What the people say:
As a lot of you know. One major platform, one might say the King of all lending platforms was dethroned not to long ago by shutting down the lending side of their website. Now many people say that all lending platforms are scams or ponzi schemes. However for that to be true that means that there is no such thing as AI trading bots or anything else that supports the business model.
Although I do agree that a lot of the platforms running ico's now and in the future unfortunately will be scams, I am not completely convinced that all of them will turn out the same.
What is a lending platform?
A lending platform is a website where you can lend out your cryptocurrrency for a certain amount of days and receive interest on the amount loaned for the duration of the loan. For example: you invest $100 into Davorcoin that pays out an average of 1.25% a day, so everyday from the day you made the loan you will receive an average of $1.25. Sounds great right? Now you have 3 choices you can (a) every time your wallet reaches $10+ you reinvest to add to your active investment and earn more daily. (b) transfer your funds into Davor coin and hold the coin so that as they appreciate in value your profit is higher. Or (c) you withdraw all your profits right away.
Can you really make money?
Even though Bitconnect left a lot of people with a bad taste in their mouth especially when it comes to lending platforms I believe the answer is yes. Bitconnect made plenty of people a lot of money and I mean a lot. There are even a couple of youtubers that dedicated their channels to showing how the platform made them money with out any referrals under them basically discrediting the ponzi scheme theory. Besides lending a lot of these platforms offer staking which is when they reward your for holding their coins typically around 10% a month.
ICO's is another way to make money with these platforms. When Davorcoin ran its ICO they offered the coins at .70 a peace and within 2 months time the coin surpassed $100 price point. Now lets do some math. you could have bought 100 davcoin for $70 and sold anytime passed $100 and made over $7000 off of a $70 investment. Not bad, right? Speaking of ICO's one of the main reasons why I believe that the USA had a lot to do with Bitconnect shutting down is because they simply don't want the average joe becoming rich. Last year a lot of people all over the world made a ton of money by investing into ICO's, then the US decided to make it illegal for US citizens to participate in ICO's which forced the companies to implement KYC protocols (Know Your Customer). Guess who is still aloud to participate in them. Qualified investors, in other words rich people that have portfolios of over 250,000usd. Don't get all the way discouraged though because there are plenty of ICO's that will let you participate Just have to find them.
Conclusion:
Lending platforms are definitely a risk but they are a risk with very very high reward and therefor risks that I am willing to take. I am not a financial adviser I simply give my opinion and let people know what steps I am taking. Thanks for reading everyone. Below are links to the platforms that I am invested in as well as the link to my youtube channel. And of course follow me on D.tube.
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