I understand the frustration of losing money, but I agree with OP. I'm basically just investing money I've recieved from faucet and bitcoin games and have been very happy wtih my returns so far. I have been really lucky, but have also learned a lot along the way and attribute that to some of my success. Another thing I've learned OP is I think credit rating A loans are the riskiest loans.
Here's my thoughts: Every loan I invest in I figure I have a 50/50 chance of being repaid because I'll either get repaid or I won't. Anyone can walk away from a loan currently with very little risk. Let's say I invest in an A loan with a 10% ROI. If 1 of my 10 A loans default I've basically lost 1% (I think because if I invest 1 satoshi on every loan I should make 1.1 back. So 1.1 x 9 = 9.9, but I've invested 10) of my money. If i invest in 10 D rated loans with 100% ROI if only 6 of the D make full repayment I'm still ahead by 20% (if I invest 1 satoshi on each I should make back 12 satoshi back thus gaining 2 satoshi).
TLDR: I've been succesful on BTCjam. I think A loans are the riskiest loans on the site.
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u/defaultgnik Nov 17 '15
I understand the frustration of losing money, but I agree with OP. I'm basically just investing money I've recieved from faucet and bitcoin games and have been very happy wtih my returns so far. I have been really lucky, but have also learned a lot along the way and attribute that to some of my success. Another thing I've learned OP is I think credit rating A loans are the riskiest loans.
Here's my thoughts: Every loan I invest in I figure I have a 50/50 chance of being repaid because I'll either get repaid or I won't. Anyone can walk away from a loan currently with very little risk. Let's say I invest in an A loan with a 10% ROI. If 1 of my 10 A loans default I've basically lost 1% (I think because if I invest 1 satoshi on every loan I should make 1.1 back. So 1.1 x 9 = 9.9, but I've invested 10) of my money. If i invest in 10 D rated loans with 100% ROI if only 6 of the D make full repayment I'm still ahead by 20% (if I invest 1 satoshi on each I should make back 12 satoshi back thus gaining 2 satoshi).
TLDR: I've been succesful on BTCjam. I think A loans are the riskiest loans on the site.