Suggesting cryptocurrency loans can be fairly a profitable business, assuming one knows what they are for exactly. On the Poloniex exchange, there is an option to control loans by hand. However, someone developed an automated implement for doing so, which goes by the name of Poloniex Lending Bot. This article will discuss the differences inbetween the two.
Two. Poloniex Lending Bot
Every type of cryptocurrency trading or lending that can be automated usually doesn’t need to be. Poloniex Lending Bot offers a convenient solution to offerande bitcoin loans on the popular exchange, but there are some caveats. It is finta a convenient solution to use, and the source code is available on GitHub for everyone to take a look at.
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Moreover, the Poloniex Lending Bot will ensure user balances on the exchange – those that are eligible, at least – are always lent out and earn passive revenue. Spil most people who use Poloniex are well aware of, there is fairly a competitive loan market out there, albeit the comebacks may not always be spectacular. Then again, making your money work for you ter a entirely passive way is never a bad thing either.
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Unluckily, Poloniex Lending Bot cannot do much about issuing loans at very low rates when the market spikes. Additionally, the bot negates any chance to benefit from high long-term rates. Moreover, there is a 10% toverfee for using the bot, which can negate some of the profits earned rather quickly. It is a convenient lending bot, granted, but it should not necessarily substitute manual, lending activities for anyone who knows what they are doing.
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1. Manual Loans
It has to be said, keeping tabs on Poloniex loans te a manual style is not necessarily effortless. While it is true everything can be monitored from the web interface with relative ease, it becomes a bit messy when issuing loans for numerous cryptocurrencies. Focusing on just one is the convenient solution, yet it also means missing out on opportunities ter other markets.
Keeping te mind how Poloniex supports lending for Bitcoin, Ethereum, Dash, Monero, Litecoin, Ripple and a handful of other currencies, one could justify the use of a lending bot. However, not every Poloniex user wants to dabble te altcoins for lending purposes. By hand gauging which market is popular at the beginning of the day and issuing loans accordingly is a viable strategy.
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This also means one needs to buy puny amounts of said coin to effectively kwestie the loan. If the coin abruptly plummets ter value, that can cause losses te a cryptocurrency portfolio. Then again, a lending bot would not be able to protect users from falling currency values either by any means. It all comes down to how one’s portfolio looks and what one plans to do with it. By hand issuing loans is manageable, spil one gets to keep all of the profits-minus any fees Poloniex may charge.
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