Compound interest is the most powerful force in the universe - Albert Einstein
Even Albert Einstein, one of the brightest minds in history, did appreciate the compound interest effect. And indeed the compound interest is one of the best ways to generate great wealth in the long run.
To illustrate the effect, assume you currently possess 10 Bitcoins. If you generate 30 % interest on them every year, you end up with 511 Bitcoin after 15 years, which at the current price level would equate to over 1 million US-Dollar.
10 BTC *(1.3)^(15 years) = 511 BTC
30% is an interest rate which can be easily archived as interest by lending on Poloniex. For the last couple of months, the interest rate at Poloniex even hovers at around 50%. At this rate, you even end up with 4378 BTC after 15 years.
To setup an fully automated lending bot for Poloniex, the following steps are necessary:
- Create an account on Poloniex
- Deposit Bitcoin to Poloniex
- Generate API Keys on Poloniex
- Move your Bitcoins to your Funding-Wallet
- Create an account at Coinlend
- Setup your Bot by providing your API Keys to the Bot
Every step will now be explained in detail:
1. Create an account on Poloniex
- Go to Poloniex https://www.poloniex.com/ and click on Create Your Account
- Fill out your data:
- Check your email and confirm your account by clicking the link in the email. After confirming, you can log in to Poloniex
2. Deposit Bitcoin to Poloniex
- After you created your account, you can deposit Bitcoin (Or DASH, ETH, ...) to your account. Therefore, click on BALANCES -> DEPOSIT & WITHDRAWALS
- Search for BTC and click on Deposit
- Send your Bitcoin to the shown address:
3. Generate API Keys on Poloniex
- Select the wrench icon -> API KEYS
- By default, your API is disabled. Click on Enable API to enable your API:
- You will receive an email and you have to click the link inside to confirm the activation of the API. After clicking the link you will be redirected back to the API page. Click on Create New Key
- You will receive yet another email with a confirmation link. Confirm it and the API credentials will finally be created. Disable the trading permission, since it is not needed for lending. Copy and paste your API credentials somewhere safe or leave the page open.
4. Move your Bitcoins to your Funding-Wallet
- Go to BALANCES -> TRANSFER BALANCES
- Move all Coins you want to lend out from your exchange wallet to your lending wallet:
5. Create an account at Coinlend.org
- Go to https://www.coinlend.org or https://www.coinlend.de and click on Setup Bot
- Click on Register
- Provide email and password
- Click on the confirmation link in the email you will receive from Coinlend and click on Account to login
After login, you will be redirected to the settings page. Here you have to enter your API key as well as your API secret created at Poloniex. After you entered them, click save and your bot is up and running and will lend everything you have in your lending wallet.
- If you need some custom configuration for your lending, click on Settings
- Here you can exclude individual coins from lending, define a reserved amount or a minimum interest rate.
That's it! You set up your fully automated lending, can go to vacation or doing anything else and if you come back you will see your holdings grow and grow. Enjoy.