Site icon Unocoin Blog

Bitcoin: A currency for P2P lending?

Bitcoin: A asset for P2P lending?

Bitcoin investments can be pretty dynamic thanks to its volatility. You can always hold your bought Bitcoins and wait for profits, but why not put them somewhere they can grow up to an even bigger value? Ever considered P2P Lending?

Bitcoin Lending

What is P2P Lending?

Peer-to-Peer Lending is a system of online lending through platforms that allow individuals to lend or borrow on an individual basis. Peer to Peer Lending returns are higher than those of bank loans and the interest rates for borrowers are flexible and negotiable.

With the great return on value and all the perks around P2P lending investments, many organisations have considered using Bitcoin as their digital asset. If you believe the price of Bitcoin would increase and you want to earn interest on your investments, P2P lending is an excellent opportunity.

How can you invest Bitcoin in P2P Lending?

This requires creating a wallet in a Bitcoin Lending organisation. After creating a wallet a lender would have to transfer Bitcoins into it. There would be multiple investment options in the form of loans you can give out. As you choose your option and invest in a particular loan, you would have to wait till that loan has been fully funded. As soon as this happens, you will get monthly repayments with interest till the loan matures.

As different borrowers have different repayment constraints, this allows you — the lender — to adjust your levels of risk before investing your cryptoasset. However, you always need to be cautionary when choosing the correct borrower who is most likely to NOT default on their loan! Now with the addition of Bitcoin, it adds much more caution, as Bitcoin sum once lost might never be recovered.

But with the specialised credibility systems provided by these cryptoasset lending wallets, it is easier, secure and more beneficial to invest. Moreover, your loan repayments would go straight into the wallet, and you may reinvest them or send them to an exchange and exchange it for fiat currency.

More on Bitcoin Lending investments

Conclusively, Bitcoin Lending can prove to be a huge success. But keeping in mind the volatility and added risks, investors must always be aware and understand all their choices before taking any step.

Also Read:

Exit mobile version