[QUESTION] Im newbie, I have few questions about 'Lending' topic.
Hello everyone,
I'm newbie to this forum, but this 'Lending' topic interested me. I have some money in crypto, and I'm ready to lend it to make more money over the interest. So this is my questions:
1.) Is it even allowed to make money over interest?
f.e. Someone is asking 100$ for lend, and we make a deal - 10% interest and payment should be repaid in 10 days. So in 10 days he give me 110$, I made a profit of 100$.
So basically I'm creating a "investment" over lending others.
2) I get how collateral works, but why would someone give me money in altcoins and ask for lend in BTC for example?
I did some reading in this thread, and since I'm newbie I would really like to do ONLY collateral lending's so me and another person don't have fear of getting scammed. I also get that collateral should be higher price than price he is asking for (f.e. 120$ worth of altcoins in collateral for 100$ worth of BTC), but I don't get why would someone ask for lending if they have money in altcoins, can't they just exchange altcoins to BTC?
3) How is "IRL" collateral working?
As I explained, I get some understanding of collateral, but I don't understand how do collateral with IRL things such as phones, ipads etc. works? Especially if we don't live in same country, how is shipping working and who needs to pay for it?
4) If someone is giving me altcoins in collateral, how should I know they are not laundering money?
If I ever meet the person who wants to launder the money and send me "dirty" money in altcoins, what should I do to not get into the trouble?
5) How is escrow in collateral working?
I'm DOWN to do escrows for every landing since it's the safest option for another person, but I don't have full understanding of it. I was thinking that escrow works like this - another person is ready to pay 150$ in ETH in collateral and he firstly sends it to escrow, and I send my lending 100$ BTC to escrow as well. Escrow just give me his 150$ in ETH and mine 100$ in BTC to him.
Am I right with this escrow idea? Or did I miss something horribly
?
Thanks for your time for reading and answering me, (for senior members I know this will seem pretty funny to them, but as I already mentioned I'm new and I need to learn a lot, so please don't mind if I asked or said something stupid
)
I'm newbie to this forum, but this 'Lending' topic interested me. I have some money in crypto, and I'm ready to lend it to make more money over the interest. So this is my questions:
1.) Is it even allowed to make money over interest?
f.e. Someone is asking 100$ for lend, and we make a deal - 10% interest and payment should be repaid in 10 days. So in 10 days he give me 110$, I made a profit of 100$.
So basically I'm creating a "investment" over lending others.
2) I get how collateral works, but why would someone give me money in altcoins and ask for lend in BTC for example?
I did some reading in this thread, and since I'm newbie I would really like to do ONLY collateral lending's so me and another person don't have fear of getting scammed. I also get that collateral should be higher price than price he is asking for (f.e. 120$ worth of altcoins in collateral for 100$ worth of BTC), but I don't get why would someone ask for lending if they have money in altcoins, can't they just exchange altcoins to BTC?
3) How is "IRL" collateral working?
As I explained, I get some understanding of collateral, but I don't understand how do collateral with IRL things such as phones, ipads etc. works? Especially if we don't live in same country, how is shipping working and who needs to pay for it?
4) If someone is giving me altcoins in collateral, how should I know they are not laundering money?
If I ever meet the person who wants to launder the money and send me "dirty" money in altcoins, what should I do to not get into the trouble?
5) How is escrow in collateral working?
I'm DOWN to do escrows for every landing since it's the safest option for another person, but I don't have full understanding of it. I was thinking that escrow works like this - another person is ready to pay 150$ in ETH in collateral and he firstly sends it to escrow, and I send my lending 100$ BTC to escrow as well. Escrow just give me his 150$ in ETH and mine 100$ in BTC to him.
Am I right with this escrow idea? Or did I miss something horribly
?Thanks for your time for reading and answering me, (for senior members I know this will seem pretty funny to them, but as I already mentioned I'm new and I need to learn a lot, so please don't mind if I asked or said something stupid
)