Investing in Peer to Peer Lending

Making the Bitcoin leap

Since you are reading this you likely have made the decision invest in Bitcoin and you are now looking for ways to increase your potential returns.

At this point you are able to navigate Bitcoin exchanges with consummate ease and you have discovered the best ways to store your Bitcoin.

However, you may be thinking what precisely do you do now that you have secured, in all senses, your adventure into the exciting world of cryptocurrency?

Perhaps you use Bitcoin to buy some items, but, broadly speaking, you consider yourself to be bullish and want to keep hold of as much as you can with an eye toward the future.

This is one of the main reasons people get into Bitcoin. Unlike more complicated investments the entry point is not so high and information about performance is readily available.

For some the best way to increase profit will be to engage in trading, but unless you understand the complexities of markets and have a lot of time to study trends this will be a difficult prospect.

Furthermore, unless you have a strong background in finance you will be dedicating even more time to understanding the dynamics of forex trading.

Perhaps that might be a long-term strategy for some, but what about the rest of us? Fortunately, we have the perfect solution, but first let us look at other options.

One of the other tempting possibilities for Bitcoin investors is to look into cloud mining. This can seem attractive, at first, because it offers passive earnings. However, there are problems here, not least that a number of well-known cloud mining companies have gone defunct over the years.

Those that remain may offer life-time deals, but it is difficult to make a case for cloud mining earnings, which are often exceptionally small unless one invests in massive amounts of hashing power, and it should be noted returns will be so low it can take over a year just to earn your return on investment.

For a helpful guide to assessing your return on investment make sure to check out the following guide.

Here one is also at the mercy of the whims of the mining game where cost is everything and increases in difficulty will result in fewer cloud mining dividends over time. That leaves us with two options that might at first seem appealing, but look less so once we examine them in detail.

What then are the other options on offer? One all-too-often overlooked approach is investing in peer to peer lending on a platform such as Bitbond that offers a highly diverse set of options when deciding where to grow your Bitcoin.

In what follows we will look at a set of compelling reasons that lead me to recommend Bitcoin investors to turn their attention to the peer-to-peer Bitcoin lending community.

It is an area that is growing in popularity and one that it would be wise to get into as soon as possible. It is also worth noting that the earlier you enter this world the better equipped you will be in the long-term to assess the most interesting borrowers and so not miss out on popular proposals.

Focusing on investing in peer to peer lending

There are many reasons for taking this approach, but there is one we must address first as it speaks to the very essence of the Bitcoin ecosystem. Namely, that as a peer-to-peer lender you will be engaged in helping those within the Bitcoin loan community to fund their projects and business plans.

This is good, in general, for the Bitcoin ecosystem going forward and the more successful these businesses are the better for your own investment.

That is, the more projects you help to fund the more successful the cryptocurrency will be in the eyes of society and, hopefully with time, this will correlate with a rise in the price.

Further, rather than centralising your investment into one company, such as a cloud mining one, with Bitcoin loans you spread the risk across a number of individuals and companies. Through this approach you thereby radically minimise your risk and exposure.

Be sure to look at the ten highs and lows of peer to peer lending for further analysis on this front. You will also, through the neat Bitbond platform, be able to analyse the various proposals in detail and decide which ones hold the most promise or you could decide to invest based on one’s own specific interests. Be sure to keep in mind best practises before you dive in.

In either case the aim should be to focus primarily on investing in peer to peer lending and to persuade you of its merits we need only to consider three key features: Bitcoin is borderless, Bitbond does not, and this is significant for your returns, charge lenders fees, and Bitcoin loans on Bitbond offer excellent interest rates.

Three major benefits

As with Bitcoin in general investing in peer to peer lending comes with a set of excellent built-in bonuses. One of the most important is that as a cryptocurrency with no need for centralisation, such as a state, Bitcoin is not beholden to any particular country, as, for instance, the US Dollar is.

In other words, Bitcoin is borderless and when you invest in someone in Brazil it is the same as investing in someone in the United Kingdom.

This feature of decentralisation was sacred to the creator of Bitcoin, Satoshi Nakamoto who designed the currency such that it has a built-in peer-to-peer element.

In this sense, peer-to-peer lending is a natural off-shoot of the Bitcoin model in general and it is no surprise that platforms such as Bitbond have arisen in response.

Decentralisation is what allows us to see Bitcoin as a global rather than local community. It also allows investors to consider a wide range of diverse options when considering where to place their investments and this is something usually only on offer to those with significant funds in fiat currency.

For a sense of the kind of people that borrow on the platform this interview will give you an insight into the contemporary Bitcoin borrower and the ingenuity they exhibit.

Another excellent feature of Bitcoin peer-to-peer lending through Bitbond is that it involves no fees for the lender. Yes, you read that correctly.

A major innovation of the Bitbond platform is that the investor is rewarded simply for funding the loans with no burden on their behalf when it comes to the various costs associated with a loan.

Even then the fees for the borrower are exceptionally low meaning that it is unrivalled as a peer-to-peer lending platform in this regard. You can see a list of fees and rates.

This means that in terms of return on investment you do not need to calculate any further costs than what you decide to directly provide to the borrower. This is an aspect that goes unnoticed in traditional forms of lending where what seems at first a direct investment turns out to include all kinds of hidden fees.

The peer-to-peer model overrides that problem by putting users directly in contact with one another.

All in all, it is as simple and easy as finding a project you like and committing to it. Again, this is made possible by the decentralised nature of Bitcoin and the freedom to interact directly with one’s peers that it offers.

Another major benefit is that contrary to centralised lending agencies, such as banks or credit unions, peer-to-peer lending platforms such as Bitbond offer far better interest rates.

This is, of course, one of the primary motivations for anyone seeking to grow their Bitcoin investment through peer-to-peer finance. The interest rates on offer correspond to how well the borrower does on the rating system undertaken by Bitbond.

This allows lends to ascertain how much risk is involved and the rate will reflect that as well. It is also correlated to how long the loan with Bitbond allowing loans from 6 weeks to 60 months. This allows investors to choose those loans that best suit their own schedule for when they would like to gain their returns.

Conclusion

At a time when Bitcoin use is growing and wider applications of the blockchain are emerging we are witnessing a profoundly interesting set of developments and this is especially true when it comes to peer-to-peer lending. Bitcoin is eminently suitable to this process and it is, all options considered, by far the safest means to grow your Bitcoin that currently exists.

It is, quite simply, the prospect with the best overall return. Not only are there no issues surrounding borders, since Bitcoin is, as we have seen, decentralised, but by using platforms such as Bitbond you will not, as a lender, have to pay any fees.

Furthermore, the interest rates on offer are unparalleled allowing you to generate passive income according to your own preferences and interests.

Related resources:

Peer to Peer Lending: The 10 Highs and Lows Bitcoin Investments → Cutting Through The Fog Global Investments – The Cream of the Crop Bitcoin Lending In 5 Years – What Does The Future Hold?