Bitfinex is one of the largest and oldest crypto exchanges in the world. The Hong Kong-based trading platform supports various tokens and coins. You can also use it as a trading platform but very few people know that now users can lend their assets to Bitfinex. Let’s take a look at it in more details.
The borrowed money is utilized for margin trading. The margin trading is applied to build leveraged trading, and the leverage represents the proportion of funds to the margin. The trader can hold his/her position set to falling prices. The one more thing is that the borrower must put collateral. If it is low then the position is liquidated and returned to the lender.
If you are thinking about the returns then returns on Bitfinex are impressive.
How does the rental on Bitfinex work?
The very first step is if you are not a registered user then you have to open your account. Now, Bitfinex contains 3 wallets where users can deposit their capital. Now, If users wish to lend money, then they have to go to the funding wallet. For this, go to the top right corner of “Wallet” -and then “Wallets,” and transfer your capital. Now the next option for order appears. Rental operates on Bitfinex similar to trading. There are order books in which the requests or offers are posted.
Now, on the left side, you will see a small table containing currencies. Now if you select one then the order book will be displayed in the middle below (in the picture on the right). Here you can view the credit requests in green and the loan offers in red. On the far-left side, you will see the days and how long the credit should work.
After this, the loan volume appears. The next column displays the credit volume stored up to the line and the last column displays the interest rate. The interest rate is 24 hours. The more common form, the yearly interest rate is calculated by multiplying the daily interest rate by 365 days/year). Now, on the right, you will see the purchases.
If you want to specify the credit then it can be achieved by using input mask credit. Now below the RATE enter the sought daily credit rate. AMOUNT covers the loan amount and PERIOD the time between 2 and 30 days. Clicking on “USD Bid” in this case executes a loan application or loan by simply clicking on “USD Offer”
The FRR also called Flash Return Rate is the average rate measured by the amount. The FRR is recalculated hourly and works as a milestone. With FRR VARIABLE users can set a range to the FRR. This shifts as the FRR is recalculated. FRR FIXED determines a range to the FRR. For example, suppose FRR is at 0.035 and the FRR VARIABLE is at -0.001. Now the interest rate is at 0.034. If FRR returns to 0.038, the new interest rate is 0.037. If FRR Fixed is fixed, the interest rate settles at 0.034, even if FRR switches.
Now, by clicking on USD “Bid” one users can ask for a loan and by clicking on USD “Offer” users can give a loan.
The most profitable currencies so far are the Tether and the USD. One should be careful about the short-term interest rallies of individual crypto currencies because these rallies usually do not last long.
Data for lending
You can lend from $ 50 but the smaller loans are not possible. The charge for Bitfinex goes to 15% of the profit earned. The interest is determined every second and paid daily at 01:30 UTC.
Use a bot?
Bitfinex is also used for data queries and platform administration. The interface can be used for a bot that handles lending automatically. Coinlend is one easy-to-use web based lending bot.
And to use this the first step is to set up open an account on Coinlend. Now, the next step is to create an interface key on Bitfinex and grant it the required authorizations for the lending. To achieve this, just go to the top right corner and select API Keys. Under “Create New Key” just create a new key with the following permissions.
Lending bot is very useful if you want to lend more money. There are numerous configurable strategies to optimize output. Coinlend can be applied to many exchanges. In extension to Bitfinex, Poloniex, Liquid, and Celsius are currently supported.
Cost of Coinlend
Right now, there are 3 offers on Coinlend. For this, Coinlend holds 5% of the prize as a payment. Also, there are weekly fixed prices. The standard package requires $ 2 per week while the most affordable package (Basic) requires $ 1 per week. All the services can be seen here.
The average annual interest rates for dollars and tethers are around 10% per annum. Now, if you do not want to pay more than 10% of the profit then the capital lent in the Basic package should be greater than $ 10,000. In the case of the standard package the requirement is more than $ 20,000, and for the Premium package it should be more than $ 31,000. Coinlend accepts credit card, fiat or cryptocurrency.