How p2p investing compares to other investment methods

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p2p investing vs other investment methods

After the wake of the financial crisis in 2008, the term “investment” gets more and more relevant for the regular citizen of the world. We see the incapability of governments and big financial institutions to properly handle economic turbulence, which is inevitable in a free market global economy.

Every one of us is seeking a different way to generate more profit and to assure their financial independence. It becomes one of our primary goals, and we are desperately searching to find the best possible way to achieve it. Meanwhile, the financial market has existed for 500 years and is a global phenomenon that offers different types of financial instruments – currencies, indices, stocks, futures, real estate, bank deposits, you name it. All of them have their pros and cons, represent an attractive investment opportunity.

In the recent years, we have a new player in town – peer-to-peer investing. And this newcomer is pretty impressive as an underdog.  Peer-2-peer was the answers to the questions of many investors after the meltdown in 2008. It was a new way to invest your funds, yielding more returns than most of the other traditional investing opportunities. Furthermore, investing in p2p platforms has shown to be less risky for the investors. Let’s see why p2p investment platforms have such a competitive edge over everything else on the market.

P2P investing vs. Forex

Everybody knows that FX is the beast in the financial market world. It is the most dynamic market, providing the greatest liquidity possible. Nevertheless, all those benefits are making it the most volatile. And we know that volatility means significant risk. You can be on top of your game one moment and the next you are in the dead zone of the margin call. You lost everything. It is a typical picture. On the other hand, you have p2p investment platforms offering a high return on investment with percentages going up to 15% and the opportunity to secure your net investment with 100% buyback guarantee. It means that every single one of the credits listed on the primary market is ensured with this guarantee.  The risk of losing your investment is near zero. It is something that no FX broker can guarantee you.

On the other hand, you have p2p investment platforms offering a high return on investment with percentages going up to 15% and the opportunity to secure your net investment with 100% buyback guarantee. It means that every single one of the credits listed on the primary market is secured with this guarantee.  The risk of losing your investment is near zero. It is something that no FX broker can guarantee you.

P2P investing vs. Stocks Trading

Investing in the stock market is also one of the best-known methods to get a return and make a fortune. Every one of us is dreaming of being the Wolf of Wall Street or Gordon Gecko. Nevertheless, the stock market is one of the most complicated and volatile markets in the world. You have to be very skillful with the fundamental and technical analysis to get the best out of it. Also, you have to be more than familiar with the financial statement of every company you invest in and to be prepared to ride the speculators’ wave, always searching for any underwater reefs. It is a daily hassle, 24 hours, five days a week.

Peer-to-peer platforms offer you a way more relaxed “working day” if we can put it that way. With the auto-invest function on the platform you can set up your preferred strategy, allowing the software behind the platform to keep all your funds invested in the loans you think will generate the most profitability and the only thing you have to do is to check your return on investment from time to time. Now you have the freedom to enjoy your life of a successful investor.

P2P investing vs. Real Еstate

From the dawn of time, the real estate market is a place that everybody wants to be in.  To lead the glamorous life a real estate mogul, just like President Trump, you know. But before you go into your dream trip in penthouse apartments in Central Park, New York, let me just stop you right there. Investing in real estate has one tedious little setback. And this is the size and liquidity of the market; you will always be constrained by the demand and supply side of the market. One day the market may not have enough buyers, and you may be stuck with an investment that you do not need, or the market may be short on the seller, and you will not be able to invest your funds and generate profit.

The situation in the p2p world is different. You have the necessary liquidity you need. The loan originators are listing hundreds of loans every day, so the supply side of the market is no brainer.  On the other hand, you always have the opportunity to sell you investment on the secondary market and get your return right away, without any time delay.

P2P investing vs. Bank Deposits

Putting your savings into a bank institution and waiting patiently for your annual return is one of the most popular and well-known methods to invest your free capital. Unfortunately, banks these days cannot answer to the demand from the customer for high returns, and that is causing significant discomfort for the regular person, who seeks to have a stable income over the years. Peer-to-peer investment platforms are addressing this painful problem right at the heart of it. Investing in p2p gives you the opportunity to generate up to 15% return yearly, which is a significant improvement over the standard profits from deposits.

All of the above is showing that our underdog has many advantages over the standard investment methods and this is no surprise. In the recent years, the p2p industry is showing tremendous growth with 3-digit growth rates and the trend is far from over. The financial revolution is here, and the only thing you have to do is join in.

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