P2PIncome's Investment Guide
On this page, P2PIncome's financial experts provide informative articles about peer-to-peer investing, and explain how you can invest and profit via the top P2P/crowdfunding platforms. We discuss the value of passive income, explain how you can earn money from various types of investments, and provide insights on how the top platforms conduct business. Use this guide to help you through the process of making your money work for you, or simply to further educate yourself.
Understanding Risk Versus Reward, and Diversification
"The biggest risk is not taking any risk."
—Mark Zuckerberg
Two of the most important concepts in lending and investment are Risk-versus-Reward, and Diversification. In this detailed blog, the experts at P2PIncome address these two concepts, and provide insight into the theory of Portfolio Diversification.
Read ArticleP2P Lending Platforms With Better Investment Opportunities Than Cryptocurrency
Tales from the Crypto
The volatility of cryptocurrency market has caused many investors to look for other, more stable sources of passive income. If you want to move your money from the crypto-market to a more reliable approach, these peer-to-peer lending platforms offer consistent gains. To be sure, no investment is 100% secure, but given these loans and projects are asset-backed, you're far less likely to suffer the kinds of catastrophic losses endured by crypto-investors.
Read ArticleHow Interest Rates Work on the Best P2P Lending Platforms
The Science of Interest
By understanding how interest is calculated, investors are better prepared to select the best peer-to-peer lending platforms. P2PIncome's financial experts provide insight into the world of simple interest, compound interest, and continuous interest, and give their recommendations for the best p2p platforms based on yield and overall quality.
Read ArticleHow to Start Investing in P2P Lending
"You have to start somewhere."
—Pablo Picasso
Are you still getting familiar with peer-to-peer lending? Read our guide on everything related to the beginnings of peer-to-peer lending. How to find a great platform, how to sign up, and what to expect from your investments.
Read ArticleInvesting in P2P Lending for 10 EUR
"Invest for the long haul. Don’t get too greedy and don’t get too scared."
—Shelby M.C. Davis
Many would be investors are uncomfortable with the idea of committing large amounts of capital to an unfamiliar investment vehicle. Here are 5 platforms that will let you open your portfolio for a mere 10 euro.
Read ArticleHow Much Will You Make From P2P Lending?
"The function of economic forecasting is to make astrology look respectable."
—John Kenneth Galbraith
It's impossible to know what the future holds, which is why economic forecasting is such a notoriously difficult science. That being said, there are certain mathematical models and general principles we can use to determine the likely outcome of an investment. In this guide, you'll learn the ideas used to calculate earnings from peer-to-peer lending.
Read ArticleP2P Income | My Loan Is Late. What Do I Do?
Default Management
Late payments can be a really stressful experience on peer-to-peer lending sites. In this blog we discuss when one should worry about a late payment and what can be done about it. We also look at how the top p2p lending platforms address late payments and defaults.
Read ArticleUnderstanding the Various Forms of Debt in Peer-to-Peer
All Debts are Not Created Equal
Debt might just be what makes the world go round, which is why you need to understand it well. There are many types of debt, and they difference in terms of risk and reward. In this detailed article you'll learn about the various types of debt and how you can earn money investing in them.
Read ArticlePeer-to-Peer Lending for Beginner Investors
"Believe you can and you're halfway there."
—Theodore Roosevelt
Every peer-to-peer lending platform comes with different features, returns and investment strategies. In this blog we determine what makes an investment platform suitable for beginners and what makes it suitable for more advanced peer-to-peer investors.
Read ArticlePeer-to-Peer Lending Risk Analysis
"You don't concentrate on risks. You concentrate of results."
—Chuck Yeager
Due to cultural stigma there are many who cast a shadow of doubt on peer-to-peer lending. The use of microfinance has dramatically changed the scene for investors. Find out more about the platforms that use microfinance to leverage and mitigate portfolio loss, and still maximize gains.
Read ArticleFive Tips for Investing in P2P Lending
"An investment in knowledge pays the best interest."
—Benjamin Franklin
You can never too much about finance. The more you learn, the better informed your decisions, and the more likely you are to make money. Different platforms use different features to increase profitability and reduce risk. In this guide we discuss the top features to look for in peer-to-peer lending investment services.
Read ArticleCompounding Interest on P2P Lending Platforms
"He who understands it, earns it. He who doesn't, pays it."
—Albert Einstein discussing compound interest
Compounding interest is your strongest weapon in your investment strategy. The more your investment compounds the more likely you are to reach exponential yields. Read up more on the best ways to implement compounding interest in your investment strategy.
Read ArticleBinance Smart Chain Review
How Smart is Binance Smart?
