Lending Bitcoin To A Poker Player?

BTC lending tipsWho never lent or borrowed money? In times of tightness, any help is welcome, and the loan, whether from a friend or a relative, is always an option to not leave the name dirty. However, one must be aware of some important points linked to any relationship that involves the transfer of money.

But how is it if a friend comes to you and asks for a Bitcoin loan so he can play Poker with it – even if he’s a real pro player? Maybe you wouldn’t immediately know how to react. Therefore, we present 10 essential tips for you that will help you decide whether or not to lend Bitcoin to someone who intends to play poker with it.

1. Ask yourself why you should lend your Bitcoin to someone

When someone borrows Bitcoin from you for gambling purposes, there may even be some reasons why you think you should accept it. One of them might be your personal worship of being generous, in which case the choice is emotional. Therefore, we warn you to be careful about this and be prudent, whatever the decision. Another situation is the fear that refusal will make the person seem less willing to help, selfish or not so trustworthy.

About this situation, experts warn: “No relationship should depend on the openness of the person to lend money; and if a ‘no’ is going to hurt this, maybe the friendship is not as strong as one imagined”.

2. Suggest an alternative

The important thing in cases that could upset the relationship is to show that, although you don’t want to lend, you care about the situation of the person who asked for the amount of Bitcoin. Therefore, it is essential to be sincere and show interest by suggesting possible alternatives to the issue. A range of loan services are introduced on BitcoinP2PLoans, they’ve tested BlockFi and other Crypto loan companies.

3. Make a written agreement

Nobody grants a Bitcoin loan in an unpretentious way and, logically, expects at least to get back the same amount that he gave. Therefore, it is important to be sure about this, and a very interesting way is to produce a written agreement. In this document, you can include some clauses and details of the transaction, such as the amount, the repayment schedule, the possible consequences in case the money is not returned, among others. We need to point out that making a notarized contract is better for the agreement to become valid and more enforceable. Here are free templates you can adjust to Bitcoin loans.

4. Discuss the situation with your spouse

Avoid trouble at home. If the amount to be lent is a really significant amount, check with your partner to see if he or she agrees. We’ve heard of many cases of shaky relationships and friction created as a result of undiscussed loans. There are even parents who regretted giving money to their children because of the conflicts at home.

5. Do not use your retirement fund

This is one of the big mistakes you can make. Stir up any retirement fund in order to help a relative or friend is reckless. If you need to do an operation like this, be aware that you don’t have the money to lend.

6. Don’t try to control what’s being spent.

Even if somebody close to you wants to lend your money for gambling, you should not dwell on the situation in order to check to see what is being spent on exactly. The personal finance specialist reminds you that, if this happens, there is probably a good reason on the part of the debtor and it is not your job to control his or her spending.

7. Set an interest rate

In addition to being a requirement of the Government for it not to be considered a gift and for undue fees to be charged, establishing interest shows the level of seriousness with which you are taking the loan. To do this, you must rely on current applicable federal rates, but generally lower amounts. Be aware of the need to be reported as income in your income tax, avoiding it being considered a gift.

8. Think about why you were chosen

You should think why, from so many friends and financial institutions, even practicing similar interest rates, soon you were chosen. It may even be that you were not the first choice, and that certainly means something.

Therefore, remember that borrowing money is already a problem, and if a bank possibly did not agree to make the transaction is because it did not consider the person a valid credit risk. So, if the fact that you may not get the money back causes you some bad feeling, think again before lending any money.

9. Make it clear when and how you want your Bitcoin back.

It’s recommended putting these details into the contract, but as clearly and specifically as possible. Negotiate how the return will be made: if it will be in installments, with the fixed amount, in how long, the initial amount borrowed, how much is expected to yield at the end of the period, whether it will be in cash or by deposit, among others.

10. Say “no” without fear

Most people tend to try to help a bad financial situation of a relative or friend. When you know that the person wants to gamble with your money, even if he’s a real professional, you still have good reason to say no. You should never feel obligated to lend money and can deny yourself without fear. The mistake is to believe that the worst situation will come about with your refusal.

“For example, if your brother borrows money from you to pay his cell phone bill so he doesn’t get his line cut off and you refuse, there are some possible results. He can ask someone else for help, get the money on his own, negotiate with the telephone company or even have his mobile phone cut off. In other words, of four possibilities, three end up in a positive way without you getting involved with the case,” she adds.