You don’t drive a car without getting lessons and practicing first, The same is true for P2P lending
P2P lending is Risky and you will get stolen from (if you don’t learn and practice first). You can’t put a beginning driver in a car not knowing the gas from the brake and expect a good result. The same is true for P2P lending. However, once you know the basics driving a car is not that hard, and neither is P2P lending.
This guide helps beginners in P2P lending avoid getting scammed by learning some simple lessons to help avoid getting scammed from and earn safe passive income. P2P lending is an intriguing proposition and needed service. Lenders can earn interest by investing their cryptocurrency, and entrepreneurs and traders can get crypto loans.
All done P2P without bankers meaning all the interest goes to the ledor and they always remain in control of their funds. P2P lending is a promising young industry that is growing quickly. Like other P2P innovations before it, it doesn’t seem unlikely that just like Uber quickly becoming the largest taxi company in the world without taxi’s, Btcpop could become the largest banking company without any bankers.
But, bankers do actually have to do some work and know what they are doing. So below are some lessons to learn and guides to practicing so you are ready to be your own banker at Btcpop.
Lessons to learn:
To be frank online reputation and identity is not that valuable to people yet. Collections on cryptocurrencies loans is very new and not very effective yet. But there is a tool at borrowers disposal that can make up for that risk. And that is collateral.
At Btcpop collateral is altcoins and/or P2P shares. Both can be quite safe or risky, so always do your research on the collateral itself before investing. Always look for loan listings with collateral. A borrower who is willing to stake assets on the repayment of his/her loan is likely a good borrower. And if they cannot repay, you are only risking the value between the value of the liquidized collateral and the repayment amount.
I know it sounds cynical, but as a general rule don’t easily trust people online. Friends, Celebrities, or “Pro Traders”. Ask almost any seasoned P2P lender and they will likely have been scammed by each one of those people.
I am not kidding repeating diversify 3 times. Frankly it should be listed more. Unless you are investing in the collateral, don’t invest more than 0.5% of your investment funds in any 1 borrower.
A diversified portfolio reduces risk much more than it decreases potential returns. Meaning your risk/reward ratio goes down which is exactly what you want. Your ROI is going to be much better than fiat anyway. Because there is no middleman and Btcpop only takes a 1% listing fee. Almost all of the interest goes to you as the lender so your return will be higher than expected anyway.
The biggest scams in P2P lending are not done right away for small amounts. They are built up over time and eventually become so big they pop.
The best way to learn is by doing. So just like you practice driving a car with a junky car in an open parking lot. You should practice P2P lending with very small amounts.
Start out with a very small amount (max $20). Follow what people are investing in and the questions they ask. Learn why certain loans get funded and others do not. And don’t be afraid to ask questions in the loan comments or chat. Btcpop’s community is friendly towards new users and happy to help.
If you follow these steps and practice first, P2P lending can be a profitable and rewarding activity which grows cryptocurrencies usefulness for all.
