away with your money (possible but highly unlikely).

Bitcoin lacks regulations, so anyone can runaway with your money and you can't do anything. Authorities probably can't help you, as your coins are probably in a company in another continent.

Lending is simple not worth the risk.