Finance

Peer-to-peer lending

If you are uncertain about the stock market and want to find alternative investment then I would recommend Peer-to-peer which also is my favourite alternative investment strategy. Most of my savings are place in Peer-to-peer and I check them out now and then. It is easy to understand and anyone can do it. Before anyone decide to try out Peer-to-peer I would recommend to do some research.

Peer-to-peer lending, also abbreviated as P2P lending, is the practice of lending money to individuals or businesses through online services that match lenders with borrowers. Since peer-to-peer lending companies offering these services generally operate online, they can run with lower overhead and provide the service more cheaply than traditional financial institutions. As a result, lenders can earn higher returns compared to savings and investment products offered by banks, while borrowers can borrow money at lower interest rates –Wikipedia

  • Decide in what currency you would like to invest in, do you want to place your money in the country or abroad. Google around for blogs and articles and read the reviews.
  • Choose the Peer-to-peer companies you would like to invest your money. I myself use Mintos and Fastinvest (for investment in Europe). I have signed up for newsletter from Envestio.
  • Decide if you would like to transfer your money directly from your bank or other services for example Trustly or TransferWise.
  • Before you insert a large sum of money, test if you can easy transfer money and make withdraws without any issues. Check for how long your money will be transferred to your bank account.
  • When everything seems alright start off with a small sum of money for example €50 and see if it feels good. When everything feels right then you go nuts!

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Other tips!
Look out or something called Buyback guarantee.
Your interest rate should be at least 9%, but it depends on your strategy.
Set up auto-invest portfolios.
If you would like to get started with mintos you could use my
link to get a bonus.