Welcome! This post should give you some insight on my crypto lending experience! Although the main point of this article are HYIP programs, I think I should start by naming what we might consider “lending” when it comes to cryptocurrencies.

1. Loan mediator

I know, strange name, but it descibes the important aspect.

Of course it has come to this, loans are the standard of today and so they also hit the crypto world. A bank can give you a loan, your friend can give you a loan, everyone can give you a loan (theoretically). I am sure there are many companies that would be happy to lend you cryptocurrencies – for certain interest, of course.  Perhaps you are thinking, if crypto is really that volatile, would it really be worth it to take a loan that could lose half of its value in a matter of days? And you are right, this is a pretty good point – this would make crypto loans a pure speculation for both the lender and the borrower. If you know what margin trading is, well you probably already know how it works.  So, with that explained, I do not want to talk about such services because this kind of “simple” lending business is pretty clear.

I want to talk about something a bit more complex – specifically services that are based on cryptocurrencies and allow you to lend your own money to another user of this service (not the service itself) in a more managed and transparent manner. A service such as the one provided by the SALT project (and cryptocurrency), link HERE.

SALT gives its users a platform where they can communicate with one another and lend/borrow money from one another – the thing is, the lent sum of money cannot be in cryptocurrencies. This is a service where one registered user can borrow fiat money from another on specified terms (like returning certain interest to the lender every month) while using crypto funds as collateral. This collateral is a sum of crypto funds that a borrower gives to the lender as a guarantee he will pay off the loan – if he does not, the collateral money will remain with the lender, if he does, the collateral is returned to the borrower in full. I would say the risk here depends totally on the agreed terms between the borrower and the lender.

Now, as you might see, this is a different kind of “lending” – you put something in to get something else out so you can work with it (just like a loan given to you by a basic bank). This kind of service is not really meant for you to earn more money, it is there to provide you with an opportunity that you might use (e.g. give you a bigger amount of resources to start some bussiness). Nevertheless, this is still classified as “lending”, so I wanted to clarify it.

One last note, SALT lending platform is not free, you must pay for a membership to be given access – I believe the paid price will go to SALT cryptocurrency, this is how this coin (Ethereum “token” to be precise) retains its value. SALT is a blockchain project and so SALT is also a tradeable coin on many exchanges.

There is more to this project, I believe it will continuously grow and expand. Perhaps I will return to SALT a bit later, it seems like a fine project, but, as of now, I would not like to talk more about something I have not used myself.

2. Staking

Staking is a type of lending created (or directly implemented) specifically for cryptocurrencies.

The early blockchains like Bitcoin work using a system called “Proof of Work” (or “PoW”) where there are special hardware miners in the blockchain that confirm transactions (which means “work” is required to generate new blocks in the blockchain) and, for that, these miners (or their owners) are rewarded.

Some coins (Altcoins) do not require special hardware nodes to confirm transactions on the blockchain, they simply require the coins to be stored and retain its owner. How is the blockchain formed here? The existing coins in the network themselves compete to verify the next block in the blockchain – this system is called “Proof of Stake” (or “PoS”). If you have many coins in your wallet, holding them there for a longer time, and decide to stake them, you will basically earn some reward in the form of a percentage of your staked coins added to your wallet after they are used for block confirmation. Yes, this is a kind of mining without mining equipment.

Can staking be considered lending? Well, you can earn a certain “interest” over some time, so it probably is. The best thing is, unlike in the traditional lending, you still retain the ownership of the staked coins. Basically, staking takes place without the owner having to do anything, you just make sure you have enough coins in your wallet and choose the amount to stake. Yup, staking seems like a NO-risk operation.

This may sound like easy money, but it is not, there are requirements to how many coins you need to have stored in your wallet to be chosen as a confirming entity and how long you need to hold your coins in your wallet (how old/mature they are) before they can be used for staking. If the market value of the coins falls while they are staked, well, your profit may get lost in translation. All in all, the returned interest may not really be worth it or it could take too long to get something tangible out of staking. BUT, as Ethereum developers plan to employ “PoS” (with certain modifications) to Ethereum blockchain in 2018, it could be well worth it with such a big cryptocurrency. A nicer explanation (but still simple) can be found in the forum HERE.

3. HYIP (or “High-Yield Investment Program”)

When I talk about crypto lending here, I mostly mean HYIP (or “High-Yield Investment Program”) services. Yup, these are the ones where you are promised big returns (in a form of daily/weekly/monthly interest) for giving/lending someone (some kind of a big player) your money to use for a certain longer period of time. The worst thing is, this lent sum of money will be locked from you during this period so it is no longer yours. The fact you give someone your money without any guarantee makes this the HIGHTEST risk operation of all.

On with the show. If you are looking for a crypto lending course here, that is great because I have the best, most fascinating lending course for you right a bit lower on this page. Here you go…

Got you! hand gesture

Got you! I am sorry, I could not resist. If you are smiling then, please, skip this paragraph. If not, oh, stop with the hateful face, I think the joke was good. I was already scolded for this in a comment, so here goes my answer. Now, what is that thing above? This is not an insulting gesture (P.S. do not try looking up what it means in sign language, I did not know that before the comment), it is that good old “Got you!” we used to play at school! I am sure it means different things to different people in the world so I included this explanation for clarity, I hope you are satisfied now, dear commenter! My point is, you should take this lending page with a bit of SALT, hehehe.

Ok, as you probably guessed it already, when it comes to lending, I will be a bit of a disappointment at this stage. I would really like to tell you about my crypto lending journeys, however, I decided not to, at least not now.


Sorry to tell you this, but I decided to cancel (or at least postpone) my guide on crypto lending. Why? At the moment – at Christmas and before the end of the year when people invest the most – I do not consider lending a good idea. It is TOO RISKY and I would not want YOU (or me) to fall for a SCAM or take a bait. I understand that most of the lending websites eventually turn up to be scams (I witnessed this myself quite a few times already), nevertheless, they are still good to make some buck until they last. However, now is not that time.

I will take some time before lending again.

(EDIT January 2018) Damn, was I right! I know, so unexpected, who would guess?

Nevertheless, as you are already here, I do not want to just let you go without showing you anything, not even a single image (that previous one does not count). So, here is my 404 page, hehehe. Enjoy!

Nothing but Dust!

Hey there! Sorry, I am currently preparing the contents of this article and it will take some time to finish it. Until then, the only thing to see here is DUST and, for those well versed in the world of internet fun, John Cena! See you soon!
Just dust
Nothing but Dust!

To da HUB!