Post
Topic
Board Lending
Re: [QUESTION] Im newbie, I have few questions about 'Lending' topic.
by
DireWolfM14
on 07/11/2024, 01:45:59 UTC
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.

Yes, it's allowed.  This is a free market so you can charge whatever you like, but there's a lot of competition so it makes sense to charge reasonable fees.

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?

One reason is they need money, but they don't want to sell their coins.  If you are bullish on BTC, have some, but need to borrow $100 worth of USDT for a short time you might want to use your BTC as collateral for a USDT loan, or visa versa if you think BTC is going to drop.  Regardless, if you spend any time around here you'll notice that most people who borrow in this section don't offer collateral, but rather rely on their reputation to get unsecured loans.  It seems like collateral is very rare, as a matter of fact.

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?

That's more rare, and usually not something most lenders even consider, largely because of the reasons you mentioned.  Logistically it's less secure, time consuming, and too expensive.

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?

Grow a pair.  Privacy is one of the benefits of bitcoin, you either accept it and learn to manage it or go back to using fiat.

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

Your too new to be trusted with other people's money.  The escrow will receive and hold the collateral, then you send the loan directly to the borrower.  Once the borrower repays you, the escrow will return the collateral to the borrower.  That's how the borrower knows his collateral is safe.

If the borrower fails to repay the loan, the escrow will send the collateral to you.  That's how you know you're investment is safe.

More information here: https://bitcointalk.org/index.php?topic=5460744.0