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Do you invest in P2P (fiat or crypto)? .

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Minimining
@minimining
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P2P-loan going bigger and bigger in Sweden. It is also common in crypto but it is one big different. P2P in crypto is with safety - you will always get your money back if you are not scamed. In P2P in fiat you take a credit risk.

P2P - In short In Sweden we have two big companies that offer this kind of investment. They offer loans for 3-20 % to thoose who need money. Then they take 2-4 % in fee and the rest goes to the investor.
So if someone lend money with 10 % in rate and the fee is 3 % you get 7% in a year.

5-7 % is very good If you put your money in a bankaccount in Sweden you get 0,6%. So this is 10 times better.
But is it a risk?

Extremly low risk in sweden First of all - you are the owner of the loan. If the company goes bankruped you have still the legal right to get your money from the person that have the money. And this companies have back-up companies that will take over if they can not manage the business.

But the creditrisk? Sure - there is a creditrisk. But if you dont get paid the company will help you out and let the gouverment try to get the money back. For a small fee they help you if you can prove the loan. And - This companies have credit-loose-fund. You get the money back if you loose them.

Good money - or? Yes I think this is easy and secure way to get good return. BUT it all depends of the risk in the country where you invest.
Sweden have very low percent that dont pay there debts. This kinds of loans it is 1-2%. And if you diversify your investment at 40 loans it will not effect you so much if it happens. Still the gouverment will do what they can to get the money back.

I think the biggest risk in this investment is:

  1. Scam - I know there has been one in sweden long time ago.
  2. Creditloss - The risk depend of what law you have in your country.

Do I use P2P? Yes in two ways. First of all I invest in Trine. They give small loans to people in Africa and Asia to build up sun-energyinstallation. Swedish company with good reputation - but higher risk because the gouverment can not help me get money back (they can not go to africa). I get 6 % from this.

Second I invest in Celsius. A crypto project where you can save money or take loans. I get 5-8 % in a year from that.

I like the idea - To get rid of the banks and take the profit yourself.

Do you use P2P in your portfolio of investments?