How to Double Bitcoin Without Trading at Poloniex
How to double Bitcoin without trading? This is not a HYIP ad or a High Yield Investment Program whose tip is SCAM's end. And this is also not an advertisement where I as a publisher of this post will earn affiliate commissions and then become rich if you are interested to join. So calm aja ... and please refer to.
With the growing technology and also the trading model in Bitcoin market. Gradually Bitcoin market began to glance at the trading model that has been developed by his elder brother ... Forex Trading. Some Exchange Bitcoin companies have developed what is called Margin Trading.
Margin Trading is a trading model in which traders can trade by using loan funds obtained from Liquidity Provider. Inside Forex Trading - usually the Liquidity Provider is a brokerage company where the trader performs its trading activities or the institution of the bank that is the broker sponsor of the forex.
Then what about Bitcoin Trading? The good news .. inside Bitcoin Trading - everyone can be a Liquidity Provider! Yak! Everyone, including me and you!
One thing to note, that each Bitcoin Exchange may specialize receiving funds in a certain form (Bitcoin or Fiat) -
In BitFinex for example, because this one Exchange Margin Trading base is Fiat, then the funds needed to become a Liquidity Provider is recommended only for Fiat only. Why? Because if you use Bitcoin as a Liquidity Provider fund, then the value of your fund that will follow up and down in line with the movement of prices in the market.
And since the title of this post is how to double Bitcoin by becoming a Liquidity Provider - then what we're looking for is an Exchange company that uses Bitcoin as its Margin Trading base - and the Exchange is Poloniex - where Bitcoin is the primary currency used on their platform .
How? After depositing Bitcoin into your Poloniex account, please transfer the Bitcoin balance into your internal Lending Wallet.
After that go to the Lending menu in the header to offer your Bitcoin into the Lending market.
What you need to note is, LOAN OFFERS - Because here you will compete with other Liquidity Providers in providing the smallest rate to Margin Trader.
Is it possible to set a larger or smaller rate - the answer is! Lending rates also fluctuate depending on the bustle of demand and also if there is altcoin being hot traded.
Then what about the duration of the loan? if I personally it's suitable to give a duration of 2 days. This duration gives a time limit to the trader's margin to automatically return the funds he borrowed from us, sometimes it can happen that the trader's margin to close the order is not up to 2 days so that our funds come back early.
For Auto-Renew feature I usually set OFF - because I like to hunt for bigger rate. If this feature is ON then the system will automatically offer back your funds in accordance with the rate set previously.
In My Active Loans data - this shows the Bitcoin fund borrowed by the margin trader, and in the Fees section shows the amount of Bitcoin's opinion from the set rate - the amount will continue to grow over the course of time and will fit into your balance when the duration reaches the time set or the time when the margin trader to close the order.
Of course, profits are not as big as compared to trading on your own, but .. hey! Without risk - because no matter the margin trader is experiencing profit or loss - we will still receive the funds back intact complete with an additional of its rate.
To view the History Lending, please go to "My Trade History & Analysis" menu -> Show Loans Earning
Eh? Do not you have any risk at all?
There is a risk ... The risk is if Poloniex is hacked and your funds are hacked by hackers or if Poloniex suddenly disappears from circulation .... hehhee! So this risk exists on the Exchange... so return the question to yourself .... Could Poloniex be a scam?
With the growing technology and also the trading model in Bitcoin market. Gradually Bitcoin market began to glance at the trading model that has been developed by his elder brother ... Forex Trading. Some Exchange Bitcoin companies have developed what is called Margin Trading.
Margin Trading is a trading model in which traders can trade by using loan funds obtained from Liquidity Provider. Inside Forex Trading - usually the Liquidity Provider is a brokerage company where the trader performs its trading activities or the institution of the bank that is the broker sponsor of the forex.
Then what about Bitcoin Trading? The good news .. inside Bitcoin Trading - everyone can be a Liquidity Provider! Yak! Everyone, including me and you!
Benefits of being a Liquidity Provider:
- No need to bother trading. Can get profit!
- There is no risk of loss from trading
- No risk of funds taken away by Trader Indonesia who borrowed it. A Trader Margin is required to have a minimum amount of personal funds that he will borrow to serve as collateral. And these loan funds can not be withdraw by them.
One thing to note, that each Bitcoin Exchange may specialize receiving funds in a certain form (Bitcoin or Fiat) -
In BitFinex for example, because this one Exchange Margin Trading base is Fiat, then the funds needed to become a Liquidity Provider is recommended only for Fiat only. Why? Because if you use Bitcoin as a Liquidity Provider fund, then the value of your fund that will follow up and down in line with the movement of prices in the market.
And since the title of this post is how to double Bitcoin by becoming a Liquidity Provider - then what we're looking for is an Exchange company that uses Bitcoin as its Margin Trading base - and the Exchange is Poloniex - where Bitcoin is the primary currency used on their platform .
How? After depositing Bitcoin into your Poloniex account, please transfer the Bitcoin balance into your internal Lending Wallet.
Is it possible to set a larger or smaller rate - the answer is! Lending rates also fluctuate depending on the bustle of demand and also if there is altcoin being hot traded.
Then what about the duration of the loan? if I personally it's suitable to give a duration of 2 days. This duration gives a time limit to the trader's margin to automatically return the funds he borrowed from us, sometimes it can happen that the trader's margin to close the order is not up to 2 days so that our funds come back early.
For Auto-Renew feature I usually set OFF - because I like to hunt for bigger rate. If this feature is ON then the system will automatically offer back your funds in accordance with the rate set previously.
In My Active Loans data - this shows the Bitcoin fund borrowed by the margin trader, and in the Fees section shows the amount of Bitcoin's opinion from the set rate - the amount will continue to grow over the course of time and will fit into your balance when the duration reaches the time set or the time when the margin trader to close the order.
Of course, profits are not as big as compared to trading on your own, but .. hey! Without risk - because no matter the margin trader is experiencing profit or loss - we will still receive the funds back intact complete with an additional of its rate.
To view the History Lending, please go to "My Trade History & Analysis" menu -> Show Loans Earning
There is a risk ... The risk is if Poloniex is hacked and your funds are hacked by hackers or if Poloniex suddenly disappears from circulation .... hehhee! So this risk exists on the Exchange... so return the question to yourself .... Could Poloniex be a scam?
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