This is an in-depth analysis of and limited commentary on Binance Smart Chain (BNC) and everything related to it. Discover what makes the BSC an ideal place for decentralized yield farming. Use the information to help you determine whether BSC is right for you.
Read ArticleWhat Is a Loan Originator?
Who Originates P2P Loans?
Many platforms utilize loan originators in order to facilitate their lending borrowing ecosystem. What does a loan originator really do? Find out here about the roles and responsibilities of a loan originator.
Read ArticleUnderstanding Secondary Markets
"Opportunities multiply as they are seized."
—Sun Tzu
The secondary markets on p2p platforms provide investors the opportunity to buy and sell their investments. Knowing how to utilize the secondary market to your advantage can help you polish your portfolio. Read our guide to understand why, where and how secondary markets are best utilized.
Read ArticleInvesting in P2P Lending Vs Stocks
What's the difference?
Peer-to-Peer lending could not be more different from investing into the stock market. An investor has to make a choice between investing into debt and equity. Read more to find out the difference and understand what's a better investing strategy for you.
Read ArticleDirect and Indirect Investment Structures
The Direct Approach Isn't Always the Best Approach
All platforms have different rules they adhere to based on the investment structure of the loans on their platform. Learn more about what makes a company able to issue buyback guarantees and fund recovery strategies.
Read ArticleInvesting in P2P Lending Vs. Real Estate
Real-Estate or P2P? Why not both?
Read about the differences between Real Estate Investments and Peer-to-Peer Lending. EstateGuru, Reinvest24 and Housers use the best of both worlds in order to facilitate a healthy, profitable lending/borrowing ecosystem.
Read ArticleWhy P2P Lending?
Why go at it alone?
Read about why Peer-to-Peer finance is fascinating and why it has become such a popular topic among financial experts. P2P finance builds upon preexisting investment strategies by reducing the barriers of entry and encouraging limited income individuals to build secondary flows of income.
Read ArticleP2P Lending With Auto-Invest Tools
Why lift a finger?
An auto-invest tool can greatly reduce the amount of time you spend managing your investments. Once you've determined your overall investment strategy, simply set the tool to those parameters, and let it do the heavily lifting for you. Read more about the different companies like Mintos and EstateGuru that implement an auto-invest tool and what kind of returns they bring.
Read ArticleThe P2P Investment Guide
For reasons barring all understanding, finance isn't taught in most high-schools. In a study conducted by George Washington University, only 16% of participants were able to answer basic financial questions, such as how banks calculate interest, or how they determine credit-worthiness. According to StatisticBrain.com, only around 20% of bank customers know to balance and reconcile a checkbook. Similarly, a survey by TransUnion found that approximately 70% of Americans have "little to know understanding of how credit is scored." Many people only learn about the concept of credit after they're already in financial trouble. The principles of long-term investment are foreign to many college students, despite the fact that investing in one's youth is a great way to ensure financial independence later in life.
While this site isn't an educational site, per se, P2PIncome believes knowledge is key to making financially beneficial decisions. To that end, the articles in this Investment Guide are intended to provide investors with the tools needed to meet their financial goals. As you browse this section, you'll find informative articles on a variety of topics related to finance and peer-to-peer investment. For example, the majority of p2p platforms work with loan originators, so it's extremely important for investors to understand the role of loan originators in the loan-investment mechanism. Similarly, it's important to understand the difference between investing in stocks versus investing in p2p.
If you're just getting started as an investor, you'll want to test out some platforms, and it helps to know which platforms allow you to invest small sums. Perhaps you're very busy, and don't want to spend too much time per week looking over listings? Did you know there are sites with auto-invest features that do most of the heavily lifting for you? We've taken the time to write a complete "How To" guide for the beginner investor, in addition to individual articles on various aspects of p2p investment. You'll certainly want to learn how direct and indirect loans structures operate, as that is key to P2P lending.
On the other hand, perhaps you already have some experience investment money, and you're looking to expand your portfolio? Perhaps you understand risk analysis in general, and are worried about the risk want more information on how p2p risk analysis works. The experts at P2PIncome have covered the matter in detail. Similarly, if you've been investing in cryptocurrencies and aren't sure it's the right market for you, we have an article to help you determine whether it's time to shift away from crypto. Perhaps you've committed some capital in the real-estate market, and now you're looking for a way to expand your portfolio? P2P can serve as an excellent high-liquidity investment mechanism.
It's important to clarify that the articles in the Investment Guide are opinion pieces, and while they do provide suggestions, you must decide for yourself which investment strategy best suits your needs. Perhaps crypto is the right approach for you? Perhaps your success in peer-to-peer lending will greatly exceed our estimations. We aim to provide the tools. How you use them is entirely up to you.