Savings rates are still at all time lows making Peer-to-Peer loans an interesting option for savers that want their money to go to work. For example, if you are starting a Bitcoin business, taking a loan in Bitcoin can be a great way to earn credit approval on multiple levels inside the Bitcoin user community.
The BitcoinPeer-to-Peer lending ecosystem has never been stronger and many options are available for a Bitcoin investor that want to make great returns with Bitcoin. In this article, I will compare my favourite Bitcoin Peer-to-Peer lending platforms that I use to invest my bitcoins.
BTCJam is the longest running Bitcoin P2P lending platform and along with that claim to fame, BTCJam has the largest selection of loans and creditors in comparison to other platforms. BTCJam has also recently released an auto-invest feature allowing automatic diversification at desired risk levels for investors.
While BTC jam is the most popular loan platform, this does have a downside in that it requires BTCJam to answer to more customers creating slower support times. BTCJam, like any high volume online peer-to-peer loan program, has been plagued by scams artists seeking loans. Therefore, your due diligence is a must if you choose to invest Bitcoin on BTCJam.
LoanBase is another platform highly recommended for Bitcoin P2P lending. The platform is relatively popular, keeps detailed statistics on loan performance, and has steadily increasing participation over the last year. This website has had it’s share of scams as well .
The website interface is a bit dated as well, but they are constantly working on improving the interface & the features. They also have an original way to set the interest rates for loans: it’s actually the investor, not the borrower, that sets the rate individually for each investment. Then, the borrower can accept or refuse the investment at the proposed rate. This makes it really different from other platforms.
BitBond is a newer platform entering into the Bitcoin P2P lending market. BitBond offers other advanced features like automatic investment options as well as manual review of all loans. This is great as it guarantees that most of the loans on the platform are from high-quality borrowers, and the default rate is much lower compared to other platforms.
BitBond provides detailed data about loan performance, but it lacks a bit on the accounting side as they only give out a text log that you will have to parse and analyse yourself if you want to know more about your portfolio performances.
Like BitBond, BTCPop is relatively new in the Bitcoin P2P lending market and consequently does not yet have a lot of loans to choose from. BTCPop does offer insurance against loan defaults and a no frills simple to use interface. The insurance feature is really what sets it appart from the rest of the platforms.
Also, not only you can invest in loans on this platform, but you can also invest in pools for instant loans. This is a really cool concept, as you can invest in these pools according to the risk level you want to take, and just forget about your investment & enjoy the returns.
Which Platform to Choose?
Each P2P Lending platform have it's advantages and disadvantages.
If you want to lend money, use all of them. 4 smaller loans are faster to be filled than 1 huge loan.
If you want to invest, also use all four. Each platform have different members with different offers. You don't want to lose profitable investment just because you sit on one P2P lending platform and not checking the other 3 :)