P2P Lending - Investment Option

Peer to Peer is the future, they say in the financial space. In reality due to govt and the various tech that goes in the middle, we are far from it.

However there are many schemes where you can form this sort of the investment. Where middle party joins the two and then investment starts from that point onwards.

When you choose the p2p lending, you are funding someone who needs it and the person who pays the interest and principal is returned after the same. So the investment kind of works out.

So let's talk about P2P ending, both in equity market and in crypto market.

What is P2P Lending & Microloans

Say you have like say 100 USD to invest. And someone else from market needs 100 USD. You would give them that amount on loan. And then you would earn from the interest and also earn good pricipal return at the end.

Some loans have no interest and some are just high return for the investor at the end. So it all depends on the repay capacity of the borrower. So it's a small loan but it can give you a good returns there.

How much should you invest? What benefits?

Kiva taught me that as low as 25 USD is possible. But those are social cause and you are likely to get hands burned if money does not come back. And if you choose to invest into crypto that too would carry risk.

So barring the risk issue. You may find that P2P lending and the microloans can be a good option for you to keep the momentum. Less or medium loss if things go wrong and also good return of investment for the time frame.

Is it safe? is it for all of us?

Most of the microloans are safe. I can't say the same for the crypto based microloans. But you know where things stand most of the time. I feel that in order to play safe you would have to invest reasonable investment that you can burn.

It's not for all and those with high money should invest elsewhere. Those who have limited money that they can spend over then p2p loans can be good. And most of the crypto loans can be interesting to invest into as well.

Do you think P2P Lending is a good option?

My preference is using the p2p with the crypto and it can earn me good if things go well after the recession. I'd recommend you to try it out if you happen to plan for the investment smal amount.

What's your opinion?