Do you want to start investing in P2P Lending? Yes, I know everyone talks about it, but few invest.
If you want to read the experience of those who have invested in this market for 10 years, make yourself comfortable and read this article. You are in the right place.
In this article, you will find out how to best invest by following my rules and above all those of the most important world investors in P2P Lending.
Some investors have invested over € 1,000,000 in this new asset class and therefore we are not talking about a game.
Obviously (as I see it) we are not even talking about an industry with which you can joke or invest with your eyes closed.
High returns rarely go hand in hand with risk.
And unfortunately, the risk is also very high in this category of investments.
And how to say, the crisis is just around the corner.
This article starts from reading a BOMB article that appeared on The Smart Investor, a blog that talks about Marcus and his wife’s path to financial independence.
To read it click here. It is in English and is called How to invest 10,000 Eur in P2P Lending?
It also arises from the constant questions I read on Facebook or Telegram on which platform to choose to start or differentiate the risk.
So if you are interested in this topic, you have already read my guide to P2P lending, but you are still not satisfied and you want to know which platforms to invest in to start or continue your investments, this article is for you.
In this article
- How to invest 10,000 Eur in P2p Lending?
- What should you consider to invest best?
- My ideal wallet with 10,000 Euros
- What would change with 1,000 or 100,000 euros?
- Conclusions
How to invest 10,000 Eur in P2p Lending?
The title of the article that I reported above is: “How to invest 10,000 Eur in the social loan?”.
The post is an interview with the main European bloggers who invest in the sector and tell their experiences.
The bloggers who responded are 15 for a hypothetical total invested of 150,000 euros.
Some of them maybe you already know them and I’ve already told you about them.
For example, there is Jorgen Wolf of Financially Free and Sterling of P2p Millionaire, a blogger famous for having divested 1 million euros on the secondary market of Mintos.
But there are also some that I did not know and who in any case enriched the discussion with interesting opinions and comments.
Here are the results of their interview:
- Everyone suggests investing in Mintos by allocating 45% of the total capital to this platform but paying great attention to the selection of originated loans r. Many are real rubbish;
- 10 out of 15 recommend investing in Grupeer, however, allocating only 15% of the total assets to this platform;
- Half also add Crowdestor and Envestio with an investment of 8% of the entire capital;
- Only 1 in three chose Crowdestate and EstateGuru ;
- Many prefer smaller platforms with a view to differentiation and risk mitigation;
- Nobody mentioned Bondora, probably due to the limitations of the Portfolio Pro mode and the low starting yields.
What should you consider to invest best?
Before investing 10,000 Euros, or any amount, you should consider that the amount invested in this type of investment must never be too significant compared to your entire investment portfolio.
The risk of this category of investments is very high and there is no guarantee of performance and solvency of the platforms.
Secondly, I invite you to explore and try the platforms with a view to differentiation.
There are a thousand opportunities, and a new operator is born every day.
Platforms compete to acquire new customers and new capital and therefore tend to innovate and always find new ways of investing.
With any amount, I, therefore, advise you to use a large number of operators.
I invest in 11 traders at the moment but am always ready to explore new opportunities.
Third, I recommend that you split your money between consumer, business, and real estate loans.
You can decide on the most correct distribution, but this distribution can help in terms of investment security.
You can also differentiate by duration.
Don’t focus on the short term, but don’t put yourself out there on long-term loans.
For example, I rarely exceed 12 months and rarely 24 months.
Finally, always keep some liquidity.
This is not a piece of advice that I found in the tips of the 15 bloggers of the article, but that I think is fundamental.
I use Bondora Go & Grow with this in mind and I must say that the yield offered of 6.75% is not bad anyway.
Liquidity can be used to take advantage of the best offers of the platforms and the bonuses offered.
In addition to liquidity, it also considers the liquidity of investments and the existence of a secondary market on the various platforms.
A new crisis is upon us and in that case, we will have to move quickly and it is not certain that some platforms do not have the financial strength to resist.
My ideal wallet with 10,000 Euros
If I had 10,000 Euros to invest in this market, I would act like this.
I would allocate:
- 2,000 to cash and I would park them on Bondora Go & Grow;
- 4,500 Mintos ;
- 1,500 Grupeer ;
- 500 Crowdestate;
- 500 Crowdestor ;
- 500 October ;
- 500 Peaberry
10,000 Euros should guarantee around 90/100 Euros of monthly income, which I would use to explore new platforms such as Robocash and Estate Guru.
Comparing myself with other users, I realized that many have invested in EstateGuru.
Many appreciate it because it invests in real estate projects already completed and therefore not subject to some typical risks of these investments.
Perhaps it is worth starting to study it.
With the proceeds, I would also try the Italian platforms that offer lower returns but are theoretically supervised and safer.
Finally, I would not miss the promotions and bonuses.
I would take advantage of the promotion of Housers Invite a friend and I would study them well to move the capital according to the bonuses offered by the platforms.
What would change with 1,000 or 100,000 euros?
In principle, it would not change much.
In the case of 1,000 Euros, I would probably focus only on Bondora, Mintos, and Greer.
I would leave out the other platforms but I would be very careful about promotions and the possibility of obtaining capital thanks to bonuses and cashback.
In the case of 100,000, I would increase the no. of platforms maintaining a certain liquidity margin and investing a share of at least 20% on Italian platforms.
Conclusions
Investing 10,000 in P2P Lending is not easy and must be done professionally.
Complicating the matter is the fact that it is a new investment with young platforms and almost always without any regulation.
This offers great earning opportunities but also exposes you to great risks.
Investing 10,000 Euros is not difficult, but at the beginning, I recommend that you study the platforms and keep some liquidity.
You can then focus on the investments and operators in whom you will gain more confidence.
Please keep informed and always read the blogs and news of the main operators.
You must always be ready to withdraw your money, switch platforms and find the best platform and earn steadily.
Only in this way will you be able to maximize your insurance returns.
For any doubts write me an email or contact me in the Telegram group.
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